Best Free POS Software: Benefits, Hidden Fees & More

The best free POS system is Toast, due to its powerful hospitality toolkit and complementary handheld device, which lets servers take orders and make payments on the go. On the other hand, Square is the best free POS system for retail stores, offering a raft of sector-specific features and an included card reader. Both are some of the best POS systems for small businesses, along with the other POS systems from our in-depth, hands-on research.

To be clear, free POS systems will let you get started for free, but once you start making sales, they often incur transaction fees and scaling costs, which is why doing a bit of research can go a long way in helping you save the most money for your business.

In this guide, you’ll learn all about the best free POS systems for retail and hospitality businesses, as well as any hidden fees that you may incur after you get started. Alternatively, if you’re willing to invest in a paid POS system, fill in a couple of simple questions using our free POS system comparison tool to get a tailor-made quote for leading POS providers.

In this review

• Best Free POS Software
• Is Free POS Software Really Free?
• Pros and Cons of Free POS Software
• Buying Guide: How to Choose a Free POS
• Research and Methodology
• Verdict: What Is the Best Free POS Software

1. Toast

• Best free hardware and software package for food businesses
• Transaction fees: From 2.49% + 15¢

Toast is an industry-leading POS system designed specifically for food and beverage businesses. We found it to have a spectacular array of hospitality features – including digital menus and real-time analytics – and a handheld ordering device available with its free Starter Kit plan. Our research also noted that Toast would be a great option for most small food vendors.

Combine this with Toast’s slick interface — which boasts the best user experience out of any provider we tested — and it’s no surprise why the POS sailed to the top of our list.

Toast gave me real-time table management updates straight from the POS. Source: Tech.co testing

When we tested out Toast, we appreciated its clean, modern design, and the fact that its software led us on a smooth user journey. Specifically, one user tester mentioned that it offered “everything that they needed” without the software feeling cluttered with unnecessary features. This gives Toast a leg up over systems like Square, as it took users a bit longer to search for key features with the alternative.

It’s worth noting, however, that Toast isn’t currently compatible with iOS hardware, as they instead offer their own restaurant-proof devices. So, if you’re after a setup compatible with existing iPads you own, or want a retail-focused option, we’d recommend using Square instead.

Learn more about how Toast vs Square compare.

The engagement features suggested campaigns to help us attract more customers. Source: Tech.co testing

Businesses using the free plan can also showcase their offering through digital menus, giving customers a chance to check out menu items virtually by scanning a QR code on their table, before a server comes to take their order. If you want to unlock Toast’s mobile ordering feature, you’ll have to pay extra as this isn’t included in the provider’s free tier.

Who should use Toast?

• Small full-service restaurants
• Businesses that would benefit from digital menus
• Businesses that want to grow their base

Who shouldn’t use Toast?

• Counter-service businesses like cafes and fast casual vendors
• Businesses looking for ultra-low transaction fees
• Businesses that rely heavily on help and support

If you like Toast, you might also like…

2. Square POS

• Best POS for small retail stores
• Transaction fees:  2.6% + 10¢ to 3.5% + 15¢

Square is a huge name in POS that offers a generous free version currently being used by 4 million merchants worldwide. It’s our best-rated POS for small businesses because of its stripped-back interface and excellent selection of retail and restaurant features. Fortunately for smaller sellers, loads of advanced capabilities are available in its free forever plan Square Free – including advanced reporting and fraud protection – preventing businesses from needing to splurge to access top-tier capabilities.

Square gives you a clear overview of your stock catalog, stock counts, and purchase orders from its user-friendly dashboard. Source: Tech.co testing

With 53% of organizations falling victim to payment fraud in 2023, Square also offers free fraud protection tools to protect businesses against fraudulent buyers. Square Risk Manager uses machine learning to automatically identify and block unusual payment patterns. The tool is customizable too, and we were able to view fraud activity through our analytics dashboard and set rules that automatically control when they accept payments.

All told, if you want to start a business with a free(ish) POS system, and are looking to get started on a user-friendly, stripped-back interface we’d choose Square.

The Square POS includes reports like this sales summary. Source: Tech.co testing

However, while Square’s modern software and fuss-free offering will lend itself well to smaller businesses, we did find the system to be slightly more clunky than alternatives like Toast and Clover. For this reason, we wouldn’t recommend the system for established businesses that need to serve high-volumes of customers quickly.

Read our Toast vs. Square vs. Clover POS guide to learn about how the systems compare in full.

Square’s free POS hardware

Aside from access to a range of POS features, free users are also entitled to a free Square card reader for Magstripe – a magnetic stripe reader for swiping credit cards. The card reader, which connects seamlessly with Square’s POS app, accepts swipe payments and is compatible with iOS and Android devices.

Square’s POS Terminal lets you take payments and print receipts on the go. Source: Tech.co testing

Square’s free Magstripe reader provides smaller vendors with a great opportunity to get selling for free, but if you’re looking to unlock extra streams of revenue with contactless and chip-and-pin payments, you’ll need to upgrade to the Square Reader ($59) or the touch screen Square Terminal ($299).

Square’s transaction fees

Square does charge processing fees: 2.6% + 10 cents for each card-based sale, 3.5% + 15 cents for manually keyed-in sales, and 2.9% plus 30 cents for online sales. Cash and check transactions are free, though.

You’re also able to integrate your POS with your online store for absolutely free, too. But if you want to access team management and payment features, you’ll have to pay $35 per month + $6 per employee for its Payroll add-on.

If basic features won’t cut it for you, you’re also able to trial out Square’s Retail and Restaurant plans for free for the first 30-days.

Who should use Square?

• Small pop-up vendors
• Sellers that are looking for a simple tablet set-up
• Vendors who want to integrate their online store

Who shouldn’t use Square?

• Food businesses after a seamless user experience
• Vendors after a free contactless payment option
• Sellers that want a free terminal

If you like Square, you might also like…

3. SpotOn

• Best free POS hardware package
• Transaction fees: 2.89% + 25c

SpotOn is an up-and-coming POS system that offers an extremely generous free plan for food businesses to get started on. Aside from a surprisingly expansive software package, we found that SpotOn has the best free hardware options of any other free provider on this list – making it a top contender for counter service hospitality businesses.

Accepting payments was easy for cash, cards, gift cards, and even a house account. Source: Tech.co testing

For businesses looking to expand their reach, SpotOn also gives us access to marketing and review software that integrates directly into the POS. Included in this package is a mailing list builder, which syncs with existing customer data, to help businesses encourage repeat buying and attract new customers.

However, for all of SpotOn’s perks, its help and support center isn’t as reliable as Square, and the provider doesn’t currently offer a free tier for retail businesses, limiting SpotOn’s accessibility and preventing it from overtaking more versatile POSs like Clover and Square.

SponOn offers tons of useful payment, reporting, and menu-management features in-house, and also lets users connect the software with third-party integrations. Source: Tech.co testing

SpotOn’s free POS hardware

The free plan gives you access to a fully water and dust-resistant 15-inch POS terminal which is ideal for busy, counter-service businesses like cafes and fast food vendors. The terminal also comes with an optional customer-facing display, allowing your customers to view sales data in real time.

In addition to the terminal, SpotOn’s free hardware package includes an optional stand, cash draw, and receipt printer. This hardware offering is much more generous than what’s offered with other free plans, making SpotOn an excellent choice for small food businesses without existing hardware, that are looking for something a bit more advanced than a basic tablet set-up.

While our team of user testers found the SpotOn quite easy to use overall, they faced hurdles when it came to setting up custom floor plans and adding products to orders. While it shouldn’t take servers too long to overcome these issues, we’d recommend Toast for food businesses looking for a lower learning curve.

Who should use SpotOn?

• Vendors without pre-existing hardware
• Food businesses that want to grow their customer base
• Counter-service businesses like cafes and fast casual vendors

Who shouldn’t use SpotOn?

• Sellers that want ultra-low transaction fees
• Businesses that already have an iPad setup
• Businesses that rely on customer support

If you like SpotOn, you might also like…

• Square, if you run a smaller food or retail business that is able to get by with a slightly more limited free plan

4. Zettle By PayPal

• Best free POS for mobile sellers
• Transaction fees: Starting from 2.29% + 9¢

Zettle by PayPal is a user-friendly POS app that runs on smartphones and tablets. It may not be the most feature-rich POS we’ve researched, but we found the software has more than enough capabilities for single-store retailers, pop-ups, and mobile sellers, including impressive stock controls and customer loyalty features.

Zettle doesn’t offer any free hardware like other providers on this list, but affordable transaction rates help vendors keep costs low over time.

Zettle’s features

Despite Zettle’s micro-price tab, we were impressed by the POS’s stock management tools. Sellers can use Zettle to track inventory, sift through products, and even set low-stock alerts to get notified before they run out of units. The low-stock alerts and customizable too, allowing sellers to set specific limits for whichever products they choose.

Zettle By PayPal accepts lets vendors accept payments via card, cash, links, and gift cards. Source: Tech.co testing

Zettle By PayPal’s system is simplistic but easy to use. Our team of user testers were really impressed by its slick, modern design, but found it slightly challenging to complete advanced tasks like adding notes to orders and adding new customer discounts. This suggests that similarly to Square POS the system is suitable for smaller, single-unit businesses like cafes and bars, but may struggle to meet the needs of full-service businesses.

Who should use Zettle by PayPal?

• Pop-up sellers like food trucks or market stalls
• Small retail stores
• First-time POS owners

Who shouldn’t use Zettle by PayPal?

• Multi-branch retail stores
• Full-service restaurants
• Sellers after free hardware

If you like Zettle By PayPal, you might also like…

• Square, as the alternative offers a great smartphone or iPad setup, but has a wider variation of hardware options, in case your businesses’ needs evolve over time

Is Free POS Software Really Free?

Most small business POS systems on the market today are cloud-based. This means they are run by a company that hosts their software and licenses it out to businesses, who then use it while connected to the internet.

Since these systems tend to make their money on a subscription basis, some offer a free tier. This allows POS providers to gain brand recognition and creates a broad customer base that might eventually move up to a paid subscription plan.

However, while POS software can be free, most businesses will have to invest in extra hardware devices, which can bump up the price of the system overall. For example, businesses will need a pre-existing tablet or smartphone to download the app, which can cost anywhere from $99 to $799 new. Then you have to factor in the cost of additional hardware like touch-screen card readers ($30-299), cash drawers ($50-200), or barcode scanners ($30-70)

Free POS plans also take a few percentage points off the revenue from each sale. While there’s no up-front cost for using the software, your monthly revenue will drop by around 2-3%, so it’s not really free. However, the price might be more acceptable for a small business that can’t depend on consistently meeting a budget, or an individual vendor that doesn’t sell year round. Square POS operates using this model and provides significantly better features for it.

Find out more – How Much Does a POS System Cost?

Other free POS systems include those offered by companies as a no-strings-attached loss leader to boost their brand name and encourage sales of POS hardware or add-ons, as well as open-source POS software, which is created and maintained by online volunteers but is often clunkier and may be outdated.

Are Free POS Systems Worth It?

It’s a hard time to be running a restaurant or business at the moment. As surging inflation rates push up the price of stock, and the cost of living hampers consumer spending, maintaining healthy profits has become even more challenging for business owners.

Free POS software might seem like an easy way to reduce your overhead. But be warned, not all of them are as “free” as they claim to be, and others simply don’t have the features you’ll need to run your business.

If you’re still on the fence about using a free POS system take a look at the benefits and drawbacks associated with pursuing this option below:

Free POS Systems: The Pros

• By letting businesses get started without fronting monthly fees, free POS systems are a tried-and-tested way to lower overhead costs.
• Free POS systems don’t require businesses to pay for packages up front, providing a lifeline to sellers who don’t have lots of start-up capital.
• Many platforms even offer free hardware to get you started with in-store selling at no cost.

Cons of Free POS Systems

• Free POS systems charge much steeper transaction fees than paid versions, making costs add up fast for businesses with high turnovers.
• Most free POS systems lack advanced features like custom reports and online ordering, forcing businesses to rely on paid add-ons to access these services.
• Free POS systems tend to offer fairly basic hardware options, making them unsuitable for businesses that require expansive or specific hardware setups.

What it eventually comes down to is the POS system you choose has to be the right POS for your needs. You can use our free POS comparison tool to find the best value POS system for your business. It’s simple, quick, and easy to use, and you’ll get a free, no-obligation quote to help you assess your business’ needs.

Buying Guide: How to Choose a Free POS

While this guide rounds up the best four free POS systems, we also recommend you do your own research to make sure your chosen solution will be able to fulfill your needs. Just like with paid versions, there’s a wide range of factors to consider to ensure your system will provide you with great returns over time. We take you through just a few of them, below:

• Industry-specific features – A fast casual food business needs a completely different set of factors than a retail store. When choosing a free POS make sure the system offers all the capabilities you need in-house, as this will prevent you from needing to augment your package with costly add-ons.
• Scalable software – While you’re looking for a free POS solution now, as your business grows it’s likely your point-of-sale needs will evolve too. This makes choosing a POS with different pricing tiers and software add-ons important, if you plan to stick with your provider in the long term.
• Suitable hardware options – Whether your business requires a counter service terminal or handheld card reader, make sure your POS provider offers hardware options that support your service style. If you have existing hardware, like an iPad, you should also only be considering compatible hardware packages.
• Reasonable transaction fees – While free POSs are a great way to dodge monthly fees, providers make their money back by charging steeping card transaction fees. Some free POS providers charge much higher fees than others though, so it’s always worth shopping around to make sure you’re getting the best deal possible. Find out how much credit card processing fees cost here.
• Ease of use – If you’re opting for a free POS system, it’s likely you don’t have tons of experience navigating point-of-sale software. To make you, and your teams’ life easier, only consider systems that are renowned for their intuitive, user-friendly interfaces.

Research & Methodology