The 9 Best POS Systems for Small Businesses: Our Top Picks for 2023

What is a POS system?

A point-of-sale (POS) system allows businesses to accept customer payments and manage operations. For example, the right POS system can help restaurants manage their menus, accept online orders and handle customer loyalty programs. A retail-specific POS can help businesses accept in-person and online payments, book appointments, manage employees and more.

POS systems include the hardware and software business owners need to operate their establishments. The software is often cloud-based and accessible from anywhere. The hardware often includes a register, barcode scanner, card reader, cash drawer and receipt printer.

• The right POS system helps small businesses accept online and in-person payments.
• POS systems provide the hardware and software that retailers, restaurants and other companies need to run their businesses.
• POS systems help business owners gather customer information and monitor staff.
• This best picks page is for small business owners and merchants who are looking for the right POS system.

A POS system is a must for many businesses, including retailers, restaurants and other merchants. However, choosing the right POS system can be challenging. With so many POS systems on the market, selecting the best option for your business can be confusing. To make it easier, we’ve done the research for you. Browse our top picks to find the best POS systems in 2023.

When you invest in a POS system, you’ll typically incur three primary costs: a one-time hardware fee, a monthly or annual software fee, and a payment processing fee. Here’s an overview of what you can expect to pay for each:

• Hardware: The average cost for POS hardware is $799, but you could spend up to $1,500. The exact price depends on how many registers and accessories you need. If you already own hardware, you could save money by choosing a POS provider that allows third-party hardware integrations.
• Software: Software plan costs range from free to $150 per month. You may have to pay for a higher-priced plan if you have many employees, need to track a lot of inventory, or want multiple add-ons.
• Payment processing: The payment processing fees range from 1.5 percent to 3.5 percent per transaction. The fees often vary slightly based on whether the transaction is in person or is a card-not-present transaction, such as an online payment.

The right POS features will make it easier to run your business and streamline your processes. Here are some features you should look for in a POS system.

Payment Processing

Most businesses begin looking for a POS system because they need a way to complete customer transactions. Many POS providers go beyond accepting credit cards and debit cards, allowing you to take online and contactless payments. In the process, you’ll receive detailed insights about your daily sales, so you’ll always know how your business is performing.

Inventory Management

Basic POS systems may support only a product catalog, while others have POS inventory management features that allow you to track inventory at the component or ingredient level. Some plans include purchase ordering and vendor management features to simplify your reordering process. Consider whether standard inventory tools will be sufficient or if you will need advanced features to keep your business well stocked.

Customer Management

Customer management features vary among POS systems. Some allow you to capture basic information, such as your customers’ email addresses, so you can build an email marketing contact list. Other POS systems are CRM-enabled, with features that let you generate CRM metrics and create customer profiles, including contact information, purchase histories, preferences, birthdays and notes.

Loyalty Programs

To ensure a loyal customer base, you must reward your best customers. A POS system enables that with built-in loyalty software. The top POS systems can track information on your customers’ shopping and dining preferences and help you design customer loyalty programs and rewards programs around that data. You can customize rewards based on how frequently customers shop at your store and the products or services they purchase.

Employee Management

You can usually add your employees to the POS system and manage their access to various features and information. Some systems have role-based access controls, while others let you customize the controls for each employee.

Some have built-in time clocks, which let your employees use the POS system to clock in and out. Others can track individual employees’ sales or manage tips.

Reporting

All POS systems can generate POS reports. However, some systems have only basic report functionality, with preconfigured reports and limited customization. Others are advanced, with dozens of reporting options and filters to help you analyze data for your sales, inventory, customers and staff.

The best POS systems have real-time reports that you can access from any device with a browser or mobile app. Before you purchase a POS system, ensure that it offers the specific reports you need to run your business efficiently.

Add-ons and Integrations

POS systems often have many features, but they may not be enough for your small business. That’s where add-ons and third-party integrations can help.

For example, you may want to integrate your POS system with the best credit card processors, the best accounting software and top marketing platforms. Or you may want to use a specific email marketing platform or offer a customer loyalty program from a specific provider. The best POS systems give you many integration and add-on choices so you won’t be limited as your business grows.

Customer Support

You should be able to contact your POS provider around the clock to receive help with the system when you need it, even if your business keeps irregular hours or you’re working on the weekend.

Look for a POS provider you can easily reach via your preferred communication mode, whether by phone, email, live chat or social media. The best companies even offer 24/7 support.

The best POS system for your business will depend on your business type and the specific features you need. Here are three steps to take when you’re evaluating POS systems.

1. Conduct market research.

The first step is to research the products that are currently available on the market. You can use online guides like this one to compare and contrast different options. It’s also a good idea to browse user reviews and customer comments on third-party review sites and the Better Business Bureau website.

2. Contact vendors for demos.

Once you’ve done your initial research and narrowed your search to a few companies, reach out to each company to ask for a product demo. You should also sign up for any free trials to test the software. Ensure that the POS system setup process is straightforward.

Remember to consider the unique circumstances of your business when completing each demo. The best POS system for restaurants will offer different features than the best POS system for retail, for example, so do your best to think through how this software will impact your team’s day-to-day workflow.

3. Evaluate pricing.

Once you’ve done the demo and explained to each company what you’re looking for, you’ll receive quotes from each vendor. Compare and contrast what each package includes and which product gives you the most bang for your buck.

• All-in-one system: A POS system allows you to manage various aspects of your business from a single location. You can track sales, inventory, customers and reports from your POS app.
• Cloud-based software: Most POS systems are hosted in the cloud, which means you can access your data from anywhere and complete customer transactions on the go. Cloud-hosted systems also bring more reliability and efficiency.
• Advanced features: Many POS systems have advanced features, like inventory management, e-commerce functionality and customer loyalty programs. These features allow you to provide better and more personalized service for your customers.
• Mobile payments: The most advanced POS systems offer mobile compatibility through apps that can be installed on tablets and smartphones, converting them into portable POS terminals. Retailers can utilize these mobile checkout devices to process customer transactions from any location within the store, and restaurants can use them to take orders and process payments at the table.
• Reporting features: The data your POS system collects will give you details on how your business is performing. Along with your general sales data, you can see detailed information about your customers’ buying habits and identify your best-performing employees.

POS systems have come a long way since the early days of retail. No longer is a POS system just a register, cash drawer and credit card scanner. In 2023, POS systems will likely offer advanced features and provide POS system benefits that help businesses track inventory and gain data about their customers.

As POS systems change, we expect to see the increased use of automation in POS systems. Most systems now offer features that can help with inventory management, payroll, reservations, orders and payments, thus allowing your staff to focus on other areas that may require more attention. Automation can be an effective solution for streamlining and optimizing operations.

We’re also noticing that more POS systems are offering self-service options for customers, especially for restaurants. Customers can place orders online and pick them up without ever leaving their vehicles. They can also use self-serve kiosks to order and pay, and even pay their bill right from their mobile device.

POS systems that cater to e-commerce businesses are offering more ways for businesses to sell their products on social media, and this trend will continue in 2023 and beyond.