Best POS Systems for Small Business
Small businesses need POS systems that are affordable, easy to set up, and don't require an IT department. We tested the leading options to find the best balance of features, pricing, and simplicity for small business owners.
Square
Best Overall for Small Business
Square is the gold standard for small business POS. Free software, transparent pricing, no contracts, and it works out of the box. You can literally start accepting payments in 10 minutes.
Pros
- ✓Completely free to start
- ✓No monthly fees on basic plan
- ✓Works on your phone or tablet
- ✓Free online store included
- ✓No contracts ever
Cons
- ✗Processing fees higher than interchange-plus
- ✗Limited phone support on free plan
The obvious choice for most small businesses. Start free and upgrade only if you need advanced features.
Read full review →Shopify POS
Best for Retail with E-commerce
If you sell online and in-store, Shopify POS unifies everything. Your inventory syncs automatically, and you get the world's best e-commerce platform included.
Pros
- ✓Best-in-class e-commerce
- ✓Unified inventory management
- ✓Beautiful, modern interface
- ✓Extensive app ecosystem
Cons
- ✗Requires Shopify subscription
- ✗iOS only (no Android)
- ✗POS Pro costs extra
The best choice if e-commerce is important to your business. The Shopify ecosystem is unmatched.
Read full review →Clover
Best Hardware for Professional Image
Clover's hardware is sleek and professional-looking. If you want a premium countertop presence and don't mind paying more, Clover delivers on aesthetics.
Pros
- ✓Beautiful hardware design
- ✓App marketplace for customization
- ✓Strong offline mode
- ✓Customer-facing display options
Cons
- ✗Confusing reseller pricing
- ✗Can't use your own processor
- ✗Hardware is expensive
Good if hardware aesthetics matter and you're willing to shop around for the best deal.
Read full review →Toast
Best for Small Restaurants
If your small business is a restaurant, Toast's free Starter Kit makes sense. You get restaurant-specific features that general POS systems lack.
Pros
- ✓Free Starter Kit available
- ✓Purpose-built for restaurants
- ✓Offline mode
- ✓Online ordering included
Cons
- ✗Only for food service
- ✗Requires Toast hardware
- ✗Typically requires contract
Skip this if you're not a restaurant. For food service businesses, it's excellent.
Read full review →Lightspeed
Best for Growing Small Businesses
Lightspeed is more powerful (and expensive) than most small businesses need. But if you're growing fast or have complex inventory, it scales better than Square.
Pros
- ✓Advanced inventory management
- ✓Excellent reporting
- ✓B2B and wholesale features
- ✓Scales to enterprise
Cons
- ✗Higher starting price
- ✗Steeper learning curve
- ✗May be overkill
Consider Lightspeed when you outgrow Square or have complex inventory needs.
Read full review →How to Choose a Small Business POS
Start Free, Upgrade Later
Most small businesses should start with Square's free tier. You can always upgrade to paid plans or switch providers as your needs grow. Don't over-buy features you won't use.
Avoid Long Contracts
Some providers lock you into 2-3 year contracts. Small businesses should avoid this. Square and Shopify offer month-to-month billing. If someone pushes a contract, negotiate or walk away.
Consider Your Growth Path
Think about where you'll be in 2 years. If e-commerce is in your future, Shopify might be worth starting with. If you're opening multiple locations, check multi-store pricing upfront.
Frequently Asked Questions
What's the cheapest POS for small business?
Square is free with no monthly fees. You only pay 2.6% + 10¢ per transaction. Hardware starts at $0 if you use tap-to-pay on your phone, or $49 for a card reader.
Do I need a dedicated POS or can I use my phone?
You can start with just your smartphone using Square's Tap to Pay feature (iPhone or Android). For higher volume, a tablet and card reader ($49-149) provides better customer experience.
What about credit card processing fees?
Most small business POS systems charge 2.5-3% per transaction. This is normal. Avoid providers who quote low rates but add hidden fees. Square's flat 2.6% + 10¢ is transparent and competitive.