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Is a Free POS System Right for Your Business?
A free POS system can save your business money, but you should understand the limitations and ensure that it meets your needs.
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Your business is ready to modernize from traditional payment setups to a point-of-sale (POS) system, but investing in such a solution can be difficult with your current budget. A free POS system could be just what you need. However, before choosing a no-cost option, business owners must evaluate the benefits and limitations of these platforms. The best POS system for your organization, whether free or not, will depend on your business’s size, industry, budget and required features.
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Is a free POS system right for your business?
A free POS system may be the right choice for your business in the following situations:
You need only basic functionality from your POS system.
You want POS hardware and software that are easy to install.
You found a free POS solution with the essential features your business needs (e.g., inventory management, sales tracking, reporting, etc).
You found a free POS platform that can accommodate your business type (e.g., it works with mobile devices, integrates with your existing terminals, etc).
You found a free POS platform with adequate customer service options and channels.
You’re comfortable with any hidden costs or fees that may accompany your free POS system, such as payment processing rates or add-on feature charges.
You found a free POS system that can handle your transaction volume.
You found a free POS system that can integrate with crucial business software your business already uses.
A free POS system may not be the right choice for your business in the following situations:
You anticipate substantial business growth in the coming years.
Your transaction volume is high.
Your business requires advanced features to ensure seamless operations.
Your business has multiple locations and complicated needs.
Your integration needs are too advanced for a free solution.
Free POS system pros and cons
For businesses with modest transaction volumes or that don’t need sophisticated features such as inventory management or customer relationship management tools, free POS systems can be an excellent choice. That said, they aren’t the right fit for every business. Consider these pros and cons of free POS solutions.
Free POS system pros
Free POS systems save money. Cost savings are the most obvious benefit of free POS systems. Some robust POS platforms can cost hundreds — or even thousands — of dollars, which isn’t practical, or even possible, for many businesses.
Free POS systems require no commitment. Unlike many paid plans, free POS systems don’t require a long-term commitment. When you’re not locked into a POS contract, you can easily switch to a new POS system if your business experiences rapid growth or your credit card processing needs change.
Free POS systems can speed up your checkout process. A free POS system is better than no POS system at all. Most free POS options will speed up your checkout process and streamline your sales funnel.
FYI
Be wary of payment processing vendors that offer free POS systems but require you to sign lengthy contracts. You may get free POS hardware, but you still may have to pay for a monthly POS software subscription.
Free POS system cons
A free POS system isn’t truly free. Sure, the software may be available at no charge, and setup fees and equipment costs may be waived, but businesses typically face higher per-transaction rates to process credit card payments.
A free POS system often locks you into specific payment processors. Processor exclusivity with the POS provider prevents competitive rate shopping — a significant disadvantage for high-volume merchants.
Free POS systems limit usability. Restrictions and permissions vary widely by platform, but many free POS systems have limited usability. For example, you may be restricted to a specific number of inventory items, registers or users. Free plans are typically viable options only for businesses looking for basic POS tools or companies with few transactions or products.
Free POS systems have limited features. While free POS systems enable basic sales processing, they often lack more advanced functionality. You may not have access to inventory tracking, sales analytics and performance reporting, third-party integrations, and customer and employee management tools.
Tip
Consider the essential POS features your business needs now and the functionality you'll likely require in the future. A free system may be enticing, but if the platform can't meet your long-term needs, you should probably consider paid options.
How to choose a free POS system
There are several free POS systems to consider, as we highlight below. Follow these steps to narrow down the options and ensure you select the right platform for your business’s needs.
Determine which type of POS system you need. For example, you may need a mobile POS system, a tablet-based POS system, a terminal POS system, an online POS system or self-service POS kiosks. These factors will influence the type of POS system you need:
Business size
Business type
Number of registers and locations
Transaction volume
Industry
Choose the POS system features you want. Create a prioritized list of essential versus nice-to-have features. For example, would inventory management features improve operations? Would accounting software and marketing system integrations make your life easier? Do you need reporting or customer management features? While free POS systems may not offer every feature on your wish list, identifying your must-haves upfront is the fastest way to eliminate options that won’t work for your business.
Consider your existing payment processor or select a new one. If you currently have a payment processor you like, check whether the vendor offers free POS hardware and software. There are pluses and minuses to using your existing payment processor for your POS system. For example, you may be wary of long-term contracts. Still, if you have a good relationship with your payment processing company, its free POS solution may be the right place to start. Decide whether your payment processor’s free POS functionality meets your needs. But if you don’t yet have a payment processor or want to switch vendors, use your POS search to find both at once — many free POS providers bundle payment processing, so you can evaluate the full package together rather than piecing the two together separately.
List your free POS system options. Compile a list of free POS providers using guides like this, industry resources, peer recommendations and firsthand research. Prioritize established providers with a proven track record in your specific industry or business type.
Compare providers. Conduct side-by-side comparisons of the features, limitations and growth paths of each solution. Pay particular attention to transaction fees, user restrictions and available integrations. Eliminate those that don’t meet your needs.
Research reviews and customer service ratings. Seek out verified user reviews from businesses similar to yours in size and industry. It’s also worth reaching out directly to each provider’s support team with a few questions. How quickly and thoroughly they respond tells you a lot about what the ongoing customer experience will look like.
Decide on the best POS system for your business. After narrowing down your list of options, choose the free POS platform that best balances your current needs with future scalability. Verify that moving to paid tiers is easy as your business expands.
The best free POS systems
While many POS providers advertise free software offerings, these vendors often monetize their services through transaction fees or by charging add-on fees for advanced features. Though free POS systems typically offer fewer capabilities than their paid counterparts, they should still deliver the core functionality your business needs to process payments efficiently.
Consider the following excellent options if you want to try a free POS system.
Square: Square has a free POS software service tier that is among the most robust no-cost options. As a bonus, Square is also one of the best low-fee credit card processing services available. It charges flat-rate transaction fees (2.6% plus 15 cents for in-person transactions). You can pay to add more features and functionality to your POS system as your business grows. Our detailed Square review covers the service’s payment encryption, fraud protection and more.
Toast: Toast is an ideal solution for small restaurants and cafes seeking cost-effective POS technology. The Toast Starter Kit plan requires no monthly software fees. It includes one terminal, basic POS software and access to core features, making it particularly attractive for food service establishments operating on tight margins. Read our Toast review to learn about the features included in the free tier and the paid add-ons.
Helcim: Helcim is an all-in-one POS platform that doesn’t require a contract, monthly fees or setup costs. Instead, the company charges a small markup over the credit card company’s interchange rate, along with a fixed fee. Current rates include 1.84% plus 8 cents for in-person transactions and 2.31% plus 25 cents for keyed-in and online payments. Check out our full Helcim review to learn more about this POS system’s transparent processing rates and robust features.
If a free POS system doesn’t provide the robust functionality your growing business needs, consider vendors that offer free trials of their paid POS solutions. You can get a feel for the software and determine whether the functionality you’ll receive is worth the costs of a full contract.
The following POS vendors offer trials of various paid tiers.
Clover: Clover offers a whopping 90-day free trial so you can thoroughly explore its features before committing to a paid plan. Read our Clover review for a detailed overview of the POS system’s many features.
Lightspeed: You can try Lightspeed for 14 days. Read our Lightspeed review to learn about its unique e-commerce POS features, SEO tools and inventory functions.
Shopify: Shopify functions as a payment facilitator with robust POS capabilities. The platform offers a three-day free trial, followed by an extended paid trial period at $1 per month for three months. Read our Shopify review for more details on the company’s POS and e-commerce software.
GoDaddy: GoDaddy has excellent e-commerce POS features, POS reporting functionality and analytics tools. You can try it all with a 30-day free trial. Read our GoDaddy POS review to learn about the system’s unique payment features.
Epos Now: Epos Now offers versatile hardware and flexible POS software, with a 30-day free trial to test the system. Read our Epos Now review to learn how the company’s integrations stand out.
Jamie Johnson contributed to the reporting and writing in this article.
Skye Schooley is a dedicated business professional who is especially passionate about human resources and digital marketing. For more than a decade, she has helped clients navigate the employee recruitment and customer acquisition processes, ensuring small business owners have the knowledge they need to succeed and grow their companies.
At business.com, Schooley covers the ins and outs of hiring and onboarding, employee monitoring, PEOs and HROs, employee benefits and more.
In recent years, Schooley has enjoyed evaluating and comparing HR software and other human resources solutions to help businesses find the tools and services that best suit their needs. With a degree in business communications, she excels at simplifying complicated subjects and interviewing business vendors and entrepreneurs to gain new insights. Her guidance spans various formats, including newsletters, long-form videos and YouTube Shorts, reflecting her commitment to providing valuable expertise in accessible ways.
