The Best POS Systems of 2023

POS systems can have hundreds of features, but they’re meaningless if you don’t use any of them. While some businesses may require a full arsenal of tools and features, others may prefer to keep things simple. As you look for POS software, think about what your business needs, the tools that would be nice to have and which ones you’ll never end up using. Always be sure to sign up for a few demos and trial versions before making your final decision. Doing so will give you a chance to test the waters and see which ones work the best.

Besides the basic cash register features that every POS solution has, you should look more closely at the unique feature sets of each platform before selecting a system. Keep in mind that specific capabilities within each feature set vary by system. Advanced features may be available only at higher service tiers, or you may need to add apps or integrations to the POS system.

Mobile App Support

The best POS systems have apps that are installed on tablets and smartphones, transforming the devices into mobile POS terminals. Retailers can use them as mobile checkout devices to ring up customer orders anywhere on the store floor. Restaurants can use them to take orders and accept tableside payments. You can also attach the tablet to a stand and turn it into a stationary kiosk. From there, you can add peripherals, such as a cash drawer and a receipt printer, to create a countertop checkout station.

When comparison shopping, be mindful of the platform the mobile POS supports. Although some POS systems can be used with both Android and iOS systems, some are specific to one platform. If you have a strong preference for one platform or already have tablets and phones you want to use, this is an important consideration. If you’re looking for a dual-platform POS system, check out vendors like Clover, Toast and Lightspeed.

• iPad mPOS: iPads are the preferred platform for most POS providers. These devices are known for their user-friendly interface and stability. iPads also have superior security due to the closed nature of Apple’s iOS. That makes it harder for hackers to install malware on the devices. But you will pay for that security, as iPads tend to be more expensive than Android tablet POS systems. Popular iPad POS systems include TouchBistro and Revel.
• Android mPOS: While iOS-based systems are more common, Android tablets tend to be less expensive. With multiple manufacturers, there’s more competition in the market, resulting in lower prices and broader product selections. That can save you money as you set up your system, add devices, or replace broken, lost or stolen tablets.

Inventory Management

If you’re wanting to keep track of your inventory and ordering, a POS inventory management system does a lot of the work for you. When considering inventory management, think about what you really need.

• Do you need a basic product catalog or menu-item countdown?
• Do you need to track quantities, including components or ingredients?
• Do you need low-stock alerts or automatic reordering?

If you have a retail business, estimate how many SKUs you need the POS system to support. Some vendors support a limited number of SKUs, and others offer unlimited packages. If you do need advanced inventory management features and they’re not available in the POS system you want, make sure the POS system integrates with your inventory software.

Customer Management and Loyalty Programs

Customer retention is an important part of running a store or restaurant. Many POS systems have built-in tools and features to help you manage and retain your customers, but you may not need all the customer management and loyalty features some POS vendors offer. That’s why, again, it’s important to consider your needs.

If your business needs to collect customers’ payment and delivery information only, you won’t need a built-in CRM. But if you are looking to create customer profiles with detailed purchase histories and to add notes (such as customers’ birthdays, preferences or allergies), then you want a more robust system.

Employee Management

If your employees are going to be using the POS system, you need to control the data and functions they can access. For example, you may want only your store managers to handle refunds. It’s important to choose a POS vendor that can deliver on your employee management requirements, whether they’re simple or complex. Here are some things to consider with employee management functionality:

• Do you want to set permissions for individual users?
• Do you need a time clock for employees?
• If you’re already using top time and attendance software, will it integrate with the POS system?

Reporting

The reporting and analytics of POS systems is a huge benefit for businesses. Because the POS tracks all of your sales, you get an overview of what inventory is moving and what isn’t. This can help you identify sales trends and ultimately boost your bottom line.

All POS systems can generate reports, but the number of reports, specific report types and customization options differ between systems. Some POS systems offer a much deeper look into reporting and analytics, while others give only a surface glance. The more advanced reporting you need, the more you’ll pay for the capability. If you’re a company that requires detailed reports, Clover is a good POS system to consider.

Integrations

Most web-based POS systems have integrations or apps that make it easier for you to share data between systems. For example, connecting highly rated accounting software to your POS system saves you the time of exporting sales data. Integrating with your e-commerce platform will ensure accurate inventory across sales channels. Look for a POS system that integrates with the business programs you already use, such as accounting software, payroll, e-commerce platforms and email marketing services.

In response to the COVID-19 pandemic, a popular trend for POS software is the ability to turn a tablet or smartphone into a self-serve kiosk. Customers can use these devices to choose and purchase items, enabling merchants to transform tablets and smartphones into self-ordering and self-payment stations. Self-serve kiosks have a number of benefits:

• Better customer experience: Self-service kiosks put control in the customers’ hands. They also reduce delays that can be caused by social interaction with cashiers.
• Profitability: Kiosks reduce overhead and allow staff to focus their effort on other customer-oriented tasks.
• Faster transactions: Kiosks allow more customers to make purchases in a shorter period of time, increasing overall ROI.

You have a lot of options for POS hardware and how you configure your system. A basic POS station has a tablet or a touch screen, a credit card reader, a cash drawer and till, and a receipt printer. Some POS systems are compatible with additional peripherals.

• Tablet stand: This holds the tablet in place.
• Barcode scanner: This makes it faster to enter items into the system at the checkout station.
• Scales: These allow you to sell bulk items by weight.
• Customer display screen: This shows the customer their sales ticket as you enter items into the POS system.
• Kitchen printer: This sends orders to the kitchen for the cooks to prepare.
• Kitchen display system: This is a digital alternative to the kitchen printer.
• Kiosk: Customers can use a kiosk tablet to place their own orders.
• Digital menu boards: These are large screens that display your menu and promotions.
• Coin dispenser: This reduces errors and speeds up the checkout process by automatically returning change to the customer.
• Caller ID device: The POS system automatically starts an order when customers call your business.

Buying, Leasing and ‘Free’ POS Hardware

It’s always best to purchase your POS terminal upfront, even if that means starting with just the basics. You could pay much more than the equipment is worth if you lease – not to mention that leases have noncancelable, multiyear contracts. If you go out of business and return the equipment, you must continue making lease payments until your contract expires.

Some companies offer “free” POS terminals, but accepting these can also be more expensive than buying your equipment upfront. To get this deal, you typically have to sign a lengthy contract for the company’s credit card processing service, and there’s a monthly fee on top of that for maintenance or insurance. There’s also the POS software subscription to pay each month. If it’s a “free placement program,” you’ll be required to return the equipment if you close your account when the lease expires.

Proprietary vs. Open-Source POS Hardware

Proprietary POS hardware works only with the system you’re purchasing it for, so it’ll be unusable if you switch systems. Because the hardware is system-specific, you can’t use the hardware if you want to switch to a new system.

Open-source POS hardware can be used with multiple POS systems. If you switch to new POS software that supports open-source hardware, you might be able to continue using the equipment you already own. It’s usually available from the POS company and multiple third-party vendors, enabling you to do some comparison shopping. Open-source hardware offers a little more flexibility to users, especially to ones who are familiar with the technicalities involved.

Credit Card Terminal or Card Reader

Most of the time, you’ll buy the credit card terminal or mobile reader from your payment processing company. However, sometimes you must purchase it from the POS company. Whether you buy it from the processor or POS company, you want it to be EMV-certified so you can accept chip cards at your point of sale. You also want it to have NFC capabilities so you can accept contactless payments like Apple Pay, Google Pay and Samsung Pay. For companies that don’t accept in-person payments, you can get by without purchasing a card reader, but you’ll still need a payment gateway so customers can complete transactions.

In addition to offering comprehensive features and reliable support, the best POS providers give you the most flexibility in contractual terms and setup configuration. They don’t lock you in with contracts, leases or proprietary hardware. That means you can move on to another system if you determine the current one is not meeting your needs.

The best POS software also integrates with multiple payment processors and various business apps, allowing you to add more features or connect with other systems you already use. Many also have an open API so you can build custom integrations if needed.

Look for POS software that is scalable with your business – whether that means adding more users, more devices or registers, or even a new location – allowing you to manage multiple outlets from a single account.

What is a POS system?

A point-of-sale, or POS, system is a combination of hardware and software designed to ring up sales and process payments. Retailers, restaurant owners and online merchants are common consumers of POS systems. POS systems serve businesses of all sizes, from one-person shops to large chains.

Depending on your business’s needs, your POS hardware may include a cash drawer, credit card reader, receipt printer and/or barcode scanner. On the software front, the POS performs a multitude of tasks, such as ringing up sales, processing payments, managing orders and promoting customer loyalty. The POS software should integrate with your business’s existing items.

There are both server- and cloud-based POS systems. Cloud versions are more popular because they are cheaper, are easier to use and require no maintenance on the business owner’s part. They also provide full access to the system wherever you have an internet connection available, making them ideal for management.

What types of businesses use a POS system?

The types of businesses that use a POS system are retailers, restaurants and just about any merchant that makes sales. A street vendor or food truck can use a POS system to accept orders and payments in the same way that an online store or a local merchant can use a POS system to ring up sales.

What are the types of POS systems to consider?

The three main types of POS systems are cloud-based, on-premises and hybrid systems. The right type for you depends on your business’s needs.

• Cloud-based POS: This is the most common type of POS system on the market and tends to be the cheapest. With a cloud-based POS, all the software is online. You don’t need to set up a local server to host your data; the POS provider takes care of that, along with all software updates. The one potential downside is the software’s reliance on consistent internet access and a strong connection.
• On-premises POS: With an on-premises POS system, the software is installed on your server instead of hosted in the cloud. That eliminates the need to access the internet to ring up sales, but you have to maintain your own server. A server-based POS system tends to be pricier than a cloud-based POS system, partly because of the extra IT hardware and support you may need to maintain the system.
• Hybrid POS: A hybrid POS system gives you the best of both worlds: the convenience of a cloud POS with the reliability of a server-based system. With this type of POS, the system runs on your local server and backs up to the cloud. If you need to access your sales data on the go, it’ll be in the cloud. If your internet is down, you won’t have to worry about disruptions to your sales process. A hybrid solution isn’t as easy to set up as a cloud-based one, and it may require extra IT costs.

What is the difference between a POS and an mPOS system?

The big difference between a POS and mPOS (mobile POS) is the ability to take the hardware on the go. With a POS system, the hardware is fixed within a restaurant or store; you can’t ring someone up as they walk through the store or bring the digital menu to their table. You can do that with an mPOS system since the terminal is portable. An mPOS system is ideal for business owners who have multiple locations, as they can conveniently take their POS system with them. Keep in mind that mPOS and POS systems use the same software, so you can accept and process payments, track inventory, and run reports with both systems.

How can a POS system help restaurants with staffing issues?

A POS system can help restaurants with staffing issues in multiple ways:

• Automation: There are built-in tools that automate a lot of the functions that drag restaurants down, like staff shortages, inventory management, reservations, payments and payroll.
• Accuracy: POS systems reduce the chances of errors happening with orders, and that means staff won’t have to waste time fixing mistakes.
• Better customer service: POS systems provide detailed information for orders, which gives staff more time to focus on customer service.
• Data: By looking at past data on customer behavior and sales trends, restaurant owners can make better decisions to improve restaurant efficiency in the future.

How can a POS system help with dynamic pricing?

Supply and demand influence dynamic pricing. Whether it’s purchase patterns, increased demand, or seasonal increases or decreases, dynamic pricing can be a way to maximize profits. With the tools built into POS systems, you can determine the right times to drop and increase prices.