The Best POS Systems of 2023

A point-of-sale (POS) system is more than a fancy cash register. It rings up sales, accepts payments, manages inventory and analyzes sales data, to name just a few of its capabilities. It’s an essential tool in commerce for all sizes of businesses. The best POS systems are easy to use, make sales and inventory management a simple process, and are accessible from anywhere with an internet connection. To make the selection process easier, we did the research for you. We spent hours researching and analyzing the best products on the market to help you identify the right POS system for your business. We considered ease of use, tools, hardware options and cost when determining our best picks.

Advancements in technology and a reduction in POS prices have widened the market for POS systems and all types and sizes of businesses. The hardware no longer costs several thousand dollars, and the service contracts aren’t hundreds of dollars per month. Today, there are price points to fit a one-shop merchant as well as a retailer with several locations.

POS system costs vary depending on the hardware and software features you need. There are three components to consider when determining the price of a system: hardware, software and payment processing. You’ll want to do some comparison shopping to ensure your chosen POS system will cater to all your needs. Monthly software costs can range from $0 to over $200 for systems with cloud-based functionality. Some hardware is complimentary, while others cost as much as $1,200 for a robust POS register system.

POS Hardware Costs

There are a variety of POS hardware options that will impact the cost. Depending on the business, a POS system may include a terminal, tablet or computer; a cash drawer; a card reader; barcode scanners; a receipt printer; and signature-capture devices. The best POS systems are compatible with third-party hardware, letting you shop around for deals (and continue using your chosen hardware if you switch software providers later). They’re also scalable, allowing you to start small and add peripherals as your business and budget expand.

For small businesses with basic needs such as credit card payments, a phone or tablet and a card reader will suffice. If you already have mobile devices and only require EMV-compliant and an NFC-enabled credit card reader, this setup usually ranges from $20 to $100.

Most small businesses will want a variety of peripherals, such as a tablet stand, cash drawer and receipt printer. For this type of setup (using your own tablet), you’ll typically pay between $600 and $1,200. Additional peripherals like barcode scanners, kitchen printers and display screens cost extra.

POS Software Costs

The cost of POS software depends on the services you need. You could pay anywhere between $25 and $300 per month. Monthly subscriptions are the most common payment model in the world of POS software.

Most of the cloud-based POS vendors offer pricing tiers with different features. Some levels limit the number of users or the monthly sales volume you can process. Some POS vendors also provide free POS software, but there’s a catch: You must process your payments through the POS provider.

If you want a basic, free POS system, the best options are from highly rated mobile credit card processors (see our Square review for an example). These credit card processors include POS features in their mobile processing apps. You must use the same company for your payment processing in order to use its POS app, but you aren’t locked into a long-term contract. Processing fees are charged on a pay-as-you-go basis, which is ideal for very small businesses.

If you need more out of your POS system, such as inventory management or e-commerce tools, expect to pay $40 to $100 per month for one register. The more bells and whistles you want, the higher the monthly cost will be. When shopping for a POS system, be mindful of the features in each tier: One company might include all of the features you need in the basic package, whereas you have to pay for a higher tier to access some of those features with another vendor. For example, inventory management with tracking capabilities may be standard in all packages with one vendor and an add-on with another.

Payment Processing

The final piece of the POS pricing puzzle is payment processing. This is the cost to accept and process customers’ payments through your device. The best POS systems provide you with a choice of great payment processors, giving you the opportunity to shop around for low rates and affordable fees. This means you won’t have to switch out the entire POS system if you decide to use a different processor.

POS providers are increasingly offering in-house processing, which can be convenient but more costly in the long run. Some give you a choice to use their in-house processing service, while others charge an extra fee (either monthly or per transaction) for using a third-party processor. Others require you to use their in-house credit card processing service exclusively. 

The POS market is crowded, with many vendors trying to differentiate their features and services to remain competitive. Here are a couple of things to consider when choosing a POS system.

Pricing

Some POS vendors sell software only, while others sell software and hardware. When it comes to payment processing, some POS providers include that with their bundled packages, while others don’t offer it at all. Because of all this, making an apples-to-apples comparison when shopping for a POS can be challenging. Include the costs for all three components (software, hardware and payment processing) in your calculations when evaluating your options.

Features

Each POS system offers a different mix of features based on the service plan you choose. Many systems are customizable, allowing you to add hardware and software programs for an extra cost. As you evaluate systems, decide which features you need to calculate the total cost, including add-ons. Depending on your business, some features you should consider are:

• Invoicing
• Multilocation management
• Inventory and order management
• Sales reporting

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.

In recent years, the POS market has made great strides in features and technology. That will not change in 2023 as POS systems evolve. Here are a few things to expect in the year ahead:

• E-commerce features: In 2021, global e-commerce sales exceeded $5 trillion. According to Statista, this figure is projected to exceed $8 trillion by 2026. Recognizing this, POS vendors have stepped up to offer more e-commerce features in their services, and we’re sure to see more of that in 2023.
• Social media sales: In addition to the increasing demand for e-commerce services, selling on social media is a growing trend that POS providers will continue supporting in 2023. Many POS systems allow merchants to easily upload products on social media and SEO tools to boost online sales. More tools and features for e-commerce and social media selling will likely appear this year.
• Self-service capabilities: Self-serve kiosks have been available in the past, but now they are a POS staple. Expect more businesses to allow customers to place orders and make payments on their own with self-service kiosks. Many POS software vendors are offering kiosk hardware as well as developing features that will turn tablets and mobile devices into self-serve ordering kiosks.
• Mobile POS: Mobile POS systems should also grow in popularity in 2023. These systems enable merchants and restaurants to take digital menus and cash registers where the customers are. That means shorter lines and quicker table turnover.
• Automation: Labor shortages afflicted many small businesses in 2022, and we expect that will continue throughout 2023. This underscores the importance of including more features that help business owners automate tedious work tasks.
• Loyalty: Merchants and restaurant owners can also expect more services around loyalty programs and customer retention this year. To maintain a dedicated customer base, it is essential to recognize and reward your most loyal customers. Utilizing a POS system with built-in loyalty software can help you achieve this.

The best POS systems can collect data on your customers’ shopping and dining habits, allowing you to design loyalty and rewards programs tailored to their preferences. You can personalize rewards based on the frequency of their visits to your store and the items or services they frequently purchase. With competition fierce amid a down economy, anything that can boost customer loyalty will be welcome in 2023.

The technology industry is always evolving to meet the needs and expectations of consumers, and POS systems are no exception. These are just a few examples of how POS systems will evolve in the coming years.