Best POS Systems for Small Businesses of May 2025

A POS system makes it possible for your business to accept payments from customers during the checkout process. It can take the form of a countertop register with a cash drawer or a handheld device with a credit card reader, depending on whether you need to complete sales on the go. The system includes the POS hardware itself and the software you use to enter item prices and collect data on your sales, inventory, returns, etc. Strictly online businesses usually do not need hardware.

Providers may offer their own hardware options, like POS terminals with customer displays, receipt printers and cash drawers. Or, in some cases, you can simply download POS software to an iPad or tablet for a simpler, more portable solution. Similar to POS hardware, POS software varies in complexity and may include features specific to your industry.

Ultimately, the POS features you need depend largely on your industry. Here are several universal software and hardware features to look for in a POS system, as well as some industry-specific capabilities you might consider.

• Online store options: Giving customers the option to make purchases or place orders online can help bring you more business. Make sure your POS system accommodates all of your sales channels, whether they’re in-person, online or both.

• Reporting: Regardless of your industry, you want a POS system that can generate reports on your sales, so that you can see which items or services are most profitable for your business and popular among your customers.

• Robust customer support: While some answers might be easy to find online, it’s nice to be able to talk to someone who can help you troubleshoot when you need it. Look for live chat and/or phone support options and verify that they’ll be available during your business’s normal hours.

• Inventory management: Restaurants and retail stores need to keep track of how many items they have on hand and when it’s time to reorder. For a more detailed list of options, see NerdWallet’s picks for the best inventory POS systems.

• Multi-location management: You want to use the same POS system across all of your business’s locations, so that you easily track inventory, menus or service in multiple areas. Multi-location management also lets you set different prices and tax rules for each location, and run reports to see how each location is performing.

• Table or menu management: If you own a busy restaurant, this one is important. These features let you view the status of tables in your restaurant, see how long it takes to turn tables, update menus and track when you run out of certain items.

• Loyalty program: Although they typically cost extra, loyalty programs can help re-engage your customers with a point- or discount-earning system that gives them a reason to keep coming back. You can also use them to send custom discounts for birthdays and other special events.

• Mobility: Do you need a full countertop POS terminal, a pocket-sized card reader or something in between? Maybe your business sells items mostly online but occasionally needs to process transactions at a pop-up event. A simple card reader may be sufficient in that situation. However, a brick-and-mortar retail POS system probably needs a countertop terminal, while restaurants might need a handheld touchscreen device that lets employees take orders and process payments tableside.

• Accessories: Common POS accessories include cash drawers, receipt printers and barcode scanners. Some POS system providers offer hardware bundles that include everything you need, while others function in a more a-la-carte manner.

• Durability: Depending on your business, you’ll want to see whether the POS hardware you’re considering is spill-proof and/or heat-proof. This is especially advantageous for busy restaurant settings.

Finding the right POS system for your business comes down to these key considerations.

Compared to traditional cash registers, POS systems typically have greater flexibility and include more business management features. Here are some of the advantages of going with the more modern POS option:

There’s no shortage of options when you’re comparing POS systems, and identifying main differentiating factors can help you determine which is best for your business.