11 Best Point-of-Sale (POS) Systems of 2023

What is a POS system?

How much does a POS system cost?

• Hardware. Some POS systems offer a basic card reader for free, and you may be able to operate it using a phone, tablet or desktop computer you already have. In other cases, you might need proprietary hardware that can cost hundreds of dollars. Some POS systems charge monthly fees to use rented terminals.
• Payment processing fees. Usually, a payment processor comes included with a POS system. Every time you accept a debit or credit card transaction, you’ll have to pay a transaction fee, usually around 2.5% to 3% of the transaction, plus 10 to 30 cents. Pricing can vary widely. Some processors use flat fees, so you pay the same rate for all in-person transactions, for instance. Others use interchange-plus fees, which means fees can vary depending on factors such as your industry and the type of card your client is using.
• More expensive plans or add-ons. If you want multiple registers or locations or exceed a certain amount in revenue each month, a basic plan might not cut it. Certain features, such as inventory management features or loyalty program tools, might also be add-ons that cost extra.

What should a good POS system do?

• Inventory management. Keep track of how many items you have on hand and when you need to reorder.
• Table or menu management. 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.
• Multilocation management. Track inventory, menus or service in multiple areas, set different prices and tax rules for each location, and run reports to see how each location is performing.
• Loyalty program. Reengage your customers with a point- or discount-earning system that gives them a reason to keep coming back; be able to send custom discounts — for example, a discount for a customer’s birthday.

• Transparent pricing. You can expect to pay a monthly fee, along with payment processing fees and hardware fees. Generally, you want to avoid early termination fees or long contracts that are hard to cancel without penalty. If payment processing comes bundled with your POS, make sure you understand the pricing first and can avoid pesky fees such as PCI compliance fees and high chargeback fees.
• Intuitive user flows. You want a system that’s easy to use and understand.
• 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.

How do I choose a POS system?

1. Decide on the features you need. This will depend largely on what type of business you have. It might include items like the ability to manage tables and menus, track inventory or schedule appointments.
2. Weigh functionality with upfront and ongoing costs. Once you have a handful of options that fit your needs, consider the costs. How much are the monthly service fees? What does the hardware cost? How much are the payment processing fees? Can you sign up without getting locked into a long contract? You might have to call some providers to collect quotes. Try free demos or watch videos of the software in action to get an idea of the user flows. Are they easy to understand? Would it work well with your specific business?
3. Narrow your options. Which systems have the best customer service? Which ones might work with the hardware you already have? Which are the fastest and easiest to set up? These details might not be your biggest deciding factors, but they might be just important enough to help you make a final decision.