POS for small businesses is an important tool. It helps small and medium businesses grow, makes daily work easy, and gives important information. It keeps your business running smoothly—makes sales easy, shows stock in real time, and helps track and check performance.
As a small business owner, finding the right Point-of-Sale (POS) system can make your daily work easy or hard. If you run a small retail shop, a busy cafe, or a mobile food truck, your POS should be fast, flexible, and low-cost. In 2025, many systems claim to be the “best”… but only a few really work well for small businesses.
In this guide, we list the 6 best POS systems for small businesses. You will see options for retail, restaurants, mobile businesses, and more. You will learn how to choose the right POS for your business and understand the real costs.
The best POS systems for small businesses are:
Square
Starting Price: $0/mo
Free Plan
Best For: All-in-one POS platform
- Free setup & no hidden fees
- Create customer profiles in seconds
- Simple inventory management
Shopify
Starting Price: $5/mo (Only $1/month for first 3 months)
—
Best For: E-commerce
- Integrate sales, analytics & inventory
- Personalize marketing to boost loyalty
- Process digital wallets & popular payments
- Sync online & in-store sales
Lightspeed
Starting Price: $89/mo
14-Day Free Trial
Best For: Retail
- Simplify operations with timesaving tools
- Advanced inventory management
- Smarter sales & reporting
- Cloud-based data management
Clover
Starting Price: $13/mo
30-Day Free Trial
Best For: Very Popular (General Use)
- Accept contactless payments
- Cloud-hosted & accessible anywhere
- Track inventory & offer gift cards
- Virtual terminal for remote payments
KORONA POS
Starting Price: $59/mo
30-Day Free Trial
Best For: Retail
- No contracts or hidden fees
- Advanced reporting from anywhere
- Loyalty programs to retain customers
Toast
Starting Price: $0/mo (Starter kit available)
Free Plan
Best For: Restaurants
- Ideal for pizzerias & food trucks
- Customizable package
- Tools to help restaurants adapt
What Is a POS System?
A POS system (Point of Sale system) is the place where customers pay for their purchases — whether in your store, online, or on the go. It includes both hardware and software that help you accept payments, track sales, manage inventory, and handle daily business tasks.
A modern POS system is more than just a cash register — it helps make your business faster, easier, and more accurate.
Think of it as the control center of your business.
Modern POS systems combine hardware (like card readers, barcode scanners, or receipt printers) with software that helps you manage everything in one place. You can track sales, control stock, process refunds, run discounts, and even see which products sell the most — all from one system.
A POS (Point of Sale) system helps manage the entire sales process — from when a customer decides to buy something to when the sale is completed.
Here’s how it works:
The cashier or staff adds the products or services to the order. The system automatically calculates the total price, including any taxes or discounts. Then, the customer pays using cash, card, or a digital wallet.
Once the payment is confirmed, the POS system updates the inventory right away, prints or sends a receipt, and saves the transaction details for future reports.
Online POS systems work almost the same way, but they also connect with shipping tools and online payment gateways to handle orders and deliveries.
For small businesses, a good POS system helps you:
Accept payments (cards, digital wallets, tap-to-pay, etc.)
Keep track of your stock
Save customer info and purchase history
Run loyalty programs and discounts
Create sales reports and insights
Sync with your online store or accounting tools
In short, a POS system helps you sell smarter and manage better.
No matter if you run a retail shop, coffee bar, salon, or food truck — the right POS can save you time, reduce mistakes, and help your business grow faster.
What Small Businesses Should Look for in a POS System
When you choose a POS system for your small business, look for tools that make your daily work easier and help your business grow.
Easy to use: You and your team should learn it quickly.
Cost: Check both the monthly cost and transaction fees.
Hardware flexibility: Can you use your own phone or tablet?
Integrations: Does it connect with your accounting, eCommerce, or marketing tools?
Inventory tools: Do you need simple or advanced tracking?
Business fit: Does it offer the right features for your type of business?
The best POS system isn’t the same for everyone. Pick the one that fits your work style and business goals.
Still not sure which POS fits your business?
Think about where and how you sell.
If you’re just getting started, a mobile POS system is usually the easiest and most affordable option.
How Much Does a POS System Cost for a Small Business?
A POS (Point of Sale) system helps you manage sales, inventory, and payments more easily.
But many small business owners wonder — how much does it really cost, and which one is right for them?
Let’s break it down.
POS System Cost Breakdown
Software Cost
POS software usually costs between $0 and $199+ per month.
Some basic plans are free, but advanced features like detailed reports, loyalty programs, and smart inventory tracking cost more.
Many providers also offer discounts if you pay annually.
Hardware Cost
The initial hardware setup can range from $0 to $2,000+.
If you use your own smartphone or tablet, you can save money.
A basic setup with a tablet, card reader, and cash drawer usually costs $500 to $1,000.
Payment Processing Fees
Most POS systems charge a small fee per sale.
Typically, you’ll pay around 2.6% + $0.10 per transaction, depending on your provider and card type.
These fees may vary if your provider uses a different pricing model (flat-rate or interchange-plus).
How to Choose the Right POS System for Your Small Business
Choosing the right POS system can make your daily operations faster and smoother.
Here are the key factors to look for:
1. Business Type
Different businesses need different features.
Restaurants need table management and order options.
Retail stores need barcode scanning and inventory tracking.
2. Ease of Use
The system should be simple for you and your employees to learn.
An easy interface saves time and reduces mistakes.
3. Important Features
Make sure your POS system includes:
Sales reporting
Customer management (CRM)
Inventory tracking
Employee management
4. Hardware Compatibility
Check if the POS software works with your existing hardware, or if the provider offers affordable devices.
5. Integrations
The POS should connect easily with your other business tools, such as:
Accounting software: QuickBooks, Xero
E-commerce platforms: Shopify, BigCommerce
Marketing tools: Email and CRM software
6. Payment Processing
Make sure it accepts different payment types (credit/debit, mobile, contactless).
Also check if you’re locked into one specific payment processor.
7. Scalability
Choose a POS that can grow with your business.
It should let you add more locations, employees, and features in the future.
8. Customer Support
Reliable 24/7 customer support is important.
You need quick help when any technical issue comes up.
Best Free POS Software for Small Businesses
Here are some of the best free POS systems you can start with:
1. Square POS
Square is one of the best free POS systems available.
It includes a free card reader, sales and inventory tracking, customer profiles, and an online store.
It works well for retail, restaurants, and service-based businesses.
2. Helcim
Helcim is best for businesses with large transactions or wholesale operations.
Its “interchange-plus” pricing model can save you money on bigger sales.
3. Toast
Toast is a great choice for full-service restaurants.
Its free starter plan includes key restaurant-specific features.
4. PayPal Zettle
Perfect for small or occasional sellers, especially if you already use PayPal.
It’s quick to set up and integrates easily with PayPal accounts.
Note: Even if the software is free, you still have to pay payment processing fees on each transaction.
Can I Take Payments Without Internet (Offline)?
Yes, many modern POS systems have an offline mode that lets you take credit card payments even when there’s no internet connection. The transactions are safely stored on your device and will be processed automatically once you’re back online. This is super useful for businesses that work at events, markets, or in areas with poor internet.
👉 But keep in mind — when you use offline mode, there’s a small risk the payment could fail once it’s processed later.
What Cards Can I Accept? Do Fees Change by Card Type?
Most POS systems let you accept all major credit and debit cards — including Visa, Mastercard, American Express, and Discover. You can also take Apple Pay and Google Pay.
Yes, fees can vary by card type. That’s because each card company has different interchange rates. For example, rewards or business cards often cost more to process than regular debit cards. The total fee also depends on your payment processor’s pricing model.
How Fast Can I Get My Money?
This depends on your POS provider. Some offer instant or next-day deposits, while others take 1–3 business days to send the funds to your bank.
💡 If fast cash flow is important, choose a provider that offers quick payout times.
How Do I Give a Refund?
Giving refunds through your POS is simple:
Open your transaction history in the POS software.
Find the sale by receipt number, customer name, or date.
Click the “Refund” option.
Choose whether to refund the full amount or selected items.
The money will go back to the customer’s original payment method.
Can I Manage My Inventory with POS?
Yes! Most POS systems include powerful inventory management tools that help you:
Track stock levels in real time
Get low-stock alerts
Manage product variations (size, color, etc.)
Create purchase orders and manage vendors
See reports on best-selling products and profit margins
Good inventory control helps reduce waste, avoid stockouts, and make smarter buying decisions.
Can I Sell Online and Sync with My Store Sales?
Absolutely. Many POS systems connect directly with your online store so you can manage everything from one place. This gives you a smooth omnichannel experience:
Sync inventory: When you sell online, your in-store stock updates automatically.
Centralized data: View all your sales, customers, and inventory in one dashboard.
Flexible delivery: Offer “Buy Online, Pick Up In-Store” options for your customers.
Why Is a POS System Important for Small Businesses?
A POS system is more than just a cash register — it’s your all-in-one business hub. It helps you save time, increase sales, and improve customer experience.
Here’s what it can do for you:
Process payments quickly and securely
Track inventory and prevent stock problems
View reports on sales trends and top products
Build customer loyalty with purchase history and rewards
Manage employees and their work hours
Connect with accounting software for easy bookkeeping
Bottom line:
You don’t need to spend a lot to get a great POS system. Start with the features you need now — and upgrade later as your business grows.
What Type of Hardware Is Needed for POS Systems
The hardware you need for a POS (Point of Sale) system depends on the type of business you run. Different industries use different tools to handle sales, payments, and inventory. Let’s take a look at what each business type usually needs.
Retail Stores
Barcode Scanner: Helps quickly scan product tags at checkout.
Cash Drawer: Keeps cash safe during transactions.
Receipt Printer: Prints paper or digital receipts for customers.
Touchscreen Monitor or Tablet: Makes it easy to manage sales, returns, and stock right from the sales counter.
Restaurants and Cafés
Touchscreen Terminals: Allow servers to take orders and process payments directly from the table.
Kitchen Printer: Sends orders straight to the kitchen automatically.
Mobile POS Devices: Perfect for taking orders and payments at the customer’s table.
Digital Menu Boards: Show menu items with real-time updates.
Service Businesses (like Salons and Spas)
Tablet or Mobile POS System: Helps manage bookings and take payments from the service chair.
Barcode Scanner: For selling beauty or spa products in-store.
Receipt Printer: Prints receipts for clients after services.
Mobile Businesses (like Food Trucks and Market Stalls)
Mobile POS System: Compact and wireless setup for easy transactions anywhere.
Portable Card Reader: Lets you accept card payments on the go.
Smartphone or Tablet: Works with mobile selling apps and card readers.
Important Things to Consider
Choose durable hardware that suits your environment—like waterproof devices for outdoor setups or sturdy systems for busy places.
Make sure your hardware works smoothly with your POS software for easy data syncing.
Pick hardware that can grow with your business, so you can add more terminals or connect to loyalty or eCommerce tools later.
Having the right POS hardware helps improve your service, speed up checkout, and manage your business more efficiently. Always think about your specific business needs before buying POS equipment.
Final Thoughts
The right POS system can make a big difference in how efficiently your small business runs. From daily operations to customer insights and sales growth, a good POS setup is an essential part of modern business success.
Whether you run a retail shop, café, or service business, choosing a POS system that fits your needs will help you offer faster service and keep your customers happy.
To get the most out of your POS system:
Pick the one that fits your business goals.
Make sure it connects easily with your other tools.
Train your staff to use it properly.
When used right, a POS system helps your small business stay competitive and grow faster. Embrace the technology—and watch your business run smoother than ever!