A POS system is where your business meets your customer’s money. The wrong one means slow checkout, missing inventory, inaccurate reporting, and frustrated staff. The right one disappears into the background and just works.
We compared the top POS systems for small businesses on transaction fees, hardware costs, inventory management, and ease of setup.
Quick Comparison
| System | Best For | Starting Price | Transaction Fees | Inventory | Offline Mode |
|---|---|---|---|---|---|
| Square | Best overall for small business | Free | 2.6% + $0.10 | Yes | Yes (limited) |
| Shopify POS | Best for retail + online | $25/mo | 2.7% + $0.00 (in-person) | Yes | Yes |
| Clover | Best customizable hardware | Custom | 2.6% + $0.10 | Yes | Yes |
| Toast | Best for restaurants | $0 (starter) | Custom | Yes | Yes |
| Lightspeed | Best for inventory-heavy retail | $69/mo | 2.6% + $0.10 | Yes (advanced) | No |
1. Square — Best Overall for Small Business
Square made its name with a simple card reader and no monthly fee. Ten years later, it’s a complete business operating system — POS, online store, invoicing, payroll, and marketing. For most small businesses, Square is the default choice.
Pros:
- No monthly fee — pay only when you process transactions
- Free Square Reader and discounted Square Terminal/Standalone
- Clean, intuitive interface that staff learn in minutes
- Handles in-person, online, and invoice payments
- Built-in inventory management
- Customer directory and loyalty program
- Square Online for e-commerce
- Square Invoicing for service businesses
- Real-time sales analytics and reporting
- Offline mode (stores transactions, syncs when connected)
- Strong app ecosystem
Cons:
- Transaction fees are slightly higher than some competitors
- Inventory management is basic (not suitable for complex stock)
- Customization options are limited compared to Clover or Lightspeed
- Customer support is limited on the free plan
- Hardware ecosystem locks you into Square
- Reporting could be more granular
- Not ideal for restaurants (Square for Restaurants is a separate paid product)
Pricing: Free; in-person 2.6% + $0.10; online 2.9% + $0.30; invoicing 2.9% + $0.30
Best for: Most small businesses — especially retail, services, and cafes — that want a simple, affordable, all-in-one POS.
2. Shopify POS — Best for Retail + Online
If you sell in person AND online, Shopify is the best unified platform. Inventory syncs automatically between your retail store and your Shopify website. Sell a product in-store and it deducts from your online inventory. No manual syncing, no spreadsheet reconciliation.
Pros:
- Best unified in-person + online inventory management
- Sell anywhere: retail, online, social media, marketplaces
- Robust inventory with variants, bundles, and purchase orders
- Professional online store with 100+ themes
- Multi-location inventory sync
- Strong app ecosystem (6,000+ apps)
- Gift cards, discounts, and abandoned cart recovery
- Excellent analytics and reporting
- 24/7 customer support
Cons:
- Monthly subscription required ($25/mo minimum)
- Transaction fees apply even with your own payment processor (on Basic plan)
- Learning curve is steeper than Square
- POS hardware requires iPads (no dedicated terminals)
- Advanced inventory features require higher-tier plans
- Customization can be complex
- Costs add up with app subscriptions
Pricing: Basic $25/mo; Shopify $69/mo; Advanced $349/mo; Plus $2,300/mo; in-person 2.7% (Shopify Payments)
Best for: Retail businesses that sell both in-store and online and need inventory to sync automatically across channels.
3. Clover — Best Customizable Hardware
Clover offers the most customizable POS hardware — choose from stationary terminals, mobile devices, and mini systems, then add the apps you need from the Clover App Market. If your business has specific hardware needs (kitchen display, customer-facing display, scale integration), Clover’s hardware flexibility is unmatched.
Pros:
- Most customizable hardware options
- Dedicated POS terminals (no iPad required)
- Customer-facing displays available
- Kitchen display system for restaurants
- Clover App Market for adding features
- Good for restaurants, retail, and services
- Reliable hardware with good build quality
- Offline processing
- Multiple payment processor options
Cons:
- Hardware is expensive ($300-1,500+ per station)
- Requires monthly software subscription
- App Market apps add cost
- Setup is more complex than Square
- Less intuitive interface than Square or Shopify
- Pricing requires a quote (not transparent)
- Long-term contracts may apply
- Not as widely supported by third-party tools
Pricing: Hardware $299-1,500+; Software $14.95-94.95/mo; processing varies by provider
Best for: Businesses that need specific hardware configurations and want terminal-style POS stations rather than iPad-based systems.
4. Toast — Best for Restaurants
Toast was built for restaurants from the ground up. Every feature — menu management, table-side ordering, kitchen display, tip management, menu-based reporting — is designed for food service. If you run a restaurant, Toast is the purpose-built choice.
Pros:
- Purpose-built for restaurants (quick-serve, full-serve, and everything between)
- Table-side ordering with handheld devices
- Kitchen display system (KDS)
- Menu management with modifiers, times, and pricing
- Online ordering and delivery integration
- Tip management and tip pooling
- Loyalty program built in
- Menu-based reporting (most popular items, revenue by category)
- Good offline mode
- Restaurant-specific payroll integration
Cons:
- Restaurant-only (not suitable for retail or services)
- Hardware is expensive and proprietary
- Processing rates require a quote
- Contracts may apply
- Learning curve for setup
- Not interchangeable with other POS systems
- Monthly fees apply on most plans
- Customer support quality varies
Pricing: Starter plan free (processing fees only); hardware $499+; paid plans from $69/mo; processing varies
Best for: Restaurants of any size that want a POS built specifically for food service.
5. Lightspeed — Best for Inventory-Heavy Retail
Lightspeed excels at inventory management. If you manage hundreds or thousands of SKUs, need purchase orders, vendor management, and multi-location stock tracking, Lightspeed has the deepest inventory tools in this category.
Pros:
- Most advanced inventory management in the category
- Purchase orders and vendor management
- Multi-location inventory with transfers
- Product variants, assemblies, and serialized items
- Special order management
- Good for bike shops, pet stores, hardware, and apparel
- Strong reporting on inventory performance
- Integrates with many accounting systems
- Employee management and time clocks
Cons:
- Most expensive option ($69/mo starting)
- No free plan or free hardware
- Learning curve is steeper than Square or Shopify
- Interface can feel complex
- No offline mode (requires internet connection)
- Transaction fees on top of monthly subscription
- Overkill for businesses with simple inventory
Pricing: Basic $69/mo; Lean $119/mo; Standard $199/mo; Premium $399/mo; processing 2.6% + $0.10
Best for: Retail businesses with complex inventory (hundreds+ SKUs, multiple vendors, multiple locations).
How to Choose
1. What type of business?
General retail or service → Square. Retail + online → Shopify. Restaurant → Toast. Inventory-heavy retail → Lightspeed. Need specific hardware → Clover.
2. What’s your budget?
Zero monthly → Square (pay per transaction). Under $30/mo → Shopify Basic or Square. Under $70/mo → Lightspeed or Clover. Custom → Toast (processing-based).
3. Do you sell online too?
Yes, and need unified inventory → Shopify. Yes, but separate systems are okay → Square. No, in-person only → Toast, Clover, or Square.
4. How complex is your inventory?
Simple (under 100 SKUs) → Square or Shopify. Moderate (100-1,000 SKUs) → Shopify or Lightspeed. Complex (1,000+ SKUs, multiple vendors) → Lightspeed.
Our Top Pick
For most small businesses, Square is the best starting point — free, simple, and reliable. If you sell online too, Shopify unifies your channels. If you’re a restaurant, Toast. If you have complex inventory, Lightspeed. And if hardware flexibility matters, Clover.
SoftDecide helps churches, nonprofits, and small organizations find the right software. Our comparisons are independently researched. We may earn a commission if you purchase through links on this page — at no extra cost to you.