Best Point of Sale Systems for Startups

Startups need to think carefully about which POS systems they use because payment processing is an essential part of any business.

The type of POS system you decide on will depend on the specific needs of your business and whether your business is retail- or service-oriented. Each system has its own benefits and drawbacks.

Square has really become the “leader of the pack” within the POS space. The company not only designs great-looking mobile POS systems that integrate nicely with most storefront businesses, but it also has a wonderfully designed user interface making it super simple for store owners and their employees to process payments quickly and efficiently.

Pricing 

You will be charged 2.6% plus $0.10 for each swipe, insert, or tap made by a credit/debit card when it’s used in person. Fraudulent transactions can be detected more easily if the cardholder is present.

If you manually enter your customer’s credit card number into the system, the charge will be 3.5% plus $0.15.

For purchases made through a Square online store, Square online checkout, ecommerce API, or through an online invoice, the fee is 2.9% plus $0.30 for cards. Online invoices paid through ACH bank transfer are charged 1% with a $1 minimum per transaction.

Features

• A mobile POS system available for iOS and Android
• Online payment processing (process payments virtually anywhere)
• Create real-time, instant sales reports
• Track inventory at all times
• Send digital receipts

Pros

• Works for any business (restaurants, retail, online, etc.)
• Manage inventory remotely
• Import products into inventory 
• Update pricing, quantities, and menu items anytime
• Receive email notifications when inventory is low
• Manage online orders and third-party delivery partners (DoorDash, GrubHub, etc.)
• Sell in person, online, remotely, and over the phone

Cons

• Square POS system does not have a built-in cash drawer
• Flat-rate pricing may be more costly for larger businesses
• Add-on services add additional monthly costs

Like Square, Lightspeed offers many of the same benefits and features. What separates the two are the cost and multi-location functionality. Square costs less. However, Lightspeed is more ideal for businesses having multiple locations (e.g., franchise restaurant/hotel).

Pricing

You will be charged 2.6% plus $0.10 for each swipe, insert, or tap made by a credit/debit card when it’s used in person. For manually entered transactions, you will be charged 2.6% plus $0.30.

Note that you won’t be able to bring along your existing hardware. Instead, you must purchase Lightspeed's POS software because, as the company explains, other types of terminal hardware “have not been injected with the certified firmware." This is where costs begin to add up.

Features 

• Built-in inventory management
• Upload products from CSV files
• Upload supplier catalogs (place orders through the POS)
• Transfer and manage stock between multiple locations
• iPad to customer checkout

Pros

• Developed for multi-site businesses, affordable and scalable
• Cloud-based POS system, accessible from anywhere
• Mobile app, take your business with you
• Take your menu and checkout to your customers, iPad POS integration
• Built-in customer relationship management system (CRM), track customer and sales data

Cons

• Must purchase new equipment
• Expect higher costs overall

Clover is a flexible POS technology that is great for small and medium-sized businesses. It works well for restaurants and brick-and-mortar stores. What we like about Clover is its free apps which integrate into the POS to expand its overall functionality — letting you track analytics, reward customers, track employees, or develop it into whatever you want it to be. 

Pricing

You will be charged 2.6% plus $0.10 for each swipe, insert, or tap made by a credit/debit card when it’s used in person. For manually entered transactions, you will be charged 3.5% plus $0.10. 

For the higher-end hardware packages (e.g., Clover Register, Clover Table Service Restaurant, etc.), the pricing drops slightly to 2.3% plus $0.10 for each swipe, insert, or tap made by a credit/debit card when it’s used in person. For manually entered transactions, you will still be charged 3.5% plus $0.10.

Features 

• All-in-one payment processing solution
• Multiple hardware choices to fit any business
• Process payments handsfree and via traditional means
• Emailed receipts

Pros

• Process payments through different payment processors
• Offers card readers and hardware to fit any business
• Great for restaurants and small to medium-sized businesses
• Has reporting, staffing, and a CRM built into the POS system
• Table and waitstaff management integration

Cons

• No free hardware options
• Higher rates than Square and Lightspeed

Braintree is a PayPal company that operates independently. What we like about Braintree is it is the only payment processor that lets you process PayPal payments, Venmo, all major credit cards, and Google Pay and Apple Pay. Braintree also accepts payments in over 130 different currencies, helping merchants in more than 40 countries accept international payments.

Pricing

You will be charged 2.59% plus $0.49 for all card and digital wallet transactions. For American Express transactions, you will be charged 3.5%. For non-US dollar transactions, there is an additional 1% transaction fee imposed. For Venmo you will be charged 3.49% plus $0.49 per transaction. For ACH direct debit transactions, you will be charged .75%.

Features 

• Accept most payment types, including PayPal, Venmo, Credit/Debit, Apple Pay, and Google Pay 
• Accept payments in over 130 global currencies
• Straightforward pricing
• Merchant account and payment gateway
• Basic tools for fraud detection and prevention

Pros

• Great for global ecommerce payment solutions
• Reach customers all over the world
• Safety focused, protecting data and customer information
• Great analytics and transaction insights
• Omnichannel payment solutions

Cons

• Higher pricing than Square, Lightspeed, and Clover
• Lacking in customer service
• Reportedly glitchy software
• High currency conversion rates
• Frequently declined transactions

Shopify has become the leader in global ecommerce. Small retailers around the world have adopted Shopify to sell their wares around the world without disrupting local business sales. Shopify has become a game-changer for these lesser-known businesses making it possible for them to sell into the global economy. Shopify’s platform takes care of everything — ecommerce website, domain names, shopping cart, ecommerce hosting, mobile commerce, POS system, and hardware.

Pricing

You will be charged 2.4% to 2.7% for each credit card/debit transaction, depending on the Shopify account you choose (e.g., Advanced, Shopify, Basic).

Features

• Customizable Shopify POS app (Android/iOS)
• Inventory management (in-store and online)
• Set staff permissions and levels on the POS system
• Analytics for in-store and online sales
• Single back-office dashboard

Pros

• Complete all-in-one POS and “etail”/retail business combo
• Turn any mobile device into a POS (Shopify POS app)
• Customizable POS terminal (arrange apps, discounts, etc.)
• Works with compatible hardware (barcode readers, scanners, etc.)
• Built-in marketing tools and CMS

Cons

• Expect to pay more for website solutions 
• Expect to pay more for third-party app integrations
• Expect to pay more for Shopify payments
• Can’t avoid transaction fees using other payment gateways

The Vend POS system was developed with ease-of-use in mind. The creators wanted to develop a POS that was easy to use right out of the box — no learning curve or wading through pages of documentation. That’s exactly what you get — a simple platform, perfect for transacting business in a fairly simple, straightforward way.

Pricing

Vend charges a monthly subscription for its POS. Depending on the features you need, it determines the price you’ll pay. The Lite Plan costs $119 per month. The Pro Plan costs $159 per month, and the Enterprise Plan requires you to call Vend for a quote.

Vend does not charge a transaction fee; however, Vend lets you pick your merchant account provider of choice, and the merchant provider you pick will have its own fees. 

Features

• Simple platform to use and manage
• Designed to be a multi-store POS
• Web-based or iPad POS
• Add discounts and notes that appear on customer receipts
• Work offline and sync when you’re back online

Pros

• No transaction fees, just standard third-party merchant fees
• Integrates with many hardware vendors
• Uses SEO best practices to help your business rank online
• Train staff in minutes on the POS
• Process refunds, returns, and store credits

Cons

• Not an all-in-one POS system
• No free options

A great POS for any small business, such as restaurants, retail boutiques, small grocery stores, pizza shops, service stores, and much more, eHopper is a truly free point of sale system, charging merchants no credit card processing fees.

It’s easy to use the eHopper POS app on a mobile device or desktop computer. You can also create custom menus based on your preferences. All of these features make eHopper a nice POS for any small business owner.

Pricing

eHopper lets you process credit and debit cards with 0% card fees. eHopper instead uses a credit surcharge or cash discount program. What this means is that customers pay a higher rate for items when purchased using their credit card or debit card, saving them money when paying with cash.

eHopper offers a free essentials plan that comes with free credit card processing, free POS software, free ecommerce integration, and even a free payment terminal (Integrated Pax S300). 

As your business grows, the eHopper POS costs slide up to $69.99 per month. You also pay more for needed hardware. For example, the eHopper POS All-In-One Hardware Bundle (Samsung Tablet, Stand, Printer, Cash Drawer) is the most popular hardware offering and runs for $969. You can also purchase integrated scanners, thermal printers, and WiFi terminals to suit your business needs.

Features

• Customizable menus
• Add photos to your menus
• Ask for reviews
• Provide customer coupons
• Built-in location finder map

Pros

• Free processing
• Free software
• Free hardware
• Free POS system trial
• Self-hosted retail point of sale system

Cons

• eHopper passes the fees onto your customers when they use a card to checkout
• Add-on features create higher monthly overhead expenses.