How To Choose A POS System

Your overall POS system cost is going to be determined by:

• Software Fees: This will either be a monthly or annual fee for the POS software license, extra add-ons, and third-party integrations.
• Hardware Costs: A tablet POS system will be the cheapest but you will need to consider mobile card readers, full cash registers, and any other additional hardware you may need.
• Payment Processing/Transaction Fees: Payment processing fees (also called transaction fees) are what they sound like, fees that you pay for every transaction you process.

As a small business, you should aim for a flat-rate credit card processing fee of around 2.6% for in-person and 2.9% for online purchases. Larger businesses will typically benefit from interchange-plus payment processing agreements.

Your feature needs will depend on what industry you operate in. But at a basic level, your chosen POS system should include:

• Inventory management
• Online ordering
• Store/employee management
• Customer loyalty solutions
• Marketing
• Software integrations

There are three main things to consider when you’re deciding on POS hardware:

• Space: Do you have counterspace for a register? Can it be permanently mounted? Do you want a local server or can you rely on Wi-Fi?
• Mobility: Do you sell away from your physical store? Do you want to be able to take tableside orders?
• Accessories: Do you need a barcode scanner, weight scale, security camera, or an ID scanner? What about a receipt printer?

Once you’ve answered these questions, it’ll be easier for you to decide on the hardware you really need. No matter what you end up choosing, we recommend purchasing any hardware outright and avoiding hardware leases.

This is one of the most important things to consider for a small business. There’s no point in signing a contract for a cheap POS system if you are unhappy with the service but stuck in a three-year agreement with early termination fees.

When looking at a POS system, do some research to determine:

• Is there a free trial?
• What is the contract length?
• Can you buy your hardware outright or would you have to lease?
• Are there early termination fees?

To get the best deal on a small business POS system, you should avoid (whenever possible):