How to Choose a POS System for Your Small Business

Choosing a POS (point-of-sale) system is one of the most important technology decisions for a retail or restaurant business. The right system streamlines operations; the wrong one creates daily frustration.

Here’s a practical guide to choosing the right POS for your business.

What Is a POS System?

A modern POS system is more than a cash register. It’s the hub of your business operations:

• Payment processing: Accept credit cards, debit cards, mobile payments, and cash
• Inventory management: Track stock levels and automate reordering
• Sales reporting: Understand what’s selling and when
• Employee management: Track hours, manage permissions, and monitor performance
• Customer relationships: Build a customer database for marketing and loyalty programs

Popular POS Options in 2025

Square

Best for: Retail, service businesses, and restaurants wanting simplicity

• Pros: Free basic plan, easy setup, no contracts, excellent mobile app
• Cons: Limited advanced features, payment processing locked to Square
• Hardware cost: Free card reader, $799 for complete terminal
• Processing fees: 2.6% + 10¢ per tap/swipe

Square is our most common recommendation for small businesses. It’s intuitive, affordable to start, and grows with your business.

Toast

Best for: Full-service restaurants

• Pros: Restaurant-specific features, kitchen display integration, excellent tableside service
• Cons: Restaurant-only, requires proprietary hardware, can be expensive
• Hardware cost: Starting at $0 (with payment processing commitment) up to $1,500+
• Processing fees: Custom quotes, typically 2.49% + 15¢

Toast is purpose-built for restaurants and it shows. If you’re running a sit-down restaurant, it’s worth the premium.

Clover

Best for: Retail and quick-service restaurants wanting flexibility

• Pros: Modular hardware options, app marketplace, works with multiple processors
• Cons: Pricing varies by reseller, can get expensive with add-ons
• Hardware cost: $599-$1,699 depending on configuration
• Processing fees: Varies by processor (typically 2.3-2.6% + 10¢)

Clover offers more flexibility than Square but with added complexity. Good for businesses that need specific integrations.

Lightspeed

Best for: Retailers with complex inventory needs

• Pros: Excellent inventory management, multi-location support, B2B features
• Cons: Higher price point, steeper learning curve
• Monthly cost: $89-$269/month
• Processing fees: 2.6% + 10¢

Lightspeed shines for retailers with large inventories, multiple locations, or wholesale operations.

TouchBistro

Best for: Restaurants wanting iPad-based simplicity

• Pros: Intuitive interface, local data storage (works offline), tableside ordering
• Cons: iPad-only, some features require add-ons
• Monthly cost: $69+/month
• Processing fees: Varies by processor

A solid middle ground between Square’s simplicity and Toast’s restaurant-specific features.

Key Questions to Answer

Before comparing systems, answer these questions:

1. What’s your business type?

Restaurant POS needs (table management, kitchen tickets, menu modifiers) differ significantly from retail needs (barcode scanning, inventory variants, purchase orders).

2. How many locations?

Single location systems are simpler. Multi-location requires centralized reporting and inventory management—not all systems handle this well.

3. What payment processor do you want?

Some systems (Square, Toast) require their proprietary processing. Others (Clover, Lightspeed) let you shop for rates. If you already have a good processing rate, you may want to keep it.

4. What’s your technical comfort level?

Square and TouchBistro are designed for non-technical users. Lightspeed and some Clover configurations require more setup and ongoing management.

5. What integrations do you need?

Accounting software (QuickBooks, Xero), e-commerce (Shopify), scheduling (7shifts), or delivery (DoorDash)? Check compatibility before committing.

Hidden Costs to Watch

Hardware

Some systems offer “free” hardware with processing commitments. Read the fine print—you may be locked in for 2-3 years at above-market processing rates.

Add-on fees

Basic plans often exclude features you’ll want: loyalty programs, gift cards, advanced reporting, employee scheduling. Ask for total monthly cost with all desired features.

Payment processing

The advertised rate is usually for card-present transactions. Online orders, keyed entries, and AMEX often carry higher rates.

Support

24/7 phone support isn’t always included. Check what’s covered in your plan vs. what costs extra.

Our Installation & Support Services

Choosing the right POS is just the start. Proper installation makes a huge difference in long-term reliability.

We help Phoenix businesses with:

• System selection: Vendor-neutral recommendations based on your needs
• Hardware installation: Terminals, receipt printers, cash drawers, kitchen displays
• Network optimization: Ensure reliable connectivity for payment processing
• Staff training: Hands-on training for daily operations
• Ongoing support: Troubleshooting when things go wrong

A properly installed POS should run for years without major issues. Cutting corners on installation leads to ongoing headaches.

Getting Started

Not sure which system is right for your business? We offer free 30-minute consultations to discuss your needs and provide recommendations.

Schedule a consultation or call (602) 399-9913.