Best POS Systems: A Comprehensive Guide for Businesses

Choosing the right Point of Sale (POS) system is essential for businesses of all sizes. A good POS system does more than just process payments—it streamlines operations, tracks inventory, manages employees, and provides valuable business insights. In this detailed review, we’ll examine what POS systems are, how they work, and which options are best for different types of businesses.

What Is a POS System?

A Point of Sale (POS) system combines hardware and software to help businesses process transactions and manage day-to-day operations. Unlike traditional cash registers, modern POS systems offer advanced features that streamline business processes and provide valuable data.

A complete POS system typically includes:

• Software that processes transactions and tracks business data
• Hardware components like cash drawers, receipt printers, and card readers
• Integration capabilities with other business tools like accounting software

The term “ePOS” (electronic Point of Sale) refers to systems that primarily run on computerized or software platforms. Most modern POS systems qualify as ePOS systems, even if they’re not explicitly labeled as such.

POS Software Options and Deployment Methods

When selecting a POS system, one of the first decisions businesses face is choosing between on-premise and cloud-based software. Each option has distinct advantages that suit different business needs.

On-premise POS systems operate locally on your hardware and don’t require an internet connection to function. These systems process transactions quickly and store data securely on your premises. They’re particularly suitable for larger retail stores that need fast, reliable processing without internet dependence.

Benefits of on-premise POS systems include:

• Faster transaction processing
• No reliance on internet connectivity
• Complete control over your data and security
• Ideal for high-volume brick-and-mortar stores

The main drawbacks include the need for dedicated IT personnel to handle updates and maintenance, higher upfront costs, and inability to access data remotely.

Cloud-based POS systems, offered as Software-as-a-Service (SaaS), can be accessed from anywhere with an internet connection. These systems store data in the cloud and typically include regular updates and maintenance as part of the service.

Benefits of cloud-based POS systems include:

• Remote access to your business data
• Automatic updates and maintenance
• Lower upfront costs with subscription-based pricing
• Easier integration with other business tools

The primary disadvantages are reliance on internet connectivity and potentially slower processing speeds compared to on-premise solutions.

Essential Hardware Components for POS Systems

Regardless of the software you choose, most businesses need certain hardware components to create a functional POS system. Understanding these components helps you budget appropriately and create an efficient checkout experience.

A complete POS hardware setup typically includes:

• Cash drawer: Essential for securely storing cash payments, often referred to as a POS cash register. Despite the increasing popularity of digital payments, cash transactions remain common and don’t incur credit card processing fees.
• Receipt printer: While digital receipts are becoming more popular, many customers still prefer paper receipts. These printers can also produce reports, sales summaries, and other business documents.
• Credit card reader (POS terminal): These devices process credit and debit card payments. Modern readers should comply with EMV Chip Card Technology standards to prevent fraud liability.
• Display screens: Monitors, tablets, or smartphones that display your product database, allowing you to find items quickly, view sales reports, and manage employee time tracking.
• Barcode scanner: These devices quickly add products to transactions by scanning product codes. Many POS systems integrate barcode scanning with inventory management to automatically adjust stock levels.

These components work together to create a professional, efficient checkout environment that improves both customer experience and operational efficiency.

Industry-Specific POS Features

Different businesses have unique operational needs, and many POS vendors specialize in specific industries. Understanding the features that matter most for your business type helps you select a system that aligns with your operations.

Restaurant POS Systems

Restaurants require specialized POS functions to manage complex service environments. A good restaurant POS system offers:

• Table mapping and management
• Menu customization and modifier options
• Kitchen display system integration
• Split check and tipping functions
• Reservation management
• Ingredient-level inventory tracking

These features help restaurants streamline order taking, food preparation, and payment processing while providing valuable data about popular dishes and peak service times.

Retail POS Systems

Retail businesses need POS systems that can handle diverse product inventories and customer relationships. Key features include:

• Barcode scanning and label printing
• Color and size variant management
• Customer purchase history tracking
• Gift registry and layaway options
• Purchase order management
• Employee commission tracking

Retail-focused POS systems provide detailed reporting on sales performance, inventory levels, and customer behavior to help stores optimize their product selections and marketing strategies.

Bar and Nightclub POS Systems

Bars and nightclubs operate in fast-paced environments where speed and accuracy are critical. Their POS needs include:

• Quick-service interfaces for rapid order entry
• Tab management for open orders
• Age verification features
• Drink recipe guides
• Inventory tracking for partial bottle usage
• High-speed payment processing

These venues benefit most from on-premise POS systems that continue functioning during internet outages and process payments quickly during peak hours.

How to Choose the Right POS System for Your Business

Selecting the best POS system requires a careful assessment of your business needs, budget, and growth plans. Following a structured evaluation process helps ensure you make the right choice.

Start by defining your specific business requirements:

• What type of business do you operate?
• Are you purchasing your first POS system or upgrading an existing one?
• How many locations and registers do you need?
• What other business systems must integrate with your POS?

Consider the reporting and analytics capabilities:

• Does the system provide detailed sales reports?
• Can you track inventory levels and movement?
• Are customer purchase histories accessible?
• Can you monitor employee performance?
• Do the reports display data in easy-to-understand formats?

Review pricing structures carefully:

• What are the upfront hardware costs?
• Is software priced as a one-time purchase or monthly subscription?
• What transaction fees apply to different payment types?
• Are there additional costs for support, updates, or training?

Best POS Systems by Business Type

After extensive research, we’ve identified several standout POS systems that excel for specific business types and needs.

Best for Startups: Square

Square offers an accessible entry point for new businesses with no setup fees and straightforward transaction pricing. Their system includes:

• No monthly fees (transaction fees start at 1.4% + 25p for online UK card transactions)
• 1.75% fee for in-person chip and PIN payments
• Free basic POS software with paid upgrades available
• Compatible with most smartphones and tablets
• Extensive third-party integrations
• Simple setup with minimal technical knowledge required

Square’s combination of affordable pricing, flexible hardware options, and user-friendly interface makes it an excellent choice for startups and small businesses with basic POS needs.

Best for Ecommerce: Shopify

Shopify provides a comprehensive platform for businesses selling both online and in physical locations. Their POS offering includes:

• Plans starting from £5 monthly plus transaction fees
• Seamless integration between online store and physical retail
• Built-in shipping and fulfillment tools
• Extensive app marketplace for customization
• Unified inventory across all sales channels

For businesses focused on ecommerce with occasional in-person sales or those planning to expand from physical retail to online, Shopify offers the most comprehensive omnichannel solution.

Best for Hospitality and Retail: Lightspeed

Lightspeed provides specialized POS solutions for restaurants, bars, and hotels with powerful features designed for food service environments:

• Plans starting from £89 monthly
• Flexible hardware options
• Detailed floor plan management
• Ingredient-level inventory tracking
• Advanced reservation system
• Comprehensive reporting for food costs and menu performance

While more expensive than some alternatives, Lightspeed offers the depth of features required by serious hospitality businesses looking to optimize their operations and customer experience.

Comparison of the Top POS Systems

Let’s look at additional POS systems mentioned in the document with a brief description of each:

Monthly fee

Processing rate

POS hardware/Card Reader

Note

 

Square

Bottom Line

£0 Per month

1.75% Per Chip and PIN or contactless payment
& 2.5% For Virtual Terminal and Invoices

(1.4% + 25p for online transactions with UK cards – 2.5% + 25p for online transactions with non-UK cards )

POS hardware starting at £19 + VAT
With Square Reader

Square Details

Shopify POS

Bottom Line

£5 to £344 + £69 Per month

Starter – For Selling on Social
Card rates: 5% + 25p online | 5% + 0p in person | 5% 3rd-party

Retail – For Selling at Retail Stores
Card rates: 2% + 25p online | 1.7% + 0p in person | 2% 3rd-party

Basic – Most Popular
Card rates: 2% + 25p online | 1.7% + 0p in person | 2% 3rd-party

Shopify – For Small Teams
Card rates: 1.7% + 25p online | 1.6% + 0p in person | 1% 3rd-party

Advanced – As Your Business Scales
Card rates: 1.5% + 25p online | 1.5% + 0p in person | 0.6% 3rd-party

Shopify POS Plans:

Starter Plan – £5 GBP/month
1 POS Lite location included

Retail – For Selling at Retail Stores
£69 GBP/month
with 1 POS Pro location included

Shopify Subscription Plans and In-Person:

Basic – Most Popular
£25 GBP/month
+ £69 GBP/month per POS Pro location

Shopify – For Small Teams
£65 GBP/month
+ £69 GBP/month per POS Pro location

Advanced – As Your Business Scales
£344 GBP/month
+ £69 GBP/month per POS Pro location

Shopify POS Terminal £239

WisePad 3 Card Reader
£49

Tap to Pay on iPhone & Android FREE

Shopify Details

Lightspeed

Bottom Line

£89 to £389 Per month

Transaction fees vary based on monthly sales volume.

Lightspeed Retail POS

Basic
Price: £75 GBP/month
Designed for: Essential day-to-day needs for independent retailers
Core

Price: £149 GBP/month
Ideal for: Retailers seeking management tools to facilitate business growth
Plus

Price: £189 GBP/month
Designed for: Advanced customisation and ease of scalability in established retail operations


Lightspeed Restaurant

Essential
Price: £109 GBP/month (annual commitment, billed monthly)
Ideal for: 1-15 locations

Premium
Price: £339 GBP/month (annual commitment, billed monthly)
Ideal for: 16-500+ locations

Lightspeed Details

SumUp

Bottom Line

From £0 to £49.99 Per month

Pay-as-you-go – No monthly fees
In-person payments: 1.69%
Digital payments: 2.5%

SumUp One Monthly fee: £19 (VAT-exempt)
In-person payments: 0.99%
Digital payments: 0.99%

SumUp Air (£34 + VAT) – A compact, entry-level card reader that connects via Bluetooth to a smartphone or tablet.

SumUp Solo (£79 + VAT) – A standalone card reader with a touchscreen, no phone needed, and built-in SIM/Wi-Fi.

SumUp POS Lite (£349 + VAT) – A full point-of-sale system with a touchscreen terminal, receipt printer, and card reader.

Payouts will be available by 7am the next day in the SumUp Business Account. If another account is chosen, the funds will be accessible the following day.

SumUp Details

Tide POS

Bottom Line

£0 Per month

Transaction fee 1.95%

Tide Digital card reader 159£ + VAT

Tide Card Reader Plus 199£ + VAT

The Tide Card Reader is only compatible with Tide business bank accounts

Tide Details

Revolut Business POS

Bottom Line

£0 Per month

Card fees starting from
0.8% + £0.02

With Revolut Pay
0.5% + £0.02

(The Revolut Terminal accepts payments in 19 currencies—just select one from the sales screen drop-down, the payments settle in the original currency, avoiding exchange fees. Convert anytime within Revolut Business.)

Price of the Terminal
£169 + VAT

To use Revolut Terminal, you must have a set-up and approved Revolut Business account.

Revolut Details

OneMoneyWay POS

Bottom Line

15£ Per month

Transaction fee from 0.49-0.99%

OneMoneyWay offers a straightforward and cost-effective solution for businesses. The service is available for a fixed monthly fee of £15, with transaction fees ranging from 0.49% to 0.99% plus Interchange (IC)

For businesses generating over £2,000,000 in annual card revenue, OneMoneyWay offers custom pricing tailored to their specific needs.

OMW Details

1. Square

• Pricing: No setup or monthly fees. POS hardware starting at £19 + VAT with Square Reader.
• Transaction fees: 1.4% + 25p (online UK card transactions), 1.75% (chip and PIN payments).
• Best for: Small businesses, startups, and mobile vendors.
• Features:
  • No monthly fees, making it a cost-effective option for small businesses.
  • Works with iPads and Square’s own hardware.
  • Offers invoicing, inventory tracking, and integration with third-party software.
  • Supports contactless payments, chip and PIN, and mobile payments.

2. Shopify POS

• Pricing: Starts at £5 per month
• Transaction fees vary based on the Shopify plan chosen.
• Best for: Ecommerce businesses with physical stores.
• Features:
  • Seamless integration with Shopify’s ecommerce platform.
  • Syncs online and in-store inventory.
  • Supports multiple sales channels, including social media and marketplaces.
  • Advanced analytics and reporting tools.

3. Lightspeed

• Pricing: Plans start from £75 per month.
• Transaction fees vary based on monthly sales volume.
• Best for: Restaurants, bars, hospitality businesses and retail.
• Features:
  • Customizable POS with flexible hardware options.
  • Floor plan management, menu customization, and table service features.
  • Integrated reservation and staff management.
  • Advanced reporting and analytics.

4. SumUp

• Pricing: Pay-as-you-go: No monthly fees or SumUp One: £19/month
• Transaction fees: Pay-as-you-go (1.69% in-person, 2.5% digital) or SumUp One (0.99% in-person & digital).
• Best for: Mobile businesses, small retailers, and market vendors.
• Features:
  • Compact, portable card readers with simple setup.
  • Accepts contactless, chip and PIN, and mobile wallet payments.
  • No contracts or hidden fees.
  • Easy-to-use app for tracking transactions.

5. Tide POS

• Pricing: Tide Digital card reader 159£ + VAT & Tide Card Reader Plus 199£ + VAT
• Transaction fees: Transaction fee 1.95%
• Best for: Freelancers and service-based businesses.
• Features:
  • Integrated with Tide business banking for streamlined financial management.
  • Invoicing and payment tracking.
  • Simple and cost-effective payment processing.

6. Revolut Business POS

• Pricing: Price of the Terminal £169 + VAT.
• Transaction fees: Card fees starting from 0.8% + £0.02 & with Revolut Pay 0.5% + £0.02
• Best for: Businesses dealing with international transactions and multi-currency payments.
• Features:
  • Supports over 30 currencies with competitive exchange rates.
  • Business banking and payment processing in one platform.
  • Virtual and physical cards for business expenses.
  • Expense management and real-time transaction tracking.

7. OneMoneyWay POS

• Pricing: £15 a month
• Transaction fees: Transaction fee from 0.49-0.99%
• Best for: Businesses prioritizing security and regulatory compliance.
• Features:
  • Strong focus on security and compliance with financial regulations.
  • Simple integration with ecommerce and in-store payment systems.
  • Fraud detection and prevention tools.
  • Scalable solution for small to large businesses.

Conclusion

Selecting the right POS system represents a critical decision for businesses of all sizes and types. The best choice depends on your specific operational needs, budget constraints, and growth plans. By understanding the differences between on-premise and cloud-based systems, essential hardware components, and industry-specific features, you can make an informed decision that supports your business goals.

For startups and small businesses prioritizing simplicity and affordability, Square offers an excellent entry point. Ecommerce businesses benefit most from Shopify‘s unified approach to online and offline sales. Hospitality businesses with complex service needs should consider specialized solutions like Lightspeed.

Whichever system you choose, look beyond initial costs to consider long-term factors like security, reporting capabilities, customer support, and scalability as your business grows. The right POS system does more than process payments—it becomes a central tool for understanding and improving your business operations.

Take time to demo multiple systems, and carefully review contract terms before making your final decision. With the right POS system in place, you’ll gain valuable insights into your business while providing customers with a smooth, professional purchase experience.