How to Choose a Point of Sale System? Keeping track of sales can be a tedious and time-consuming job, especially for small business owners and their teams. Often, this responsibility requires sifting through piles of papers or spreadsheets filled with outdated information. Fortunately, there's a better way to manage sales data. A POS Terminal (or Point of Sale Terminal) can help you track sales, organize data, and improve your overall operational efficiency. In this article, we'll explore the ins and outs of POS terminals, including how they work, their benefits, and tips for finding the perfect fit for your business.

The POS Exchange offers an array of sophisticated POS systems to help small business owners streamline sales tracking, improve operational efficiency, and drive significant profit growth with minimal hassle.

What is a POS Terminal and How Does It Work?

A point-of-sale, or POS, terminal is the hardware that enables merchants to process payments to complete a customer purchase. Cash registers are a classic example. But modern POS terminals can range from smartphones with plugged-in card readers to countertop terminals that print receipts, scan bar codes, and more.

POS terminals are part of your overall point-of-sale system, which includes all relevant hardware and software. The best POS systems can do more for your business than just process payments, offering additional capabilities like inventory and employee management.

What Does a POS Terminal Do?

A POS terminal processes various types of payment methods, including:

• Chip cards: Embedded with EMV technology are becoming more popular in the U.S. due to their enhanced security. Under EMV compliance guidelines, fraud liability falls on the party with the less advanced payment type, so terminals unable to accept chip cards may be liable for fraud losses.
• Magstripe: While credit card companies are phasing out cards with only magnetic stripes, they are still widely used. Fortunately, chip and swipe card readers are readily available.
• Contactless Payment: With consumers increasingly using cards with contactless payment technology and NFC-enabled digital wallets like Apple Pay and Google Pay, contactless payments have become faster and more hygienic. Revenue from contactless payments is expected to reach $6.25 trillion by 2028, according to a 2021 study by Research and Markets.
• Online Payments: If your business includes an online store in addition to a physical location, your POS terminal should be able to accept both online payments and physical card transactions. For online-only businesses, a physical POS terminal isn’t necessary. Instead, e-commerce businesses rely on a merchant account and a secure payment gateway, which can be obtained separately or bundled through providers like Stripe or Square.

Other POS Terminal Features

POS terminals streamline the sales process by doing much more than simply processing payments.

Payment add-ons

After accepting payment, POS terminals can offer customers the option of choosing whether to receive a digital receipt (either via text or email), a printed receipt, or no receipt. Terminals can also present pre-calculated tipping options that customers can choose by tapping on that user-friendly screen. 

Most POS terminals can also provide refunds, tax calculations, and sales discounts, allowing you to set up recurring payments or create invoices.

Daily operations

Many POS systems on the market offer accompanying features to aid business operations managed through that same payment terminal. These include:

• Inventory management
• Insights on sales trends and customer behaviors
• Employee scheduling and wages, marketing, and more.

Integrations

You can also integrate other apps you use for your business with your POS system. For example, Clover integrates with apps like MailChimp, Gusto, Xero, Yelp and others, turning your POS terminal into a hub for all your business management needs, from emails to reviews to accounting.

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12 Best POS Terminal Providers For Improved Sales Management

1. Stax Pay: A Top Contender for B2B Transactions

Stax Pay is an all-in-one business management platform designed to streamline payment processing for in-person and online credit card transactions. Its transparent pricing model offers clear visibility into costs, making it an ideal choice for businesses looking to reduce payment processing fees and make informed decisions.

Why I Picked Stax Pay: Stax Pay specializes in B2B transactions, making it perfect for companies dealing with complex, high-value, or recurring payments. Features like automated invoicing, ACH support, and customizable payment plans cater specifically to businesses managing large transactions.

Key features:

• Flexible payment options (credit card, ACH, eCheck)
• Advanced invoicing
• Recurring billing
• Detailed reporting
• Integrated fraud prevention

The platform provides omni-channel support across online, in-store, and mobile payments. Stax Pay integrates seamlessly with popular software like:

• QuickBooks
• Xero
• Salesforce
• HubSpot
• Shopify
• WooCommerce
• Payment gateways like:some text
  • Authorize.net
  • Stripe

Pros:

• Seamless integration with popular tools
• Advanced invoicing capabilities
• Flexible payment options

Cons:

• Limited support for international transactions
• Slight learning curve for new users

2. KORONA POS: Best for Real-Time Inventory Management

KORONA POS is a cloud-based, flexible POS system for various businesses, including retail stores, quick service restaurants, and ticketing services. Its user-friendly interface and robust features make it an ideal choice for businesses seeking real-time inventory management and advanced sales tracking capabilities.

Why I Picked KORONA POS: KORONA POS excels in real-time inventory management, allowing businesses to stay on top of stock levels and respond quickly to demand fluctuations. Advanced features like automated reordering and detailed inventory reporting help maintain optimal stock levels while reducing waste. The system's accuracy in handling sales transactions makes it a reliable choice for businesses.

Key features:

• Customizable reporting tools
• Employee management for tracking staff performance
• Multi-location management for overseeing multiple stores

Integrates with:

• QuickBooks
• WooCommerce
• Shopify
• Magento
• BigCommerce
• Mailchimp
• Various payment processors, such as:some text
  • PayPal
  • Stripe
  • Worldpay

Pros:

• Supports multiple locations
• Customizable POS layout
• Detailed inventory management features

Cons:

• Each terminal requires a separate payment
• Reports could be more customizable

3. Payment Depot: Best for High-Volume Businesses in Various Industries

Payment Depot offers a versatile POS and merchant services solution tailored to various industries. Its transparent interchange+ pricing model helps businesses save on transaction fees, especially those processing high volumes of payments.

Why I Picked Payment Depot: Payment Depot provides a flexible POS system that caters to ecommerce, mobile, and physical payment terminals. Whether you're running a retail business, restaurant, bar, or healthcare company, Payment Depot allows businesses of all sizes to streamline payment processing and improve cash flow management.

Key features:

• Free payment gateway
• Virtual terminal capabilities
• Seamless integrations with platforms like:some text
  • Shopify
  • WooCommerce
  • BigCommerce

It also integrates with payment systems like Authorize.net and business management solutions like Revel Systems.

Pros:

• Comprehensive equipment offerings
• User-friendly interface
• Cost-effective for high-volume businesses

Cons:

• Not suitable for low-volume businesses
• Limited to US-based, non-high-risk merchants

4. Lavu: Best for iPad POS Systems

Lavu is a versatile iPad POS system for restaurants, bars, and cafes. Known for its high customization and seamless third-party app integrations, it allows food businesses to centralize and streamline operations.

Lavu integrates core business functions such as online ordering, inventory management, invoicing, and payment processing into one efficient platform. The system’s MenuDrive feature allows businesses to manage their online menus from anywhere, offering flexibility and ease of use.

Key features:

• Delivery management
• Real-time reporting
• Employee scheduling
• Loyalty program support
• Self-ordering kiosks

Lavu also integrates with popular platforms like PayPal, Square POS, and Paychex Flex, as well as food and beverage management tools like BevSpot and Marketman.

Pros:

• Real-time reporting and analytics
• Advanced inventory management
• Highly customizable POS system

Cons:

• Limited offline capabilities
• Additional features can be expensive

5. Epos Now: Scalable to Suit Your Needs

Epos Now is an all-encompassing POS system designed for retail and hospitality businesses. With a user-friendly interface and powerful cloud-based features, it helps companies to streamline operations, enhance customer experiences, and drive growth.

Epos Now stands out for its intuitive interface, making it easy for staff to get up to speed with minimal technical knowledge quickly. The cloud-based system allows business owners to access real-time data remotely, and its scalability ensures it can grow with your business.

Key features:

• Real-time inventory management
• A CRM module for customer relationship building
• Advanced reporting tools to analyze sales and customer behavior

Integrates with:

• QuickBooks
• Xero
• Shopify
• WooCommerce
• PayPal
• Stripe, and more.

Pros:

• Fast transaction processing
• Easy-to-navigate interface
• Advanced reporting and analytics

Cons:

• Setup can be complicated
• Occasional system crashes

6. Helcim: Transparent Payment Solutions

Helcim is a payment processing solution that enables businesses to accept various payment methods, including credit and debit cards, both online and in-person.

Helcim stands out because its transparent pricing model, helping businesses manage financial transactions efficiently. It also offers a comprehensive set of tools for merchant accounts, POS systems, and customer interactions.

Standout Features & Integrations: Helcim provides an all-in-one platform with services like invoicing, inventory management, and customer management. The platform's Interchange Plus pricing model helps businesses save on transaction fees. Integrations include QuickBooks, Xero Payments, WooCommerce, and more.

Pros:

• Proactive fraud alerts
• Easy setup and user-friendly interface
• Excellent customer service

Cons:

• Slow website performance
• Limited customization options for invoices and receipts

7. Merchant One: Low Rates & Fees

Merchant One is a payment processing solution designed to help businesses efficiently manage credit and debit card transactions.

Why I Picked Merchant One: Merchant One is an excellent choice for small businesses, offering $0 setup fees, flexible equipment leases, and interchange plus pricing. It provides various services tailored to enterprises requiring mobile and online payment processing.

Key features:

• Secure online payment gateways
• Mobile processing
• Clover point-of-sale systems with inventory and customer engagement tools

Merchant One also prioritizes compliance with industry regulations. Integrations include:

• Authorize.net
• Clover Network
• Paytrace Gateway

Pros:

• Advanced fraud prevention and authentication tools
• Variety of payment terminals and POS systems
• Fast approval process

Cons:

• Slow deposit times reported by some users
• Requires a three-year contract

8. Clover: Best for Ease of Use

Clover offers an intuitive, easy-to-use POS system with a modern UI, providing businesses with efficient payment processing and sales tracking.

Why I Picked Clover: Clover’s Flex handheld POS system enables businesses to accept payments, track sales, and place orders from their hand. Its minimal setup and training make it ready to use straight out of the box.

Standout Features & Integrations: Clover supports all payment types, manages inventory, and includes a built-in loyalty program. Cloud storage ensures data is accessible anywhere. Integrations include:

• Apple Pay
• Google Pay
• Samsung Pay

Clover also offers a robust app marketplace and custom app integrations.

Pros:

• Multiple integration options
• Mobile devices with 8-hour charge
• Easy-to-use interface

Cons:

• Higher upfront cost
• No free trial

9. Shopify: Best for E-Commerce and Retail

Shopify’s wireless POS hardware is ideal for businesses selling at markets or pop-up events. It offers flexibility and reliability for all retail needs.

Why I Picked Shopify: Shopify provides hardware solutions for multi-store, single-store, or event-based businesses. Customizing your POS setup is easy, ensuring the right fit for your operations.

Standout Features & Integrations: Shopify’s wireless POS devices let you close sales anywhere. The platform boasts 99.9% uptime for smooth payment processing, and integration with Shopify’s proprietary POS software enhances ease of use.

Pros:

• Highly adaptable
• Wide range of accessories (cash drawers, barcode scanners)
• Supports tap, chip, or swipe payments

Cons:

• Monthly fee for Shopify POS software
• It can be expensive for larger or rapidly growing businesses

10. Square: Best All-Around POS Terminal

Square is a top choice for businesses of all types, offering flexible POS hardware and software that can be customized to fit unique needs.

Why I Picked Square: Square offers various POS hardware solutions that cater to different business models—from brick-and-mortar stores to mobile businesses. Its flexibility and ease of use make it a standout in the market.

Standout Features & Integrations: Square provides robust data analytics, financial reporting tools, and the ability to mix and match hardware components like card readers, registers, and stands. Plus, there are no long-term contracts, making it ideal for businesses that prefer flexibility.

Pros:

• User-friendly interface
• Competitive pricing on transaction fees
• Highly customizable hardware

Cons:

• Can’t run on Windows desktops or tablets
• Bulky design

11. Toast Go2 handheld POS

Toast’s handheld device is a stand-alone POS and payment terminal with built-in POS software, a card reader, and a receipt printer. The hardware is industry-grade, with IP54 protection against dust and water damage, and built to withstand drops up to 4 feet. 

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Ideal for busy sit-down restaurants, the Toast Go2 comes with:

• Table seating and reservation management tools
• Plus custom tipping
• Bill splitting
• Signature capture features

12. PayPal Terminal

The PayPal Terminal is a stand-alone POS hardware designed similarly to the Square Terminal. Hardware tools like barcode scanners, thermal printers, and charging docks are optional. The PayPal Terminal has a built-in card reader capable of tapping, EMV chip, contactless payments, and PayPal’s POS software. 

The starter kit includes a preloaded SIM card for continued internet access and uninterrupted payment processing. The PayPal Terminal is ideal for selling in farmers’ markets, trade shows, and popup stores that cater to tourists who pay with international credit cards.

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How Do You Choose the Right POS Terminal for Your Business?

Whether you're a retailer, a restaurant, or a service provider, you want a POS terminal that supports all major credit cards and digital payments. The best systems will also help other payment methods like gift cards and buy now, pay later (BNPL) installment options. 

Look for a solution that has a flexible payment processor to help you minimize your transaction costs. For example, specific payment processors provide options to use surcharging and convenience fees to lower your overall processing costs.

Processing Costs: What Will a POS Terminal Cost Your Business?

Payment processing fees are arguably the most significant cost when choosing a POS terminal. Depending on your business needs, hardware costs for payment processing can range from free to hundreds of dollars. 

Recurring costs for accepting payments will affect your revenue the most. Choose a provider that will save you the most based on your sales volume. Ensure that you only pay for payment processing features you currently need.

Security: Protecting Your Customers and Your Business

Regardless of your business size or industry, transaction security should be a significant consideration as you handle sensitive customer information. Work only with level 1 Payment Card Industry (PCI) accredited payment processors to minimize security risks. 

This ensures your provider offers the latest security features, such as:

• End-to-end encryption
• User authentication
• Machine learning fraud detection
• Chargeback management tools

Software Integrations: What's Your POS Terminal Lacking?

Your POS terminal should have access to key functionalities such as:

• Inventory
• Client relationship management (CRM)
• Loyalty and rewards
• Reporting

You should also look for other third-party integrations for tools you may need, such as accounting and local delivery. Being able to integrate all these features into one platform helps in creating an efficient business management solution.

Connectivity: How Well Will Your POS Terminal Work?

A reliable POS terminal stays connected and works efficiently with minimal downtime or failed transaction requests. For this, you must choose payment terminal hardware with multiple connectivity options, such as:

• Bluetooth
• WiFI
• LAN

As well as temporary offline payment processing during a power outage. Also, consider the terminal’s power source and battery life against your typical business day and transaction volume.

Industry-Specific Features: What Will Help You Run Your Business?

Industry-specific features also play a role in payment terminals. The early restaurant POS terminals already had a kitchen ordering integration. Currency conversion is also one of the early features allowing merchants to accept international payments. 

Look for any industry-specific tools your business needs before choosing a POS terminal. For example, basic and custom tipping is available from some payment processors. While restaurants prefer local delivery functionality, a retailer might need a shipping feature instead.

Processing Volume: How Much Do You Need to Process?

You should consider your processing volume. If you process dozens of card and digital payments daily or hourly, you need a POS terminal that can withstand high-volume use. If you only process a few payments a week or a month, a less robust — and typically lower cost — POS terminal will be more your speed. 

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Book a Free Demo With POS Exchange To Learn About Our Customized POS System Solutions Today!

The POS Exchange brings over 20 years of restaurant expertise, serving 200,000+ merchants and processing billions annually. Our tailored POS system solutions help businesses speed up checkouts by 30%, implement dynamic pricing, and manage customer reviews while reducing overhead. Perfect for:

• Full-service restaurants
• Pizza shops
• Coffee houses
• Multi-location enterprises

We offer end-to-end service, from brilliant consultation and interactive demos to local installation and 24/7 support. Our mobile iPad POS systems streamline operations with features like order management, bill splitting, and inventory control. With integrations for business management tools and advanced security measures, we ensure your POS system grows with your business. 

Trust our expertise to help you avoid the common pitfall that affects 38% of new business owners who choose the wrong POS system. Whether managing a busy restaurant, a local café, or operating a multi-location business, The POS Exchange delivers customized POS system solutions that tell your unique business story. Book a free demo with POS exchange to learn about our customized POS system solutions today.