Selecting a point-of-sale system can feel overwhelming when you’re running a business. With so many options available, it's easy to feel confused and lost. But this choice is significant, as your POS system will impact your daily operations for years. How to choose a point-of-sale system? Start by identifying your business needs, budget, and desired features. Before committing to a system, take a step back and consider the things that matter. This article will help you prioritize your goals to select a POS system that enhances business efficiency, maximizes profits, and supports long-term growth with minimal complexity.
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The POS Exchange's POS systems solution can help you achieve your objectives, like selecting a system that enhances business efficiency, maximizes profits, and supports long-term growth with minimal complexity.

12 Major Things to Consider Before You Buy a POS System

1. Assess Your Business Needs First

Understand your business’s unique operations and goals before evaluating POS systems. 

• Start by considering the types of products and services you sell. You want a POS that can handle your entire product catalog and inventory. 
• Evaluate your sales channels. Many POS systems support omnichannel sales across brick-and-mortar, online, and mobile platforms. Pick a POS that integrates the sales channels you use or plan to use. If you have multiple locations, look for a POS that supports multi-store management and reporting from one centralized interface. 
• Consider your growth plans and how tech-savvy you and your staff are. Choose a scalable POS that can expand as your business grows. 

‍Cloud-based POS systems are typically more scalable than legacy on-premise systems. If your team is less tech-savvy, opt for a POS with an intuitive interface and easy training. More complex systems have a steeper learning curve. Clearly defining your business needs and objectives will help you choose the POS system that best fits your unique operations and goals.

2. Features and Functionality

Today’s POS systems have features and capabilities that go far beyond just processing transactions. Here are some key features to look for when evaluating POS solutions: 

Sales And Payment Processing 

At a minimum, the POS should seamlessly handle checkout and all payment types you accept, such as: 

• Cash
• Credit cards
• Mobile payments

Inventory Management 

The system should track stock levels in real-time across locations so you can optimize inventory. Automated reorder points are also helpful. 

Customer Relationship Management 

Many POS systems have built-in CRM to: 

• Store customer data
• Purchase history
• Contact info and more

Reporting And Analytics 

Robust reporting provides insights into: 

• Sales trends
• Bestselling items
• Prime sales times
• Inventory needs and more

Employee Management 

Features like shift scheduling, payroll tracking, and access control help retailers manage staff effectively. 

Ecommerce Integration

Retailers with an online store should look for a POS that integrates with their eCommerce platform for centralized order and inventory management. 

Customization 

The POS should provide customization options like interfaces, menus, receipt layouts, and payment procedures to accommodate your unique workflows.

Tailoring POS System Features to Your Business Needs

For instance, some of a coffee shop’s essential POS system features would likely include: 

• Tableside ordering and payment
• Kitchen display systems to manage orders
• Integration with loyalty/rewards programs

The POS would need to: 

• Quickly split checks
• Accept multiple payment types
• Allow for tip adjustments

The POS priorities for a thrift store would be different. They need good inventory management and barcode scanning capability to track all the unique/used items. Managing and monitoring vendor and consignment payments would also be very important. Thrift stores are less likely to need tipping, table management, or mobile ordering features. The point is to find a solution with the features and tools your business requires. And, ideally, don’t waste money on extra features you don’t need.

3. Hardware and Software Considerations

In addition to features, retailers must evaluate POS systems based on hardware and software specifications:

Hardware Terminals 

Most POS systems come with touchscreen terminals where staff can: 

• Ring up orders
• Take payments
• Look up inventory
• Access reports, etc. 

Evaluate: 

• Size
• Design
• Durability
• Features

Barcode Scanners 

Scanners make the checkout process extremely efficient by quickly capturing product UPCs. Ensure compatibility with your product barcodes. 

Receipt Printers 

Integrated receipt printers provide paper receipts without a separate printer. This saves counter space in tight retail settings. 

Cash Drawers 

Cash drawers with integrated POS software automatically open after transactions are processed for secure handling of cash and coins.

Card Readers 

For optimal security, look for EMV chip-enabled readers when processing: 

• Credit
• Debit
• Gift card payments

Other Factors

Based on your business, you may need additional hardware like: 

• Scales
• Barcode label printers
• Kitchen display systems, etc. 

Software Operating Systems 

The POS software should work on your: 

• Windows
• Mac
• Linux
• iOS
• Android

Cloud Vs. On-Premise 

Retailers should consider the pros and cons of a cloud vs. on-premise server-based POS. App Integration Many POS providers offer apps or API integration for enhanced functionality like: 

• Accounting
• eCommerce
• CRM
• Inventory, etc. 

Multi-Store 

If you have multiple locations, look for a POS with centralized management and reporting across all stores. Carefully evaluate the software and hardware components to ensure seamless integration and maximum performance. This includes factoring in: 

• IT infrastructure
• Operating systems
• Network capabilities
• Data security protocols

4. Cost Analysis 

Cost is another essential factor to consider before buying a POS system. While features and technology are important, cost is often the deciding factor for small businesses with tight budgets. 

Be sure to analyze upfront and ongoing costs: 

Upfront Costs 

The initial POS software purchase, license fees, required hardware, installation, and integration can add up quickly. Some vendors offer bundle deals on hardware + software. 

Payment Processing 

All debit and credit transactions incur a fee. Some POS providers make more money by charging processing fees per transaction, which eats into profit margins. 

Staff Training 

Don’t underestimate the time and costs of training staff on a new POS solution. Complex systems require more training time. 

IT Maintenance 

On-premise POS systems require retailers to handle IT maintenance, hardware/software upgrades, and data backups, while cloud-based systems remove this burden. 

Ongoing Fees 

Software licenses, support fees, payment processing fees, and other recurring costs are often monthly or annual. Factor these into your budget. 

Added Costs 

Watch out for extra fees, surcharges, cancellation penalties, long-term contracts, and other sneaky ways some POS providers add to the total cost. 

Understanding the Full Cost of a POS System: One-Time and Ongoing Expenses

During the research process, identify all one-time and ongoing costs. Obtain quotes with detailed pricing breakdowns from vendors. This helps small retailers select a reasonably priced POS system aligned with their budgets.

5. Security and Compliance

For any small business owner handling sensitive customer payment information, security is paramount when evaluating POS solutions. 

Here are vital factors to consider regarding data security: 

Payment Processing Security 

The POS system should be PCI-compliant and support top data encryption standards to process transactions securely. This helps mitigate cyber threats. 

Data Protection 

Ensure the vendor has strict access controls and data protection policies for retail customer information stored in the POS. Vendor data security should align with your policies.

Compliance 

Beyond PCI compliance for payments, the POS system should also comply with regulations for your industry, like HIPAA compliance in health retail. 

Cloud Security 

For cloud-based systems, carefully review security protocols like: 

• Mandatory logins
• Data encryption
• Disaster recovery systems
• Data center access controls

Support 

POS systems frequently require software updates and security patches. Ensure the vendor provides prompt support and maintenance

Prioritizing Security When Choosing a POS System

Do not hesitate to thoroughly question POS vendors on their security infrastructure and protocols during the vetting process. A data breach resulting from an insecure POS system could be catastrophic for small retailers

6. Vendor Selection and Support

In addition to product features and pricing, the POS vendors are significant. 

Carefully vet potential vendors: 

Company Stability 

Research POS providers to confirm they are financially stable companies that will remain in business long-term to support your system. Check for things like BBB accreditation, GlassDoor reviews, and other indications that the company is in good standing.

Technical Support 

Evaluate support response times, channels (phone, email, chat, etc), and available hours. Prompt and knowledgeable support is key. 

Reviews 

Check credible third-party review sites for detailed feedback from the vendor’s small business customers. This provides transparent insight into the solution’s potential pros and cons. 

References 

Reputable POS vendors will provide references from retail clients you can contact to discuss their first-hand experiences. 

Location 

Consider geographic proximity for: 

• On-site installation
• Training
• Support

Local vendors may provide more hands-on services. 

Company Culture 

Vet the vendor company culture to ensure you’re working with an ethical company you want to partner with over the long term. Selecting the right POS partner that provides top-notch ongoing service and support is just as crucial as the technology for small business success.

7. Implementation and Training

Once you’ve selected your POS system, careful planning of the implementation and staff training process is key for a smooth transition: 

Start Slow 

When rolling out a new POS, start slowly with one location and limited staff before expanding. This allows you to work out the inevitable kinks on a smaller scale first. 

Customize Before Launch 

Take time to customize interfaces, menus, integrations, and procedures before full launch based on staff feedback in initial small-scale testing. 

Schedule Training 

Provide staff with both initial and ongoing training on using the POS software and hardware. Proper training improves employee confidence and satisfaction. 

Get Support 

Work closely with vendor support staff during implementation, having them train employees. Use their expertise to optimize the system. 

Document Procedures 

Document all new policies, procedures, and instructions for staff reference after initial training, especially for seasonal employees.

Seek Feedback 

Have staff provide feedback during and after the launch to identify the following: 

• Additional training needs
• Customizations
• Optimizations for maximum usability

Be Patient 

Understand that employees will require adjustment to learn a new system. With careful implementation planning and staff training, retailers can transition to a new POS system with minimal disruptions to daily operations.

8. Demo and Trial Options

The best way to evaluate a POS system is to see it in action via demos and free trials. 

Take advantage of the following: 

Online Demos 

Many vendors provide video demos on their websites so you can get an initial overview of key features and functions. 

Free Trials

Many POS providers offer free trial periods of 1-2 weeks or longer so you can test the system hands-on. Use this time to evaluate the system in real sales environments with your data.

Pilot Programs 

For large multi-location retailers, piloting the POS at a few stores first allows you to assess suitability before a chain-wide deployment. 

Attend Industry Events

POS vendors often showcase products through booths and presentations at retail industry trade shows and conferences. 

Comparison Chart

Compile detailed features and pricing comparison charts across top vendors to narrow options. Using demos, trials, and pilots minimizes buyer’s remorse and helps retailers confidently select the optimal POS system.

9. Integration Capabilities

Many restaurant POS systems do more than process and track sales thanks to powerful integrations. These integrations build your system’s functionality while adding valuable hours to your busy week. 

Below are some integrations you’ll want to ask about for your business’ POS. 

What Are Your Top Or Most Used Integrations? 

Consider this answer a free recommendation from restaurant owners already using the restaurant POS software you’re considering. 

This will give you some insight into what people in the industry are finding valuable, expose you to new integrations you didn’t know were available, give you a sense of what’s available for your current needs, and what you’ll have access to as your business grows

What Is Available To Help Manage Inventory? 

Inventory management is an essential part of restaurant management. According to TouchBistro’s 2025 State of Restaurants Report, 26% of operators identified food/inventory costs as having caused them the most significant financial strain this past year. 

Many restaurant POS systems will have powerful inventory capabilities and integrations to help minimize that struggle. Since inventory is essential for veterans and new restaurant owners, asking about any integrations is crucial to smooth this process.

Can My Restaurant Pos Software Link To My Accounting Software? 

Do you mean you don’t want to spend hours going back and forth manually inputting your POS data into accounting software? With a point of sale that integrates directly into accounting software, you can avoid the tedious manual entry–and inevitable errors that come along with that. Finding out what accounting integrations are available can save you many headaches–and accounting errors–in the long run. 

What Are Your Options For Payment Processing? 

You’re also trying to make money while running a restaurant to serve delicious food and make people happy. So, how are you processing payments at your restaurant? Whether you’re looking for an integrated processor or a standalone system, most restaurant POS systems have different payment processing options.

The Importance of Payment Flexibility in Choosing a POS System

Try to avoid POS providers that only offer one payment processing option. Without the freedom to choose, you won’t be able to find the one that fits your business needs or switch when/if those needs change.

10. User-Friendliness

A sound POS system shouldn’t be time-consuming or frustrating for staff members. It should promptly provide consumers with the information they require to assist them and move them around the business. They are the face of your company; when thinking about the technology in your business, don’t forget about them. 

Employee management POS features to consider:

• Every employee’s logins are secure 
• Dashboards that can be customized for every employee 
• An intuitive interface that cuts down on training time
• Integrating your loyalty program to maximize the use of your customer information

11. Is the POS System Scalable?

Consider the long-term costs and any future requirements when buying a POS system. When you first start, choosing the most straightforward and cheapest system can be tempting, but if you do, you’ll regret it when you outgrow it within a year. 

Retailers require scalable solutions that can grow along with their business. In the end, you’ll pay in time and money when you need to switch POS systems if you don’t budget for one now that is built for long-term success. 

Scalability Features to Look for in a POS System

Scalability POS features to consider: 

• Integration of inventory reporting and support for numerous locations 
• Integration with QuickBooks and other widely used programs like Google Analytics and MailChimp 
• Open technology, which makes it simple for independent developers to create applications you may add to your POS 
• Registers that you may add as needed, whether they are for a pop-up shop or a new permanent location

12. Contracts and Costs

We’ve saved the best for last–cost and contracts are critical to consider before buying a restaurant POS system. And there are more questions you’ll want to ask on this topic beyond the system’s total cost. 

Here are the top questions to ask about a POS system when choosing the right one for you. 

How Much Does This POS Cost? 

This will likely be one of your first questions, but ask before signing anything! This includes the hardware and software cost (either a one-time fee or a monthly/yearly subscription fee). You’ll also have to remember that some integrations are an additional cost on top of the POS. 

We discussed the different integrations you can ask about, but figure out how much they can cost in addition to your software and hardware costs.

What Are Your Pricing Models? 

You know the cost, but how are you paying it? Is it a monthly subscription? A yearly payment? And what are the different pricing models based on your restaurant size? There’s no one-price-fits-all solution on the market for restaurant POS systems, so while your buddy down the street paid one price to accommodate his venue, you might pay another. Getting the information on pricing models will show you what you’re going to pay for your specific needs. 

Am I Locking Myself Into A Contract?

Do you think your two-year cell phone contract is brutal? Try a four-year contract with a restaurant POS you end up unhappy with. If you find a provider you love, it makes sense to stick with them, even for four years! 

But you don’t want to be trapped. If you end up agreeing to a long-term contract, you’ll also want to confirm there’s some type of guarantee if you’re unhappy from the get-go. Some providers charge tens of thousands of dollars to get out of your contract, even if it’s within the first 30 days. 

How Transparent Are Your Payment Processing Rates? 

Are there hidden fees? Can you raise my rates at any time? While these seem like many questions, they all tackle one area of contracts and costs–your payment processing rates. 

Having as much clarity as possible on these rates is essential before you sign anything. You don’t want to find any surprises on your bill months into your contract. 

Ensuring Transparent Pricing and Fixed Rates with Your POS Provider

The right restaurant POS provider will be able to give you straightforward answers. Also, make sure they aren’t able to change the rates on you. Imagine signing onto one rate and finding it raised a few months later, and you have no ground to stand on. 

You may initially feel you’re getting a good deal on your processing rate, but in a few months or a year, the unexpectedly higher prices will make you think otherwise. 

Related Reading

• POS System Features
• Compare POS Systems for Retail
• Portable POS System
• What Is the Best POS System for Small Business?

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
• 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 you're managing:

• A busy restaurant
• A local café
• 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.

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