The Top 5 POS Systems Used by Retailers Today
Retailers today face more complexity than ever when it comes to payments. A point-of-sale (POS) system is no longer just a cash register — it’s the hub that manages sales, inventory, loyalty, reporting, and sometimes even payroll. Choosing the right POS system is a balance of cost, features, and long-term flexibility. Below is a breakdown of the top five POS systems used by U.S. retailers, including their pricing models, strengths, and drawbacks.
1. Square for Retail
Overview:
Square is often the first stop for new or small retailers. It’s simple, affordable, and quick to launch, with retail-focused features like inventory management and bar code scanning.
Costs:
Software: Free tier available; Retail Plus at $60/month per location.
Processing: Flat 2.6% + $0.10 for in-person; 2.9% + $0.30 for online.
Hardware: iPad kits start around $799; terminals and readers are cheaper.
Pros:
Fast setup and no contracts.
Transparent pricing with no hidden fees.
Scales well for small to mid-size operations.
Cons:
Flat-rate pricing gets expensive as volume increases.
Limited advanced inventory features.
Locked into Square’s processing.
Best for: Small retailers, pop-ups, and budget-conscious shops.
2. Clover
Overview:
Clover is hardware-focused, backed by Fiserv. It’s popular with established retailers that want countertop and handheld devices along with a robust app marketplace.
Costs:
Hardware: Devices range from $499 (Mini) to $1,699 (Station).
Software: $14.95 to $49.95/month depending on features.
Processing: Varies; often interchange-plus through resellers.
Pros:
Durable, professional-grade hardware.
Customizable with apps for loyalty, gift cards, and scheduling.
Can negotiate rates with resellers.
Cons:
Locked into Fiserv or reseller agreements.
App costs add up quickly.
Contracts vary in transparency depending on provider.
Best for: Mid-sized or growing retailers wanting hardware flexibility and negotiable pricing.
3. Lightspeed Retail
Overview:
Lightspeed is a cloud-based POS built for multi-location retailers with complex needs. It offers advanced inventory, analytics, and integrations with e-commerce platforms.
Costs:
Software: Starts at $89/month per location.
Processing: 2.6% + $0.10 (U.S. default, custom rates available).
Hardware: iPad-based or desktop kits, typically $500–$1,000+.
Pros:
Strong inventory management, including variants and purchase orders.
Multi-store capabilities.
Built-in e-commerce integration.
Cons:
Higher monthly fees.
Mandatory processing unless negotiated otherwise.
Learning curve for smaller teams.
Best for: Larger retail chains or specialty retailers with multiple locations.
4. Shopify POS
Overview:
Shopify dominates e-commerce and offers a POS system tightly integrated with its online platform. Retailers with strong online sales use Shopify POS to unify inventory and reporting.
Costs:
Software: POS Lite is included in Shopify plans; POS Pro is $89/month per location.
Processing: 2.7% in-person; 2.9% + $0.30 online (lower with higher Shopify tiers).
Hardware: Card readers start at $49; full kits run $500–$1,000+.
Pros:
Seamless integration with online store.
Robust ecosystem of apps and plugins.
Strong for omnichannel retailers.
Cons:
Processing locked into Shopify Payments unless paying extra.
Extra cost per location for POS Pro.
Less feature-rich if you don’t sell online.
Best for: Retailers with significant e-commerce presence.
5. SpotOn
Overview:
SpotOn has gained traction in retail and hospitality by offering flexible POS setups with transparent pricing. It combines retail POS with loyalty and marketing tools.
Costs:
Software: $65–$135/month depending on features.
Processing: Interchange-plus, typically starting around interchange + 0.10% + $0.05.
Hardware: Customizable packages from $500 up.
Pros:
Transparent processing and negotiable rates.
Strong support and onboarding.
Marketing and loyalty features included.
Cons:
Less brand recognition than Square or Shopify.
Upfront hardware costs.
Smaller ecosystem compared to competitors.
Best for: Retailers looking for a negotiable, service-driven option.
Final Thoughts
There’s no one-size-fits-all answer for retail POS.
Square is best for startups and small retailers.
Clover works well for established shops with hardware needs.
Lightspeed shines for larger, multi-location retailers.
Shopify dominates if e-commerce is a core part of the business.
SpotOn appeals to those who value transparency and strong support.
When evaluating POS systems, retailers should weigh monthly costs, processing fees, contract flexibility, and long-term scalability.