Content Producer, Restaurants & Starting a Business, Fit Small Business https://technologyadvice.com/blog/author/mking/ We help B2B tech buyers manage the complex & risky buying process. Wed, 21 Aug 2024 17:25:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://assets.technologyadvice.com/uploads/2021/09/ta-favicon-45x45.png Content Producer, Restaurants & Starting a Business, Fit Small Business https://technologyadvice.com/blog/author/mking/ 32 32 Best POS Systems for Bars in 2024 https://technologyadvice.com/blog/sales/best-pos-system-for-bar/ Mon, 08 Jul 2024 16:21:49 +0000 https://technologyadvice.com/?p=126243 Streamline drink orders, easily track tabs, and ultimately boost your bar's efficiency with the right POS system.

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Bars have unique needs for speedy ordering, managing high sales volumes, and supporting streamlined staff cashouts at the end of a long shift. Point of sale (POS) systems for bars must be speedy, user-friendly, and durable. The best bar POS systems do all that plus help track your inventory and prompt you to order more supplies when stock runs low. We scored several of the most popular POS systems for bars to identify the best bar POS systems for 2024. 

Best Bar POS Systems

The best bar POS systems for 2024 based on our scoring criteria are: 

Our Score (out of 5)
Key Features
Monthly Software Fees
Payment Processing Fees
Toast logo.

Visit Toast
4.58 • Durable, high-design hardware
• $0 upfront starter subscriptions
• Pay-as-you-go options for small bars
• Highly expandable system
From $0 to $69+ • In-person: 2.49%–3.29% + 15 cents
• Online: 3.5%–3.89% + 15 cents
SpotOn logo.

Visit SpotOn
4.56 • Durable, high-design hardware
• Options for $0 upfront subscriptions
• Custom-built order screens speed ordering and payments
From $0 to $135 • Quickstart: 2.89% + 25 cents
• Counter service, full service, customize your own: 1.99% + 25 cents
Square logo.

Visit Square
4.10 • iPad POS
• No long term contracts
• Incredibly fast setup
From $0 to $60+ • In-person: 2.5%–2.6% + 10 cents
• Online: 2.9% + 30 cents
Lightspeed logo.

Visit Lightspeed
3.92 • iPad POS
• Robust, built in inventory management tools
From $69 to $399+ • In-person: 2.6% + 10 cents
• Online: 2.9% + 30 cents
Oracle logo.

Visit Oracle
3.81 • Durable, industry-tested hardware
• $1 POS hardware for new customers
• Streamlined bar ordering and cash management
From $55 to $75+ • In-person: 2.2% + 15 cents
• Card not-present: 2.8% + 18 cents
• Amex: 3.0% + 15 cents
Toast logo.

Toast: Best for team management

Overall Reviewer Score

4.58/5

Pricing

4.11/5

Hardware

4.58/5

Software Features

4.58/5

Support & Reliability

5/5

User Experience

5/5

Average User Review Scores

4.2/5

Pros

  • Durable hardware
  • Get started for $0 upfront
  • Lots of bar-supporting tools, designed by experts

Cons

  • Standard contract is 2 years
  • Processing fees can get high
  • Inventory management is an extra cost

Why I picked Toast

Toast topped our rankings due to its affordability, flexibility, and wide range of features that support bars of all sizes. This POS offers excellent pricing for the smallest bars while also including software and hardware add-ons that expand to support high-volume and multilocation bars. Toast users do need to purchase Toast hardware and commit to a two-year service contract to operate this system, but pay-as-you-go options for hardware and software make this excellent system accessible for everyone.

Toast is a hybrid POS designed specifically for the food and beverage industry. The hardware is industry-grade and drop, spill, and steam tested to withstand the rigors of high-volume bar use. New users can get started with up to two POS stations for $0 upfront, while high-volume and multi-location bars can find plenty of expansive software and hardware tools to customize this user-friendly POS.

  • Durable Hardware: Toast is built on Toast-designed hardware built to withstand the rigors of high-volume food and beverage service. Stationary POS devices are spill—and steam-resistant, while handheld devices are drop-tested and fit in an apron pocket (unlike an iPad). 
  • Versatile Bar Tabs: Toast users can pre-authorize bar tabs with a card swipe on stationary or mobile POS devices, adjust tab names, and use the pre-authorization for payment or partial payment. The tab management interface is user-friendly and incredibly simple to navigate. 
  • Advanced Tip Management: With Toast you can automate detailed tip pooling and tip out arrangements based on hours worked and schedule employee roles, reducing end of shift tip out calculations and errors. The tip management tools also provide extreme transparency to your tipped staff. You can easily print out reports that show how tips are allocated (which is required by law in some locations). 
  • Pay-as-you-go Options: Toast provides options for the smallest bars to get started with a POS system for no money down. You can get hardware for up to two POS stations for $0 and pay $0 in monthly software fees; all you pay are card processing fees. The

Toast offers its POS hardware at three pricing levels– Starter Kit, Point of Sale, and Build Your Own. Toast has changed these names a few times in the past year, so you might also know them as Starter, Growth, and Enterprise. 

The names might change, but the subscription structure remains virtually unchanged. Starter subscriptions are designed for new and small bars and reduce upfront costs in favor of higher processing rates. The mid-tier is designed for mid-sized restaurants or those switching from another POS provider, and the Build-Your-Own tier offers the most customization for custom-quoted prices. 

CostStarter KitPoint of SaleBuild Your Own
Monthly software fee$0$69Custom-quoted
In-person payment processing fee• 2.49% + 15 cents without hardware
• 3.09% + 15 cents with Pay-as-you-go hardware
Custom-quotedCustom-quoted

In addition to these three subscription levels, Toast offers a software add-on bundle—the Restaurant Basics Package—that is currently priced at $60 per month, plus $9 per employee. Restaurant Basics includes lite versions of Toast’s excellent payroll and scheduling software, restaurant-specific insurance, and employee benefit tools like Toast Pay Card and 401(k) offerings. 

Toast hardware runs from $799.20 for a handheld Toast Go 2 POS device to $1024 for a countertop POS station with a touchscreen, card reader, and router. New Starter Kit subscribers can opt to pay higher payment processing fees to get up to two POS stations for $0 upfront.  

SpotOn logo.

SpotOn: Best for High Volume Bars and Stadium Service

Overall Reviewer Score

4.56/5

Pricing

4.64/5

Hardware

4.79/5

Software Features

4.17/5

Support & Reliability

5/5

User Experience

5/5

Average User Review Scores

4.4/5

Pros

  • No long-term service contract
  • Low processing fees
  • $0 software fees for small bars

Cons

  • Inventory requires third-party integration
  • Set up can take over a week
  • No option for self-installation

Why I picked SpotOn

SpotOn spent 2023 making their already excellent enterprise-level POS even more accessible for small bars and restaurants. Like Toast, SpotOn relies on industry-grade hardware with excellent connectivity for stationary and handheld POS devices. SpotOn includes even more refined mobile ordering tools that make their POS a terrific fit for bars in sports stadiums and event venues. 

The affordable processing rates make this system even more competitive, and user reviews are some of the highest of the systems we scored for this ranking; only Lightspeed Restaurant scored higher, and only slightly (4.43 average user rating for Lightspeed versus SpotOn’s 4.40). 

SpotOn, a POS provider with options for both restaurants and retailers, comes in right behind Toast on our ranking. SpotOn has focused primarily on multi-location restaurants and enterprise-level hospitality groups. So, while it might sound like a newcomer system for smaller bars, SpotOn has been around for some time. Like Toast, this highly customizable system operates on durable hardware designed specifically to withstand the rigors of bar and restaurant use.

Related: Best Retail POS

  • Low processing fees and no long-term contract: SpotOn publishes the lowest processing rates of all the systems we ranked. This can save high-volume or low-price point bars a lot of money in ongoing credit card processing fees. Unlike most cloud-based bar point-of-sale systems, SpotOn does not require a long-term service contract. If you decide the system doesn’t work for your bar, you can cancel your software service contract at any time with no additional penalties. 
  • Flexible hardware: SpotOn has the most flexible, customizable, and durable hardware of any of the bar POS systems we ranked. Users can choose from white or black colorways for a variety of countertop, handheld, and kiosk devices. Built-in customer-facing displays are available, as are two options for handheld POS devices that support onsite or offsite mobile ordering and payments. 
  • Best in class team management: SpotOn includes a built-in add-on module for team management that includes detailed scheduling, labor cost management, tip pool management, and labor law compliance tools. This module also supports a staff-facing smartphone app that shows upcoming shifts and payroll information; saving your managers’ time and giving your staff the transparency they crave. 
  • SpotOn connect: SpotOn Connect is a customer-facing Wi-Fi network that allows customers to connect with a dedicated Wi-Fi network by providing their email address and agreeing to receive emails from your bar. This email capture can grow the audience for promotions and upcoming events with amazing speed. 

SpotOn currently offers its restaurant POS in four pricing tiers. None of them require a long-term contract; all SpotOn services are month-to-month except for equipment financing agreements. Users are locked into SpotOn for processing, but the fees listed are the lowest we’ve seen in a bar POS. 

CostQuick-startCounter-serviceFull-serviceCustomize Your Own
Monthly software fees$0$99$135Custom-quoted
In-person processing fees2.89% + 25 cents*1.99% + 25 cents1.99% + 25 cents1.99% + 25 cents (custom rate quotes are available)

*Processing minimums may apply

In addition to software fees, SpotOn users will need to purchase SpotOn hardware. The POS devices range in price from $850 (for a counter service station) to $1350 (for a POS station and kitchen display system (KDS) bundle). You can purchase hardware upfront for a one time fee, or finance the purchase over several months. 

Square logo.

Square for Restaurants: Best for wine bars & breweries

Overall Reviewer Score

4.1/5

Pricing

4.64/5

Hardware

4.58/5

Software Features

3.33/5

Support & Reliability

3.33/5

User Experience

4.38/5

Average User Review Scores

4.33/5

Pros

  • Free baseline POS subscription
  • No long term contract
  • Includes pay-as-you-go options for add-ons

Cons

  • Pre-authorizations have some bugs to work out
  • Inventory requires a third-party integration
  • Reporting is not as robust as competitors

Why I picked Square for Restaurants

A forever-free bar POS with hundreds of integrations you can self-install on hardware you already own is too good a deal to pass by. With the addition of pre-authorization functions, Square has made itself increasingly relevant to bar businesses. User reviews suggest there are still a few bugs to work out with the pre-auth function, but a small footprint bar operation like a wine bar or brewery can easily sidestep those issues. 

While Square for Restaurants may not yet be a contender for high-volume bars, we could see it easily getting there in the near future. 

Square for Restaurants is a cloud POS that operates on iPads and Square-designed POS hardware. Like Toast and SpotOn, Square offers a free baseline POS software subscription. Unlike those competitors, users can self-install Square for Restaurants on hardware they already own and get started processing sales and payments for free. Square added credit card pre-authorization functions in November 2023, making this popular POS even more useful for bar businesses.

Related:Types of POS

  • Free forever subscription: Small bars can use Square for Restaurants’ Free subscription for a few months or several years; all you pay are processing fees on card and digital payments. There are no long-term contracts, so you can use Square as long as you like and either upgrade or cancel your subscription when your business needs change.
  • Pay-as-you-go business tools: Square is the system that first brought pay-as-you-go pricing to the food and beverage POS world. Square users can get text and email marketing tools, team management, payroll and other tools for incredibly low prices that are based on your actual usage. For example, Square’s email marketing tools start as low as $15 per month for up to 500 sends. You’ll only pay for what you actually use. 
  • Hundreds of integrations: Square for Restaurants doesn’t have built-in ingredient-level inventory to help you track your bar’s usage and create vendor orders. But it does support integrations with nearly every third-party inventory app on the market– from YellowDog to MarketMan. Users will also find hundreds more integrations for scheduling apps, third-party ordering and delivery, and more. So you can keep your favorite apps and still use Square. 

Square for Restaurants recently updated its pricing model. It still offers its free baseline subscription—that hasn’t changed. But now Premium users have a more detailed pricing model, with fees for additional POS stations and business locations.

CostFreePlus
Monthly Software Fees$0 for unlimited countertop stations$60 for a single countertop POS station
+ $40 for additional countertop station
+ $50 for additional mobile POS device
Payment Processing fees• Card-present: 2.6% + 10 cents
• Online 2.9% + 30 cents
• Manually keyed: 3.5% + 15 cents
Custom rates available for bars that process $250,000+ annually

Hardware is some of the most affordable on this list. Users can get started for $0 if they use an iPad they already own. Or for prices from $49 (for a tap and chip card reader) to $1,350 (for a full POS station with cash drawer, iPad stand, receipt, and ticket printer), they can purchase hardware from the Square website. Square offers easy monthly payment options for larger hardware purchases. 

Lightspeed logo.

Lightspeed Restaurant: Best for Inventory Management

Overall Reviewer Score

3.92/5

Pricing

2.86/5

Hardware

3.54/5

Software Features

4.79/5

Support & Reliability

4.17/5

User Experience

3.75/5

Average User Review Scores

4.43/5

Pros

  • Best in class, built-in inventory
  • Operates on iPads
  • Excellent Reporting

Cons

  • No self installation option
  • Hardware pricing requires custom quote
  • Pricier than competitors

Why I picked Lightspeed Restaurant

Since Lightspeed bought several competing restaurant POS systems in 2020, it has become an incredibly high-functioning bar and restaurant POS system. The insightful automations are increasingly useful when the new normal means training a full roster of workers who are new to the food and beverage industry. Users love this system, awarding the highest average score of any bar POS system on this list.

Lightspeed Restaurant is an iPad POS built for food and beverage businesses. It features the speed and agility of the popular Lightspeed Retail POS, strengthened by insightful, automated ingredient-level inventory management tools. If inventory management is a must for your bar, Lightspeed Restaurant is your best choice. The only thing that kept this excellent POS from scoring higher is its cost; Lightspeed Restaurant is the highest-price system on this list.

  • Automated inventory management: Lightspeed Restaurant’s inventory management is one of the most user-friendly and insightful inventory tools we’ve seen in a restaurant POS. And they are built right into the POS; no third-party integration necessary. Lightspeed will track your usage levels in real time and prompt you to reorder low stock. Comparing your actual usage to your theoretical usage in real time can help you identify theft and overpours as soon as they happen. 
  • Advanced reporting: Lightspeed Restaurant’s reporting leverages POS data like customer payment information to build detailed customer profiles and reports. You can get a similar level of detail in staff productivity reporting to identify high performers and training opportunities to strengthen your team. 
  • Automated workflows: Lightspeed Restaurant users can set up automatic prompts for ID scans or for suggested add-on sales. If your bar struggles with high turnover or is frequently training new employees, these automations can increase your sales and reduce the risk of accidentally serving underage customers. 

Lightspeed Restaurant is available at four distinct subscription levels for bars of all sizes. Unlike Toast, SpotOn, and Square, Lightspeed does not offer a free baseline subscription.

CostStarterEssentialPremiumEnterprise
Monthly Software Fees$69$189$399Custom-quoted
Payment Processing FeesIn-person payments: 2.6% + 10 centsCustom-quoted

Getting Lightspeed Restaurant’s excellent inventory tools requires at least an Essentials subscription at $189 per month. The automated tools will likely save you time and administrative bandwidth, which could easily save you more than the cost of the software fees. 

Lightspeed operates on iPads, with Lightspeed stands and peripheral hardware. You may be able to bring your own iPads; the Lightspeed sales team can tell you what is compatible with your Lightspeed subscription level. Other Lightspeed hardware requires a custom price quote. 

Oracle logo.

Micros Simphony: Best for Flexible Payments

Overall Reviewer Score

3.81/5

Pricing

4.06/5

Hardware

3.51/5

Software Features

2.64/5

Support & Reliability

0/5

User Experience

0/5

Average User Review Scores

0/5

Pros

  • Best available speed screens
  • Integrates with multiple payment processors
  • Oracle Payments does not require a long term contract

Cons

  • May be more machine than small bars need
  • Inventory requires third-party integration
  • No free baseline software subscription

Why I picked Micros Simphony

The Micros brand has been supporting bar and restaurant businesses for more than 50 years. They know the food and beverage industry and have grown along with it. This system has developed many insightful solutions to bar and restaurant pain points. To get the best deal on a Micros Simphony POS, you should get a custom-quote to ensure that you are getting the best deal.

Oracle’s Micros Simphony cloud POS is the cloud extension of the legacy Micros POS that has served the restaurant industry since the 1970s. Micros Simphony is popular with enterprise businesses like Outback Steakhouse down to mom and pop bars. 

In addition to a history of supporting food and beverage businesses, Micros Simphony is the only system on this list (and one of few on the market) that integrates with multiple payment processors. Micros users have the option to use the built in payment processor, Oracle Payments, but are not required to. 

  • High-volume cash management: Micros Simphony has the most detailed cash management features of any of the bar POS systems we scored. Users can track high cash amounts and prompt mid-shift cash drops to reduce the risk of theft. Cash counts are digitized so you can reference them for reporting. You can track detailed paid and paid out transactions and petty cash directly from the POS, all searchable via detailed reporting.
  • Rugged hardware: Micros Simphony’s hardware is not all the most streamlined-looking—though the newer Worktstation 8 collection is sleek—but it is incredibly durable. Users have options for stationary and handheld POS devices, KDS screens, and kiosks. New users who switch from another POS provider can get hardware for as low as $1 per station.
  • Flexible payment processing: Micros Simphony users can rely on the built-in Oracle Payments for reasonable processing rates. Oracle Payments does not require long-term contracts, and the system integrates with many other payment processors. If you decide Oracle Payments is not for you, you can shop for lower rates with other processors. 

Micros Simphony is available at three major subscription tiers. Unlike competitors Toast, SpotOn, and Square, however, Micros does not offer a free baseline subscription.

CostEssentialsPlusSingle Tenant
Monthly software fees$55$75Custom-quoted
Payment processing rate• Card present: 
• Card not present:
$0.06 to $0.10 per transaction

Most Micros hardware requires a custom quote. For restaurants that are switching from a different POS provider, you can get some Micros Simphony hardware for as low as $1. You’ll need to contact a Micros sales representative for detailed information.

Key features of a bar POS system

Whether they serve beer and wine only or a full complement of spirits, bars have unique needs in the food and beverage industry. Bars need to comply with restrictive state, federal, and local liquor control and labor laws while also managing a controlled product that is prone to theft. The best bar POS systems include tools to help with all of these challenges. 

A strong bar POS should have most of these features: 

  • Credit Card Pre-authorizations: Bars must be able to pre-authorize credit credit cards quickly and easily, to avoid customers forgetting to close out. And to avoid the liability that arises from holding onto customer’s physical credit cards behind your bar. 
  • Inventory Management: Real-time, ingredient-level inventory tools supported by detailed physical counting tools are critical to reducing theft and indentifying overpours. The best systems will prompt you for suggested re-orders so you always have your best selling spirits on hand. 
  • Employee Management: Employee-level shift reporting is the minimum requirement for sales and tip tracking. But many bar POS systems include everything from productivity reporting to scheduling tools with an employee-facing app; which can save managers a ton of time writing and managing schedules. 
  • Speed Ordering Screens: The ability to ring in and pay tabs from a single screen keeps bars running smoothly. Every button press that you can remove from the POS ordering and payment process means more time making and selling drinks. 
  • Table Management: Not every bar needs table mapping in a POS, but if you serve customers at tables, this is nice to have to keep your orders organized. 
  • Robust Hardware: Bar POS hardware can take a beating. Bars are busy businesses that deal with a lot of liquids, from water to wash glassware, to the glass bottles full of spirits. A bar POS can’t fail if a little water gets splashed on the screen or a customer drops the POS terminal when closing out their tab. 
  • Handheld Devices: Handheld devices save time tableside and also keep your bar EMV-compliant (which can help you reduce the costs associated with chargebacks). Increasingly, handheld POS devices are becoming a critical part of running a profitable bar. 
  • Marketing tools: Most bars have happy hours, live music, or seasonal events. Your bar POS should make it easy to create eye-catching email or text marketing messages to draw crowds to your bar. 
  • Scalability: Profitable bar businesses can easily grow to larger operations or multiple locations. Your bar POS should include the reporting and management tools you need as your business grows. 

Depending on your bar style, you may also need food supporting tools like menu management and online ordering. All of the systems on our list include strong tools in these categories. You can also check out our guide to the best restaurant POS systems to explore more options. 

Finding the right bar POS for your business

No matter your budget or bar type, there is a bar POS system that can help you manage and grow your business. Most bar POS systems currently offer a free baseline subscription to support the smallest bars up to automated reporting and inventory tools for high-volume or multi-location bars. To find the best POS for your bar, look for a system that you can afford and that has the tools you’ll need as your business grows. 

FAQs

In a bar, “POS” refers to the “point of sale.” A point of sale is a combined hardware and software tool that allows bars to efficiently process sales and payments. The best bar POS systems include even more tools, from employee scheduling to marketing and real time inventory tracking.

Our scoring criteria identified Toast as the best bar POS for 2024. This system combines an affordable price with high functionality and industry-grade hardware. Depending on your bar style, though, you might prefer a system with a smaller footprint (like Square for Restaurants), more advanced inventory management (like Lightspeed Restaurant), or the ability to bring your own payment processor (like Oracle Micros Simphony).

Many popular bar POS systems offer a free baseline POS subscription, so small bars can start using a POS to process tabs and payments for a very low cost. Budget conscious bars can even find cloud-based POS systems that operate on iPads and allow them to use hardware they may already own, further reducing costs. 

The more functions your bar needs– like inventory tracking or staff scheduling apps– the pricier your bar POS will be. The highest functioning bar POS systems can climb up to $400 per month for software alone.

The post Best POS Systems for Bars in 2024 appeared first on TechnologyAdvice.

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Toast logo. SpotOn logo. Square logo. Lightspeed logo. Oracle logo. toast-logo toast pos station The Toast POS station is available in black or white housing, and supports light and dark mode screen views. (source: Toast) toast pos device The drop-tested Toast Go 2 handheld POS device supports orders and payments and fits in an apron pocket. (source: Toast) toast tab screen Toast’s tab pre-authorization screen is easy to navigate on stationary and handheld devices. (source: Toast) toast tip distribution With Toast, you can create detailed tip distribution arrangements in the POS, providing transparency for your staff and avoiding end-of-shift calculations when your staff is tired. (source: Toast) spoton spoton hardware SpotOn’s POS hardware is streamlined, stylish, and user-friendly. (Source: SpotOn) spoton order screen SpotOn’s order screens have room for full bar menus, speeding the order and payment process for busy bars. (Source: SpotOn) spoton sidekick device The SpotOn Sidekick device supports fully mobile ordering and payments for seat-side stadium service or offsite events like beer gardens. (Source: SpotOn) spoton scheduling app SpotOn supports a staff-facing scheduling app to keep your employees on the same page about upcoming shifts, hours worked, and reported tips. (Source: SpotOn) square logo square pos system Square recently added card pre-authorization function to its POS system. (Source: Square) square register hardware Square for Restaurants operates on iPads or on Square-designed register hardware. (source: Square) square terminal handheld device The Square Terminal handheld POS device is available for $299 on the Square website. (source: Square) lightspeed lightspeed screen Lightspeed Restaurant’s speed order screens reduce button presses for order and payment processing. (Source: Lightspeed) lightspeed device The Lightspeed Tableside order and payment device easily fits in an apron pocket. (Source: Lightspeed) lightspeed inventory Lightspeed Restaurant’s Advanced Inventory tools allow users to create, manage, and receive purchase orders directly from the back office dashboard. (Source: Lightspeed) lightspeed email report Lightspeed users can automatically email reports for review on a daily, weekly or monthly basis; helping you keep tabs on your bar even when you are away. (Source: Lightspeed) Oracle Micros Simphony Workstation 8 The Micros Simphony Workstation 8 collection is sleek and modern. (Source: Micros Simphony) workstation 8 low profile model The Workstation 8 comes in low profile models as well. (Source: Micros Simphony) Micros Simphony’s handheld POS devices Micros Simphony’s handheld POS devices can be recharged quickly to support high volume bars. (Source: Micros Simphony)
5 Best Food Truck POS Systems 2024 https://technologyadvice.com/blog/sales/best-food-truck-pos-systems/ Thu, 04 Apr 2024 16:56:51 +0000 https://technologyadvice.com/?p=121697 Are you in the market for a food truck POS system? See our list of the best payment processing systems based on pricing & features

The post 5 Best Food Truck POS Systems 2024 appeared first on TechnologyAdvice.

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Food truck point-of-sale (POS) systems are hardware and software tools that help food trucks process sales and payments. The best food truck POS systems include tools like detailed reporting, marketing, and menu management, which help food trucks grow their business and increase profitability. We compared several POS systems for food trucks to find the best systems for 2024. 

Based on our food-truck-focused scoring criteria, these are the best food truck POS systems for 2024: 

  • Square: Best free food truck POS 
  • Toast: Best for reporting and staff management
  • Table Needs: Best for mobility
  • Clover: Best for flexible hardware

Monthly Software Fees

Hardware Costs

Payment Processing Fees

Square logo.

Square for Restaurants

$0–$60+ per location

$49–$1,349 or use your own hardware

In-person: 2.5%–2.6% + 10 cents
Online: 2.9% + 30 cents

$0–$69+ per location

$799–$1,024.20

In-person: 2.49%–3.29% + 15 cents
Online: 3.5%–3.89% + 15 cents

Table Needs logo.

Table Needs

$99–$339 per location

Included in monthly fees, or use your own hardware

In-person: 2.69% + 10 cents
Online: 2.9% + 30 cents

Clover logo.

Clover

$0–$130+ per month

$49–$2,398 upfront (Monthly leases are available) 

In-person: 2.60% + 10 cents
Online: 3.5% + 10 cents

Square for Restaurants: Best free food truck POS


Pros

  • Free baseline software subscription
  • Runs on hardware you already own
  • Operates with Wi-Fi or cellular networks
  • No long-term contract

Cons

  • Can be hard to reach live customer support
  • Ingredient-level inventory requires third-party integration
Square logo.

Our Rating: 4.39/5

Square for Restaurants has three subscription tiers. The entry-level subscription is free, and none of the subscriptions require a long-term contract. 

Free Plus Square Restaurant Essentials Bundle
Monthly Software Fees $0 $60 for a single device $40 per additional device $153
Payment Processing Rates* In-person: 2.5%–2.6% + 10 cents Online: 2.9% + 30 cents

*Custom processing rates available for trucks that process more than $250,000 annually

The baseline Free subscription comes with software for unlimited devices, but is limited to only a single user login. So all of your employees would have access to the same functions. This might be fine for a small owner-operated truck, but larger trucks will likely want customizable user permissions by employee.   This is available with a Plus subscription. 

Plus-level subscriptions only include software for a single device, additional devices require an additional $40 per month per device. Square also offers a software bundle called Restaurant Essentials Bundle, which includes the Plus-level POS functions (like custom floor plans and multiple user logins) alongside the Plus-level POS features like custom floor plans and multiple user permissions.  

You can operate Square for Restaurants on iPads and smartphones that you already own or purchase hardware directly from the Square website. Prices range from $149 for a Square Stand with built-in card readers ($478 with an iPad included), up to $1,349 for a complete POS kit with a cash drawer, receipt Square will send new users their first swipe reader for free; additional readers start at $49. 

Read more: POS hardware

Free baseline POS

Square’s Free baseline subscription is basic. It doesn’t include customizable floor plans or multiple user logins. But most beginning food trucks don’t need those tools. So, Square for Restaurants’ Free version is ideal for beginner trucks with a small footprint. 

No long-term contracts

You can use Square for Restaurants as long as it serves your business, and stop using it with no penalties if your needs change. Trucks that operate seasonally can use Square for the months they operate and pause their accounts when they go dark. 

Free online ordering

Every Square for Restaurants POS subscription comes with a free Square Online ordering site. You can use this site to accept commission-free online orders or connect it to a QR code to support customer self-ordering from smartphones. 

Pay-as-you-go marketing

Square for Restaurants makes it easy to reach your customers via email or text message. Square’s marketing add-ons include message templates that give your truck the appearance of a much larger business. Best of all, you only pay for what you use. Marketing packages start as low as $15 per month for 500 email sends. 

  • Pricing: 4.82
  • Hardware: 5.00
  • Software features: 3.75
  • Support & reliability: 3.75
  • User experience: 4.38
  • Average user review scores: 4.63

Square for Restaurants is enormously popular with food trucks, and we can see why. Users can operate with hardware they already own or opt for more durable, Square-built POS devices. With free and pay-as-you-go options for most software, the smallest trucks only pay for the tools they actually use and are not tied to a bloated software bundle that doesn’t meet their needs. The short-term contracts are great for trucks that operate seasonally or are just getting started. Plus, Square offers a lot of tools and third-party integrations to help food trucks grow. 

For users concerned about needing robust internal inventory management without investing in additional software, we recommend Toast. While an additional fee is associated with it, inventory management is integrated within the platform, and it’s still cheaper than investing in additional software.

Square for Restaurants is the most popular food truck POS on the market. Whenever you visit a food truck, there’s a better than 50% chance you’ll see a Square POS system operating on an iPad, smartphone, or Square POS device. Square can be self-installed on hardware you already own. You can get started for free in a single day. 

Toast: Best For high-volume trucks & fleets


Pros

  • Built for food businesses
  • Durable hardware
  • $0 upfront packages available

Cons

  • $0 upfront packages available
  • Processing fees can get high
  • Inventory requires additional fees
Toast logo.

Our Rating: 4.38/5

Toast’s POS is available at three subscription levels. Like Square, Toast offers a free baseline POS subscription. Unlike Square, Toast also offers a $0 upfront option for hardware purchases. Toast users who opt for Pay-as-You-Go hardware purchases will pay higher card processing fees to cover the costs of their hardware. 

Cost Starter Kit  Point of Sale Build Your Own
Monthly software fee $0 $69 Custom-quoted
In-person payment processing fee
  • 2.49% + 15 cents without hardware
  • 3.09% + 15 cents with Pay-as-you-go hardware
Custom-quoted Custom-quoted

Toast users can extend the utility of their Toast POS by adding the Restaurant Basics Package for $60 plus $9 per employee monthly. This software bundle includes entry-level versions of Toast’s payroll and scheduling software, along with restaurant-specific insurance, and employee benefit tools like Toast Pay Card and 401(k) offerings. This might not be a fit for the smallest truck operations, but it is great for quickly growing food trucks and fleets that manage a lot of employees. 

If you choose to pay upfront for your Toast hardware, you’ll find handheld Toast Go 2 devices for $799.20 and countertop, and touch-screen POS stations for $1,024. 

Durable hardware

Food truck POS devices can take a beating. Toast’s hardware is spill-resistant, steam-proof, and drop-tested. If your truck is high-volume or if you run multiple trucks for various events, you’ll need hardware that is more robust than an iPad. 

$0 upfront starter kits

Toast users can get hardware and software for up to two POS stations for $0 upfront and $0 per month; all you pay are payment processing fees. 

Automated SMS texts

If you opt for the Toast kitchen display system (KDS) screen to communicate orders to your truck’s cook, your Toast system will automatically text customers when you mark their order as ready. This simple, insightful feature saves you time and ensures customers get their food while it’s hot. 

  • Pricing: 3.39
  • Hardware: 4.17
  • Software features: 4.58
  • Support & reliability: 5.00
  • User experience: 5.00
  • Average user review scores: 4.13

Toast is an established and growing POS brand specifically built to support food and beverage businesses. With a $0 starter subscription that includes durable hardware, Toast is too affordable and useful for food trucks to ignore. Toast’s responsive customer support team and excellent training documents can help novice truck operators get their business on track from the beginning. 

For anyone concerned about the length of the contract, particularly for a new business, we recommend trying Square. The absence of a long-term contract combined with the platform’s general ease of use makes it a strong alternative.

Small truck operations might not use all of Toast’s available tools, but if your truck business is growing, Toast is worth a look. 

Read more: Best restaurant POS systems

Toast is a flexible POS designed specifically for restaurants. It operates on durable, Toast-designed hardware, and you’ll need a robust hot spot configuration or an LTE-enabled router to make it work for your food truck. But Toast also has some of the best customer support services available for its POS customers, and you’ll get lots of help troubleshooting your installation to ensure it works. New Toast customers have the option to pay higher payment processing fees to get hardware and software for up to two POS devices for $0 per month. But you will have to agree to a standard two-year contract. 

Table Needs: Best for mobility


Pros

  • Excellent installation assistance
  • Operates on hardware you already own
  • Specifically designed for food trucks

Cons

  • Pricier than competitors
  • No free baseline subscription
  • Processing fees are not publicly listed
The logo of Table Needs

Our Rating: 3.96/5

Table Needs is the priciest food truck POS on this list. Currently, Table Needs offers its software at three subscription tiers. Payment processing is also built into the system, but users with processing fees starting at 2.69% + 10 cents for in-person payments.  

Software Only Snack-sized Balanced Lunch Full Entree
Monthly Software Fee $99

$139
(Includes lease for hardware up to $2,500 in value) 
$239 (Includes lease for hardware up to $5,000 in value)  $339 (Includes lease for hardware up to $10,000 in value) 
Payment processing fees
  • In-person: 2.69% + 10 cents
  • Online: 2.9% + 30 cents

The Snack-sized, Balanced Lunch, and Full Entree subscriptions all include hardware leases at no additional cost. If you use hardware you already own, you can get a software-only license for $99 per month. Table Needs operates on iOS devices and some Android devices; you’ll need to contact Table Needs directly for a complete list of compatible hardware. 

Mobile management app

Table Needs includes a smartphone app for your POS management dashboard. You can easily add menu items, update pricing, view reports, and more from your smartphone. The Table Needs management app is the most comprehensive management app of any of the systems on this list. 

Flexible hardware

Table Needs POS and KDS both run on iPhones, so if you have two iPhones, you can run a food truck with Table Needs. If one of those iPhones is an iPhone XS or later, you can download Apple’s free Tap to Pay app, and you won’t even need to connect a peripheral card reader. Alternatively, you can lease hardware from Table Needs; it includes hardware in three of its four subscription packages. 

One-on-One assistance

If you are just opening your food truck business, Table Needs offers one-on-one assistance to configure your POS, online ordering, reporting, menus, and more. Users get a free 30-minute consultation with a Table Needs specialist who can even help you obtain the correct permits and licenses for your area. Considering how widely food truck regulations can vary from place to place, this service can be invaluable for new truck owners. 

Sales tax automation

Via an integration with Davos, your Table Needs POS will automatically calculate and collect the sales tax you owe to local municipalities. It can also file and pay the sales tax you owe directly to the appropriate authority, saving you administrative time and ensuring you don’t forget to pay your sales tax. 

  • Pricing: 4.11
  • Hardware: 4.67
  • Software features: 4.17
  • Support & reliability: 4.58
  • User experience: 3.75
  • Average user review scores: 5.00

Table Needs is a relative newcomer, but it is founded by food and beverage experts who operate their own food businesses. As larger POS brands like SpotOn have moved away from truck businesses, it’s exciting to see new brands stepping in with right-size solutions for truck businesses.

If you find Table Needs cost-prohibitive, try Toast. It has similar features but a considerably lower price tag.

Table Needs fills a unique niche for food trucks, offering individualized services up to assisting with securing permits and licenses. For new food truck businesses, Table Needs’ one-on-one personal support can be the difference between success and failure in your first year of business.

Table Needs was founded in 2019 by a group of restaurant industry workers. This recent industry experience is demonstrated by the Table Needs team’s insightful solutions for mobile food and beverage businesses. More than any other system on this list, Table Needs provides comprehensive services, including personalized assistance in securing the necessary permits to run your business. 

Clover: Best for flexible hardware


Pros

  • Cellular- and Wi-Fi-enabled hardware
  • Free loyalty tools included
  • Durable hardware

Cons

  • Customer service terms can vary 
  • Reporting is not as detailed as competitors
  • Pricing can get complicated
Clover logo.

Our Rating: 3.85/5

Clover’s software prices vary based on your preferred hardware selection. Each hardware comes with the upfront cost for the hardware itself plus monthly software fees. The software fees vary for each hardware device based on the number of employee profiles you need and how detailed you want your reports to be. Food trucks can expect to pay anywhere from $0 (for using a basic Clover Go reader) to more than $130 per month (for using a Clover Mini device with advanced reporting). We’ve listed the most popular Clover hardware for food trucks to give you an idea of what to expect. 

Clover Mini Clover Flex Clover Go
Hardware
Upfront price $799 $599 $49
Monthly software fee From $90–$130 $35–$85 $0–$14.95
Payment processing fees
In-person: 2.60% + 10 cents
Online: 3.5% + 10 cents

Clover also offers options for monthly fees to cover both a hardware lease and a software license. And once you reach a certain level of monthly fees, your business may be eligible for lower processing rates. Clover’s pricing is flexible, but it can also be confusing for beginning truck owners. The contract terms will vary based on where you purchase your Clover POS. To get a firm idea of what you might spend on a Clover POS, it is best to contact Clover or a Clover reseller for a custom quote. 

User-friendly loyalty

All Clover subscriptions come with Clover’s excellent loyalty program, so trucks can surprise and delight repeat customers with reward points or the occasional freebie. Many competing systems charge extra for loyalty programs. 

Excellent mobility

Most Clover hardware can connect to cellular or Wi-Fi data networks. The hardware also includes insightful details like built-in card readers and receipt printers that save space in the tight quarters of a food truck. Clover’s handheld POS devices are also compact and industry-grade. 

Built-in invoice tools 

Clover invoicing tools are great for managing special events like weddings and off-site catering. You can email invoices and receive payments online, so you’re never waiting on a check at the end of a busy night. 

  • Pricing: 3.39
  • Hardware: 3.96
  • Software features: 3.75
  • Support & reliability: 3.75
  • User experience: 4.38
  • Average user review scores: 3.90

Like Square, Clover is popular with food trucks. The robust hardware and multiple connectivity options make Clover an excellent choice for many trucks. Clover includes loyalty tools in most baseline POS subscriptions, which can be key to turning first-time truck customers into long-term regular customers who keep trucks in business.

While Clover is a solid solution for a food truck POS, its reporting is somewhat lacking. If you need robust reporting to better understand your business’s ins and outs, we recommend trying Square. Its reporting tools are quite thorough and available without any additional fees. 

Read more: Best retail POS systems

Clover is a mobile-first POS that operates on Clover’s excellent, industry-grade hardware. Clover is owned by the payment processor Fiserv, which licenses the POS to several merchant service providers that operate on the Fiserv network. Clover users are as likely to purchase their Clover system from their local bank as they are to purchase directly from the Clover website. Where you purchase this system matters; the contract length and customer support hours can vary based on your reseller. 

Key features of a food truck POS system

A POS system for food trucks helps truckers streamline and grow their business in several ways. A POS can help you market your truck, grow sales, and even manage staff. 

A strong food truck POS should have most of these features:

  • Strong mobility: Food trucks operate on city streets and rural party locations. A food truck POS should have cellular and Wi-Fi capabilities so you never lose the ability to process payments. 
  • Offline mode: When you lose a cellular or Wi-Fi signal, your food truck POS should have a robust offline mode that vaults card information to run once you regain connectivity. 
  • Speedy payment processing: Payment processing is one of the main benefits of a food truck POS system. Customers who pay with cards or digital wallets tend to spend more, and they will remember how convenient it was to buy from your truck. 
  • User-friendly interface: Food trucks can get incredibly busy. Your food truck POS needs to be easy to read and use accurately to reduce order errors and keep orders flowing. 
  • Menu management: Food truck menus tend to be streamlined, but your POS should also support easy modifications like burger cook temps or combo meals. 
  • Detailed reporting: Reports from your food truck POS can show you what sells when sales happen, and lists of your most frequent customers. They also help you identify high-performing staff members. The reports provide data that can help you streamline and grow your food truck at a faster rate than trucks without a POS system. 
  • Customer relationship management: Logging customer information like purchase history and contact details can help you refine your menu and feed your marketing efforts. 
  • Marketing: Marketing is a must-do task for successful food trucks. The best food truck POS systems include built-in email and text marketing tools that turn your customer data into filterable email lists so you can target customers based on location or preferences. 
  • Online ordering: Increasingly food trucks bolster business by welcoming online sales. This can help you arrange pre-ordering before your truck opens for the day, or drive business during inclement weather. 
  • Inventory management: A food truck POS can track the quantity of each dish you sell in a certain shift, even automatically disabling order buttons when you sell out. Advanced food truck POS systems will track ingredients as you sell and prompt you to place re-supply orders when stock runs low. 
  • Employee management: Most food truck POS systems act as your time clock, logging employee hours worked for payroll. Many will also track tips and help you manage tip sharing and tip pools. Some include scheduling tools so you can build your staff schedule directly in your POS back office dashboard. 
  • Self-ordering tools: Whether via QR codes or streamlined kiosk software, most food truck POS systems offer some form of self-ordering for customers. This can help food trucks boost sales through business rushes (and staff shortages). 

The advent of artificial intelligence (AI) is rapidly changing food business technology. In the near future, we expect to see food truck POS systems develop AI tools for voice ordering and even more detailed self-ordering, marketing, and reporting tools. 

Read more: Types of POS systems

Choosing the right POS for your business

The best POS systems for food trucks are affordable for small trucks and able to scale for successful trucks that grow into fleets or brick-and-mortar restaurants. Costs vary—as little as $0 or up to $200 per month—based on your needs and the type of hardware you choose. The expense can be well worth it;  food truck POS enables you to accept the digital payments customers like to use and helps you grow your business through streamlining orders and expanding into revenue centers like online ordering. 

FAQs

Food truck POS systems can cost as little as $0 per month for software, up to more than $200, depending on the software tools a truck needs. Many cloud-based food truck POS systems only users processing fees for card and digital payments. Typically, there are no processing fees for cash sales. 

Most food truck POS systems run on consumer-grade hardware like iPads and smartphones, which can further reduce costs. If you purchase industry-grade hardware for your food truck, you can expect to pay from $200 to $1,000 for a touch-screen POS device with a card reader.

A food truck POS system is a combination of hardware and software that rings in sales and processes payments. It is like a cloud-based, high-functioning cash register that includes reporting and analysis tools to help food trucks optimize their business. 

A food truck POS system keeps orders organized and makes it easy to process the digital payments that customers prefer to use. It typically also improves order accuracy and reduces theft. Through reporting, a food truck POS can also show you opportunities to improve your menu, hours of operation, or staffing levels. Some food truck POS systems can also help you track inventory and prepare vendor orders. 

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square logo toast-logo table needs clover-pos-logo square Square for Restaurants Square for Restaurants operates on iPads outfitted with Square-built stands and card readers. (Source: Square) Square Terminal handheld POS The Square Terminal handheld POS device can process orders and payments (and it is very popular with food trucks). (Source: Square) Square’s email marketing tools Square’s email marketing tools include user-friendly templates to create polished communications. (Source: Square) toast logo ToastΓÇÖs countertop POS Toast’s countertop POS includes a built-in card reader and an incredibly customizable user interface. (Source: Toast) ToastΓÇÖs industry-grade hardware Toast’s industry-grade hardware can withstand spills, steam, and drops. (Source: Toast) Toast Go 2 handheld The Toast Go 2 handheld can process orders and payments and may be enough to run your whole truck operation. (Source: Toast) Toast POS Prompt Your Toast POS will prompt customers to enter a phone number so you can text them when their order is ready. (Source: Toast) Table Needs Logo Table Needs POS You can run your entire Table Needs POS from a couple of smartphones. (Source: Table Needs) Table Needs KDS screen The Table Needs KDS screen operates on consumer-grade tablets like iPads. (Source: Table Needs) Table Needs POS via Management App You can enter menu items directly from your Table Needs POS device or via the management app. (Source: Table Needs)You can enter menu items directly from your Table Needs POS device or via the management app. (Source: Table Needs) clover Clover’s POS hardware Clover’s POS hardware is industry-grade with a small footprint. (Source: Clover) Clover Mini POS The Clover Mini POS station has a touch screen, multiple card readers, a bar code scanner, and a receipt printer all built into a single POS device that can operate via Wi-Fi, ethernet, or LTE connections. (Source: Clover) Clover’s invoicing tools Clover’s invoicing tools make it easy to send invoices to special event clients. (Source: Clover)
What is a POS Terminal? https://technologyadvice.com/blog/sales/pos-terminal/ Thu, 14 Mar 2024 12:59:02 +0000 https://technologyadvice.com/?p=120228 What is a POS Terminal? A point-of-sale terminal is hardware that processes payments from customer purchases.

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Key takeaways

  • A point-of- sale (POS) terminal is a hardware device that processes card and digital payments.
  • Depending on your industry, the POS terminal may be built into your POS display or a peripheral hardware attachment. 
  • POS terminals are expected to evolve as payment processors roll out biometric payment verification options. 

A point-of-sale (POS) terminal is a hardware component that processes card payment transactions. Most modern POS terminals can process credit, debit, and gift card payments via swipe, dip, or tap, and process digital wallet payments from smart devices. The location and functionality of your point-of- sale terminal varies by your industry and your POS hardware. 

Types of POS terminals

POS terminals may be freestanding payment reading devices or built into a POS display. This difference can lead to some confusion about what a POS terminal actually is. Think about a grocery store checkout lane. In most cases, the POS terminal is a pin-pad-enabled tap, dip, and swipe card reader that faces the customer. With this type of POS station configuration, it is obvious which component is the POS terminal.

IT Retail POS system hardware
In this IT Retail POS station, the POS terminal is the hardware component on the right side, facing customers. (Source: IT Retail)

Grocery stores and retail businesses tend to have dedicated checkout lanes with plenty of room for POS components. Restaurants, coffee shops, and other businesses with limited space typically prefer an all-in-one POS station with the POS terminal built into the POS display. In those businesses, the term “POS terminal” can appear to refer to the entire POS station.

Square Terminal
The Square Terminal is a mobile POS device with a built-in card reader and receipt printer. (Source: Square).

POS terminal features

POS terminals’ only major task is to process card and digital payments. As payment technology evolves, POS terminals need to process traditional swipe payments along with handling new payment technologies as they appear. 

A POS terminal must handle all these types of payments:

Magstripe

Commonly known as “swipe” payments, magstripe payments work by scanning a magnetic strip on the back of a credit, debit, or gift card. Even with the growth of new payment technologies, most payment cards are still equipped with magstripe. Magstripes have been around for decades, which makes them both reliable and prone to payment fraud; fraudsters have had many years to design ways to read the information from magstripe cards.

And while magstripe readers on POS terminals may be the least secure way to process payments, they will likely be around for many years to come.  Physical gift cards are unlikely to shift to a different method of recording payment information, and magstripes are inexpensive and reliable. 

Chip

Embedded Europay, Mastercard and Visa (EMV) chips in credit and debit cards are much more secure than magstripes. EMV chips are harder to counterfeit and less likely to be a source of fraudulent in-person payments. Most POS terminal EMV chip readers can process a chip card payment without the card leaving customers’ hands. Businesses that rely on EMV chip card payments typically see lower processing fees and fewer incidents of chargeback fees for fraudulent or contested transactions. 

Contactless

Near field communication (NFC) or contactless payments, process payments from NFC-enabled cards and digital wallets on smart devices like phones or watches. As with EMV payments, NFC payments allow customers to pay without their payment method leaving their hand. It is also harder for potential fraudsters to strip card information from NFC payments than magstripe cards. 

Some POS terminals offer additional features beyond payment processing. Most of these features require a terminal equipped with a customer-facing display or touch screen. 

Transaction Display

Many modern POS terminals contain a screen that displays an itemized receipt for the customer. This ensures customers understand the full payment amount before paying. This can prevent unnecessary chargeback disputes by providing customers the opportunity to verify payment amounts.

Email Collection

If your POS terminal has a customer-facing touch-screen display, you can typically use it to collect customer emails to use for marketing purposes or merely to send digital receipts and save on paper costs. 

Loyalty Enrollment

A touch-screen-enabled POS terminal can also typically be used to prompt customers to enroll in your loyalty program. With some POS systems, your terminal can also be used to process loyalty points as a payment method and show customers their loyalty points balance.

Looking for the latest in POS solutions? Check out our Retail POS Solutions Buyer’s Guide.

How to choose a point-of-sale terminal

The best POS terminal for your business will depend on your business type and where you need to process payments. If you are in the market for a POS terminal, there are a few questions to ask yourself to ensure you make the best decision. 

Who is your POS provider? 

Your POS terminal options will be limited by which POS provider you choose. Some POS providers integrate with multiple payment processors, which typically expands your options for POS terminals. Increasingly, though, POS providers package their POS systems with built-in payment processing. So if you have specific POS terminal needs, be sure to consider each POS provider’s hardware options before signing a long-term contract. 

Where do you process payments? 

Your POS terminal needs will vary if you process payments at a central cash wrap, multiple checkout lanes, or remote locations like swap meets or private events. If you process payments in a brick-and-mortar location, a traditional POS terminal with multiple card readers and a customer-facing touch screen will likely be your best bet. If you need to accept payments on a sales floor or at remote locations, you’ll want a handheld solution with excellent connectivity. Ask your hardware vendor what connection types your POS terminal needs before you purchase so you know it will work for you. 

What payment types do your customers use? 

If your customers typically use traditional credit and debit cards for payment, your POS terminal options are virtually endless. If your customers prefer to pay with digital wallets on their smartphones, though, you could lose sales if you can’t process those payments. If you are a new business, look at what POS terminals your competitors use to help you determine what payment types are popular with your target customers. 

How concerned are you about chargebacks? 

Chargeback disputes and “friendly fraud”—where customers dispute charges for legitimate purchases with their card provider—have continued to rise. A majority of merchants, 74%, reported an increase in friendly fraud in 2023, which was a 10% increase from 2022. Some industries are harder hit than others; businesses selling services tend to have higher chargeback rates than businesses that sell physical products. 

If chargebacks are an issue for your industry, you should ensure that you have the most current POS terminal technology available. EMV chip card readers are a must, and you should partner with a POS provider that shares your chargeback concerns; they will be the most likely to adopt new POS terminal technology when it is available.  

What is your processing volume? 

Finally, 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. 

POS Terminal Frequently Asked Questions (FAQs)

A POS terminal processes card and digital payments via magstripe, EMV chip, or near-field communication.

A good example of a POS terminal is the pin-pad enabled tap, dip, and swipe card readers you see in the checkout lanes of most major grocery stores. Though, POS terminals can also be a lot smaller and more mobile for different industries.

A POS machine or POS system typically refers to a complete POS system, which can manage inventory, register sales, process payments, and track sales, payment, employee, and customer information for reporting. A POS terminal is one hardware component in a complete POS station. The POS terminal is the part of a POS system that processes digital and card payments.

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