As a small business owner, you need a POS system that handles the basics well without breaking the bank—but also won't hold you back as you grow. The market is flooded with options, from free apps to enterprise systems, making the choice overwhelming.
This guide cuts through the noise to help you find the right POS for your specific situation, budget, and growth plans.
What Small Businesses Actually Need
Before comparing systems, be honest about your requirements:
Must-Haves
- Accept payments: Card (chip + contactless), mobile wallets, cash
- Track sales: Basic reporting on what sells, when
- Manage inventory: At least basic stock tracking
- Issue receipts: Email and print options
- Reliability: Works when you need it (offline mode critical)
Nice-to-Haves
- Employee management
- Loyalty programs
- Advanced reporting
- Multi-location support
- Integrations (accounting, ecommerce)
Probably Don't Need (Yet)
- Enterprise analytics
- Custom development
- 24/7 phone support
- Advanced API access
The Growth Trap
Many small businesses choose the cheapest option, then outgrow it in 18 months. Migrating POS systems is painful and expensive. Factor in where you'll be in 3 years, not just today.
POS Pricing Tiers for Small Business
Tier 1: Free / Pay-Per-Transaction Only
Best for: Very small volume (<$10K/month), farmers markets, pop-ups
Limitations: Minimal inventory, no employee management, basic reports
Tier 2: Entry-Level Subscription
Best for: Single-location retail/restaurant doing $10-50K/month
Limitations: Limited integrations, basic loyalty, minimal customization
Tier 3: Growth-Ready
Best for: Established small business, preparing for growth or second location
Limitations: May still lack enterprise features
Total Cost of Ownership
Monthly fees are just part of the cost. Here's what small businesses actually pay:
| Cost Category | Free Tier | Paid Tier |
|---|---|---|
| Software | $0 | $50/mo average |
| Hardware | $0-300 | $300-800 |
| Processing ($50K/mo) | $1,450/mo (2.9%) | $1,250/mo (2.5%) |
| Year 1 Total | ~$17,700 | ~$16,100 |
Key insight: "Free" POS often costs more due to higher processing rates. Do the math for your volume.
Hidden Costs to Watch For
- Payment processing markup: Some charge 0.5%+ above interchange
- Per-employee fees: $5-20/employee/month adds up
- Add-on features: Loyalty, advanced reports often extra
- Hardware lock-in: Proprietary hardware = no switching
- Contract termination: Early exit fees up to $500
- Support tiers: Phone support often costs extra
"My 'free' POS was costing me $200/month more than a paid competitor just in processing fees. I did the math too late."
Features That Matter Most for Small Business
1. Offline Mode
If your internet goes down, can you still take payments? For small businesses without redundant internet, this is critical.
2. Inventory Tracking
Even basic inventory prevents stockouts and overbuying. Look for low-stock alerts at minimum.
3. Simple Employee Management
Clock in/out, basic permissions, individual sales tracking. You'll want this as you hire.
4. Customer Data Capture
Email collection at checkout builds your marketing list. Essential for repeat business.
5. Integrations
At minimum: accounting (QuickBooks/Xero) and email (Mailchimp/Klaviyo). Saves hours of manual work.
Questions to Ask Before Buying
- What's the total monthly cost at my transaction volume?
- What happens when internet goes down?
- Is there a contract? What's the early termination fee?
- Can I export my data if I switch systems?
- What's included vs. add-on?
- What hardware do I need? Can I use my own?
- What support is included? Hours? Channels?
- How do I add a second location later?
Red Flags When Evaluating POS
- Long-term contracts (24+ months)
- No offline mode
- Proprietary hardware only
- Can't export your data
- Processing rates not disclosed
- Support only via email
- No free trial
The Right Approach for Small Business
Just Starting Out
Start with a paid entry-level system ($30-50/month). The features and lower processing rates pay for themselves. Avoid the cheapest free options unless you're testing a business concept.
Established and Growing
Invest in a growth-ready system now. Switching later is expensive and disruptive. Look for:
- Multi-location capability (even if you only have one now)
- Built-in loyalty
- Room to add employees
- Integration ecosystem
Built for Small Business, Ready to Scale
Swipe Savvy starts at $49/month with everything small businesses need—and grows with you to multi-location without switching systems.
Get Free DemoConclusion
For small businesses, the right POS balances today's budget with tomorrow's needs. Don't over-buy features you won't use, but don't under-buy and face a painful migration in 18 months.
The sweet spot for most small businesses is $50-100/month for a system that handles basics well and can grow with you. Focus on total cost (including processing), essential features, and scalability.
Take advantage of free trials. Test with your actual workflows. And always calculate the total cost of ownership, not just the monthly fee.