What is the best POS system for small businesses?

Last Updated on March 12, 2025 by Robert Luong

A POS system may just be the most important piece of your business because it's what gets you paid, so finding the best one is critical.

In this blog, we'll cover the key factors to consider when choosing a POS system, introduce you to different POS system providers, discuss the pros and cons of each, and highlight which business types are the best fit for each provider.

We’re thrilled to share that Helcim was featured in a Geekflare article, where we received an amazing 4.2 out of 5-star rating! They also rated us "Best for Payment Processing Solutions." We're incredibly grateful for the recognition and are committed to continuing to offer businesses the tools they need to thrive. 🎉

What is the best POS system for small businesses?

In this section, we’ll compare top POS providers to help you find the best fit for your business. We’ll break down the pros, cons, pricing models, and the types of businesses each system is best suited for—so you can make an informed decision.

Helcim

Helcim provides a POS system perfect for small to medium-sized businesses. With a transparent pricing structure and robust features, Helcim’s POS helps manage payments and customer interactions while enabling merchants save on their processing fees. Helcim’s POS system is built into the Smart Terminal for mobile or stationary setups and a comprehensive software platform, offering flexibility for various business needs.

Besides, with a transparent pricing structure and robust features, Helcim’s POS helps merchants save on their processing fees. Below is how Helcim compares to other popular POS providers.

Top POS providers with the lowest credit card processing fees for Canadian businesses:

Top POS providers with the lowest credit card processing fees for U.S. businesses:

Square

Square has a versatile point-of-sale system tailored for small businesses and mobile vendors. Square offers a blend of hardware and software solutions. Its flexibility allows for both in-store and on-the-go operations, making it a popular choice for businesses seeking a comprehensive POS experience.

PayPal

PayPal Zettle offers a user-friendly POS solution designed for small businesses. Its mobile app and card reader make it ideal for on-the-go merchants. The brand's recognition and integration with other PayPal services provide added convenience to merchants who use other PayPal solutions.

Clover

Clover provides a highly customizable POS platform designed to accommodate a wide range of business sizes and industries. With a strong emphasis on feature-rich functionality, Clover offers businesses the ability to tailor the system to their specific needs. Its integration capabilities and scalability make it a suitable option for enterprises looking to grow.

Stripe

Stripe Terminal is a developer-friendly POS system that integrates seamlessly with other Stripe services, offering a high degree of customization and reliable hardware options. Known primarily as an online payment processor, Stripe has expanded to include in-person payment solutions, making it ideal for businesses looking to unify online and in-person payments within a single platform. Its focus on developer-friendly tools and APIs makes it a preferred choice for tech-savvy merchants.

How to choose the best POS system for small businesses?

Picking the right POS system is key to running your business smoothly and keeping customers happy. Here are the key factors to consider when choosing the right POS system.

• Variety of payment methods
• Cost and pricing model
• Payment processing tools
• Scalability
• Customer relationship management
• Inventory management
• Reporting and analytics
• Customer support
• Integration capability

1. Variety of payment methods

The way people pay is evolving, and businesses need to keep up. Cash is becoming less common, and customers now expect the convenience of credit cards, mobile wallets, and contactless payments. If your POS doesn’t support a variety of payment options, you risk losing sales to competitors who do.

A modern POS should accept credit and debit cards, mobile payments (Apple Pay, Google Pay), and gift cards to accommodate all customer preferences.

If you run an online service business, such as a law firm or marketing agency, consider offering ACH transfer (for US businesses) or EFT transfers (for Canadian businesses). These methods come with lower transaction fees, making them a cost-effective option for high-ticket transactions where credit card fees can add up quickly.

A modern POS should accept credit and debit cards, mobile payments (Apple Pay, Google Pay), and gift cards to accommodate all customer preferences.

If you run an online service business, such as a law firm or marketing agency, consider offering ACH transfer (for US businesses) or EFT transfers (for Canadian businesses). These methods come with lower transaction fees, making them a cost-effective option for high-ticket transactions where credit card fees can add up quickly.

2. Cost and pricing model

POS costs vary depending on the payment methods and where the transaction take place. Below are the transaction fees for common payment methods:

• Debit card fees: 1% to 2.5% per transaction
• Credit card fees: 2% to 3% per transaction
• ACH/EFT fees: 0.5% + $0.25 (Helcim capped fees at $6 for transactions under $25,000)

Credit card fee is the most expensive one that you need to look out for. Most POS systems charge a flat rate per transaction, while Helcim uses interchange-plus pricing which is a more cost-effective option.

Therefore, if you prefer low credit card processing fees, you should consider a POS provider with interchange-plus pricing model, instead of flat-rate.

3. Payment processing tools

A POS system isn’t just about accepting payments—it’s also about having the right tools to streamline operations. Whether you’re selling in-store, online, or on the go, here are some essential payment tools that a great POS system should offer to look for:

Invoicing software lets your business send digital invoices and collect payments online. A great online invoicing tool should allow customers to pay directly from the invoice without being redirected to an external website. Invoicing is best for service-based businesses, freelancers, and contractors who need to bill clients remotely.

Virtual terminal allows you to accept payments using any internet-connected device without needing physical hardware. Simply enter a customer’s card details manually or retrieve saved payment information to process the transaction. A virtual terminal is ideal for businesses that take phone orders, process mail-in payments, or need a backup option when a card reader isn't available.

Recurring payment tool helps you automate billing for subscriptions, memberships, and installment payments. Customers provide their payment details once, and the system automatically charges them at set billing cycles. This tool is best for gyms, subscription-based services, and businesses offering installment payment plans.

Online store builder lets you sell products and services online without needing complex web development. While it may not be as feature-rich as platforms like Wix or Shopify, these tools are designed to help businesses quickly set up an online store using customizable templates, product listings, and an integrated checkout system.

Tap to Pay on iPhone allows you to accept contactless payments on an iPhone—no extra hardware needed. Customers simply tap their card or phone to your iPhone to complete a transaction. This mobile POS capability is ideal for on-the-go businesses and service professionals who take payments at job sites or client locations.

Hosted payment page is a secure, ready-made checkout page that you can embed into your website. Customers enter their payment details and complete their transaction without leaving your site. This tool is best for businesses that want to add payment functionality to their websites without dealing with complex coding.

API (Application Programming Interface) allows businesses to integrate payment processing into their website, mobile app, or custom software. This tool offers greater flexibility and control over the payment experience. It’s best for businesses with IT resources that need to customize the checkout flow to fit their operations, branding, and services.

4. Scalability

As your business grows, your POS system should scale with you. More transactions mean higher processing fees, which can quickly eat into your profits. Helcim, automatically lowers your processing fees as your sales increase—without requiring negotiations or locking you into a contract just to maintain better rates.

If you expand to multiple locations or online, your POS should offer multi-location management, and sync inventory and sales data in real time. This ensures you always have a clear view of what’s selling at each location and how much stock is available, helping you make smarter business decisions and avoid stockouts.

5. Customer relationship management

A POS should do more than just process transactions—it should help you build relationships with your customers. Some POS systems, like Helcim, have built-in customer relationship tools that allow you to track customer preferences and behaviors.

With this information, you can create discount codes for their favorite products and launch targeted promotional campaigns. This encourages repeat business and enhance customer satisfaction.

6. Inventory management

Running out of stock on popular items frustrates customers and costs you sales. Over-ordering ties up cash in inventory that may never sell. Manually tracking stock levels is time-consuming and prone to errors.

If you also accept payments online, your POS can sync transaction and inventory data automatically. This helps you manage inventory in real-time and sends alerts when supplies are running low, ensuring you always have what customers want—without overstocking.

7. Reporting and analytics

You can’t improve what you don’t measure. Without data, you’re making business decisions based on guesswork instead of facts.

A good POS system gives you insights into sales trends, profit margins, best-selling products, and most-used payment methods. With this information, you can track sales, prepare for shopping seasons, and launch personalized marketing campaigns.

8. Customer support

A lot can go wrong when processing transactions—POS outages, fund holds for investigations, delayed payouts, and more. When these issues arise, waiting hours (or even days) for a fix can disrupt your business and cost you sales.

Many payment processors rely on bots or outsourced support teams, which often provide generic responses and limited help. But when something goes wrong, only a real support team from your POS provider truly understands your situation and can offer the right solution.

That’s why you should choose a POS provider that offers real human support, ensuring quick resolutions—especially during peak business hours when every second counts.

9. Integration capabilities

You cannot run a business without knowing your accounting, finances, and customer preferences. Manually exporting and importing data between different systems is time-consuming. Each third-party platform has its own data format, making it difficult to ensure consistency.

Besides, if you have online sales, the integration would help syncing transaction data, inventory data and customer data, across online and offline channels. As a result, you will get accurate data to reorder and make good budgeting decisions.

Overall, your POS system should work seamlessly with other software you use, such as accounting, inventory management, or an online ordering system. Common POS integrations with QuickBooks (for accounting), Woocommerce (for e-commerce), and Hubspot (for customer relationship management) can help.

How to get started with Helcim’s POS system

Choosing Helcim can help you save on processing fees, boost customer satisfaction, and grow your business. Follow the steps below to get started with Helcim.

1. Create a Helcim Merchant Account: Sign up quickly with no paperwork, contracts, or signatures needed.
2. Download the Helcim POS App: Install the POS app via the App Store or Google Play Store on your laptop, tablet, or phone.
3. Start Collecting Payments: Use the Helcim Card Reader or Smart Terminal for in-person payments or Helcim’s free online payment tools for online transactions.

Switching from another processor? Get $500 to cover contract cancellation cost

Finding another payment solution can get tough, so we made the switching process to Helcim a lot easier for you.

• Easy transition: Get step-by-step assistance in migrating your products, customer data, and credit card information to Helcim.
  
• Cost coverage: Helcim will waive up to $500 in processing fees to help cover cancellation costs, including early termination fees or equipment leases.
  
• Savings and service: Save around 25% on processing fees with our interchange-plus pricing, and enjoy top-notch human customer service dedicated to your business.
  

Say goodbye to your current provider and enjoy better service, lower fees, and a range of free payment tools with Helcim's Contract Buyout Program.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

FAQ

Can I use my tablet as a POS system?

Yes, many modern POS systems work on tablets. All you need is downloading a POS app, a stable internet connection, and connecting hardware like a card reader or receipt printer via bluetooth or cable. Tablet-based POS systems are cost-effective, portable, and ideal for small businesses, cafes, and retail businesses.

Can I turn my iPhone into a POS system?

Yes! With Tap to Pay on iPhone, you can accept contactless payments directly on your iPhone—no extra hardware needed. If you have a payment terminal, you can download the POS app to your phone and connect it to your phone via bluetooth. This is perfect for on-the-go businesses, service providers, and market vendors who need a simple, mobile-friendly way to take payments.

What is point of sale software?

Point of sale (POS) software processes transactions and manages business operations, such as inventory tracking, customer management, and sales reporting. It can run on computers, tablets, or mobile devices to accept credit cards, debit cards, and mobile payments. Cloud-based POS software syncs data in real-time, allowing your business to manage multiple locations easily. Many POS systems, like Helcim, offer free built-in tools for invoicing, recurring payments, and online payment.

How to set up a point of sale system?

To set up a POS system, start by choosing a POS provider that fits your business needs. Next, sign up for a merchant account and complete the approval process. Once approved, log in to the POS dashboard or app to set up your business details. If you’ve ordered hardware, connect card readers, barcode scanners, or receipt printers via Bluetooth or USB. Then, customize your settings by adding products, setting up tax rates, and integrating payment processing. Finally, run a few test transactions to ensure everything works smoothly before going live.