Best POS Systems For Small Business In Canada For May 2024

• Clover: Best for Integrations
• Square POS: Best for Businesses on a Budget
• Shopify POS: Best for Retail Businesses
• Lightspeed POS: Best for Customer Loyalty
• eHopper POS: Best for Omnichannel Businesses
• Aloha Cloud: Best for Next-Day Payments
• Erply: Best for Inventory Management
• Revel Systems: Best for Hospitality Businesses
• KORONA POS: Best for High-Risk Merchants
• PayPal POS: Best for No Monthly Fee

A POS system, also known as a point-of-sale system, is a hardware and software solution used to conduct transactions. This could be anything from selling a product to managing inventory or tracking customer data. A POS system can be as straightforward as a card reader or as complex as an all-in-one solution that includes features such as loyalty, scheduling, front of house, inventory management, customer relationship management (CRM) and e-commerce.

POS systems are used by businesses of all sizes in a variety of industries, including retail, restaurants, hospitality and services. If you’re running a business that relies on transactions of any kind, then a POS system is likely a good fit for you.

To choose the best POS system, first consider whether or not the system offers the tools and features your business needs—now and in the future. Ideally, a POS system should make it easy and affordable to accept payments no matter where you are selling or how customers are paying. Additionally, look at the bigger picture in terms of pricing. Depending on your sales volume, it may or may not be worth opting for a POS system with a higher monthly rate if it comes with the benefit of lower transaction costs.

Here are a few key factors to consider when choosing a POS system:

• Plans and Pricing: There are a few elements to consider in regard to POS pricing. Not only is there generally a monthly fee to use the service, but there are also varying payment processing fees. Oftentimes, the higher the monthly fee, the lower the transaction fees. For this reason, it’s worth considering your sales volume and determining which plan is the most cost-effective. On top of that, there are also fees associated with purchasing hardware to factor in.
• Software and Hardware: In addition to the POS software, it’s worth considering whether or not you will also require POS hardware, such as terminals and card readers. Even if it’s not something you currently need, it’s worth considering if you might need it in the future as your business grows.
• Features: Though POS systems should offer the same features more or less, most also offer unique features. For example, some may offer features designed to meet the needs of certain industries or use cases, such as a POS system with the option to split the bill for restaurant patrons.
• Ease of Use: The best POS systems are easy to set up and intuitive to use.
• Customer Support: One of the other key factors in the decision-making process–and one of the most overlooked, is the inclusion of high-quality support that is not only available 24/7 but available via a variety of channels from live chat to phone support.

POS Software Features

When choosing a POS system, the first step is to consider what features you need. Do you need basic transaction processing or do you need more advanced features such as loyalty, appointment scheduling, inventory management or email marketing?

Here are some common POS software features to look for:

• Credit card processing: All POS systems will process credit and debit cards, but some systems will require you to use a specific payment processor. Others will let you choose your own processor.
• Loyalty: If you want to offer loyalty programs or gift cards, look for a system that offers this feature.
• Appointment scheduling: If you’re in the business of appointments, such as a salon or spa, look for a system that offers online booking and appointment reminders.
• Inventory management: If you need to track inventory levels, look for a POS system that includes this feature. Some systems will even let you automatically reorder when inventory gets low.
• Customer relationship management (CRM): If you want to track customer data, look for a system that includes a CRM feature. This will let you keep track of customer purchase history, contact information and more.
• Reporting: All POS systems will offer some kind of reporting, but some will be more robust than others. If you need detailed reports on your business performance, look for a system that offers this.
• E-commerce: If you want to sell online as well as in store, look for a system that offers an e-commerce solution. This will let you manage inventory and orders from one central platform.

POS Hardware Features

In addition to software, you’ll also need to consider hardware when choosing a POS system. The type of hardware you need will depend on the type of business you have and the features you’re looking for.

Here are some common POS hardware features to look for:

• Touch-screen display: A touch-screen display is a common feature on POS systems. This lets you easily navigate the software and enter information.
• Receipt printer: A receipt printer is a must-have for any POS system. This lets you print receipts for customers.
• Barcode scanner: If you need to scan barcodes, look for a POS system that includes a barcode scanner.
• Cash drawer: A cash drawer is another must-have for any POS system. This lets you store cash and keep it organized.
• Payment terminal: If you want to accept credit and debit cards, you’ll need a payment terminal. Some POS systems come with a built-in terminal, while others require you to use a separate one.

Types of POS Systems

There are many types of POS systems on the market, from simple card readers to all-in-one solutions. The best POS system for your business will depend on your specific needs.

Here’s a rundown of the different types you might encounter.

Restaurant POS
A restaurant POS system is a specialized type of POS system that’s designed for restaurants. These systems typically include features such as table management, kitchen display systems and online ordering. Most will also have inventory management, so you can auto-reorder ingredients as they get low.

Retail POS
A retail POS system is designed for retail businesses. These systems typically include features such as inventory management, customer loyalty programs and gift cards. Some retail POS systems also offer appointment scheduling and reporting.

iPad POS
An iPad POS system is a type of mobile POS system that uses an iPad as the main point-of-sale terminal. These systems are becoming increasingly popular due to their portability and ease of use. Many iPad POS systems come with built-in features such as credit card processing, scheduling and receipt printing.

Mobile POS
A mobile POS system is a type of POS system that can be used on a mobile device, such as a smartphone or tablet. People are relying more on these systems because of their portability and easy setup. Many mobile POS systems come with built-in features such as credit card processing, inventory management and receipt printing.

Android POS
An Android POS system is a type of mobile POS system that uses an Android device as the main point-of-sale terminal. Due to their mobility and simple-to-use interface, these systems are increasing in popularity, too. Most Android POS systems come with features such as credit card processing, barcode scanning and receipt printing.

Cloud POS
A cloud POS system is a type of POS system that’s hosted in the cloud. This means that all of your data is stored online, making it easy to access from anywhere. Cloud POS systems are becoming more popular because they’re easier to set up and use than traditional POS systems. They also typically come with features such as inventory management, customer loyalty programs and gift cards.

POS Terminal
A POS terminal is a type of POS system that’s designed for businesses that need to process credit and debit cards. These terminals typically come with features such as EMV compliance, PCI compliance and fraud prevention.

The cost of a POS system will vary depending on the type and features you need. Generally, the more features you want, the more you can expect to pay. Some companies lend you a POS system in exchange for a monthly fee, while others require that you purchase the system outright.

More expensive POS features include:

• Credit card processing: To process credit and debit cards, you’ll need to pay a monthly fee for most POS systems.
• Inventory management: Some POS systems come with inventory management, while others require you to purchase a separate system.
• Customer loyalty programs: To offer customer loyalty programs, you’ll need to pay a monthly fee for most POS systems. Most have this as an optional add-on, rather than a built-in feature.
• Reporting: Most POS systems come with reporting, while others require you to use a third-party integration. For more advanced reports, you may need to pay for a higher-tiered plan.
• Online ordering: Restaurants that want to offer online ordering will need to pay a monthly fee for most POS systems, in addition to any third-party costs such as fees for DoorDash or Uber Eats.

To reduce costs, you can look for a POS system that comes with a free trial period. This will allow you to test out the system before committing to a long-term contract. You can also look for discounts, such as seasonal promotions or referral programs. However, the easiest way to pare down costs is to only pay for the services you need.

When considering the cost of a POS system, you’ll also need to factor in the costs of hardware, such as receipt printers and barcode scanners. These can range in price from a few hundred dollars to a few thousand, depending on the quality and features you need.

After paying for hardware and software, you usually have to pay processing or transaction fees. These are typically a percentage of the total sale, plus a small per-transaction fee. For example, if you’re paying 2.5% plus $0.10 per transaction, and you make a sale for $100, your total fee would be $2.60.

Sample Processing Fees for In-Person Transactions

When you’re choosing an option, you’ll need to decide whether you want a point-of-sale (POS) system or a cash register. Both have their pros and cons, so it’s important to choose the one that best suits your needs.

POS systems are typically more expensive than cash registers, but they offer more features and functionality. Cash registers only track sales and print receipts, while POS systems can track inventory, customers, employees and sales. POS systems also typically offer features such as loyalty programs, gift cards and reporting, while cash registers typically do not.

POS systems are a good choice for businesses that want to track inventory, customers and sales. They’re also a good choice for businesses that want to offer loyalty programs, gift cards and reporting. However, they’re unnecessary for businesses that only need to track sales.

The cost of a cash register is less than a POS system, but offers fewer features. Cash registers can track sales, but they typically cannot track inventory, customers or sales tax. Cash registers also rarely offer features such as loyalty programs, gift cards and reporting. However, they are a good choice for businesses that only need to track sales. They’re also a good choice for businesses that cannot afford a POS system.

Once you’ve chosen a POS system, you’ll need to learn how to use it. Luckily, most POS systems are easy to use and come with training materials or customer support.

If you’re using a cloud-based POS system, you’ll need to create an account and log in. Then, you can start adding products, customers and employees. Most cloud-based POS systems come with a built-in tutorial to help you get started.

If you’re using a self-hosted POS system, you’ll need to install the software on a computer. Once it’s installed, you can start adding products, customers and employees. A built-in tutorial is included with most self-hosted POS systems to assist you in getting started.

A POS system involving hardware will require you to set up the hardware, such as receipt printers and barcode scanners. This is a more complex process, and in some cases, even requires an onboarding specialist on-site or to walk you through the process over the phone. Once the hardware is set up, you can start adding products, customers and employees.

Once you’ve added all your products, customers and employees, you’re ready to start using your POS system. To make a sale, you’ll need to add the items to the order and then process the payment. Most POS systems can process payments by credit card, debit card, cash or cheque.

After the payment is processed, you can print or email a receipt to the customer. Some POS systems also allow you to send text or email receipts.

Reporting is an important feature of most POS systems. With reporting, you can track sales, inventory and employees. This information can help you make informed decisions about your business. Most POS systems offer a variety of reports, such as sales reports, inventory reports and employee reports. Some POS systems also offer custom reporting. This is the key to getting the most out of your POS system—use your reports to gather insights into your business and make changes accordingly.

To provide the most comprehensive and accurate ranking of the best POS systems for small businesses, we reviewed and analyzed several providers in the POS sector. Our methodology evaluates each system across five key categories, totaling a broad range of metrics. These metrics are then weighted according to their importance to small businesses. The following sections detail our evaluation process.

Pricing (10% of score)

Pricing plays an integral role in selecting a POS system. In this category, we scrutinize the cost of each system, including monthly fees, transaction costs and hardware prices. We also evaluate whether there’s a free trial or free version available, the pricing of initial and additional card readers and the potential for hidden charges.

General Features (30% of score)

General features cover the essential functionality of the POS system, accounting for 30% of the total score. We look at whether the system caters to retail and restaurant businesses, offers mobile payment options, includes built-in payment processing, provides inventory management capabilities and supports software integrations. We also evaluate the POS system’s compatibility with e-commerce platforms.

Additional Features (20% of score)

Additional features provide enhanced functionality that may prove beneficial to certain businesses. We look at whether the POS system supports multiple locations, offers employee scheduling, enables contactless payments, provides hardware bundles, manages gift cards, has self-service capabilities, generates reports and analytics, includes a free card reader, offers table management for restaurants and facilitates loyalty programs.

Ratings and Reviews (10% of score)

We consider real user feedback and reviews from trusted platforms such as Trustpilot, G2 and Capterra to contribute to our evaluation. The number of reviews, as well as the rating on each platform, are both assessed. The ratings and reviews category forms 10% of the overall score, providing a snapshot of user satisfaction and system reliability.

Expert Score (30% of score)

Our expert score is derived from firsthand experience and professional insight into each POS system, making up 30% of the total score. We look at standout features, value for money, popularity and ease of use. This involves examining any learning curve associated with the system, the intuitiveness of the platform and the prevalence of upsells or hidden costs. The expert score helps to provide a thorough understanding of the overall quality, usability and affordability of each system

There are a number of important 2024 POS system trends emerging. Here are the ones you should be paying attention to so that your business stays competitive.

Cashless and Touchless Transactions Continue to Gain Momentum

The COVID-19 pandemic was a major impetus behind the shift toward cashless and touchless payment options. In a world concerned with hygiene and lowering transmission rates, technologies that allowed touchless payment became an essential part of purchasing infrastructure. This technology includes tap-and-go credit and debit cards and digital wallets that can be accessed through a smartphone or smartwatch.

These payment methods are not only hygienic but also offer the consumer increased speed, convenience and security in their purchases. These factors have contributed to the continued popularity of these methods even as the pandemic has subsided. Approximately 51% of Americans are now using contactless payment in some form and, in 2020, 67% of retailers reported that contactless payment capabilities were included in their infrastructure.

More Advanced POS Hardware and Software

Gone are the days when POS systems had to be run from large, clunky, stationary computer systems. Hardware that works with POS systems is now more advanced and mobile than ever, allowing more flexibility for store associates and the business as a whole. Expect to see more smartphones, tablets, Bluetooth technology, secure order pickup lockers, electronic shelf labels and smart self-checkout solutions in 2024.

This more advanced hardware has been made possible by both physical and virtual improvements in technology. Without the advancements in software powering these devices, they would have offered a more limited level of functionality.

Cloud-hosted POS Systems are the Future

Cloud-based technology has taken the business world by storm in recent years and will continue to do so into 2024 and beyond. POS systems based in the cloud can be updated and integrated easily with other business operations, and they back up and store data securely automatically. Cloud POS systems also come with significantly lower price tags―usually in a software-as-a-service (SaaS) format―making them more accessible to businesses that also have budget constraints.

Increased Mobility

The cloud allows POS systems to operate over an internet connection, which has paved the way for these systems to be used on mobile devices. Traditionally, POS systems would be tethered to centralized computer stations reliant on physical connections. Now, this software can be used on mobile devices in any location, increasing the system’s flexibility and improving a business’s overall productivity.

Improvements in Self-service Kiosks and Infrastructure

With the rise of cloud technology, self-service infrastructure is also advancing in leaps and bounds. In addition to traditional self-service checkouts, such as you’d see in a grocery or retail store, self-service can now be used in other applications, such as all-in-one restaurant ordering/payment and brand-new storefronts in which checkout and payment isn’t necessary at all (Amazon Go). In 2024, we will see a greater emphasis on these technologies as they are convenient, cost-effective and can reduce errors in the ordering and checkout process.

Shopping Experience

A customer’s shopping experience can be personalized by offering messages, offers and products that are selected and tailored to a customer’s individual behavior and preferences. Companies can also show that they value their customers by ensuring that they proactively direct them to their preferred channels, keep their checkout information at the ready for increased convenience, allow them to switch between applications and communication channels effortlessly and connect them automatically with the best resources to meet their needs.

Customers know that companies collect data about them every time they use the internet, and they now expect that this data will be used to improve their experience with the company. There is no doubt businesses will continue to allocate resources to make these services a priority.

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