Whether you have a retail store, restaurant, or service-based business, you need a way to manage your sales. Enter a point-of-sale system, or POS system.

Modern POS systems let you do way more than just take care of customer transactions though. With features like inventory management, customer loyalty programs, and online ordering, POS systems give you tons of tools and data to keep your business running smoothly―you know, in addition to letting you ring up sales and process credit cards.

Sound good? We’ve found the best POS systems for many business needs―and we’ve got some answers to your common POS system questions.

To find the best point-of-sale system for your business, you should compare factors like pricing, payment processing options, and extra features―all of which we’ve rounded up in the table below.

With so many point-of-sale systems to choose from, how do you know which one is right for your business?

One factor to think about is your budget. Some POS system providers offer free plans, so you only have to pay for credit card processing or add-on features. Others charge monthly fees, but they often come with more built-in features. If you just need bare-bones POS features, a free or low-cost POS system might work just fine. But if you need advanced features, do expect to pay more.

You should also consider your hardware preferences. Do you have existing POS hardware you like? Then look for a POS system that works with your hardware. Or if you don’t already have hardware, you may want to compare hardware options from different POS systems to find a system that offers just the kind of setup your business needs―whether that’s a simple credit card reader for your phone or a robust terminal system for your restaurant counter.

Finally, you can think about other features you want. For example, some POS systems offer things like inventory management, gift card creation, or the ability to accept offline payments. If you can think of a feature that matters to you, make sure you find a POS system that offers it.

A point-of-sale system is a combination of software and hardware that lets your business make sales.

Traditionally, a POS system would probably be an analog cash register. But today, most POS systems rely on software that can run on a variety of devices, like phones, tablets, computers, and proprietary registers.

Aside from handling your transactions, many modern POS systems also offer additional features like these:

Of course, specific features vary from POS system to POS system.

The exact workings of your POS system will depend on the specific software and hardware you chose. But they all boil down to the same basic steps.

1. First, your POS system calculates the cost of a customer’s purchase or order. In some cases, that means you scan barcodes and your POS system automatically looks up the price. In other cases, you might manually enter an item cost. Either way, a good POS system will then add together item costs and calculate sales tax for you.
2. Next, your POS system will accept payment. Depending on your system, this could mean letting you access a cash drawer to make change, or it might mean simply swiping a credit card to be processed by your credit card processing company. Some POS systems also let you take payments with gift cards, points, or other methods.
3. Finally, your POS system will process the sale or transaction. In most cases, this means your system will generate a receipt (either digitally or printed). And depending on your POS features, it may also update your inventory or sales data.

Again, the specifics will depend on the point-of-sale system your business chooses. But all of our recommendations offer a simple, easy checkout process for both workers and customers.

Yes, there are different types of POS systems. The easiest way to categorize them is by hardware and by industry.

Let’s talk hardware first. Some POS systems don’t use any special hardware. You can simply use the software on a device you already have, like a cell phone or a computer. Other systems use much more advanced hardware, like a specialized register, a bar code scanner, a cash drawer, a credit card reader, and a printer for receipts. Of course, your POS system can lie somewhere in between―with just the hardware you need.

And what about industries? Well, some point-of-sale systems have been designed for specific industry needs. For example, a POS system for restaurants will likely have seating management tools, while a POS system for retail stores will have more inventory management tools.

So as you shop for a point of sale system, make sure you find the type that uses the hardware you like and works for the industry you work in.

The best POS system for your business depends on your needs.

For the best hardware choices, Square is the way to go. If you want flexible pricing and financing options, Toast offers a great option, while Heartland Retail offers the most flexible payment processing options. To keep your customers bringing in revenue, Lightspeed and Clover offer great choices with their respective subscription and loyalty programs. And if you’ve got a restaurant that does delivery, Revel offers great tools. Then there’s TouchBistro, with top-notch customer services features. Finally, if you’re interested in employee management tools, AmberPOS has what you need.