7 Types of POS systems for Your Business

What was once a simple cash register has evolved into innovative technology, serving as the heart of modern retail operations. Yes, we are talking about POS (point-of-sale) systems.

Modern POS systems do far more than process transactions. That’s why 68 percent of businesses use POS systems to capture new sales at the checkout counter. 

These solutions simplify multi-channel operations by syncing all online and in-store orders, tracking inventory, collecting customer data, taking payments and issuing receipts, and integrating with e-commerce platforms.

So, how do POS systems work? At their core, they not only centralize all transactions but also provide valuable insights into sales trends. These systems seamlessly integrate hardware (like barcode scanners, receipt printers, and payment terminals) with powerful software that manages sales, inventory, customer profiles, and even employee performance.

However, with numerous types of POS systems available, each offering unique features and benefits, selecting the right one for your business can be daunting. In this article, we'll look into the different types of POS systems—their key features, pros and cons, pricing, and the advantages they offer businesses across various sectors.

Once you go through this guide, you can decide which POS solution aligns with your unique business requirements and goals.

What is a POS system?

A POS system combines hardware and software to allow businesses to accept payments and track sales. It serves as a central hub for all business transactions.

Modern POS systems can handle much more than just processing payments. They can help enterprises with other aspects, which include:

• Transaction processing (sales, returns, exchanges)
• Payment
  handling (cash, card, digital wallets)
• Inventory management (stock tracking, reordering)
• Reporting and analytics (sales, taxes, employee performance)
• Customer management (purchase history, loyalty programs)

Best types of POS systems: A quick overview

Here’s a quick overview of all the POS system types:

Different types of POS software

Here are some of the commonly used POS system types used by businesses, each with their pros and cons and pricing-

1. Desktop POS system

The desktop POS system works on laptops or desktop computers through a browser, an app, or an on-premises system. It combines dedicated hardware with specialized software to handle high-volume transactions and complex operations. This system is usually attached to a cash drawer, a card reader, or a barcode scanner.

Pros:

• Easily customizable and applicable in a variety of retail situations
• Integrates with a wide range of peripherals and business software

Cons:

• Lacks mobility; fixed to a checkout counter
• Require IT support

Device price:

The device price can range from $800–$2,000.

Subscription:

The subscription can range from $500 to $2000.

2. Mobile POS system

Employees can carry around a mobile POS device to process transactions. These devices are ideal for companies that need to be mobile and flexible. They can be used to take orders, process card transactions, and print receipts.

These systems are also easy to set up and are not very costly. They support multiple payment options, including debit cards, credit cards, contactless payments, and digital wallets like Apple Pay and Google Pay.

Pros:

• Offers bluetooth-enabled connection with smartphones
• Helps record transactions digitally

Cons:

• Limited functionality compared to full-featured POS
• Dependent on internet connectivity for processing

Device price:

The device price can range from $200–$800.

Subscription:

The subscription can range from $30–$100.

3. Tablet POS system

The tablet POS system requires minimal upfront investment and combines mobile devices' portability with desktop systems' functionality. It runs on specialized software and can be used at both permanent and varied locations.

Pros:

• Integrates with barcode scanners, receipt printers, and cash drawers
• Supports customer-facing displays and digital signatures

Cons:

• Some businesses might not want to use tablets that come with pre-programmed cameras, such as a medical center and spa
• Tablets can be less durable than dedicated terminals

Device price:

The device price can range from $300–$1000.

Subscription:

The subscription can range from $30–$100.

4 Self-Service Kiosk

Self-service kiosk is an automated system that allows customers to place orders and pay without staff assistance. Its interface enables customers to enter information and complete payment. This system is quite similar to desktop POS but offers better security, as all the transactions are one-ended, and risks would be averted.

Pros:

• Offers customizable menus/products
• Helps increase sales by reducing the checkout time

Cons:

• May require custom software development
• Some customers might need assistance, contradicting the primary purpose of self-service POS

Device price:

The device price can range from $1500–$5000 per kiosk.

Subscription:

Custom pricing; varies by provider.

5. Open-source POS

An open-source POS system is a custom software application that gives businesses full control over customization and data ownership. With the right developer tools, customized upgrades are simply unlimited. They usually run on a desktop or tablet POS.

Pros:

• Manage inventory with real-time tracking, prevent stockouts, and provide multi-location support
• Scalable from single-store to multi-location businesses

Cons:

• Requires a dedicated support team to run the software and make improvements
• Lacks built-in features

Device price:

The device price can range from $0–$1,500+ depending on the chosen hardware.

Subscription:

Free for core software; optional costs for paid support, premium modules, or cloud hosting (some paid open-source POS options range from $20–$200/month, while many remain entirely free).

6. Multichannel POS

Multichannel is one of the best types of POS systems as it integrates e-commerce websites and cash registers at brick-and-mortar stores. This integration enables businesses to manage inventory and orders seamlessly across physical stores, ecommerce websites, and mobile apps, ensuring a consistent shopping experience.

Pros:

• Eliminates the need for different types of POS systems to manage different sales channels
• Centralizes reporting and analytics

Cons:

• No access to customer interactions on different touchpoints
• More complex to set up and manage

Device price:

The device price can range from $200–$1500.

Subscription:

The subscription can range from $50–$399/month.

7. Terminal POS systems

Different enterprises use a terminal POS system to process sales transactions, which helps them accept payments via diverse methods. 

Using this system, businesses also manage inventory and generate sales reports, all from a single device. However, these solutions are stationary and require a dedicated space.

Pros:

• Track and manage inventory with real-time updates
• Accepts multiple payment methods, including cards and mobile/digital wallets

Cons:

• Additional costs for installation, and training
• Regular updates and support may incur extra charges

Device price:

The device price can range from $595 – $4,000.

Subscription:

The subscription can range from $0-200/month.

Also read: A Complete Guide to Multi-channel Inventory Management

Conclusion

Navigating through multiple POS options might make it difficult to choose the one that best aligns with your business model, growth trajectory, and today's customer demands.

Integrating your POS with e-commerce platforms can significantly enhance your operational efficiency. With solutions like Webgility, you can synchronize sales, manage inventory, and track customer data between your retail and ecommerce platform. 

Simplify your multi-channel operations by syncing all your online and in-store orders and inventory with Webgility

This seamless integration eliminates manual data entry, improves accuracy, and provides a unified view of your business across all sales channels.

Ready to streamline your business operations with seamless POS integration? Discover how Webgility can transform your multi-channel selling experience and help you manage everything in one place. 

Get started today!

FAQs

Is POS a type of ERP?

POS is not a type of ERP (Enterprise Resource Planning). Although POS and ERP can be integrated for seamless data flow and improved business efficiency, they remain distinct systems with different primary functions.

What is a POS transaction type?

A POS transaction type refers to the method by which a payment is made at the point of sale, such as in-person (card-present), online (card-not-present), mobile payments, or returns and refunds.

What is the POS limit?