What is the best POS system for a small business?

Clover is the best overall POS system for small businesses that want to keep control of their processing costs, because it is one of the only major platforms that lets you bring your own payment processor. Square is the best option for businesses just getting started, with no upfront hardware cost and a free plan. The right answer depends on your business type, volume and whether you want to negotiate your processing rates independently.

Can I use my own credit card processor with Clover?

Yes. Clover is one of the few major POS platforms that allows third-party payment processors. This means you can negotiate your processing rates separately and are not locked into Clover's own rates. Square, Toast and Shopify POS do not allow this without a fee penalty.

Is Clover better than Square?

Clover is better than Square if you want processor flexibility or run a restaurant, salon or service business that needs advanced POS features. Square is better if you want to get started with no hardware cost and no monthly fee. The biggest structural difference is that Clover lets you bring your own processor and Square does not.

What does a POS system cost?

Hardware costs range from $0 (Square reader) to $2,648 for a Clover Kiosk. Monthly software fees run from $0 (Square free plan) to $104.90/month (Clover). Processing fees are additional and are typically your largest cost - at $30,000/month in card volume, a 0.4% difference in your effective rate adds up to more than $1,400 per year.

Do I have to switch processors when I change POS systems?

It depends on the platform. Square and Toast require you to use their in-house processing, so switching to one of those means switching processors too. Clover lets you keep your existing processor (or bring a new one). Shopify POS allows third-party processors but charges a 0.6-2% penalty per transaction if you do not use Shopify Payments.

Best POS systems for small business in 2026

Most POS comparisons rank on features and price. This one ranks on a question that costs you more: who controls what you pay to process? The POS is a one-time decision. The processing behind it runs forever.

The short answer

Clover ranks first because it is one of the only major POS platforms that lets you bring your own payment processor - meaning you can negotiate your rates independently instead of accepting the platform's markup. Square ranks second for businesses that want to get started with no upfront cost. Union is the best pick for busy bars and restaurants with its mobile ordering platform. Shopify POS is the natural choice for existing Shopify merchants. SumUp suits mobile and low-volume sellers who want simplicity and no monthly fees.

How we are paid: we earn a commission from some of the providers on this list when a business we refer signs up. Your rate review is free either way. The criteria are stated below so you can judge the ranking yourself - and we have flagged the honest downside on each system, including the ones we earn on.

How we ranked these systems

The payment processing industry has a well-known conflict of interest: POS platforms that also sell processing earn more when merchants pay higher rates. That conflict shapes which systems get recommended most heavily in most comparison articles.

We ranked by five criteria, in this order:

Processor flexibility - can you negotiate your rates separately, or are you locked in?
Business type fit - does it actually work for your industry, or is it a generic retail POS trying to serve everyone?
Total cost of ownership - hardware plus software plus processing, not just the headline monthly fee
Contract terms - lock-in period, early termination fees, equipment lease risks
Ecosystem and integrations - inventory, payroll, loyalty, online store

Each entry below lists published rates as of July 2026, and a frank assessment of what it will actually cost you.

The top 5 POS systems in 2026

Best overall

Clover

Clover runs more than $272 billion in annualized payment volume and covers retail, restaurants, services, salons and auto repair from a single platform. The key differentiator is processor flexibility: Clover works with dozens of third-party processors, so your POS decision and your processing decision stay separate. Most competitors bundle these together.

Published rates

In-person: 2.6% + 10 cents (Clover's own processing, standard plan)
In-person: down to 2.3% + 10 cents on higher-tier plans
Keyed / card-not-present: 3.5% + 10 cents
Monthly software: $84.95 to $104.90 per month depending on plan
Hardware: $349 (Solo reader), $1,899 (Station Duo), $2,648 (Kiosk)

If you use a third-party interchange-plus processor instead of Clover's own rates, your effective rate can come in significantly lower - which is the whole point of the platform's flexibility.

Honest downside: Clover hardware must be purchased through Clover or an authorized reseller, not from a retailer. Prices and included features vary by reseller, so shop carefully. Some resellers also offer equipment on lease terms - read the contract before signing anything that has "lease" in the title.

Best for getting started

Square

Square is the easiest POS to start with. The free reader and $0 monthly plan let you accept cards in minutes with no upfront cost. Square's ecosystem covers retail, restaurants, appointments and invoicing, and it includes a built-in online store. The platform handles the most common small-business cases well, and there is nothing to configure on the processing side.

Published rates

In-person: 2.6% + 15 cents (free plan)
In-person: 2.5% + 15 cents (Plus, $49/month); 2.4% + 15 cents (Premium, $149/month)
Online: 2.9% + 30 cents (paid plans); 3.3% + 30 cents (free plan)
Hardware: $0 (free magstripe reader), $299 (Square Terminal), from $799 (Square Register)

Honest downside: Square requires you to use Square for processing. You cannot bring a third-party processor, so there is no way to negotiate the markup. What you see on the pricing page is what you pay, and it will not change based on your volume or history. For businesses doing more than $20,000 per month, an interchange-plus arrangement through a processor you can negotiate with will usually beat Square's flat rate over time.

Best for bars and restaurants

Union

Union is built specifically for high-volume hospitality venues - the kind of bar or restaurant where the bottleneck on a Friday night is getting drinks ordered and payments processed quickly. The guest-facing mobile app lets customers browse the menu, order, and pay from their phone, which reduces ticket time without adding staff. Union's OnPrem Insights product provides real-time sales and guest data that most general-purpose POS systems do not offer at this level of detail.

Union operates in 20 major US markets. If you are outside those markets, Union may not yet be available to you.

Pricing

Union does not publish its pricing publicly. Rates and terms are quoted per venue, which is standard for enterprise-focused hospitality platforms. Contact Union directly for a quote based on your venue size and transaction volume.

Honest downside: You cannot self-serve pricing or onboard without a sales conversation. If your city is not in Union's current market footprint, this is not an option yet. Businesses that want a fully transparent published rate before talking to sales will need to look at Square or Shopify POS first.

Best for Shopify merchants

Shopify POS

If your business already runs on Shopify for ecommerce, Shopify POS is the most natural extension. Inventory, customer profiles and sales data are unified across your online store and physical location from day one - there is no syncing to manage. The platform is solid for retail and increasingly capable for omnichannel brands. Third-party processing is allowed, but read the fee structure carefully before going that route.

Published rates

In-person: 2.6% + 10 cents (Basic Shopify plan); down to 2.4% + 10 cents on higher plans
Online: 2.9% + 30 cents; 3.5% + 30 cents for premium cards
Shopify POS Retail add-on: $89/month on top of your existing Shopify plan
Shopify plans run from $29/month (Basic) to $299/month (Advanced)
Third-party processing penalty: 0.6% to 2% per transaction if you do not use Shopify Payments

Honest downside: The third-party processing penalty makes bringing your own processor expensive unless your volume is very high and your negotiated rate is very good. At $50,000 per month with a 1% penalty, that is $500 per month in extra fees - $6,000 per year - on top of your actual processing costs. Run the math for your specific situation before assuming third-party processing will save you money here.

Best for mobile and low-volume

SumUp

SumUp is the simplest option on this list: no monthly fees, no contracts, hardware from around $19 for a card reader. It is built for mobile merchants, market vendors, service businesses and any seller who does not need a full register setup. If you are doing under $10,000 per month in card volume, SumUp's simplicity and cost structure are hard to beat.

Published rates

In-person (card present): 2.6% + 10 cents
Online / keyed / card-not-present: 3.5% + 15 cents
Invoicing: 2.9% + 15 cents
Monthly fee: $0
No minimum volume, no early termination fee

Honest downside: SumUp is a processing product with POS features, not a full POS with deep inventory management, restaurant table service or loyalty programs. As your business grows and your processing volume rises, the flat rate will become more expensive relative to an interchange-plus arrangement. SumUp works best as a starting point or for businesses that genuinely do not need more complexity.

Quick comparison

Provider	Best for	In-person rate	Own processor?
Clover	Retail, restaurants, services	2.6% + 10 cents (or lower with own processor)	Yes
Square	Getting started, pop-ups, small businesses	2.4-2.6% + 15 cents	No
Union	Busy bars and restaurants	Quote per venue	Quoted
Shopify POS	Shopify ecommerce merchants	2.4-2.6% + 10 cents	Yes (with fee penalty)
SumUp	Mobile sellers, low-volume businesses	2.6% + 10 cents	No

Rates as published July 2026. Verify on each provider's website before signing.

How to choose

The decision usually comes down to two questions: how much control do you want over your processing costs, and how complex are your operations?

If you want to separate your POS decision from your processing decision - and negotiate your markup independently - Clover is the only major platform in this list that makes that fully straightforward. Square and SumUp lock you into their own rates. Shopify allows third-party processing but charges a penalty that can wipe out any savings at typical volumes.

If you are just starting out and want to accept cards with no upfront cost, Square gets you running in minutes and its free plan is genuinely useful. You can always reassess the processing side when your volume grows to the point where the markup matters.

If you run a busy bar or restaurant in a major US market, Union's combination of mobile ordering, speed of service and hospitality-specific data tools puts it in a different category from the general-purpose options.

The single most important thing to understand is this: the POS system choice and the processing choice are two separate decisions, but most platforms bundle them. When you are quoted a POS system, ask specifically whether you can bring your own processor and what the cost is if you do. The answer tells you a lot about who the platform is really working for.

For a detailed breakdown of what all of these systems will actually cost you over three years, see our full POS cost breakdown. If you are already in a processor contract and wondering whether it is worth moving, see how to switch payment processors.

And if you want to know whether what you are paying to process right now is competitive - regardless of which POS you use - our effective rate calculator gives you a benchmark in under a minute.

The POS is only half the decision

What you pay to process is usually three times the annual cost of your software. Send us your current statement and we will tell you whether your processing is competitive - free, no obligation.

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Disclosure: Bizzy Advisors earns referral compensation from some providers listed on this page. This compensation does not influence our rankings, which are based on the criteria stated above. Each provider's downside is assessed honestly, including providers we earn on. Rates and features are as published by each provider in July 2026 and may change; verify current pricing at each provider's website before making a decision. This content is for informational purposes only and does not constitute financial or legal advice.