A Point of Sale (POS) system is the hardware and software combination that enables merchants to process sales transactions and accept payment. Modern POS systems have evolved far beyond simple cash registers — they now integrate payment processing, inventory management, employee scheduling, customer loyalty programs, and reporting.
Components of a POS system: - **Hardware**: Terminal (with card reader), receipt printer, cash drawer, barcode scanner, customer-facing display - **Software**: The POS application that manages transactions, inventory, and reporting - **Payment processing**: Integrated or connected to a payment processor/gateway
Major POS platforms: - **Clover**: Full-featured, integrates with many processors, excellent for restaurants and retail - **Square**: Integrated payfac model, easy setup, flat-rate pricing - **Toast**: Restaurant-focused, cloud-based, own payment processing - **Lightspeed**: Retail and hospitality, multi-location support - **NCR Silver/Aloha**: Enterprise restaurant POS - **Shopify POS**: E-commerce-first, unified online/offline inventory - **Revel Systems**: iPad-based, full-service restaurant focus
Cloud-based POS systems store data online for real-time access from anywhere, easier updates, and automatic backups. Legacy POS systems store data locally — more control but require manual updates and on-site servers.
Your POS choice directly affects your processing costs, operational efficiency, and growth capabilities. Key questions when selecting a POS:
1. Is it compatible with interchange plus pricing, or does it lock you into a payfac rate? 2. What are the monthly software fees? 3. Does it support your industry-specific needs (table management, inventory tracking, etc.)? 4. What are the hardware costs and can you use existing equipment? 5. What is the contract term and what happens if you switch?
Many POS systems (especially Square and Toast) bundle in payment processing at flat-rate pricing. This simplifies setup but may cost more than a separate POS + dedicated merchant account.
A restaurant evaluating POS options: - Toast (with built-in processing): $110/month software + 2.49% + $0.15 processing - On $80,000/month: $110 software + $2,006 processing = $2,116/month - Clover (with Liberty Bancard processing at 1.95% effective): - $90/month software + $1,560 processing = $1,650/month - Annual savings: $5,592
Not always. Many POS systems (Clover, PAX, Dejavoo) work with multiple processors. Others (Square, Toast, Shopify) are integrated with their own processing. If you want processing flexibility, choose a POS that supports multiple processor integrations.
A payment terminal only accepts card payments. A POS system includes payment acceptance plus additional business management features like inventory, reporting, and employee management. Many businesses use both (a full POS with an integrated payment terminal).
Liberty Bancard supports Clover, PAX, Dejavoo, and other major POS platforms. We don't lock you into proprietary hardware — we work with the system that fits your business. Free terminal placement available for qualified merchants.
Continue learning: Browse all 60 payment processing terms in our Payment Processing Glossary, or upload your statement for a free analysis of your current processing costs.