6 Essential Things You Must Know Before Buying a POS System

Long queues, impatient customers tapping their cards, and staff juggling handwritten orders—does this describe your business’s busy hours? A single wrong entry can result in a messed-up order and a complicated refund process. A frustrated customer is likely never to return. Meanwhile, you might not have any idea how much stock you just lost to errors.

Does this sound stressful? A reliable POS system keeps everything organized. It manages payments, inventory, reporting, and customer experience. But how do you find a POS system that fits your business perfectly? 

This guide explores key factors to help you choose the right POS system and use it effectively. Let’s get started! 

Downloadable Checklist :✅ POS System Buying Checklist

How Does a POS System Work?

A POS (Point of Sale) system helps businesses process sales, accept payments, manage inventory, and track customer data. This allows for smoother operations, increased efficiency, and an improved customer experience. Plus, POS reports give you real-time insights into customer preferences, seasonal trends, and sales performance. 

At its core, a POS system consists of three main parts:

• Hardware includes the touchscreen, barcode scanner, receipt printer, and payment terminal. Some systems also have self-ordering kiosks, kitchen display systems, and mobile POS devices.
• The POS software manages transactions and tracks sales. It also integrates with accounting software, inventory management, and other tools.
• Many modern POS systems store data in the cloud. So, business owners can access reports and POS analytics from anywhere.

Here’s a step-by-step breakdown of how a POS system works:

1. A customer selects items they wish to purchase.
2. The cashier scans the items or takes the order using the POS system.
3. The system calculates the total price, including taxes and discounts.
4. The customer chooses a payment method, like cash, card, and mobile payment.
5. The POS system processes the payment. Then, it prints or emails a receipt.
6. The transaction details are stored for future reporting and inventory management.

This complete interaction a customer has at the point of sale is called a POS experience. So, what exactly is a POS experience? A smooth POS experience involves faster checkouts, fewer errors, and a better customer experience. As a result, it can significantly boost your revenue.

6 Factors to Consider Before You Buy a POS System

Do you have a clunky or outdated system? Or don't have a POS system at all? Then, long lines, frustrated customers, and even lost sales might be a common sight for your business. So, here are the key aspects to think of when choosing the best POS system for your business.

1. Pricing & Fees

Some POS systems charge a flat monthly fee. Others take a percentage of each transaction. Before committing, ask the following questions:

• What’s the total cost? 
• Does the total cost include all: hardware, software, and payment processing fees?
• Are there hidden charges for certain transactions?
• Do pricing plans scale as your business grows?
• Does the provider require a long-term contract, and if so, are there cancellation fees?
• Are there month-to-month options for payment?

You might be offered an all-in-one pricing. But some POS providers charge separately or extra for:

• Software
• Hardware
• Refunds
• Returns
• Chargebacks
• Third-party payment processing

Always read the fine print before committing so that you're aware of the true cost of your POS system.

2. Hardware Compatibility & Setup

Not all POS systems require brand-new hardware. Some work with existing devices. This can save you money. Ask the following questions:

• Can I use my current Android or iPad hardware?
• Do I need proprietary hardware (which can be costly)?
• How easy is the setup?
• Is there assistance for installation and integration?

Many modern POS systems support iPads, Android tablets, and even smartphones. However, POS systems that require exclusive terminals and accessories can add to the overall cost. So, you should opt for a system that supports:

• Barcode scanners
• Receipt printers
• Cash drawers

Thinking about switching to a softPOS solution? Some providers, like OneHubPOS, allow you to use your existing Android hardware. So, no need for expensive new equipment! 

3. Payment Processing Options

Your POS system should support multiple payment methods to match customer preferences. Ask the following questions:

• What payment processors are supported?
• What are the transaction fees for credit cards, debit cards, digital wallets, and EMV dips?
• Can customers pay using contactless methods, like swipe- or tap-to-pay and QR codes?
• How quickly do funds get deposited into my account?
• What are the transaction fees? 
• Is E-invoicing allowed?

4. Features & Functionality

Rather than just processing guest payments, a great all-in-one POS system manages everything, from sales to staff, for better results. Consider features like:

• Inventory Management – Tracks stock levels and alerts you when items run low
• Menu Management – Allows customizing QSR menus according to seasonal promotions and dynamic pricing 
• CRM & Loyalty Programs – Stores customer information and offers rewards to repeat buyers
• Sales Reporting & Analytics – Provides insights into sales trends and business performance
• Online Ordering/Mobile Ordering & Delivery Integration – Essential for Quick Service Restaurants (QSRs) and retail businesses, like convenience stores and specialty stores
• Employee Management – Tracks staff performance, work hours, shift scheduling, and payroll
• Tip Pooling & Sharing – Records the amount of tips earned per employee per shift for each day

Irrespective of your business type, look for real-time stock tracking and low-stock alerts to prevent shortages. Your chosen system should also have easy-to-read reports to help you track revenue, peak hours, and best-selling items.

If you have multiple employees, choose a POS with clock-in/clock-out features and role-based permissions to manage staff efficiently.

Complying with federal, state, and local laws, look for age verification features if your convenience, specialty, or liquor stores sell the following prohibited items:

• Alcohol
• Tobacco & vape products
• Legal cannabis-derived or THC (Tetrahydrocannabinol)-derived products 
• Lottery tickets
• Spray paint & graffiti materials 
• Energy drinks & supplements 
• Sharp objects, like box cutters and knives
• Mature or adult-rated video games
• Adult magazines & DVDs
• Fireworks
• CBD (Cannabidiol) products
• Nitrous Oxide (Whippets)
• E-cigarette liquid & accessories

QSRs, food trucks, pizzerias, and cloud kitchens should look for a restaurant POS system that integrates with DoorDash, Uber Eats, and Grubhub.

5. Customer Support & Reliability

Tech issues can disrupt your business. So, good support is a must. Ask the following questions:

• What type of support is available (phone, email, and/or live chat)?
• What is the average response time?
• Is support available 24/7?
• How frequently is the software updated?
• Do software updates happen automatically or have to be installed manually?
• What happens if the system goes offline?

Avoid systems that only offer email support as they're likely to have long response times. 

Having 24/7 support is more crucial for liquor stores, late-night bistros, food trucks, or similar businesses that operate outside standard business hours to ensure you’re never stuck if something goes wrong. 

6. Scalability & Customization

Your small business will evolve. So, your POS system should grow with you. Ask the following questions:

• Can the POS system handle multiple locations if I expand?
• Does it support third-party integrations like accounting or delivery services?
• Are customization options available to fit my business needs?

If you plan to open more retail stores or QSRs at multiple locations, choose a cloud-based POS that supports multiple outlets under one dashboard. 

How to Use a POS System

Here’s how to get started with using a retail POS system:

1. To set up the POS system, install the software on your POS hardware. Or, use your existing device if compatible. Connect printers, scanners, and card readers if needed.
2. Upload your inventory, set up menu pricing, and organize items by categories.
3. Teach employees how to process sales, create and manage combo deals, apply discounts, and handle returns or refunds.
4. When a customer checks out, scan or enter the items. Then, take payment and issue a receipt.
5. Use the dashboard to monitor reports and POS analytics regularly. This helps track sales trends, manage stock levels, and improve business operations.

The more familiar you and your team are with the must-knows and hacks to operate POS systems efficiently, the smoother your business operations will be.

Get the Right POS System & Simplify Your Business Today

Choosing the right POS system helps you run your business smoothly, keep customers happy, and boost profits. Focus on pricing, hardware, payments, features, and growth. Pick a system that works for you now and can grow with your business in the future. A user-friendly, feature-packed POS system saves you time. It also decreases manual errors and improves your customer experience. 

Looking for a fast, reliable, and affordable POS system? OneHubPOS offers smooth payments, inventory tracking, and powerful analytics. No long-term contracts. No hidden fees. Book a demo now!