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How to Choose a POS System

Rasika Lakshan ·

Last updated:

This is general information, not legal or tax advice.

Who this is for: Owners of restaurants, shops and service businesses buying their first POS system, or replacing one, who want to know which terms to check before comparing prices.

In short: Most POS systems bundle software, hardware and card processing. The terms that differ most are whether the contract can be cancelled, whether the hardware works with other processors, and what happens when the internet goes down. Square publishes no locked-in contracts; Clover says its subscriptions are non-cancelable and its devices cannot be used with other payment processors; Toast says its services work only on approved Toast hardware.

A POS (point-of-sale) system is the software and hardware you ring up sales with. Providers usually sell it together with card processing, so choosing a POS is also choosing a payment arrangement. This checklist uses what Square, Clover and Toast publish, as read on 2026-10-16. It does not rank them; see our POS rankings for that. Terms change, so confirm with the provider and read the agreement before you sign. This is general information, not legal or financial advice.

1. Can you leave?

Contract terms differ a lot in what providers publish:

  • Square. Its pricing page says: “No hidden fees or locked-in contracts. Cancel or switch anytime.” It also says Square Plus and Square Premium each include a free 30-day trial and that you can cancel or switch plans anytime.
  • Clover. Clover’s FAQ says subscriptions are non-cancelable and ineligible for refunds, although a subscription agreement can be broken during a buyout or upgrade, and subscriptions can be paid off at any time. At the end of the term you can purchase or return the equipment; if you do nothing, the term is extended at the same monthly charge, and to stop renting month to month you must inform Clover at least 30 days before the term ends. Clover also says contract terms and termination fees vary based on your service provider.
  • Toast. The pricing page we read lists plan prices but describes no cancellation terms in the text we read; ask for the agreement.

2. Is the hardware tied to the processor?

Clover says its POS devices may be purchased or leased from other entities but cannot be used with other payment processors. Toast says you may access its services only through devices it identifies as compatible, and that its services may only be used on approved Toast hardware. If you might want to change processors later, ask whether your terminals would still work.

3. What is the real monthly cost?

Software fees and processing fees are separate. Examples from the pages we read:

  • Square lists three plans: $0 a month (Free), $49 (Plus) and $149 (Premium), with the Plus and Premium fee applying to each location you run. In-person processing is listed at 2.6% + 15¢ on Free, 2.5% + 15¢ on Plus and 2.4% + 15¢ on Premium.
  • Clover says merchants pay a monthly software fee plus processing rates, and that the Starter, Standard and Advanced software and hardware plans vary by business type. Its rates come in pairs: an in-person rate, and a higher typed-in rate for card-not-present sales. See Clover fees explained.
  • Toast. For restaurants it lists a Starter Kit “starting at $0” a month, a Point of Sale plan starting at $69 a month, and custom pricing for Build Your Own. It says the upfront costs are hardware and implementation, and describes itself as a payment facilitator rather than a payment card processor.

Plan for processing on top of those amounts and use our processing fee calculator to compare published rates at your volume. Square’s own fee details are in Square fees explained.

4. What happens when the internet drops?

Toast says its offline mode lets you continue to place orders, print tickets and receipts, and take credit card payments until the connection is reestablished. If you depend on a POS during rushes, ask each provider for the equivalent in writing and test it before you commit.

5. Do you need the full system?

Clover says its Virtual Terminal can process payments and refunds by logging in to a web dashboard from a smartphone, tablet or computer, with no device needed. If you mostly sell at markets or visit customers, a phone may do; see contactless payments and Tap to Pay.

6. Who handles card security?

Ask which party’s agreement covers your card data and whether the terminals are on the PCI Council’s lists. See PCI compliance for small business and payment gateway vs merchant account.

7. Match the type of business

Toast’s pricing page has restaurant and retail sections, and Clover asks you to pick restaurant, retail or service business first. Check the features you need on the provider’s own page, then compare the options for your type of business in our restaurant and retail rankings. For head-to-heads, see Square vs Clover and Toast vs Square.

What we did not verify

We did not verify hardware prices beyond those quoted above, Clover’s or Square’s offline behavior, or Toast’s contract length. We did not read any provider’s full agreement.

Frequently asked questions

What should I check first?

Check what you would be locked into. Providers describe this differently: Square says no locked-in contracts, Clover says subscriptions are non-cancelable but can be broken in a buyout or upgrade, and Toast says its services may only be used on approved Toast hardware.

Can I use a POS device with a different payment processor?

Not always. Clover says that Clover POS devices may be purchased or leased from other entities, but they cannot be used with other payment processors. Ask any provider whether your hardware and your processing are tied together.

Do I need a POS system at all?

Not necessarily. Clover says its Virtual Terminal can process payments and refunds from a web dashboard on a phone, tablet or computer, and Square and Stripe list phone-based tap-to-pay options. See our guide to contactless payments.

Does the POS price include card processing?

Usually not. Clover says its subscription does not include payment processing fees, which are priced separately, and Toast describes its plans as a software subscription plus processing. Add both when you compare.

What happens if the internet goes down?

Toast says its offline mode lets you continue to place orders, print tickets and receipts, and take credit card payments until the connection is reestablished. We did not verify offline behavior for Square or Clover, so ask them.

Which POS is best for me?

That depends on your business type, volume and tolerance for contracts. See our POS rankings, which are scored only from published information and list limitations for each provider.

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