6 Best Free POS Systems For Small Business In 2023

You won’t get all of the bells and whistles with free POS software, but you should get a functional, easy-to-use system that allows you to perform basic tasks.

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While the best POS systems can be spendy, free POS software does exist, and it allows small business owners to take digital payment types anywhere. Keep reading our guide to the best free POS systems to find the right point of sale software for your business — at the right price.

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6 Best Free POS Systems For Small Business In 2023

The best POS systems for small business allow you to take payments and give you access to basic reporting tools, inventory management, loyalty features, and more. Generally, you get what you pay for, but it is possible to find free POS systems that offer some or all of those things. The following free point of sale solutions allow small business owners to get started for cheap and most can scale up when needed.

1. Square: Best Overall Free POS

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

• Free online store
• Free and low-cost hardware available
• Retail and restaurant features
• Social media sales and advertising capabilities

Cons

• Can only use Square hardware and payment processing

Square Free POS Software Features

Square POS is a hugely popular POS software with three different solutions: Square For Retail, Square For Restaurants, and Square Appointments.

All three of these solutions allow for in-person and online sales through a completely free eCommerce website builder. Each solution also allows you to create physical and eGift cards, view customer orders and basic sales, and use an unlimited number of POS devices to take payments.

Square For Retail offers extensive retail inventory management, while Square For Restaurants has the right amount of inventory and menu customization for small mobile and countertop foodservice businesses to manage day-to-day operations with ease. Square Appointments allows service-based businesses such as spas and salons to manage their time and physical resources effectively.

No matter which Square POS software package you choose, you’ll have access to the Square ecosystem of tools and hardware available for all Square sellers.

Square Free POS System Pricing

Square offers most of its features for free. If you have multiple locations, you’ll have to upgrade to a paid plan. Restaurant business owners may want to consider getting a kitchen display screen (KDS) software subscription to make order flow easier.

Hardware Cost

You can download the Square POS app on any iOS or Android device.

To take card payments, you can get a free magstripe reader from Square or pay $49 for the Square contactless card reader. We strongly recommend buying the contactless card reader, since you can’t take chip or mobile device payments using the magstripe reader. Also, the free magstripe reader works by plugging it into a headphone jack, which many smartphones don’t have anymore.

For more information on Square’s vast hardware offerings, including registers and iPad stands, read our Square POS hardware guide.

Payment Processing

With Square POS, you’re limited to Square Payments as your payment processor. Fortunately, rates are transparent and competitive, starting at 2.6% + $0.10 per in-person transaction.

Contact Requirements/Warnings

Square offers month-to-month plans with no penalties for canceling your plan.

Where Square Really Shines As A Free POS System For Small Business

Square offers a robust set of features in its free plan — no paid upgrade is required. Everything from your own online store to a basic magstripe card reader is absolutely free, making it easy for eCommerce and brick-and-mortar businesses to get started with no initial investment. Square POS is also scalable, offering plenty of paid plans and add-ons to help you get the most out of the software, all at competitive prices.

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2. PayPal Zettle: Best For Solopreneurs

Pros

• Connects to PayPal’s suite of business tools
• QR code payments
• Inventory tracking and low-stock alerts
• eCommerce and social media selling integrations

Cons

• No offline mode
• Not for high-volume sellers

PayPal Zettle Free POS System Features

PayPal Zettle (formerly known as PayPal Here) landed in the US in 2021, bringing a mobile POS solution to the PayPal suite of services. It’s easy to set up, has no long-term requirements, and most people are already familiar with the PayPal platform.

You can import inventory information from a spreadsheet, create inventory catalogs, add product categories, labels, and images of individual products to your catalog; set automated inventory tracking; and get a low-stock alert when inventory dips below a certain minimum quantity. Plus, you can easily print out barcodes.

PayPal integrates with most online store builders and you can generate a PayPal buy button that you can place on a blog. You can also connect your PayPal to Facebook and Instagram and sell within social media apps and use PayPal’s virtual terminal to take payments over the phone. Plus, you can send online invoices and charge a recurring bill for subscriptions, all without paying a monthly fee!

PayPal Zettle Free POS System Pricing

PayPal has no monthly fees.

Hardware Cost

To take payments, you can purchase the PayPal Zettle Reader 2 card reader for $29 (additional card readers cost $79 each) and use it with the PayPal Zettle app that’s available on Android and iOS devices.

Alternatively, you could purchase the all-in-one POS handheld device (also called a mobile POS or mPOS) and card reader for $199. Buying the all-in-one terminal means that you can use your phone and still take payments. The mPOS with a built-in barcode scanner costs $239 and could be a good investment if you’re scanning a lot of inventory.

PayPal also offers other hardware components, such as printers, cash drawers, and docks, starting at $49. You can also purchase a compatible store kit with bundled hardware and accessories starting at $249.

Payment Processing

It should come as no surprise that Zettle’s payment processor is PayPal. While this does limit your choices, PayPal is known for its transparent, flat-rate fees. Card-present transactions are priced at 2.29% + $0.09 per transaction. Custom rates may be available for high-volume merchants.

Contract Requirements/Warnings

When signing up with PayPal Zettle, you will have to sign a contract. However, you won’t have to worry about monthly fees or early termination fees. Still, it is important to make sure you review the contract to understand the terms of your account.

You will need to make a PayPal Business account to get a Zettle card reader (and all the other tools PayPal offers business owners.)

Where PayPal Zettle Really Shines As A Free POS System For Small Business

While PayPal Zettle doesn’t have the most advanced POS capabilities, it’s comprehensive enough for solopreneurs, microbusiness owners, and business owners who operate primarily online to use for in-person selling. At the same time, the software and hardware offerings are straightforward enough that an individual can quickly sign up, order a card reader, and start selling without any delays or intensive setup.

We also appreciate that the Zettle app integrates with the rest of PayPal’s business suite, so solopreneurs can sell subscriptions, sell online, take orders over the phone, and send invoices all within one place. Plus, if you already have a blog or website, you can easily add PayPal to your online presence and sell offline all at once.

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3. Loyverse: Best Open Source POS

Pros

• Free kitchen display and customer display screen options
• Free multilocation management
• Free customizable loyalty program
• Offline mode

Cons

• No built-in eCommerce
• Advanced inventory management costs extra

Loyverse Free POS System Software Features

Loyverse is a free open-source POS software available for download. It offers core POS features plus industry-specific capabilities for businesses such as grocery stores, bars, and wholesalers.

All Loyverse users can create their own custom points-based loyalty program, monitor multiple establishments under one account, incorporate a customer-facing display at registers, create inventory modifiers and tagging systems, and take payments offline, among several other features.

Restaurants and bars will appreciate perishable and liquid inventory management, free kitchen display system/kitchen printer order routing capabilities, and takeout/delivery options. If you sell prepackaged food along with fresh food or own a grocery store, you can use Loyverse to sell by weight.

Loyverse Free POS System Pricing

Loyverse is free to download and use forever. The following are paid add-ons:

• Advanced Inventory Management: $25/month; great for wholesalers and more complex inventory needs
• Employee Management: $25/month; great for businesses with different employee levels and user access needs
• Integrations: $9/month; necessary for connecting Loyverse to an eCommerce website, accounting apps, and delivery apps

Hardware Cost

The Loyverse app can be downloaded on iOS and Android devices. Compatible card readers range from $20 to $250, depending on what credit card processor you work with.

Loyverse supports a wide assortment of hardware, including printers, barcode scanners, and terminals. Compatible hardware is available for purchase on the Loyverse website, ranging from $19.99 for a tablet stand to $439 for an integrated printer and cash drawer.

Payment Processing

Loyverse has several payment processing options, including PayPal Zettle, SumUp, and Worldpay.

Contract Requirements/Warnings

There are no contract requirements to sign up for Loyverse. However, you may have to sign a contract with your payment processor, depending on which option you choose.

Where Loyverse Really Shines As A Free POS System For Small Business

We love that Loyverse has several industry-specific and general features built into its open-source framework. It also has several great features that normally only come with paid POS software, including a built-in loyalty program, kitchen display system, and multi-location support. Loyverse works completely offline as well, so completely mobile businesses can rest assured that this POS software won’t stop working on the go.

The only downside of Loyverse is that it doesn’t have native eCommerce capabilities, so if you want to focus on online sales, you’ll need to pay for an eCommerce integration or choose another POS option.

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4. Toast: Best For Scaling Restaurants

Pros

• Excellent restaurant-grade hardware included
• Free online ordering page with immediate and scheduled pickup/delivery
• Free customizable loyalty program
• Thorough inventory, menu, and POS interface customization

Cons

• Complicated, limited POS terminal setup
• Long-term contract
• Higher payment processing fees than competitors

Toast Free POS System Features

Toast offers a suite of restaurant management software, including polished POS and self-serve kiosk systems, that cater to both counter service and full service restaurants. The company offers durable Android-based restaurant hardware and the handheld Toast Go 2 is one of the best mobile POS systems out there.

Toast’s detailed perishable inventory, customizable tipping structure, detailed table mapping, and thorough item modifier capabilities are some of the best in the restaurant POS industry. Waiters will appreciate how streamlined the order and checkout process is, while restaurant managers will appreciate how Toast’s comprehensive menu item, labor, and shrinkage reports can guide their decision-making in terms of what to put on the menu and how to cut costs in general.

While many of Toast’s best features, such as its excellent kitchen display system and employee management functions, are a paid monthly add-on, you can get other Toast features for no monthly cost. These include the customizable Toast loyalty program, online ordering suite with menu modifications and scheduled or immediate order prep, gift card program, and email marketing capabilities. Most restaurant POS providers do not provide these features, even on lower-level paid plans.

Toast Free POS System Pricing

Toast’s Pay-as-you-Go plan is a plan that requires you to pay no monthly fees for the software and one POS terminal but will charge a higher payment processing rate than if you pay for the $69/month Point of Sale plan or $165/month Essentials plan.

Once your business processes a certain amount of money every month, you’ll end up paying more on payment processing fees than you do if you just pay for a monthly subscription.

You are allowed only one free countertop or mobile POS (and one extra for a flat monthly fee) on the Pay-as-you-Go plan, so once you need more than 1-2 mobile or countertop POS terminals, you’ll have to upgrade to the Point of Sale or Essentials plan.

Hardware Cost

You do not have to pay any money upfront or any monthly fees to get your first POS terminal on the Pay-as-you-Go plan.

The second terminal will cost $409 (Toast Go 2 handheld POS) or $599 (Toast countertop POS terminal) upfront and you will be charged a monthly fee. After you exceed two POS terminals, you’re not able to use the software for free.

Payment Processing

On the completely free, no monthly fees plan, you’ll pay 2.99% + $0.15 per transaction. If you add online ordering to your free plan, you’ll pay 3.39% + $0.15 per transaction, no matter whether the transaction is in-person or online.

You can only use Toast’s payment processor no matter which plan you are on, free or paid.

Contract Requirements/Warnings

Toast has a standard two-year contract length and a pretty hefty early termination fee if you decide to cancel your contract early.

This is why we recommend Toast for food service business owners who plan on scaling their business and sticking with Toast (and Toast’s suite of software/hardware features that are very helpful for large and multilocation restaurant owners) in the long run.

Where Toast Really Shines As A Free POS System For Small Business

We love how Toast allows restaurant owners with no budget to get powerful POS software and hardware for no monthly fees, while also allowing you to add on features within the Toast ecosystem of restaurant management software when you need to. Restaurants can expand to more registers on the floor, more locations within the business, more ways to manage the workforce, and negotiable payment processing fees without altering front-end operations in any way.

It’s also impressive that restaurant owners can offer online ordering, a loyalty program, gift cards, and email marketing for no monthly cost. These are great features to turn one-time customers into lifelong ones, and once your business is established enough to handle monthly fees, you can upgrade to a plan that doesn’t charge you for these features in the form of a higher payment processing fee.

If you plan on expanding your restaurant business over time to multiple locations, have a large floor plan, or want stronger POS hardware than iPads, Toast is a great free POS system for you.

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5. Helcim: Best For Large & B2B Businesses

Pros

• Unlimited users
• Great payment processing fees
• Free online store and virtual terminal for invoice payments
• Excellent inventory and customer management features

Cons

• Very few third-party integrations
• No built-in loyalty program

Helcim Free POS System Features

Helcim is primarily a merchant services provider that has expanded to provide a suite of business features for merchants to grow both online and in-person sales. Helcim POS software offers retail, restaurant, and subscription sales features, and is customizable enough that just any product-based, subscription-based, or invoice-based business can work with the software.

Helcim’s most attractive features are its customizable inventory and invoicing structures, as well as its self-serve customer account portals. Businesses that offer volume discounts, work with specific customers and vendors, or provide services that can be invoiced will appreciate that Helcim allows you to provide structured pricing tiers, create customer portals with login information, and send invoices with custom terms and automated reminder emails so that your customers remember to pay off their bill.

Helcim also allows you to save customers’ cards on file, which is a feature that not even paid POS providers often provide (especially on lower-level paid plans.) With a card on file, you can charge customers when they place orders, after products or services are delivered, or at any time frame that meets the agreement you’ve come to with your customers.

Helcim Free POS System Pricing

The Helcim POS system, virtual terminal, and all other software components are free to use. You can sign up and start customizing your POS within minutes.

Hardware Cost

You can use Helcim on iOS and Android devices, as well as Mac and Windows desktop computers and laptops. This makes Helcim one of the most device-compatible POS systems out there.

The Helcim card reader costs $109. With the card reader, you can securely save customers’ card information when they use their card or mobile wallet to pay, so you can charge customers in the future without them needing to bring in their physical card.

Helcim also sells a lightweight thermal printer for $79. Print out QR payment codes, receipts, and invoice information on the go with this Bluetooth-enabled printer.

Payment Processing

Helcim offers all merchants interchange-plus pricing. Unlike flat-rate payment processing, the interchange-plus payment processing model provides a transparent idea of how much you’re paying in credit card processing fees and typically adds up to the lowest payment processing fees.

You will be required to sign up for a merchant account with Helcim, but Helcim offers some of the most transparent contract terms and no monthly account fees. Helcim is on our list of best payment processing companies for small businesses because of its great contract terms and volume discounts for larger companies. Volume discounts are automatically applied as your sales volumes grow.

Helcim has Level 2 and Level 3 payment processing built in, so you can take B2B and B2G (business-to-government) payments with lower interchange-plus fees than if you only had standard Level 1 processing compliance.

Where Helcim Shines As A Free POS System For Small Business

We love that Helcim provides everything a small business needs to take payments online and offline, plus merchant services that (in most cases) allow business owners to get lower payment processing fees than POS providers that offer only flat-rate payment processing. This merchant services provider continually updates its POS, virtual terminal, invoicing, and online checkout page software so that users get the features they need to run their businesses.

It’s an especially great choice for larger businesses and B2B businesses since Helcim has built-in higher-level payment processing compliance, automated discounts as you increase your sales volumes, and allows for an unlimited number of users with different access levels. There’s an entire customer self-serve portal and remote invoicing capabilities, so it’s easy to get paid for large volumes of products or services no matter where your customer is located.

Plus, no matter what business type you have, you can create your own custom checkout flow and customer management system to provide customers with the best payment experience possible.

Get Started With Helcim

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6. eHopper: Best POS Software With Free Payment Processing

Pros

• Free card processing (via cash discount or credit surcharge program)
• Free Pax S300 Payment Terminal
• Free POS software for Windows 10
• Free restaurant POS software

Cons

• Limited to 50 products
• Limited to 300 transactions per month

eHopper Free POS Software Features

eHopper is cloud-based POS software with retail and restaurant-specific features. It is compatible with iOS and Android devices, as well as Windows tablets and PCs, so laptop and desktop users can use their devices as POS systems, too.

Business owners who are looking for a completely free system, including no payment processing fees, will find what they’re looking for with eHopper’s cash discount program function. eHopper allows you to pass on any credit card fees you’d usually have to pay to customers and offer a “discount” to customers who pay in cash.

Aside from this feature, and the fact that you can run eHopper as a free POS system for Windows, this POS system has a pretty basic offering. You can manage items, taxes, customers, tips, receipt settings, and add surcharges on the free plan.

eHopper Free POS System Pricing

eHopper is free to use. You are limited to one POS license, 50 products, and 300 transactions per month. You must upgrade to the $29.99/month (includes two POS licenses and is billed at $359.88/year) if you exceed these limits.

Hardware Cost

If you want to build a POS system beyond a mobile device, new customers can receive the Pax S300 Payment Terminal at no cost. eHopper also sells other POS hardware, including tablets, thermal printers, and terminals. Or you can opt to purchase a hardware bundle that includes everything you need to get started, with prices starting at $899.

Payment Processing

eHopper has its own in-house payment processor, which is unique in that you can avoid processing fees by passing them along to your customers. Currently, if you sign up for eHopper Processing, you can also receive a free eCommerce site.

If you want to use another payment processor, other options are available, including PayPal, Worldpay, TSYS, and Fiserv. The options available to you vary by country and the terminal you opt to use.

Contract Requirements/Warnings

There are no long-term contracts with the eHopper Essentials plan. However, you may be required to sign a contract with your payment processor, so make sure you evaluate and understand your options before making a commitment.

If you decide to upgrade to one of eHopper’s paid plans, you can score a lower rate by signing a contract for up to three years.

Where eHopper Really Shines As A Free POS System For Small Business

eHopper is unique in that it offers credit card processing that’s potentially free for your business, assuming you don’t mind passing along these costs to your customers. Additionally, you can also receive a free terminal along with your no-cost POS software.

However, the free plan does limit your number of products and transactions, so if you want to remove these limits (or take advantage of more advanced features, such as customer loyalty and eCommerce), you’ll have to upgrade to a paid plan.

Get Started With eHopper

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Why We Don’t Recommend These Free POS Software Options

Imonggo

Imonggo is a retail POS system with both a free and a paid plan. The free plan has many limitations that you won’t find with other retail-focused free POS systems like Square or Loyverse. For example, Imonggo limits the number of products you can upload (500 max) and the number of transactions you can take in a month (500 max). Imonggo does not offer payment processing, so you’ll have to integrate your system with Stripe or Worldpay.

Also, the free plan does not offer product categorizing or a tagging system, which makes inventory management difficult for retail businesses. There are no barcode or price tag printing capabilities on the free plan either, which makes labeling and taking orders tedious for business owners.

Stripe Terminal

Stripe is a popular eCommerce payment processor that has branched out to offer in-person POS functionality. The Stripe Terminal requires some developer knowledge to set up and the best features of Stripe are geared toward developers. If you have the kind of time and skillset needed to make Stripe work for you, then consider this POS option.

However, most business owners looking for a free POS system do not typically have the time or knowledge to make Stripe worth it. Down the line, if you want to sell internationally or create your own branded checkout experience, revisit the Stripe Terminal.

How To Choose A Free POS System For Your Business

While many free POS systems offer the same basic sales and inventory functions, there are some big differences between the POS systems on this list. The cost of a point of sale system should be top of mind, but these are some important questions to ask yourself to narrow down your choices and ultimately choose the right POS for you:

• What kind of business do you own? Will you need niche industry features?
• How many items are you selling (if you sell retail products)?
• How many registers and user accounts do you need?
• What kind of inventory management do you need: simple, detailed, perishable, items with modifiers, different volumes, items with different pricing structures, etc.?
• Do you plan on selling online and in person?
• How many transactions do you expect to process per month? What kind of revenue do you expect to come in every month?

If you own a foodservice business, you should start by looking into the best restaurant POS systems. Restaurant-specific point-of-sale software offers useful features like table mapping and tipping, and there are free restaurant POS systems available. However, if you make complicated recipes or want menu coursing/rotating or you want to serve alcohol/mixed drinks, you’ll need to get a POS that can handle a lot of inventory variation and/or liquid inventory monitoring, like one of the vendors on our list of the best bar POS systems.

If you sell a lot of items, you’ll need a POS without product limitations. If you process a lot of transactions every month, you’ll need a POS with no transaction limits, and consider finding the POS system with the best payment processing fees for a business with your sales volume level.

Businesses with eCommerce or online ordering for pickup on their radar should get a free POS with built-in eCommerce capabilities or one that can connect to an eCommerce website builder/online ordering platform.

Is Free POS Software Right For Your Business?

Free POS software certainly has its appeal. After all, what business (or person) doesn’t love to save on monthly fees? But cost shouldn’t be the only deciding factor when it comes to choosing the best POS system. Before committing, consider what you’re willing to sacrifice for that $0 price tag.

If you expect your business to grow considerably, or need complicated/niche business features, you may not find a free POS system that fits your business at all. At this point, we recommend finding out the POS costs of a system that has every feature you will need and planning your budget to include that monthly software fee. We also recommend you read up on the best POS systems for small businesses to find a not-quite-free, but affordable and worthwhile POS system that’s right for your business.

Lastly, check out our posts on how to finance your small business and equipment financing if you decide you want to invest in a POS system that will last.

FAQs: Best Free POS Systems

Does Square offer a free POS app?

Square offers a free POS app with no monthly fees and no contracts. Square has one of the most comprehensive free POS systems on the market and comes loaded with great features for in-person and online selling. You will, however, have to take payment processing fees into consideration, and if you want more advanced tools, you’ll have to upgrade to a paid plan.

Can I get a good free POS system?

It is possible to get a good free POS system provided you understand the limitations of free POS software. High-volume businesses, businesses with complex needs, or businesses that want the latest and greatest hardware may find that free POS systems don’t quite fit the bill. However, if your business only needs simple tools and reporting, a free POS system may be a good fit.

What’s the cheapest POS system?

The cheapest POS systems include Square, Loyverse, Helcim, PayPal Zettle, Toast, and eHopper.

However, don’t forget that even free software may have additional costs in the form of hardware, payment processing fees, and add-ons. Before making a commitment, make sure to comparison shop, check out hardware requirements and costs, and understand limitations on features and the number of users/registers that could require an upgrade to a paid plan.

What is the best free POS system for small businesses?

The best free POS systems for small businesses depends on the type of business. Toast and Loyverse offer the best free restaurant POS systems, while Square and Helcim work well for retail and service businesses. Solopreneurs may find PayPal Zettle is the best free POS for them.

What is the best free POS for retail?

The best free POS for retail businesses is Square or Loyverse. Square offers great offline and online sales capabilities (including a free online store builder), while Loyverse has comprehensive inventory and multilocation management.

In Summary: 6 Best Free POS Systems For Small Business In 2023

1. Square POS:
   • Best overall free POS software
   • Flat-rate processing at 2.6% + $0.10 per transaction
   • No contracts or commitment needed
2. PayPal Zettle:
   • Best for solopreneurs
   • Flat-rate processing at 2.29% + $0.09
   • Contract required, no early termination fees
3. Loyverse:
   • Best free open source POS software
   • Integrates with numerous outside processors
   • No contracts or commitment needed
4. Toast POS:
   • Best for large and expanding restaurants
   • Flat-rate processing at 2.99%-3.49% + $0.15
   • Long-term contract required with early termination fees
5. Helcim:
   • Best for large and B2B businesses
   • Interchange-plus payment processing
   • Contract required; monthly billing with no termination fees
6. eHopper:
   • Best POS software with free payment processing
   • Free in-house or integrates with several processors
   • No contracts or commitment with POS software