Once a simple cash register, the point-of-sale (POS) system has become a multifunctional hub for retailers.
POS devices now support tasks such as omnichannel selling, processing payments, managing customer relationships, and streamlining inventory management.
But for a POS system to work effectively, you’ll need the right combination of hardware. This guide shares how to assemble the best retail POS system for your business, with a rundown of the different POS devices and how they can benefit your retail store.
What is a POS device?
A POS device is a computerized system that records and tracks sales transactions in a retail or hospitality environment. It typically includes a monitor, a keyboard, and a cash drawer, and can be interfaced with peripheral devices such as barcode scanners, receipt printers, and customer displays.
POS hardware vs. POS software: Understanding the difference
There is a certain amount of confusion about the difference between a POS device and a POS system:
- POS devices are the hardware used to run a POS system. They include smartphones, tablets, mobile POS (mPOS) devices, card readers, touchscreens, cash registers, computers, self-service kiosks, and POS terminals.
- A POS system is the software used to run the POS device. Essentially a retail management system, in addition to handling sales, it tracks inventory and provides access to detailed customer information, both of which help you offer frictionless shopping experiences.
In short, your POS devices work with your POS system, whether you’re a popup shop or an established retail store, to help you sell more.
Essential POS hardware for every retail store
It’s important to consider the specific needs of your business. As a retail store, you’ll want a POS hardware setup that consists of, at a minimum:
Core processing device
A processing device is the hardware that your POS software operates on. It’s used to look up inventory, pull up customer interactions, and process transactions anywhere in-store.
This device can be any of the following:
- A smartphone: With POS software on your mobile device, you can ring up customers and look up products from anywhere. Smartphones are also a good option for selling at events and popup shops, giving you the flexibility to accept payments anywhere.
- A tablet: Tablets are a sleek, flexible alternative to the clunky, stationary POS hardware retailers have used for decades. A tablet is a mini-computer with a touchscreen and an onscreen keyboard, like an iPad.
- POS terminal: A POS terminal is a dedicated device designed specifically for processing transactions in-store. It has built-in payment processing hardware, such as a card reader, and is powered by your vendor’s POS software. They can be portable or fixed to a countertop.
Card reader for payments
A credit card reader or terminal accepts credit and debit cards when you tap, insert, or swipe them. External readers are usually standalone pieces of hardware; however, you can plug a card reader into your Shopify POS device to swipe cards.
Choose a card reader that lets you:
- Accept multiple payment types, including contactless transactions and digital wallets
- Support card and contactless payments through Visa, Mastercard, American Express, and Discover
- Protect card data per Payment Card Industry Data Security Standard (PCI DSS) requirements
- Connect wirelessly to your tablet or mobile phone using Bluetooth
- Comfortably hold the device and take it with you wherever you’re selling
💡Tip: Skip this step by turning your smartphone into a credit card reader with Tap to Pay on Shopify POS. It connects with Shopify Payments, the native payment processor, to turn your mobile phone into an all-in-one point of sale system.
Cash drawer
A cash drawer is a box specially designed to hold cash and keep it organized. They’re usually connected to receipt printers and open automatically when the printer is triggered to print a receipt.
Cash drawers have slots that separate bills and coins, so you can easily deposit cash and make change. In POS systems like Shopify POS, you can track your daily cash transactions and balance your cash drawer quickly.
Recommended POS hardware for growing retailers
Barcode scanner
Barcode scanners read and translate the information contained in barcodes. They are essential POS devices, allowing businesses to quickly and accurately scan products and retrieve information.
There are two main types of barcode scanners:
- Handheld scanners can scan barcodes on products or labels and are small and portable enough to get close to an item’s barcode.
- Larger (and more expensive) fixed-mount scanners are more accurate and can scan barcodes from a distance.
Receipt printer
A receipt printer lets you give customers a record of the sale with useful information like items purchased, product prices, tax amounts, and when and where the transaction took place.
💡Tip: Avoid the need for a physical receipt printer with the email receipt feature in Shopify POS. It sends a digital version to the customer’s email address, phone number, or Shop app profile, while also helping you collect first-party customer data you can use for retargeting.
Customer-facing display
Customer-facing displays are the screens your customers see when making a purchase from you. They can be used to display the items your customers are buying, the total amount of their purchase, and any promotions or discounts that may be applied.
There are generally two types of customer-facing displays:
- POS with swivel stand: Both shopper and retailer can use the same device to view items in a cart and process contactless payments. These are also easier to travel with when selling at a popup shop.
- Dedicated device: With a dedicated device, cashiers use their own device to ring up items, and shoppers use a different device to pay.
There are a few things to keep in mind when choosing a customer-facing display:
- Screen size: Make sure your customer-facing display is large enough to easily display the items your customers are buying and the total purchase amount.
- Resolution: Ensure that the screen’s resolution is high enough so customers can read displayed items and totals.
- Customizable dashboard: Choose a customer-facing display that lets you regularly update and adjust your screen.
- Wireless options: A wireless point-of-sale system is the most versatile. It’s easier to handle, and you can take it with you anywhere.
Shipping scale
A shipping scale weighs packages before they’re shipped. A business that ships products from its store can use it to calculate shipping costs accurately. Shipping scales come in various sizes, so you should choose one that fits your needs.
POS hardware setup examples
Setup 1: The mobile seller
Best for: Businesses selling at popup shops, farmers or artisans markets, and events
If you sell at events or popup shops, you’ll need a POS device that can travel with you. Tablet and smartphone devices are useful in this case.
With a mobile option, you can:
- Easily ring up products and send receipts to customers’ emails from your device
- Record sales in your inventory management system (IMS), so you can prevent stockouts and generate detailed reports
- Process payments with Tap to Pay, without the need for an external card reader
Setup 2: The boutique retailer
Best for: Single-location boutique businesses with one checkout counter
If you’re running a boutique store or small business with a single counter, you might only need one fixed checkout system. Combine this with a mobile POS device—one you can take around the store with you.
Here’s what that might look like in practice:
- Use the fixed countertop POS terminal as a traditional checkout for shoppers who don’t need assistance in-store. This includes the core processing device and integrated card reader, barcode scanner, and receipt printer.
- Set sales associates up with a mobile POS device, such as their smartphone or tablet. They’ll use it to assist customers by pulling up their unified customer profile, checking inventory availability, and completing payment away from the checkout desk during peak hours.
Setup 3: The multi-lane retailer
Best for: Larger retailers with high sales volume and multiple checkout lanes
A large retail store with multiple lanes and high sales volume needs a more complex POS system. The priority here is speed and efficiency—the faster you can complete transactions, the more customers you can serve.
A typical POS hardware setup for this type of retail store looks something like this:
- Countertop terminals with integrated hardware: receipt printers, barcode scanners, etc.
- Customer-facing displays to show the items in a customer’s cart
- Self-checkout kiosks that allow shoppers to scan, bag, and pay for items without assistance
💡Tip: Look for a POS system with employee-management functionality to handle multistore operations. Shopify POS, for example, integrates with apps like Zon Staff and Easyteam to manage staff rotas, track commission, and run payroll from your POS device.
How to choose the right POS devices for your business
Consider your business type and sales volume
Different types of retail operations have different needs. For example, a permanent store that relies heavily on product drops might need fast checkout to serve an influx of customers, while a popup shop might prioritize a POS device that’s portable, low cost, and easy to set up.
Consult sales reports to find your sales volume—the average number of customers you serve during your store’s opening hours. A busy store with multiple employees might need a handheld device to serve customers during the weekend. If sales volume is low, however, you could likely get by with a tablet and mobile card reader.
Evaluate hardware connectivity and compatibility
Make a list of the hardware your retail business relies on: barcode scanners, receipt printers, cash drawers. Check that your new POS system offers their own version that’s compatible with their software.
If you’re using your own devices, confirm compatibility and connectivity options with the new POS system. For example, if your existing barcode scanner only connects via USB, a tablet-based POS may require an adapter.
Don’t just evaluate the hardware you need for now—think about whether you’ll need to add extra devices in the future. If you plan to open a second store, for instance, it helps if your POS terminals can use the same printers and cash drawers without new hardware investment.
Assess durability and warranty
If your POS device breaks during peak hours, you could miss transactions or have disrupted service. Ask for the vendor’s warranty (for hardware) and uptime guarantees (for software) before committing to a new system to limit the risk.
Also consider how durable the device is, especially if it’s a portable one. The last thing you want is to accidentally drop the POS device and break it, leaving you with no way to process payments in-store. A more durable device might cost more up front, but if it lasts longer and needs fewer repairs, it’s cheaper in the long run.
Consider ease of use for staff
The right POS devices work to provide a satisfying experience for customers in-store. However, a positive experience also depends on how well you train staff. Easy-to-use hardware also supports better customer relationship management by making it simpler for staff to access and act on customer information during a sale.
Some employee training tactics include:
- Train staff on the new POS device directly. Help employees learn by doing. Let them use the POS device and provide instant feedback on what to improve on, and offer additional support with video tutorials and resources.
- Process real transactions. Give employees the opportunity to practice skills in a real-world setting. It will help them remember the proper procedures and improve their confidence when dealing with customers.
- Get employee feedback. Ask staff to share their experiences on different POS devices. It will make them feel heard and foster better communication between them and managers. You can also use feedback to improve POS training.
💡Tip: Shopify POS has 20% faster implementation time on average compared to competitors. The user-friendly interface pulls data from your ecommerce platform, and is customizable to speed up checkout. It’s helped retailers like Tomlinson’s reduce POS training times by 32% and in-store checkout times by 56%.
Factor in the total cost of ownership (TCO)
POS device costs will vary based on your needs, the types of payments you want to accept (like contactless or cash), and the number of stores and employees you have.
Current average prices for POS hardware:
- Tablet stand: $149–$185
- Card readers: $39–$49
- Barcode scanners: $229–$329
- Cash drawers: $139–$159
- Receipt printers: $299–$369
- Shipping scale: $59–$89
Check out every POS provider’s options and consider what you’ll need to run your store, including transaction fees and monthly fees for a POS software plan alongside device costs.
You may want to buy, lease, or rent devices. In the case of a popup store, for example, renting your POS hardware makes more sense than purchasing it. Negotiate bulk discounts on hardware if you’re operating multiple locations.
Add up these costs to calculate your total cost of ownership (TCO)—the all-in price you’ll pay to operate your POS system. Shopify leads the way here. Its unified data model has been proven to reduce TCO by 22% on average, while also boasting 89% lower annual third-party support costs and 27% lower annual middleware costs.
POS device FAQ
What are the 3 essential POS devices for a new store?
The three essential POS devices for a new store include a core processing system (for example, a smartphone that runs POS software), a cash drawer, and a credit card reader.
What's the difference between a POS device and a POS terminal?
A POS device is any hardware used to process sales, such as a smartphone, tablet, or dedicated terminal. A POS terminal is a specific type of POS device that is purpose-built for retail transactions, usually including integrated card readers, receipt printers, and durable hardware.
Can I use my own iPad as a POS device?
You can use your own iPad as a POS device with Shopify POS and a card reader. This turns your tablet into a mobile POS system—one you can use to process payments, retrieve customer data, and track inventory.
How much does a full POS hardware setup cost?
The cost of a full POS hardware setup can be anything from $0 to $500 or more. Exact costs depend on the vendor, whether you’re leasing or buying hardware, and the number of POS devices you need.
