What is the difference between a POS system and a payment processor?

A point of sale system is used to track and manage your inventory and ring up sales. A payment processor handles the actual transaction during sales. Payment processors transmit payment information between relevant parties to complete transactions—information will be sent between your business' bank account and the paying customer’s bank, for example, or between your acquiring bank and the customer’s credit card issuer. A point of sale system facilitates the transaction in question—if a payment processor connects to your bank, your POS system powers your till. POS systems like Lightspeed can integrate with payment processors to automatically transit information between your inventory system and card reader. In addition, Lightspeed includes tools for inventory management, CRM and data analysis, and we have even developed our own payment processing system: Lightspeed Payments.

Does a POS system need Internet?

Generally, yes, a cloud-based POS system needs the internet at least some of the time for various functions, such as processing credit card transactions, updating inventory in real time and syncing sales data to other systems for analytics and reporting. An internet-connected POS system is generally a better choice than a server-based POS, because it offers more reliability in transaction handling, allows for seamless updates and integrations with other cloud-based services and provides access to real-time data from any location without extra costs of hosting your servers yourself.

Why does a business need a POS system?

Lightspeed Payments users receive one free payments terminal to use in their retail store. No other plans include hardware. Lightspeed Payments is currently only available for Lightspeed Retail users in the US. Lightspeed's POS system works with many platforms. While the apps are built exclusively for Apple iPads, the POS system can be run in a web browser on any device, including Mac, PC, Apple or Android. You may be able to use all or most of your existing hardware when you add Lightspeed to your business—speak to your sales rep for more information. Lightspeed does not lease hardware. However, you can buy hardware directly from Lightspeed.

Is hardware included in the point of sale subscription?

Lightspeed Payments is now included in all POS system subscription options for Lightspeed Retail users in the US and Canada. However, you are not required to use Lightspeed Payments as your payments processor. Credit card processing rates through Lightspeed Payments are set at a predictable fee for all card types, including American Express: 2.6% + $0.10 per transaction (2.9% + $0.30 card-not-present). Lightspeed Retail POS system users outside of the US, as well as Lightspeed Restaurant POS users around the world, do not currently have access to Lightspeed Payments. While we work hard to make our payments solution available to users around the world, Lightspeed users currently have access to a number of payment processing partners through the POS system.

What kind of support do you offer for your POS system?

All new Lightspeed users are entitled to a free one-on-one onboarding session. A product expert will walk you through the POS system's major features and answer any and all of your business questions relevant to your business. After you've completed your onboarding session, we offer free phone support, available 24/7 in English. Lightspeed users also have access to chat support in English, and phone support in Dutch and French, during specific business hours. You can find more information on how to contact Lightspeed support here. Lightspeed also maintains a database of Help Center articles to aid POS system users. Lightspeed users can also consult the Lightspeed Community to discuss their POS system with other retailers, restaurateurs and Lightspeed experts.

Do I have to use your credit card processor with the POS system?

Lightspeed Payments is now included in all POS system subscription options for Lightspeed Retail users in the US and Canada. Credit card processing rates through Lightspeed Payments are set at a predictable fee for all card types, including American Express: 2.6% + $0.10 per transaction (2.9% + $0.30 card-not-present).

POS system

Grow your business with a POS system built for your needs

Lightspeed's cloud-based POS system helps retailers and restaurateurs bring their customer experience to the next level. With our powerful point of sale, we unlock your business' potential.

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Manage your business with robust POS system software.

Process transactions and manage your stock on the go with Lightspeed’s iPad POS system. Our apps are intuitive to use and easy to train on, so you and your staff can get started right away.

Embrace freedom
Step away from the computer and work anywhere with a fully featured iPad POS system.

Stay flexible
Manage your business from your iPad with tools like built-in reports and purchase orders.

Empower staff
Give your staff the tools to sell anywhere and offer mobile payments with our iPad POS system.

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Work wherever you want with cloud-based POS management software.

Using Lightspeed means your data is available wherever you are—at work, at home or on the road. Whether you're a restaurateur making quick menu edits on the fly or a retailer checking on end-of-day reports in your home office, being cloud-based means managing your business wherever it works for you.

Work on any device, anywhere you are, with cloud-based tools
Access your reports and data from any location
Monitor inventory levels from anywhere, and manage stock between locations as needed

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A complete payments solution embedded into your point of sale system.

Lightspeed Payments is a modern, secure and affordable payments solution with all the tools you need to accept in-person, online and contactless transactions, while getting paid fast.

Accept popular payment methods, like credit, debit, cash and contactless mobile payments like Apple Pay and Google Pay.
Secure your transactions with built-in fraud detection, end-to-end encryption and PCI compliant hardware.
Keep more of your hard-earned money with an affordable rate starting at 2.6% + $0.10.

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Go even further with an online point of sale for your retail shop or restaurant

Get started quickly

Set up your online store for your retail shop quickly with free, easy-to-use professional themes that help build your brand

Work efficiently

Seamlessly sync sales and inventory data between your eCom shop and POS system to streamline operations and prevent out of stock issues

Connect your restaurant

Give diners a way to browse your menu ahead of time and offer online ordering for pickup or delivery

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A POS system you can trust, day-in and day-out.

See what business owners just like you have to say about Lightspeed point of sale systems.

"Lightspeed is the ultimate POS system."

"I’ve loved it from the start, it continues to meet all of the needs I have for my Women’s Boutique. This was an excellent decision and has helped us build our business from day one."

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“Easy learning curve for quick launch.”

“Lightspeed Restaurant is a great POS. It’s easy to use with a great interface and integrated accounting software. Pulse the help menu and videos are actually useful & really work.”

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See how Lightspeed POS system compares to the rest

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Frequently asked questions about POS systems

What is a POS system?

A POS system—POS stands for point of sale—is a suite of software and hardware that gives businesses the ability to sell products and services, manage inventory, track sales performance, build customer relationships and much more. Most POS systems seen in businesses today are actually ePOS systems, or electronic points of sale, as they operate online and store information in the cloud.

The simplest way to understand a POS system is to think of it as a more modern cash register that can do so much more than just ring up customers.

Let’s break it down into the two main components of a POS system, POS hardware and POS software.

POS hardware is a blanket term for the physical components of your POS system. There will be some differences in the types of hardware your business needs depending on whether you run a retail or a hospitality business. However, there will be some commonalities regardless of your industry.

Tablet or computer—This is the device where your POS software is installed or accessed so your laptop can be used as a POS system. It’s where you and your staff will interact with your POS day-to-day. Most modern POS systems run on iPads or Android tablets. However, some will also run from desktop computers.

Card terminal—This piece of hardware is how you take payments with your POS. It allows you to accept electronic payments like credit and debit cards, as well as mobile payments like Apple Pay and Google Pay.

Cash drawer—This is a part of your POS cash register set up, allowing you to store cash, receipts and other important documents during shifts. A cash register is not a POS system in and of itself, but rather a crucial component.

Kitchen printer—These allow you to send orders right to the kitchen where the staff can print them out for reference while making orders. These use ink and paper that can handle the high heat and humidity of kitchen environments.

Kitchen display—Similar to a kitchen printer, this digital monitor allows you to display orders for your kitchen staff.

Barcode scanner—If you use barcodes in your retail shop, this scanner can read your codes, allowing you to ring up customers faster and more accurately.

POS software is the actual software application that runs on your tablet or computer. While there are many different vendors, most POS software does include some common functions.

Register—The register component is customer-facing and it’s where your staff actually rings up transactions for customers.

Inventory management—Whether it involves adding new stock, updating inventory levels or looking at your inventory turnover rate, inventory management is a major component of POS software.

Reporting and analytics—These tools allow you to monitor sales data, uncover trends, track profitability and much more.

Selling online—You need a POS system for online business. Today’s modern POS software often includes or integrates with an ecommerce platform, allowing you to sell online, while also syncing inventory and other data with your POS.

Customer marketing—Most POS software includes some basic marketing functionality like a CRM component, while also integrating with more powerful marketing tools.

What is the best POS system for a small business?

Selecting the best POS system for your small business can be a difficult choice—the only thing you know for sure is that yes, you do need a POS system for your business. There are many POS vendors, with each offering an overlapping feature set. So, how does a business owner go about identifying the best POS system for small business?

The simplest approach is to take stock of the challenges you face and the business needs you’d like your POS system to satisfy. You’ll also want to consider future needs. It’s a savvy move to pick a system that you can grow on for years to come.

Once you understand your current and future needs, it’s a matter of comparison shopping until you find the system that offers the best combination of functionality and price. This ensures you’re getting what you need at a price that will work for you long term. With that in mind, it’s our opinion that Lightspeed Retail and Lightspeed Restaurant offer a powerful combination of functionality and value that will meet the needs of any business, whether established or a new venture.

How do I choose a retail POS system?
If you’re a retailer, Lightspeed’s retail POS system offers the following key features that can help you manage and grow your business.

Intuitive register screen—We make it as easy as possible for your cashiers to ring up customers quickly and accurately.

Inventory management—In retail, your inventory is your business. You’ll want tools that help you keep track of stock levels and alert you when it is time to order more.

Analytics—Your business data is one of your most powerful assets. Lightspeed Analytics turns that data into insights that help you make smart and strategic decisions.

eCommerce—It’s no secret that selling online is here to stay. With Lightspeed, you can easily add an online store, giving your business a lucrative new revenue stream.

How do I choose a restaurant POS system?
If you run a restaurant or food service business like a bar or cafe, Lightspeed’s restaurant POS system can help you be more efficient and profitable.

Front-of-house tools—In food service, speed is the name of the game. Ring up orders, split checks, customize orders and more quickly and easily.

Online ordering and delivery—Revamp your operations and start offering online ordering for pickup and delivery, driving incremental revenue.

Back-of-house tools—Whether you choose a kitchen display system or a ticket printer, Lightspeed ensures your back-of-house team stays organized and serves up orders fast.

Table layout—All the flexibility and adaptability you need to manage your floor plan and staff assignments without the hassle and headaches of traditional systems.

Analytics—Determine your best selling dishes, track employee performance and identify your peak hours to understand your business and run it more effectively.