The short version
- Cloud POS means the software and your records live online. Your devices are just the screens.
- No server to buy, back up or replace. Updates show up on their own.
- You can check sales from home, the truck or the beach.
- The weak spot is the internet. Look for offline card payments, and know their limits.
- Export your data now and then. It's yours, so keep a copy.
What does cloud POS actually mean?
It means the brains of the system aren't in your building. When you ring up a sale, the device sends it over the internet to the provider, where your item list, sales history, customer list and reports are stored. Sign in on a second tablet and it pulls the same data down. Sign in from a laptop at home and you see the same day's sales.
You'll also hear it called a cloud-based POS system, a web-based POS or cloud POS software. Same idea. The checkout screen might be an app on an iPad or a phone, or a terminal the provider sells you, but the records sit online.
- Cloud POS
- Cloud-based POS
- Web-based POS
- Cloud point of sale
How is a cloud POS different from a legacy on-site POS?
A legacy system runs on a server, usually a PC under the counter or in the office, with terminals wired to it. Everything lives on that box. A cloud POS skips the box. Here's how that plays out.
| Cloud POS | Legacy on-site POS | |
|---|---|---|
| Where your data lives | The provider's servers | A server or PC in your building |
| Hardware | Phones, tablets or the provider's terminals | Dedicated terminals tied to that server |
| Software updates | Pushed automatically | Often installed by a technician, sometimes for a fee |
| Checking sales from home | Any browser or phone | Only with remote access set up |
| Backups | Handled by the provider | Your job, or your dealer's |
| Internet goes down | Card sales depend on offline mode | Ringing up keeps working on the local network. Card approvals still need a connection |
| Getting started | Download an app, often free | Install, setup and often a contract or lease |
To be fair to the old guard: a well-built on-site system can be rock solid, and ringing up keeps working when the internet doesn't. But for a small business, the server is one more thing to buy, back up and eventually replace. If you're coming off one, our guide to switching POS systems covers reading the old contract before you move.
What happens to a cloud POS when the internet goes down?
It depends on the system, so ask before you sign up. A good cloud POS keeps ringing up sales, saves card payments on the device, and uploads them once you're back online. A weaker one stops taking cards until the connection returns.
Offline isn't approved
A card saved offline hasn't been checked with the bank yet. If it declines later, the sale is usually on you.
There's a clock
Saved payments have to upload within a set time, or they can expire for good.
Not every payment type
Tap to Pay on a phone and keyed-in card numbers generally need a live connection.
Online orders pause
New web orders may not reach the POS until the connection comes back.
A cheap backup helps more than any setting: a phone hotspot or a second internet line. Our offline POS guide goes deeper on time limits and what to set up first, and mobile sellers should also read our mobile POS page, which covers selling with one bar of signal.
Where does your data live, and can you get to it from anywhere?
On the provider's servers, and yes, from any computer or phone you sign in on. That's the part owners end up liking most. You can check the day's sales from the parking lot, change a price from your couch, or add a new item before the shop opens without driving in.
Three things worth checking on any cloud POS:
Can you export everything?
Items, customers and sales history, as a spreadsheet. If you ever leave, that's your way out.
Can you control who sees what?
Separate staff logins and permissions, so a new hire can ring sales without seeing your payouts.
Does it work across devices?
A sale on the phone should show up on the counter tablet and in your reports without anyone pressing sync.
Card numbers are a different story. A good cloud POS doesn't keep full card numbers on your devices at all, which is one less thing for you to protect. That's also why we'd rather see a small shop on a cloud system than an old PC running unpatched software in the back office.
Is a cloud-based POS system right for your business?
For most small businesses, yes. Here's the honest split.
Cloud makes sense if
- You want to check sales when you're not there
- You sell in more than one spot, like a shop plus markets
- You'd rather not buy, back up or replace a server
- You want to start on a free plan and add hardware later
Think harder if
- Your internet is unreliable and you can't add a backup
- You depend on payment types that don't work offline
- You have a big, custom setup that already works and is paid off
Most cloud POS systems have a free plan, so you can try one before you commit. Our best free POS systems roundup compares them, and free POS vs paid POS covers when an upgrade earns its keep. For what the software includes, see free POS features.
On Square Free
Why Square works as a cloud POS
Square is the cloud POS we set most people up on, and we're an authorized Square reseller. Here's how it lines up with the checklist above, using Square's own docs.
- Sales history and your item library live in your Square account, and Square Dashboard opens from any computer's web browser.
- The free Square Point of Sale app runs on iPhone, iPad and Android, and the Square Dashboard app shows sales and reports on your phone.
- Offline card payments work on Square Reader for contactless and chip, Stand, Terminal, Handheld and Register. Tap to Pay and keyed-in cards need a connection.
- Square Free has no monthly software fee and no long-term contract, so there's no server to buy and nothing to lock you in.
Checked against Square's support docs. Current costs are on our pricing page, and devices are on Square rates and hardware.
Questions people ask
Is a cloud POS secure?
A well-run one usually is, and often more than a PC in the back office. The provider patches the software, card data goes to the processor instead of sitting on your own machine, and a stolen tablet doesn't take your sales history with it. Your part is the boring stuff: strong passwords, separate staff logins and a locked Wi-Fi network.
Is there a free cloud POS?
Yes. Most free POS plans are cloud-based, because the provider earns its money on card processing instead of selling you a server. Our best free POS systems roundup compares the free plans side by side.
Free vs paid cloud POS: which should I choose?
Start free unless you already know you need a paid feature, like staff scheduling, loyalty or full table service. Both kinds run in the cloud, so the move from free to paid is usually a plan change, not a new system. Our guide to free POS vs paid POS walks through the signs.
Can I run a cloud POS on a regular computer?
Usually the back office, yes. Reports, items, staff and settings open in a web browser on any computer. Checkout tends to run on a phone, tablet or the provider's own terminal, because that's where the card readers connect.
What happens to my data if I leave a cloud POS?
You take it with you if you export it first. Before you cancel, download your item list, customer list and sales history as spreadsheets. Our guide to switching POS systems covers what to export and in what order.
If you go with Square
Is Square a cloud-based POS?
Yes. Square processes payments and stores your sales history online, so there's no server in the back room. You run checkout on a phone, tablet or Square device and manage everything else in Square Dashboard from any computer. Card rates are on our pricing page.