How to Set Up Point of Sale for Your Business
Hardware, software, payment processing, and tax setup for retail, food, and service businesses taking in-person payments.
You need three things to take in-person payments: hardware (card reader), a payment processor (handles the actual transactions), and a POS system (catalog, inventory, receipts, reports). Pixelbase POS bundles all three — and connects to your inventory, invoicing, and bookkeeping.
Who needs a POS
Hardware tier comparison
Buy the smallest setup that fits your volume — you can always grow into the next tier.
Tap reader (mobile)
Pop-ups, food trucks, mobile service. Pairs with phone.
Countertop terminal
Standalone register for small retail or quick-service food.
Tablet POS
Most flexible. Add printer, drawer, scanner as needed.
Full register
High-volume retail and full-service restaurants.
Payment processing fees
In-person card
Tap, dip, or swipe with the card physically present. Lowest rates because risk is lowest.
Card-not-present (keyed/online)
Manual entry, invoice payments, online orders. Higher fees because chargeback risk is higher.
Sales tax — the part everyone gets wrong
Sales tax in the US varies by state, county, and city. Selling in person means charging the rate at the point of sale. Selling across state lines triggers economic nexus rules in most states ($100K or 200 transactions in a year).
- Register for a sales tax permit in every state where you have nexus before you sell.
- Charge the right rate. Combined state + local can range from 0% (Oregon) to 9.5%+ (Tennessee). Your POS should auto-calculate.
- File and remit on schedule. Monthly, quarterly, or annually depending on volume. Late = 5%–25% penalty.
- Different rules for food, clothing, and digital goods in many states. Pixelbase POS has the rules built in.
Setup checklist
- Open a business bank account. Required for the payment processor to deposit funds. See our bank account guide.
- Register for sales tax permits. Every state where you have nexus.
- Pick hardware. Match it to your volume and counter space.
- Build your catalog. Items, SKUs, prices, tax categories, modifiers (sizes, add-ons).
- Set up tipping. Suggested percentages (18%/20%/25%) for service businesses.
- Train staff. Refunds, voids, opening/closing procedures, end-of-day reconciliation.
- Test before launch. Run a few real transactions, refund one, and verify funds + tax in your reports.
Before you commit to a POS vendor
- Does it integrate with your bookkeeping? Manually exporting CSVs at month-end is a nightmare.
- Does it sync inventory? Disconnect between POS and online store = oversold items.
- What are the contract terms? Some vendors lock you into 3-year contracts on hardware leases.
- Can you take payments offline? Internet goes down — your sales shouldn't.
- What's the total cost? Hardware + processing fees + monthly software fees + add-on fees (e-commerce, gift cards, loyalty) all add up.
Common misconceptions
"Cash is cheaper than card."
Cash handling has hidden costs: bank deposit fees, theft/shrinkage, time counting drawer. Card is often cheaper per dollar.
"I'll just use Venmo or Zelle for in-person payments."
Both prohibit business use on personal accounts. You also lose proper receipts, sales tax tracking, and bookkeeping. Get a real POS.
"Surcharging customers covers my processing fees."
Legal in most states but only for credit (not debit), capped at the actual cost, and must be disclosed. Cash discount is the cleaner alternative.
One POS. All your operations.
Pixelbase POS is wired into your bookkeeping, inventory, sales tax filings, and payroll. Tap, dip, swipe, or invoice — every transaction lands in the right places automatically. Hardware ships next-day.