POS System Cost Guide 2024

Knowing how much a POS system costs is key for planning your business budget. In 2024, POS system pricing can vary a lot based on your needs, industry, and the features you’re after.

From upfront costs for hardware and software to ongoing subscriptions and payment processing fees, there’s plenty to consider. This guide breaks down what you can expect to spend on a POS system, including typical one-time and recurring charges, plus any hidden fees to watch for.

Whether you’re a small retailer, a busy restaurant, or an online store, our comprehensive POS cost guide will help you budget wisely and choose a POS system that aligns with your business goals. By understanding the full picture, you’ll be better equipped to make informed decisions and avoid unexpected financial surprises.

Table of Contents Table of Contents

1. How Much Does a POS System Cost?
2. POS Subscription Fees
3. POS Hardware Fees
4. POS Transaction Fees
5. Other POS Costs
6. How To Choose a POS Provider for Your Budget and Your Business
7. Conclusion
8. FAQs

Show Full Guide

Table of Contents

1. How Much Does a POS System Cost?
2. POS Subscription Fees
3. POS Hardware Fees
Show Full Guide
4. POS Transaction Fees
5. Other POS Costs
6. How To Choose a POS Provider for Your Budget and Your Business
7. Conclusion
8. FAQs

How Much Does a POS System Cost?

Let’s take a quick look at roughly how much POS systems can cost, from hardware and software to transaction fees and more.

Remember: These figures are averages, and the actual cost of your POS system will depend on the specific features and hardware needed, the size of your business, the number of transactions you process, and the POS provider you choose.

POS Subscription Fees

POS subscription fees give you access to POS software, typically via a desktop computer and/or an app on a mobile device. POS providers generally have online portals through which you can access software features, view sales and inventory reports, set up profiles for employees or retail locations, and more.

Subscriptions are paid monthly or annually, and they range in cost from less than $15 to $150+ per month, depending on the features you need.

Here is a quick list of subscription fees for various POS providers:

Remember: These systems have multiple pricing plans. The ones listed in the table below cover the basic package.

POS Hardware Fees

POS hardware refers to all the physical equipment needed to operate your POS system. It’s what your customers interact with in stores, allowing them to scan or tap cards, enter loyalty numbers, and print receipts.

The hardware portion of a POS system can include:

• Terminals – This is the most important element of your physical POS system. It’s where customers pay for their purchases, enter their loyalty numbers, and print receipts. Modern terminals can range from tiny card readers that plug into a mobile phone or tablet to large tabletop systems that read cards, scan products, and print receipts.
• Scanners – Barcode scanners help businesses streamline product lookups and customer checkout, reducing errors and speeding up transactions. These scanners can be physical, handheld, or mobile apps that use a phone’s camera to scan a product’s barcode.
• Receipt printers – These are one of the simpler hardware elements of a POS system, but essential for speeding up sales and keeping customers happy. Larger tabletop POS hardware often includes the ability to print receipts, reducing the need for a separate printer.

POS providers like Square, Toast, and Clover offer both software and hardware to meet your business requirements. POS hardware generally costs between $10 and $1,000 or more, and some options are even free, with the prices varying depending on the hardware’s size, capabilities, design, and materials.

POS Transaction Fees

While transaction fees are usually relatively inexpensive per transaction, they can add up quickly. It’s important to understand the transaction fees your POS provider charges, compare various POS providers, or choose a provider with fees you can afford over the long run.

Here are the different types of transaction fees and how they work:

• Per-swipe fees – These are fixed fees incurred for each credit or debit card swipe in physical locations. Most POS providers charge per-swipe fees.
• Percentage fees – These fees are charged as a small percentage of each transaction, both online and in physical locations. All POS providers charge percentage fees.
• Monthly minimum fees – Some POS providers charge a minimum monthly fee regardless of transaction volume to ensure consistent revenue. However, monthly minimum fees are becoming more uncommon.

In some situations, it may be possible to negotiate transaction fees with the POS provider, as the provider may be willing to charge lower rates for businesses with higher transaction volumes. If your business processes a lot of credit card payments, this could have a noticeable impact on your bottom line.

Let’s take a quick look at transaction fees for some of the more popular POS providers:

Other POS Costs

While hardware, subscription fees, and transaction fees are the main costs to consider when choosing a POS provider for your business, there may be other costs. These include:

• Installation fees – Some POS providers offer free hardware installation, while many modern POS systems can be installed easily without needing a professional. POS installation can range from $100 to $500 or more, depending on scale and complexity.
• Training costs – Most modern POS systems, like Square, are fairly easy to understand and implement. In-person training sessions usually cost $50 to $150 per hour, while group training options cost $100 to $500+ per session. Online training is usually free.
• Additional software costs – If you need extra features like inventory tracking, accounting, location add-ons, or marketing functions, these features will likely come with additional software subscription costs ranging from $20 to $200+ per month.

How To Choose a POS Provider for Your Budget and Your Business

There are many POS providers on the market, and at first glance, they often seem very similar. However, digging deeper reveals key differences that can impact your business’s bottom line.

Identify Your Needs

Start by making a list of your business needs. These might include what, how, and where you intend to make sales and how complex your business’ back-end processes are.

Ask yourself questions such as:

• Do you need to sell products or services online?
• Do you plan on selling them in stores too?
• If you run a bar or restaurant business, will you be charging diners at the front desk or their tables? Do you need table management software?
• If you sell products, do you need software to help track your inventory?
• Do you charge one-time fees or subscription fees?
• Do you need built-in accounting functions?

Consider Your Budget

POS system costs can vary significantly, so it’s important to understand your budget. Make sure you factor in the up-front costs of POS hardware, which can range from $10 to $1,000+, as well as the ongoing monthly subscription costs, which can range from $15 to $200+.

You should also estimate your monthly or annual transaction and percentage fees based on the quantity of sales you make over time.

If you expect to need additional software features down the road, which can range in cost from $20 to $200+ per month, be sure to consider those costs too.

Understanding these costs upfront will equip you to choose the best POS provider for your business over the long term.

Determine the Best Features for You

Choosing the right POS system is like picking the perfect toolbox—you need the right tools for you and your business. Let’s analyze some business types below and explore the POS configurations that would work well for them:

Online Store

If you run an online store with no physical location, you can skip all of the POS hardware options—you’ll simply need a website and an online POS provider. Many website builders, like Shopify and Squarespace, offer built-in POS functions. However, if you host pop-up shops at farmers markets or other local attractions, a card reader that plugs into a mobile device, like the Square Reader, will allow you to process transactions in person.

Physical Store

If you sell products or services in a physical location, then you’ll need some POS hardware in addition to your software. Depending on the scale of your operation and the number of products you sell, you can use something as simple as a card reader that plugs into a mobile device, a larger desktop terminal (which is likely the best option for most businesses), or a complex checkout system with card readers, receipt printers, cash drawers, and barcode scanners.

Restaurant/Bar

If you run a restaurant or a bar, then you’ll likely need POS hardware and software. We recommend using a POS provider dedicated to restaurants and bars, like TouchBistro or Toast, although all-purpose options can work as well. This type of POS system will allow you to make bookings, manage tables, add items to a running tab, accept tips, and process transactions at the table or counter.

FAQs