How Much Does a POS System Cost? Hardware, Software & More

Practically every retailer, restaurant, or shop needs a dedicated small business POS system to streamline orders and payments. A good one, however, will track inventory, marketing, taxes, and customer relationships. This means prices can vary significantly. Hospitality establishments will need complex order-tracking functionalities, for example, while retail companies are more likely to need refund mechanisms and gift card processing.   

Whatever your needs, it’s hard to commit to a new system that may not be worth the price. With 2024’s concerning inflation rates and rampant corporate price-gauging, smaller businesses are now tracking every cent they spend. Should you opt for a simple, portable POS for just a few dollars a month, or is an advanced system worth paying far more?

Here, we break down the typical POS software and hardware costs, the dangers of hidden charges or extra processing fees, and how much value you can expect from the top POS brands available today. On This Page, we cover:

• How Much Does a POS System Cost?
• POS Costs by Provider
• How Much are POS Credit Card Processing Fees?
• POS Hardware Costs
• Hidden POS Fees to Be Aware Of
• Free vs Paid POS Systems
• POS System Costs by Industry
• How to Find the Best POS Deal for You
• Next Steps: Finding Your POS

How Much Does a POS System Cost?

The price of a POS system can be broken down into two main components: POS software and hardware.

• POS software typically costs between $15 to $100 per month for small businesses, depending on your needs. However, some businesses will instead charge you a hefty one-time fee upon purchase, like EPOS Now, rather than charging you for the continued usage of the software.
• POS Hardware will cost anywhere from $30 to over $1000 extra, depending on your chosen package, and larger businesses and franchises will likely have to multiply that figure by the number of additional registers needed. The average terminal costs $120 to $1,000, and accessories like cash drawers and barcode scanners can cost $50 to $300 each.

For small businesses with smaller margins, a free POS may be the most economical option, such as Square’s free plan, which includes a complimentary Square Reader chip and pin reader to take payments on. However, businesses on free tiers will typically end up paying higher transaction fees each time they make a sale.

Many providers, like Clover, offer hardware and software packages, which is good for businesses starting from scratch. Software and hardware can be bought separately too though, so you won’t have to buy it again if you’ve already got a lot of the gear already. Every POS provider operates slightly differently though, so it’s best to do your research before committing.

POS Costs by Provider

To give you an idea of how much POS costs, here’s a side-by-side comparison of some industry-leading Point of Sale system providers. (All prices are correct as of June 2024)

Here’s a quick breakdown of the subscription, per-sale fee, and register costs that common POS systems offer, for a yardstick of what to expect for total costs:

• Square: Free subscription, 2.6% + 10 cents for card sales, $799 register
• Clover POS: Free subscription, 2.6% + 10 cents for card sales, $2,160 register (billed $60/mo for 36 months).
• Shopify POS: $5 or $89/mo subscription, 5% or 2.6% + 10¢ for card sales depending on plan, $99-$185 for register (requires iPad).
• Lavu POS: $99/mo subscription, card sale and register fee on request

Find out more about Lavu’s pricing in our Lavu POS review.

How Much Are POS Credit Card Processing Fees?

Card processing fees cost anywhere between 1.5% and 3.5% per transaction depending on several factors, including your payment plan, POS provider, and the credit card used to make the payment.

If you choose a free POS plan, transaction fees are likely to be steeper. For example, Square’s POS pricing sees it charge 2.6% + 10¢ for each card-based sale on its free plan, and this fee drops to 2.5% +10¢ for businesses using Square Premium.

One very important factor is the pricing model your provider offers. An interchange plus model means you’ll pay the interchange rate (which is set by the card company, and so impacted by the card your customer uses) plus an additional fee set by the payment processor. Meanwhile, a subscription model means you’ll pay a processing fee on a monthly or yearly basis – but this is not very commonly offered.

Last but not least, a flat rate model charges a set fee for each different payment method your customers use, which means your credit card processing fees will be impacted by how your customer chooses to pay. Generally, you can expect to pay around:

• 1.99% + 20¢ to 2.99% + 15¢ for card present payments
• 2.6% + 30 ¢ to 3.5% + 15 ¢ for keyed in sales
• 2.99% + 20¢ to 3.5% + 15¢ for online sales

If you’re interested in learning more about how these rates vary, read our guide to credit card processing fees to learn more.

POS Hardware Costs

POS hardware refers to any physical device needed to complete a sale. Hardware requirements will vary from business to business, but a typical POS setup will include a cash register, tablet stand, cash drawer, and card reader.

Some suppliers will sell you the hardware in a bundle, while others will lease or sell you each item separately. If a supplier doesn’t sell hardware, however, you’ll have to source it yourself. See how the costs of hardware compare in our table below:

You’d be forgiven for thinking that modern businesses don’t need to bother with cash drawers — everyone has cards. However, while cash drawers can seem an expensive outlay, 81% of US customers still carry cash, and you need only make a few transactions before they start to recoup their costs.

Moreover, lots of POS systems also rely on iPads, rather than monitors. These cost between $329 to $799 depending on whether you want a cheaper, smaller iPad Mini or a more expensive iPad Air, or even an iPad Pro. Businesses should also note that not all POS systems require an iPad, some are also compatible with other tablet devices.

Read our guide to the best iPad POS apps to find out which options are at the top of their game.

Hidden POS Fees To Be Aware Of

While most POS costs are clearly advertised, there are also less obvious expenses to look out for. Check out some frequently overlooked costs below to avoid getting caught out.

• Extra register fees – If your business requires more than one register, you may have to pay for each additional device. For example, Lightspeed charges $29 per month for each extra register. Square charges slightly more at $40 per month for each countertop checkout, while extra mobile handheld terminals are free of charge.
• Extra location fees – Businesses may also have to pay more if they’re using a POS across multiple locations. For example, Shopify charges up to $89 per month per extra POS location.
• Software add-ons – As we’ve mentioned, if you’re looking to expand your package with extra features, you’ll have to pay more for POS add-ons. The price of add-ons can vary tremendously but tend to be in the remit of $10 to $100.
• SMS service – If you opt-in for an SMS service – a POS feature where your system sends SMS messages to customers to remind them of appointments, table bookings, and more – you may be subject to third-party fees from mobile providers. It’s always best to make yourself aware of charges before signing up to the service.

Free vs Paid POS Systems

Not sure whether you should be considering free or paid POS systems? We explore their differences, below.

Paid POS systems

Paid POS systems can cost anywhere from $15 to $100+ a month, depending on your software and hardware needs. However, for businesses looking for a more stripped solution, cheaper plans are available for as little as $15 per month. What’s more, lots of plans don’t feature user caps, meaning licensed tills can often be used by an unlimited amount of workers.

The average cost of a POS system is about $69 per month (Toast’s popular Point of Sale plan retails at this price). However, the exact cost of a POS system will depend on the size of your business, the industry you’re in, the hardware features you need, and more. While paid monthly plans vary from provider to provider, they are often available at escalating price points, from basic through to bespoke. 

Read our full Toast POS review to learn more about the provider, or see how it matches up to it’s rivals in our guide to Toast vs Square vs Clover.

Free POS systems

The pricing structure of free POS software works slightly differently. There are loads of great low-cost solutions out there (our favorites are Square and Zettle) but free options exist too.

Free point-of-sale software is typically free to install. You won’t have to pay any monthly subscription fees, but as with paid plans, you will still be charged a fee per transaction. Transaction rates tend to be steeper with free plans than with paid tiers also, which can bump up their costs in the long run.

To understand how a typical free plan works, let’s take another look at Square. Square is an all-around point-of-sale system with an excellent free plan. In fact, our research suggests it’s one of the best free software providers on the market.

Users of Square’s free plan are subjected to the following transaction fees:

• 2.6% + 10¢ for all card-based transactions
•  3.5% + 15¢ for manual keyed-in sales

For smaller and growing businesses, free plans can be a very cost-effective option. Yet, for businesses that manage a large number of sales, the costs of these transaction fees can accumulate fast. 

Also, while POS software can be free, providers often expect businesses to cover the cost of hardware. Depending on your provider and the size of your business, these costs can considerably hike up the overall cost of the POS. Large businesses running over multiple venues may need to pay up to $10,000 upfront for hardware devices, whereas smaller businesses can often set themselves up for under $500.

In Square’s case, you can get your first mobile card reader for free. But prices escalate after this – for example, an iPad stand (first gen) with a card reader is $149, while a full Square terminal and Restaurant station costs $1389.

Businesses are also commonly caught out by setup and training fees. These are the costs associated with setting up your POS and training you and your staff, and they vary from provider to provider. Free and paid point-of-sale systems are both known to request these fees so it’s always advised to read the small print before moving forward with a solution.

POS System Costs by Industry

A low-cost POS system can serve many industries, simply because it has few features to offer beyond basic purchase support, which any store needs. However, larger operations will benefit from the economic value of a feature-heavy POS, and they’ll need an industry-specific POS to get the most bang for their buck.

Restaurant POS Costs

The restaurant industry has a ton of unique POS needs: The inventory tracking system must handle converting ingredients into dishes, the kitchen must be able to quickly process orders from the front of the restaurant, and servers must be able to accept tableside orders and track which tables should receive which order.

These complex tools might cost around $80-$90 per user, per month for a full-service restaurant POS. We’ve rounded up the best restaurant POS systems, as well as the best bar POS systems.

Lavu POS’s quick-serve mode lets restaurants log orders faster by only presenting your top sellers. Source: Tech.co testing

Retail POS Costs

Retail-specific POS features include the ability to handle returns, refunds, and exchanges, support for loyalty programs, and multi-channel support, in addition to standard POS functions like inventory and employee management.

Retail POS costs can vary, with some services available for no monthly charge, just per-transaction fees, while others may charge $15, $30, or $70 per user, per month. Read our guide to the best retail POS systems for more.

Shopify POS let me add a custom sale to individual products in a couple of taps. Tech.co user testing

How to Find the Best POS Deal for You

Not all POS systems are equal. Even the best POS systems might not be quite right for your unique needs. Here’s a checklist to help you think about which one you’ll want.

• Size of your business — This has a major impact on the price of your POS. Each additional register or location will cost extra under most POS software plans.  A tiny market stall or mall kiosk with no plans to expand, meanwhile, might not even need to pay at all, thanks to free POS software. Some providers are well-suited to franchise businesses, as well.
• The number of products you sell — Some providers let you sell an unlimited number of products (or have an unlimited turnover) right off the bat. However, some providers will give you a maximum number of products to list and/or sell depending on the pricing plan you choose.
• Amount of features — Perhaps the least surprising cost factor is the sheer amount of features a POS system has to offer. After all, it only makes sense that a more comprehensive, useful system would cost more. If you’re unsure which capabilities will be essential to your business, you can read about some must-have POS features here.
• Quality of features — While most POS systems offer an analytics feature that displays data, some are more complex than others. A more pricey POS might offer more detailed data-crunching options that can help streamline a large business’s operations.
• Type of industry — Restaurants and retail are the biggest industries with their own types of POS systems, but plenty of niche industries have specialized POS systems that address their specific needs, from pizza delivery tracking to perishable waste management.
• Potential for expansion — What’s the five-year plan for your business? If you aim to open a new location, you should take into account how much more your POS vendor of choice might charge you. You can always migrate to a new POS if you need to, but picking a highly scalable solution to suit your growing company will likely save you time and effort down the road.
• Hardware — Some POS providers work with all manner of third-party peripherals from receipt printers to iPads. However, other providers’ platforms only work with the company’s own hardware — make sure you know where your provider stands before committing.