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

For most businesses, having a dedicated POS system to streamline payments is a non-negotiable. However, as rising inflation rates continue to squeeze businesses’ bottom lines, having a firm grasp on outgoings has never been more important.

The price of small business POS systems can vary dramatically, with a simple portable setup costing as little as a few dollars a month, and a fully-fledged multi-store POS system costing considerably more.

If you’re looking to invest in the technology in 2024, we run you through how much the  cost today, breaking down software costs, hardware costs, processing fees, hidden charges, and more.

On This Page:

• How Much Does a POS System Cost?
• POS Costs by Provider
• How Much are POS Credit Card Processing Fees?
• POS Hardware Costs
• POS System Subscription Fees
• Hidden POS Fees to Be Aware Of
• Free vs Paid POS Systems
• POS System Costs by Industry
• What Determines the Price You’ll Pay for a POS?
• Why Trust Tech.co?
• Verdict: How Much Does a POS System Cost?

How Much Does a POS System Cost?

POS software typically costs between $15 to $100 per month for small businesses, depending on your needs. 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.

For small businesses with smaller margins, lots of free options exist as well, such as Square’s free plan which includes a complimentary Square Reader chip and pin reader to take payments on. Lots of providers, like Clover, offer hardware and software packages, which lets businesses start selling without investing in costly hardware upfront.

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

• POS software – POS software can range in price from $15 to $100 per month for one register, but the exact cost will depend on a number of factors, including the features you need, the size of your business, and the POS provider you choose.
• POS hardware – Unless you’re relying on a simple smartphone or tablet setup, the initial cost of hardware can also add to the overall price of a POS system. The average terminal costs $120 to $1,000, and accessories like cash drawers and barcode scanners can cost $50 to $300 each.

Software and hardware can be bought separately and can also often be sold in bundles – making it easy for sellers to start from scratch. Every POS provider operates slightly differently though, so it’s best to do your research before committing.

For businesses looking to keep overheads as low as possible free versions, like Square and Zettle, are available too. However, businesses on free tiers typically need to pay higher transaction fees on each sale.

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 correct as of January 2024)

How Much are POS Credit Card Processing Fees?

Card processing fees cost anywhere between 1.5% and 3.5% per transaction, depending on a number of 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.

POS System Subscription Fees

Unless you opt for a free plan, you’ll have to pay for your POS software with a monthly fee. The price of these subscription fees varies depending on your chosen provider, the sophistication of the features you need, and the size of your business.

If you require features outside of your chosen package, you may have to pay extra for software add-ons, bumping up your monthly costs. For example, Clover POS’s Starter and Standard Retail plans cost $60 and $135 per month, respectively, but if you want to upgrade your product with enhanced customer loyalty features you’ll have to spend an extra $99 per month.

Learn more about Clover POS’s pricing or take a look at how the monthly costs of providers vary below:

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. 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. Take a look at Toast’s pricing plans side-by-side for an example of a typical paid POS pricing plan:

Read our full Toast POS review to learn more, or see how the POS compares to our frontrunners in our guide to Toast vs Square vs Clover.

Free POS systems

The pricing structure of free POS systems 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 service 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 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-service systems are both known to request these fees so it’s always advised to read the small print before moving forwards with a solution.

POS System Costs by Industry

As you’d imagine, different industries place different demands on their POS systems. To help you gain a more accurate overview of costs, we’re going to break down how much your business should expect to pay for a POS system depending on the industry it’s in.

If it’s quick, tailored quotes you’re after, you can also use our restaurant POS comparison tool or our retail POS comparison tool to narrow down prices in a flash.

Retail POS system costs

Square charges businesses 2.5% +10¢ to 2.6% + 10¢ per transaction, depending on your chosen plan

Looking for a general estimate of how much a POS system could cost your store? Read our retail POS pricing summary below:

• Small retail stores can expect to pay $15-$100 per month for a system with a single cash register.
• Large retail stores with multiple registers can expect to pay anywhere between $100 and $300 per month.
• Free plans are available from Square and Zettle, although they charge anywhere from 2.6% + 10 ¢ to 2.9% + 9¢ per sale.
• Retail POS hardware can be bought separately, with barcode scanners costing up to $70 and card readers costing up to $299.
• Businesses can opt for retail-friendly integrations like e-commerce and advanced inventory features, but these can cost up to $249 per month.

Check out our guide to the best retail POS systems to learn more about our top picks for stores and their various price points. You can also take a look at some retail POS systems below, to get an idea of what you might want for your business.

Restaurant POS system costs

Square’s restaurant POS terminal, which starts from $60 per month, looks sleek on the countertop

If you’re after a new POS system for your hospitality or food business, here are some pricing estimates to know:

• Small vendors like food trucks and stalls can expect to pay anywhere from $29 to $100 per month for a single terminal.
• Full-service restaurants with multiple terminals can expect to pay anywhere between $100 to $300 per month.
• As for retail businesses, free plans are available from Square and Zettle, but they charge vendors anywhere from 2.6% + 10 ¢ to 2.9% + 9¢ per sale.
• If food businesses want to purchase extra hardware items like kitchen displays, and self-service kiosks, these can cost up to $100 and $600 respectively.
• Additional integrations like delivery and take-out options are available, but they can cost up to $350 extra per month.

Still undecided on a restaurant POS system? See our full ranking of the best POS systems for restaurants and our list of the best POS systems for bars. You can also check out some top restaurant POS systems below in our image gallery.

What Determines the Price You’ll Pay for a POS?

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.

Why Trust Tech.co?

If you’ve not visited Tech.co before, you might be unfamiliar with our content and processes, so let us reassure you that you’re in safe hands, with a little more information about our research process and approach to writing business advice guides.

The cost information provided on this page is based on hundreds of hours of research and years of familiarity with Point of Sale systems. POS costs are one factor in our extensive analysis process, which we re-run regularly, to help us determine provider value alongside features and more.

How we review and score POS providers