How Much Does a POS System Cost in 2024?

Figuring out how much a POS system is going to cost your business can be more complicated than it seems.

I know a lot of beginners in the retail world regularly get caught out by extra fees they didn’t expect to pay, which can make budget management a nightmare.

Ultimately, your point of sale system will incur various costs. You’ll need to account for subscription fees, hardware costs, add-ons and integrations, and payment processing and credit card transaction fees.

Although it all sounds pretty expensive, having a dedicated POS system is crucial for any business, looking to sell products and services in-person.

Here’s your complete guide to the fees you may need to pay.

Key Takeaways

POS software can be accessed for free, but more advanced features and capabilities will be available on paid plans.
Hardware for POS solutions can cost as little as $10 for a basic card reader, to $1,799+ for a full register system.
Your payment processing rates will vary depending on your subscription plan, payment processing method, and type of transaction.
There can be additional fees to consider for add-ons, integrations, and additional software, such as loyalty programs or employee payroll.
You may need to pay additional fees to add extra locations or registers to your POS system, depending on the vendor you choose.

POS System Costs: Key POS System Components

Let’s start by breaking things down. The average POS system price depends on three main elements, your POS Software costs, hardware costs, and payment processing fees.

POS Software

Your POS software is the technology you use on your iPad or register to process payments, access inventory management tools, and essentially run your business.

Some companies offer POS systems with software pre-integrated into your hardware, but cloud-based POS systems are the most common options these days, such as Square POS, Shopify POS, and Lightspeed.

Platform	Price from	Additional costs	Best for
Square	Free (with transaction fees)	Add-ons for marketing, customer loyalty, and employee management.	Small businesses
Shopify POS	Free (with your Shopify ecommerce subscription starting at $39 per month)	Additional fees for Shopify POS Pro and additional locations.	Ecommerce and omnichannel companies
Zettle	Free (with transaction fees)	Hardware, add-ons, and additional features	Solo entrepreneurs
Toast	Free (with transaction fees)	Hardware (can be quite expensive)	Food service businesses
Clover POS	$14.95 per month	Accounting integrations and add-ons	Flexibility
Lightspeed	$69 per user per month	Costs for additional registers and locations	Advanced features

POS Hardware

Your POS Hardware is the physical devices you’ll use within your brick-and-mortar business to complete a scale.

The devices you’ll need will vary depending on your business, but most companies need at least a tablet stand, cash drawer, card reader, and cash register.

Some companies, like Shopify, offer access to all-in-one mobile POS hardware solutions that combine everything you need to process payments in a handheld device, ideal for smaller companies.

Others allow you to mix and match different hardware options, or purchase bundles for a discount.

Just like with POS software, the prices for hardware can vary depending on the features you need:

Credit card readers: Ranging from $0 for the first magstripe reader you get from Square, to comprehensive solutions that cost $300 or more.
Cash registers: Can cost as little as $100 for a basic model, or over $1,500 with comprehensive features and security measures.
Tablet stands: Ranging from $99, to $299 for the stand, and potentially an integrated card reader (these stands don’t include a tablet).
POS terminals: Can cost from $49 for smaller mobile POS terminals, to $1,799 for a comprehensive cash register.
Self-service kiosks: Ranging from $700 for basic countertop kiosks, to $4,000+ for free-standing self-service kiosks.
Barcode scanners: Anywhere from $20 for a simple USB scanner, to $600+ for a scanner with touch-screen terminal functionality.
Receipt printers: Can cost from $26 to over $600. Some companies offer multi-functional terminals, like Clover Flex, which have built-in receipt printers.

Most well-known POS vendors will have their own branded hardware options, but some will allow you to purchase a range of solutions from third-party companies instead.

The good news is that hardware is usually a one-off, fixed cost.

However, there are organizations that offer payment plans which bundle hardware with your subscription fees.

Payment Processing Costs

Any transaction you complete in a brick-and-mortar setting will incur card processing fees. These can range from between 1.5% and 3.5% per transaction, and may incur an additional fixed cost, such as $0.30 per payment.

The cost you’ll pay will depend on your POS provider, subscription plan, the payment method used, and other factors.

In my reviews of POS software, I’ve noticed that virtually every free POS plan will incur slightly higher transaction fees.

For instance, the free plan from Square charges 2.6% plus 10 cents for card-based sales. However, the premium plan reduces this cost to 2.5% plus 10 cents.

Shopify’s payment processing rates vary depending on whether you’re using Shopify payments, and which ecommerce plan you’re using.

Notably, the approach each vendor takes to applying payment processing costs can vary too. There are various models you might come across, such as:

Interchange Plus: With interchange plus pricing, vendors charge the basic interchange rate charged to their company for processing, plus an additional fee.
Flat rate: Flat-rate models will charge the same price consistently, depending on the type of transaction (such as in-person or online).
Subscription: This model charges processing fees on a monthly or yearly basis, but this isn’t very common in today’s world.

Usually, most providers will charge very similar rates, using the flat rate model. This means you can expect to pay anywhere between 1.99% and 2.99% plus 15-20 cents for card present payments.

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Keyed-in sales are usually charged at between 2.6% and 3.5% plus 15-30 cents. Online sales will cost anywhere between 2.99% to 3.5% plus 15 to 20 cents for each transaction.

How Much Does a POS Cost? The Influential Factors

There are a lot of factors that can influence how much your point of sale system costs. That’s why there’s no “average” price that applies to everything.

Your fees will usually vary depending on:

Business type: POS solutions designed specifically for companies in certain industries can include additional features. If you’re running a retail store, you might need additional integrations for advanced inventory and warehouse management. If you’re running a restaurant, you may need additional hardware, or kitchen management tools.
Business size: The size of your company and number of locations will have a significant impact on your fees. Most companies will charge an extra fee for each additional register or location you add to your plan. Plus, the size of your business may mean you need access to more advanced features.
Number of products: Some providers will allow you to sell an unlimited number of products, or make as much revenue as you like. However, some providers limit the maximum number of products you can sell, depending on your pricing plan.
Number of features: The sheer number of features your point of sale system offers will also impact how much you pay. The more comprehensive the software you choose, the more you’re likely to pay. Particularly advanced features can come at a much higher monthly subscription cost than basic tools.
Add-ons: Many POS providers offer access to add-ons that can incur an additional fee. For instance, Toast’s POS system offers online ordering and delivery services for a monthly cost. You might also need to access add-ons to book appointments, manage customer loyalty campaigns, run email marketing campaigns and so on.

It’s also worth thinking about scalability when choosing which POS system is right for you. While it might seem ideal to go for a low-cost solution right now, you should be able to upgrade your features and functionality as your business grows.

Industry-Specific POS System Costs

As I mentioned above, companies in different industries have their own specific requirements from a point of sale system. Some companies, like TouchBistro and Toast offer dedicated POS solutions specifically tuned to the needs of food service companies.

Other organizations can offer tailor-made POS solutions that are ideal for a wide range of service-based businesses, retail companies, and niche brands.

The most common two types of POS solutions are retail and restaurant point of sale systems.

Retail POS Costs

Retail point of sale solutions are the standard solution offered by most vendors. The price you pay for your software or hardware can vary drastically, depending on the size of your company.

Smaller retail stores will usually pay anywhere between $15 and $100 per month, for access to cloud-based software, and a single cash register.

However, large retail stores with multiple registers can pay between $100 and $300 per month, and may even incur additional costs for add-ons.

If you’re new to the retail landscape, or you run a small store or pop-up shop, it’s worth considering the free plans available from companies like Zettle or Square.

However, keep in mind that the payment processing fees here can be high, ranging from 2.6% to 2.9% per sale.

You’ll also need to factor in the cost of hardware. Smaller businesses can get away with simple card readers and registers, but depending on your organization, you may need a cash drawer, barcode scanner, receipt printer, and more.

If you’re running an omnichannel retail business, I’d recommend combining the cost of your ecommerce subscription with your POS software, using Shopify POS.

You can access the basic software you need for in-person sales for free, alongside your ecommerce subscription plan.

Restaurant POS Costs

Typically, I’ve found most POS solutions designed for restaurants are a little more expensive than their retail-focused counterparts. Often the main reason for this is you’ll need more features and hardware to run a restaurant.

If you’re a very small food vendor, like a food truck or stall, a basic solution could cost you between $29 and $100 per month, for a single terminal.

However, you may end up paying a lot more up front for a larger restaurant, as you could need to purchase kitchen display systems, self-service kiosks, and similar hardware, ranging from $100 to $600.

The good news is that there are free plans available from Square, Zettle or SumUP, as well as similar vendors, for restaurant companies.

However, you’ll usually need to pay for extra integrations so you can manage online orders and take-out. These integrations can cost you anywhere up to $350 per month, depending on the level of functionality you need.

Plus, investing in paid POS software can be particularly valuable for restaurants, as it can give you access to table and floor management features, comprehensive inventory and ingredient tracking, supplier tracking tools, and advanced reporting.

Additional Costs to Consider with POS Pricing

Alongside all the factors I’ve mentioned above, there are various extra “hidden” costs that can emerge when you’re investing in your point of sale solution.

I see these costs are hidden because they’re often overlooked by store owners, but most vendors are pretty transparent with their fees.

Make sure you pay attention to:

Costs for additional registers: If you’re running a larger business and need more than one register, you may need to pay an extra subscription fee for each device. Square charges $40 per month for each countertop register, while LightSpeed charges $29 per month. Usually, mobile handheld terminals won’t incur an extra subscription fee.
Location fees: If you’re using a POS across multiple locations, then you’ll need to pay a subscription fee for each location. Shopify charges $89 per month for Shopify POS Pro, for each location you manage.
Software add-ons: If you want to expand the functionality of your POS solution with new features, like loyalty management, or payroll software, you’ll need to pay for yet another subscription. The price of your add-on can vary drastically, ranging from $10 per month to $100+, depending on the solution.

Additionally, keep in mind that if you choose to use an alternative payment processing method from the one your supplier offers, this could incur an extra fee too.

For instance, Shopify applies transaction fees to payments that are processed using anything other than Shopify Payments.

Frequently Asked Qustions (FAQs)

What is the average cost of a POS system for small businesses?

For a small business, the average cost of a POS system (including hardware and software subscriptions) will range between $100 and $2000 for the first year. You may be able to access POS software for free, and some companies like Square offer a free initial card reader.

How do software subscription fees affect the total cost of ownership of a POS system?

Your subscription fees for software and add-ons will mean you have a higher monthly cost to pay for your point of sale solution. However, paying for software can sometimes reduce the cost of your payment processing fees, depending on your provider.

Can I reduce POS system costs without compromising on essential features?

Some companies do offer bundles and offers that allow you to reduce the cost of both your hardware and software. However, the chances are if you want to access more advanced features, you will need to consider a more expensive subscription package, and more advanced hardware.

Do I really need a POS system?

A point of sale system can be extremely valuable to many merchants. It’s a must-have for some retail and restaurant industries. However, if you’re running your company online completely, you might not need a point of sale solution.

So, How Much Does a POS System Cost?

Ultimately, the amount you pay for your POS system can vary according to a range of factors. Retail businesses can launch a new POS system and access both software and hardware for as little as $600, including all of the hardware they need.

The same is true for restaurant companies or food service organizations with limited requirements for advanced features.

Notably, you’ll pay a lot more for your POS system initially, as you’ll need to purchase all the hardware required to run your store.

After that, you just need to worry about subscription fees, payment processing costs, and any fees for replacing your hardware.