How much does a point of sale system cost?

A point-of-sale (POS) system for a small company generally costs £20 to £1,000+ for hardware, £0 to £200+ per month for software, and roughly 1.5% to 3.5% per transaction in card processing fees.

Knowing these price ranges makes it much easier to find the best POS system for your small business – without breaking the bank, settling for less than what you need, or paying for features you won’t use.

In this expert guide, we walk through the typical costs of POS systems for small businesses, the fees to budget for, which features to consider, and more.

What are the three main costs of a POS system?

POS system costs fall into three main categories:

• Hardware: around £20 to £200 for card readers and handheld devices, and £250 to £1,000+ for countertop terminals or full till systems. Costs vary for hardware accessories, such as barcode scanners and printers.
• Software: free for basic POS apps, and £19 to £200+ per month for more advanced tools.
• Card processing fees: typically 1.5%–3.5% per transaction, depending on the provider, card type, and payment method

Not every business needs all three at a high level, though. Many small companies, in particular, start with free POS software that they can run on a tablet or smartphone they already own. More established businesses will benefit from additional devices and paid software plans.

POS software, POS hardware, and POS transaction fees by provider

Below is a snapshot of POS pricing from popular UK providers:

0 out of 0

• backward
• forward

	Software cost	Hardware cost	Transaction fees
From £0/month	From £69/month (billed annually) for restaurant ePOS From £75/month (billed annually) for retail ePOS	£538.80 upfront for full license Variable monthly payment options also available	From £9.99/month (includes device)	From £80/month	Free	From $69/month	From £0	Quote-based	From £5/month (billed annually) for in-person selling only From £19/month (billed annually) for selling in person and online
From £19 + VAT (for Square Reader)	Varies Some hardware bundled with software in certain packages Each Lightspeed retail ePOS package includes 1 register	From £15/month	Varies by plan and device; hardware included with software in monthly subscription cost	Depends on package; certain hardware options included in software subscription tiers	£29 + VAT for first PayPal Reader; £69 + for additional Readers £49 + VAT for Zettle Reader 2 Additional hardware costs vary	Quote-based	From £25	Quote-based	£59
1.75% (in person) 2.5% (keyed payments)~ 1.4% + 25p (online payments with UK cards)	From £75/month (based on an estimated monthly transaction volume of £3,850 – £15,379)	From 0.8%	From 1.49% for up to £100k card turnover	No platform fee Flat per-transaction fee for card-present and card-not-present payments (rates not publicly disclosed)	1.75% (card & contactless) 3.4% + 20p (manual entry) 1.2% + 20p (payment links via cards and alternative methods)	Not publicly disclosed; final rates vary	Pay-as-you-go: 1.69%	Quote-based	From 1.5% (in person) From 1.5% + 25p (online) From +0.6% platform fee (under Advanced plan) when using third-party payment providers

Want to use our free comparison tool to compare costs from the best POS systems available? Compare Costs

Pricing correct as of January 2026. We may earn a commission from our recommendations, at no extra cost to you.

POS system costs for restaurants vs shops vs hospitality businesses

Restaurants, retail shops, and hospitality venues need different tools, which affects both hardware and software costs.

Let’s take a look at the typical POS costs for each of these business types:

Restaurants

• Software: £39 to £200+ per month
• Hardware: £500 to £2,000+

Restaurants tend to pay the most for POS tools because they need features like table management, menu configuration, kitchen display systems, tipping, and multiple handheld ordering devices.

Hospitality (cafés, bars, quick-service)

• Software: £25 to £99 per month
• Hardware: £200 to £1,500

POS systems for cafés, bars, takeaway shops, etc., are usually mid-range in price. Costs depend on whether you’re counter-service only or offering table service and mobile ordering.

Shops

• Software: £19 to £79 per month
• Hardware: £150 to £1,200

Retail POS systems focus on inventory, barcode scanning, and checkout speed, which keeps costs lower for most small shops.

How much does a POS software subscription cost?

A POS software subscription usually costs £0–£200+ per month, depending on the provider, the features offered, and the size and scope of your business.

Subscriptions are sometimes billed annually, meaning you pay for 12 months in a single payment. Some providers charge a single upfront fee for POS software, but this isn’t as common as monthly or annual subscriptions.

Can I get POS software for free?

Yes. Some providers offer free POS software with the core tools needed to take payments. The trade-off is limited features and, sometimes, higher transaction fees.

Free plans are typically best for small, single-location operations (such as cafés, food trucks, and pop-ups). Popular options include Square, PayPal Point of Sale (formerly Zettle), and SumUp.

Despite being free, our testing found that Zettle still provides a simple and intuitive POS interface. Source: Startups.co.uk

How much do paid POS software plans cost?

Paid POS software plans usually range from £19 to £219 per month. Most small businesses spend £30 to £100 per month on a plan that includes essential payment-processing tools and a few extra features, such as inventory tools, sales reporting, and staff permissions.

Higher-tier POS software plans are designed for growing or multi-location businesses and can include features like:

• Real-time sales and performance reporting
• Advanced inventory or ingredient tracking
• Staff scheduling and permission controls
• Loyalty schemes and gift cards
• Mobile and QR code ordering
• Multi-store and multi-device support
• Floor planning, table management, and kitchen display systems

Food and beverage businesses will need industry specific features like floor planning, as demonstrated here in the Lightspeed Restaurant POS. Source: Startups.co.uk

Custom pricing

Many of the top POS providers offer customised pricing plans for small businesses that earn more than a certain amount each year – usually over £200,000.

How does POS software differ by industry?

Most POS systems are built for either retail or hospitality businesses, and the tools included in the software plans reflect how those companies operate.

For example, a POS system for a retail business will prioritize barcode scanning, inventory tracking, and speedy checkouts. Meanwhile, a hospitality POS system built for a multi-chain restaurant will focus on table management, tipping tools, order flow, menu creation, and kitchen operations. And a POS for takeaway businesses will have mobile ordering in addition to the basics.

Some providers even offer sector-specific POS software. Epos Now, for instance, has a dedicated POS system for pubs and bars that includes features such as one-tap ordering to streamline customer transactions.

What is the difference between a POS system and a card reader?

A POS system combines software and hardware to manage sales, inventory, staff, reporting, and – for hospitality businesses – tables and orders.

A card reader is a portable device that processes card and contactless payments and usually connects to a phone or tablet.

In short, a card reader takes payments, and a POS system helps run your business.

How much does POS hardware cost?

POS hardware is usually a one-time, upfront cost, and the total you’ll pay depends on the type and number of devices your business needs.

The range of POS hardware provided by Clover, including a handheld POS terminal, countertop till and printer. Source: Startups.co.uk.

Here’s a quick breakdown of average costs based on hardware type:

How much do card readers and handheld POS devices cost?

Card readers and handheld POS devices typically cost £20 to £200 each. They’re enough for many small businesses such as pop-ups, cafés, food trucks, and independent retailers.

Some devices, such as the Square Terminal, double as a card reader and a handheld touchscreen POS terminal. Understandably, these tend to be more expensive, with the Square Terminal sitting at £149 (plus VAT).

The Square Terminal, a handheld POS device, being used in the Startups offices. Source: Startups.co.uk

How much do POS tablets and tablet stands cost?

Many providers offer Android-tablet- or iPad-based POS software. If you already own a tablet, you can reduce costs by using it as your POS device.

But you may also want to buy a POS tablet stand. These run about £100 and turn an iPad or Android tablet into a fixed countertop checkout.

How much do countertop POS terminals cost?

Countertop POS terminals, also known as till systems, cost roughly £250 to £1,000 or more.

Costs vary depending on whether you choose a single- or dual-screen setup (so customers can see their total or confirm their order is correct) and whether accessories like printers or cash drawers are included.

Mid-sized restaurants will likely need a robust countertop terminal, like the Clover Station Solo, to allow for tasks like editing a floor plan on the fly. Source: Startups.co.uk

How much do POS hardware accessories cost?

Depending on your hardware setup, you may also need accessories such as:

• Receipt printers (roughly £150 to £300)
• Cash drawers (around £50)
• Barcode scanners (around £70)

Some POS terminals include accessories as standard. The Clover Station Duo, for example, comes complete with a receipt printer and a cash drawer, while takepayments’s tPOS Counter has built-in scanners and a printer.

Other providers sell accessories separately. You can purchase straight from your provider or through a third party; if you opt for the latter, make sure the accessories are compatible with your software and hardware.

How can I finance or pay for POS hardware?

There are two main ways to purchase POS hardware:

Pay upfront

The most common option is to buy POS hardware outright with a one-time payment at the very start.

Since you won’t have to worry about interest charges or ongoing hardware fees, paying upfront usually works out cheaper in the long run.

Pay monthly or lease the hardware

Some POS providers offer monthly payment plans or leasing options to reduce costs. For example, takepayments provides its POS hardware from £45 per month (plus VAT), and providers like Clover offer instalment options for specific terminals.

While this lets you cut initial costs, month-to-month payments and leasing typically cost more overall.

What POS hardware setup does my business need?

The proper POS hardware setup for you depends on your company’s size and footfall, as well as how you take payments. Below is a short overview of what most small businesses actually need.

Solopreneurs and micro-businesses (1–2 employees)

If you run a pop-up, small café, food truck, or single-store retail outlet on your own or with just a couple of employees, you can usually operate with a very simple setup.

One handheld POS device or a card reader connected to a smartphone or tablet, along with free or pay-as-you-go POS software, is all you need to start taking payments and tracking sales.

Small businesses (3–20 employees)

For small businesses, speed and reliability become even more important. You’ll benefit from:

• One or more handheld POS devices for staff
• A countertop POS terminal for busy checkout periods
• Free POS software if it includes all the features you need, or a paid POS software plan with tools like inventory tracking and sales reporting

This setup will help you manage day-to-day operations – and improve sales accuracy – more efficiently.

Medium-sized (60–150 employees) and multi-location businesses

Larger businesses will, naturally, need more devices and stronger software to support their daily operations. For example, say you run a medium-sized restaurant (with 60 to 150 staff members). You’ll need:

• Around three handheld POS devices for the floor staff
• At least one countertop terminal, ideally two, for front-of-house management
• Higher-tier POS software with every feature your business needs to run smoothly

If you operate across multiple sites, you’ll need this setup at each location – plus premium POS software that supports multi-location reporting, inventory management, and staff access.

How much do POS card processing fees cost?

POS card processing fees range from 1.5% to 3.5% per transaction for most small businesses. Very low rates (around 0.2%) and very high rates (up to 6%) do exist, but they’re uncommon.

Some providers also charge a fixed fee per transaction, usually 10p–20p, on top of the percentage rate.

These fees are paid to your payment provider and cover all the costs of processing a card payment – including card network fees (e.g., interchange fees of 0.2% to 0.3% for domestic cards in the UK) and the provider’s own charges. If your provider uses flat-rate pricing, as Square does, these costs are included in the transaction fee total.

The exact fee you’ll pay depends on your POS and payment provider, the type of card your customer uses (debit, credit, domestic, or international), and how you take the payment (in person, online, manually keyed, etc.). In-person card payments are usually the cheapest to process, while payments taken via payment links, invoices, or manual entry tend to have higher fees.

What are the security features of a POS system?

A modern POS system includes built-in security measures designed to protect payment data and reduce the risk of fraud. Common POS security features include:

• End-to-end encryption: protects card data throughout every transaction
• Tokenisation: replaces card numbers with secure stand-ins so sensitive data isn’t stored
• Staff logins and permissions: limit account access and help prevent unauthorised refunds or account misuse
• Two-factor authentication (2FA): adds an extra layer of protection for accounts by requiring users to enter a code or confirm login through another app
• Cloud backups: protect business data if hardware fails or is lost
• Activity logs: record actions on accounts and help flag unusual behaviour

PCI DSS compliance

All businesses that accept card payments must meet PCI DSS (Payment Card Industry Data Security Standard) requirements. Most POS providers are PCI-ready, helping small businesses remain compliant by:

• using approved payment hardware
• encrypting cardholder data
• automating parts of the compliance process

Are there any additional POS system costs to consider?

Yes, there may be additional POS system costs that arise, depending on your provider and setup. Consider these common extra expenses:

Costs for software add-ons

While some POS software systems include everything you need, others charge extra for more (or more sophisticated) tools. For example, TouchBistro charges additional monthly fees for add-ons such as online ordering, reservations, and profit management.

Additional licence costs

Many providers charge an extra license fee for each register or location with a POS system. For example, Lightspeed Restaurant charges £39 per month for each additional register, while Shopify POS Pro charges £52 per month (if billed annually) for each additional location.

Setup, training, and installation fees

With a more advanced POS system, you may need professional assistance with setup or staff training. Some providers include basic onboarding with the subscription, while others charge an additional fee. And in some cases, paid setup or training is mandatory.

Total POS system costs

To give you a rough idea of your total (and ongoing) business costs for a POS system, we’ve put together the following comparison table. Remember that final costs will vary based on your individual circumstances.

How can I minimise POS system costs?

Here are some practical tips to keep your POS system expenses under control:

Look for a free plan or trial

Some platforms offer free POS software, while others provide free trials or demos – which we highly recommend taking advantage of if it’s available. Testing a system helps you see whether it’s the right fit before you spend your money.

Customise your plan

Look for providers that allow you to customise your software. Some let you choose only the features you need, so you won’t be stuck paying for tools you’ll never use.

Lease or rent

Many POS providers offer hardware on a monthly rental basis, reducing upfront costs. Just be aware that leasing often costs more over time than buying outright.

Buy second-hand hardware

You can buy used or refurbished POS equipment through private or third-party sellers. But this can be risky; the hardware may be unreliable, incompatible with your POS software, or no longer covered by warranty. So proceed with caution!