How much does a point of sale system cost?

From feature-rich software to hardware that’ll suit your environment, there’s going to be a number of things to consider when budgeting for the best POS system for your small business.

The good news is that, no matter what your needs are, you will be able to find the right fit for your budget. There’s a wide range of options out there – from free POS apps and low-cost card readers to advanced software and high-end countertop terminals.

If you’d like to learn more about POS system costs, with a breakdown of how the fees work, read on for our full expert guide.

What are the costs involved?

When budgeting for your POS system, there are three main cost categories to think about:

• Software
• Hardware
• Card processing fees

Before we get into breaking down these down, we’ve compiled a comparison chart of the major POS providers we’ve tested, so you can easily compare their costs:

Swipe right to see more

0 out of 0

• backward
• forward

Square

Lightspeed

Epos Now

Clover

Toast

Zettle

Cake POS

TouchBistro

SumUp

takepaymentsplus

Talech

Revel Systems

Lavu

NCR Aloha

SpotOn

Software cost £0 – £69/month (custom rates for over 200k a year)

Software cost £75/month – £339/month

Software cost From £25 per month

Software cost Quote-based

Software cost £80/month – £150/month (custom rates available)

Software cost Free

Software cost $69/month – $295/month

Software cost From $69/month

Software cost Free – £49/month

Software cost £45/month – £65/month (hardware included)

Software cost Free – £99.99/month

Software cost $99/month

Software cost Quote-based

Software cost $0/month – $170/month

Software cost Free -$135/month

Hardware cost £19 + VAT – £599 + VAT

Hardware cost Quote-based

Hardware cost From £225

Hardware cost £450 – £1,300

Hardware cost £749

Hardware cost £29+ VAT – £149 + VAT

Hardware cost $999 – $1299

Hardware cost Quote-based

Hardware cost £34 + VAT – £755 + VAT

Hardware cost £250 setup fee

Hardware cost £62/month

Hardware cost Quote-based

Hardware cost Stands: $285 – $325 iPads: $329 – $1099

Hardware cost Included in software pricing

Hardware cost Included in software price

Transaction fees 1.75%

Transaction fees Quote-based

Transaction fees 1.3%

Transaction fees Quote-based

Transaction fees Contact Toast

Transaction fees 1.75% – 2.5%

Transaction fees 2.5% + $0.10

Transaction fees Quote-based

Transaction fees 0.99% – 2.5%

Transaction fees Quote-based

Transaction fees 0.99% – 1.75%

Transaction fees Quote-based

Transaction fees Quote-based

Transaction fees Quote-based

Transaction fees 1.99% + 25c – 2.89% + 25c

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

How much does a POS software subscription cost?

While there are some providers that do sell software for a single upfront charge, the most common method is to pay a monthly fee (sometimes this is billed annually – in other words, you’ll pay for 12 months in one go). The majority of providers will have a tiered system, ranging from a free or cheap plan to expensive premium packages.

Free plans

A number of providers offer free POS software, but keep in mind that, while it will provide you with the basics you need to process payments, it often comes at the cost of more advanced features. Another trade-off is that free plans often come with more expensive transaction fees.

Square, Zettle and SumUp all provide free POS software that’s good quality and comes with some decent features, despite being zero-cost. These plans are best for small, single location operations like cafés, pop-ups and mobile businesses.

Here’s an example to show you what we mean: Square only offers its bulk inventory intake feature on its paid plan (£69 per month for the restaurants plan, and £49 per month for the retail plan). This tool would help streamline large deliveries for businesses that receive them, but would be less useful for those with small inventories.

Paid plans

Paid POS software tiers cover a broad price range, from as cheap as £19 per month to as expensive as £344 per month.

Paid plans can come with features like:

• Advanced inventory management tools
• Detailed data reports
• Insightful cost versus profit analyses

You can expect to pay between £30 and £100 per month for an entry level to mid-tier paid plan.

The first thing you should do before choosing a software tier is to determine the specific needs of your business.  POS systems are usually tailored towards businesses in either the retail or hospitality industry. A POS system for a retail business, like a pop-up clothes shop, will come with different features to a hospitality POS that’s been built for a multi-chain restaurant.

Some are even more sector-specific – Epos Now, for example, has a dedicated POS system for pubs and bars, which includes features like one-tap ordering to streamline customer transactions.

You should decide what features are crucial to your operation (for example, a POS for takeaway businesses will need to accept mobile ordering) and look for providers and plans that cover these features.

Features you could look for include:

• Real-time reporting
• Detailed cost insights
• Multi-store support
• Mobile and QR code ordering
• Gift card creation and acceptance
• Loyalty reward programmes for customers
• Floor planning and table management
• Staff management
• Ingredient tracking
• Automated tip allocation

If you’ve picked a provider but aren’t sure which of its tiers is right for you, it’s useful to know that, generally, tiers are based around the size of your business. For example, Shopify charges £25 per month for its Basic tier, which is aimed at solopreneurs. Its most expensive tier, charged at £344 per month, is aimed at larger, scaling businesses (it comes with 15 additional staff accounts).

How much does POS hardware cost?

POS hardware can come in a variety forms, with different devices suited to different businesses. Unlike POS software, you’ll usually buy your devices upfront instead of paying for them monthly.

Buying hardware is usually the most expensive part of getting a POS system, but chances are it’ll be a one-time upfront fee, whereas your software costs will recur for as long as you use the system. You should also keep in mind that, when you’re budgeting for your POS system, you might need multiple card machines or tills, depending on your business.

	Average price
Tablet stand	£100
Card readers/handheld POS devices	£20 to £200 upfront (they can also be leased for around £10 to £30 per month)
Countertop POS terminals	£500 to over £1,000

Tablets

You can run many modern POS platforms from an iPad or other tablet. If you already own a tablet that you’re willing to use for business, this is an excellent option for keeping spending to a minimum.

Many of these providers offer tablet stands for around £100 – these will turn your tablet into a countertop POS terminal.

Card machines

In order to take card payments, you’ll need a card machine, which generally range from about £20 to £200 each upfront.

The Square Terminal, a handheld POS device. Source: Startups.co.uk

Some devices, such as the Square Terminal, double as a card reader and a handheld POS terminal complete with touch screen. Understandably, these tend to be more expensive, with the Square Terminal sitting at £149 + VAT.

Countertop terminals

Countertop terminals (also known as till systems) are the most expensive bits of POS hardware. These are essentially touch screen monitors that sit on sales counters, reception desks, or bars, and so are suited to businesses with more space.

Some businesses will want a terminal with a separate customer-facing screen as well as a staff-facing screen, so customers can see the total they’re being charged or check their order has been put through correctly.

An example of the Epos Now dual-screen countertop terminal. Source: Startups.co.uk

These can cost from roughly £250 to over £1,000 each. For example, the Square Register costs £718.80, while the dual-screen Clover Station Duo is priced at £1,300, so they can be expensive, especially if you’re charged upfront.

Accessories

You’ll also need to factor in any extra equipment you’ll need to run your business smoothly.

The majority of POS providers will be able to supply accessories, but you can buy third-party accessories as well – just make sure they’re compatible and can be integrated with your system before you buy them.

We’ve provided the rough costs of the most commonly needed accessories below, but keep in mind that these may be bundled into the total cost of your hardware (the Clover Station Duo, for example, already comes complete with a receipt printer and a cash drawer):

	Average cost
Receipt printer	£150 to £300
Cash drawer	£50
Barcode scanner	£70

You should also budget for ongoing costs like consumables –such as receipt printer paper and barcode labels. These small costs can add up!

How can I pay for my POS hardware?

Hardware costs can be paid upfront, but some providers give you the option to pay monthly, or lease the hardware.

Clover, for example, offers to spread the cost of its hardware over monthly payments. Similarly, Talech charges £62 per month for its hardware.

To recap, you can in theory get up and running with a free software app and a basic card reader for about £20, but this will prove limiting in the long run. In contrast, a more advanced POS setup, with a till system and customisable software, will cost thousands of pounds and may come with features you don’t need as a small setup – you can always work up to such a system instead of getting it all straight away.

How much do card processing fees cost?

Card processing fees are an ongoing, unavoidable cost that comes with taking payments, and will make up a large amount of your POS-related outgoings.

It’s a percentage of each transaction you process, taken by your payment processor. Some will also put an additional charge on top of the percentage, usually around 10p to 20p.

The most common types of these fees are:

• Transaction fees are charged by the payment processor for facilitating the transaction. The average cost is about 1.5% to 3.5% (they can get as cheap as 0.2% or as expensive as 6%, but this is pretty rare)
• Interchange fees are charged by the credit card network that issued the customers’ payment card. These are capped at 0.2% to 0.3% for consumer cards in the UK, but can be higher for commercial and international cards.

That said, if you’re using a third-party payment processor that issues flat-rate fees (such as Square), you won’t be charged an interchange fee as it will fall under the transaction fee total.

Different types of payment method will be charged at different rates as well. Fees for processing debit and credit card payments tend to be cheapest, but payments taken via payment link or invoice will be subject to much higher fees.

Are there any additional costs to consider?

Unfortunately, it’s not as simple as just paying for the software and hardware and calling it a day. There are other costs that might crop up when you set up your POS system you need to be aware of:

Software add-ons

One of the biggest additional costs to consider is the add-on features you might not get with the base software tier or package you’re already paying for.

While some software packages will cover everything you need, other providers will offer tools that you can add on for an extra expense.

TouchBistro, for example, charges additional monthly fees for add-ons such as online ordering, reservations, and profit management. So keep this in mind when choosing your plan, as these costs can add up quickly.

Additional licence costs

Most providers will charge an additional licence fee for every location with a POS system. For example, Lightspeed Restaurant charges £33 per month for each additional POS system, whereas Shopify charges £69 per month for each additional POS Pro location. So, if you have more than one site, remember to factor this into your budget.

Setup, training, and installation fees

With a more advanced POS system, you might need professional assistance when it comes to getting set up and trained. Some providers make paying for this mandatory, whereas others charge an optional fee for training if you want it.

How can I minimise POS costs?

Your head might be spinning after seeing all these figures. These are our top tips for saving on your next POS system:

Look for a free plan or trial

As we’ve mentioned, some platforms offer free software. Failing that, you can always try a free trial or demo of your chosen POS system to see whether it fits your needs. A test drive is always advisable before you make a financial commitment.

Customise your plan

Look for options that allow you to customise your software. Some providers have payment structures that allow you to choose only the features you’ll need, and avoid paying for tools you’ll never use.

Lease or rent

You don’t have to commit to a big lump sum for your POS hardware. Some providers will offer the equipment on a rental basis, paid monthly, to help you keep upfront costs down.

Buy second-hand

You can buy used or refurbished POS equipment through private or third-party sellers. But buyer beware! Buying second hand equipment can be risky, as you won’t know how reliable it is and it won’t be under warranty.