Complete List of POS Charges and Fees

How much do POS systems cost?

As an established business owner, you know POS systems typically have upfront hardware costs, recurring software costs and payment processing fees. The total cost depends on a variety of factors, including the amount of equipment you purchase, the service plan you select, the processor you work with and your sales volume.

If you have a POS terminal with a cash drawer, credit card reader, PIN pad, barcode scanner and/or receipt printer, you may have paid upwards of $1,000. The software subscription plan might be running you anywhere from zero dollars (if you’re using a free POS system) to $200 per month. [See the best POS systems for retail businesses.]

“The biggest upfront cost is the device that many people call the countertop register,” Rishav Chopra, vice president of product and design at Veem, told us. “The device can range from a cheap portable reader to very expensive hardware.”

One factor that can have an enormous impact on the price of your POS system is whether you’re using an on-premises or cloud-based solution. With an on-premises POS system, the hardware and software reside on-site and can cost several thousands of dollars. This setup is less common these days, thanks to cloud-based POS systems. With a cloud-based POS system, all of the software lives on the internet. The software is much cheaper to install and run, and hardware requirements are minimal. If you aren’t currently using a cloud-based POS system, perhaps it’s time to make the switch.

“When we entered the space, POS was quite expensive,” said Mark Schulze, co-founder of POS vendor Clover. “You could look at $5,000 to purchase and then $200 to $300 a month to support the installations. Those are still being sold, but the market has moved to a modern POS that integrates tightly with e-commerce.” [Read related article: Open for Business: 5 Options for Setting Up an Online Store]

There are other ways to potentially save on costs. If you’ve shown your POS vendor loyalty, you may be able to negotiate a new contract that gives you more bang for your buck. Similarly, your credit card processing company, if separate from your POS provider, may be willing to flex its rates in exchange for your continued business. At the very least, it can’t hurt to ask.

Types of POS Fees

POS hardware and software costs aren’t the only fees to pay attention to when you’re using a POS solution. There are also fees for payment processing, extra hardware, add-on features and services, and several other charges. Here are five items to look at when you’re reevaluating how much your POS system is costing you.

1. Payment processing fees

Payment processing fees are a big component of POS pricing. Some POS vendors allow you to work with a third-party credit card processor. Some, but not all, tack on an extra per-transaction fee. [See our picks for the best credit card processors of 2024.]

Other POS vendors require you to use their in-house processing service. Either way, it’s important to know how much you’re paying to accept credit and debit card payments.

“Payment transaction expenses hit the margins of businesses,” Chopra said. “If a coffee shop is selling $6 coffee on a regular basis and the payment provider takes away 50 cents from every transaction, at the end of the day margins are getting depleted.”

2. Number of user accounts

Depending on the size of your business, you may still require one staff account or several. Usually, the more POS logins your business needs, the more the POS solution costs. If your business is growing and you now need several staff accounts, you may want to transition to a POS provider that offers an unlimited-user package.

3. Number of registers

A basic POS solution typically includes one register to handle card payments. Growing businesses or those with multiple locations have larger equipment needs, racking up costs. See if your POS provider will give you a hardware discount if you purchase multiple registers.

4. Card reader

The credit card reader is an important part of the POS system. Card readers accept and process payments, including contactless payments. 

A third-party payment processor may provide a free card reader, but in most cases, that’s just a card swiper that only reads the magnetic stripe on the back of the credit card. You should be using a higher-end card reader that properly accepts EMV chip cards so you won’t be liable for counterfeit fraud that occurs at the point of sale. If you haven’t already, you should also purchase a card reader that can accept contactless payments, including contactless cards and mobile wallets, like Apple Pay. If your customers prefer paying with debit cards, you may also need a card reader that comes with a PIN pad.  

5. Add-on features

POS systems are much more than a means to process card payments. They should integrate with your back-end systems, enabling you to streamline ordering and inventory management. Some POS solutions can provide advanced reporting, support e-commerce, issue and accept gift cards, and run loyalty programs. Those add-ons aren’t free; vendors charge different rates depending on the services you need.

As a result, the amount your business will pay in POS fees depends on the size of your operations, your sales volume and the features you want in your POS system. If you’re a retailer with several locations, your POS system is no doubt costing more than it would a business owner operating a one-person shop. 

Pricing for popular POS vendors

The cost of a POS system varies from one vendor to the next, as do the features you get for your monthly expenditures. Here’s a look at the pricing for some popular POS vendors — you may find a solution more appealing and more budget-friendly than your current platform.

• Square POS: Square POS is a leading POS provider and payment processor that caters to small and midsize businesses. Its hardware bundles range from $249 for the Square mobile kit to $1,439 for the Square terminal. Square’s processing fees are 2.6 percent plus 10 cents for every swiped transaction, 2.9 percent plus 30 cents for invoices and e-commerce payments, and 3.5 percent plus 15 cents per transaction for virtual-terminal and keyed-in transactions. Check out our Square review for more information.
• Clover: Clover is a POS system known for its tech prowess. Clover’s hardware tends to range from $599 to $1,799 depending on the configuration and number of devices. Software ranges from $14.95 to about $95 a month. Third-party apps can be purchased through the Clover app store and vary based on the app maker. Check out our Clover review for more information.
• Lightspeed: Known for its mobile POS system, Lightspeed has several packages; the pricing varies depending on the type of business you run. The company offers products for retail, e-commerce, restaurants and golfing, with pricing ranging from $119 a month for the basic plan to $249 a month for more advanced plans. Lightspeed Payments, the company’s payment processing service, costs 2.6 percent plus 10 cents for in-person sales accepted using a card reader and 2.6 percent plus 30 cents for online and keyed-in transactions. Check out our Lightspeed review for more information. 

Donna Fuscaldo contributed to this article. Source interviews were conducted for a previous version of this article.