The costs of point-of-sale system are usually broken down into three parts: fees for the software, fees for the hardware, and fees for processing payments.
The price of a point-of-sale system will vary depending on how many software licenses you need, what kind of POS hardware you want, and how many transactions your business usually does each day.
We have broken down POS system costs and looked at the prices of eight different POS systems so that you can get an idea of how much a POS system will cost for your business.
How much does a small POS system cost?
The cost of a point-of-sale (POS) system can be anywhere from $0 to more than $300 per month, and the cost of setting it up can be anywhere from $0 to more than $10,000, depending on the POS hardware you choose.
Since that price range is so wide, let’s break it down by type and industry so you can better plan your budget for the tools you need and figure out if you’re getting a good deal on a POS system.
A point of sale system can cost anywhere from $0 to $300 per month for its software. You can choose to pay a one-time fee of between $49 and $1,000 per cash register or card reader.
If the POS software has extra features, like a loyalty program for customers, the monthly cost may be higher. The best point-of-sale (POS) systems include a variety of payment options, pricing plans, and features.
Features that affect how much pos systems cost
The following are some POS cost considerations, along with an explanation of how they could affect your overall costs: (both in one-time and monthly fees).
Number of registers
Most POS companies will charge you based on how many registers or other POS devices you have in your business.
On the other hand, the cost of additional registers might be less than the cost of the first register, or you might be able to use an unlimited number of registers for the price of one.
For example, starting in February 2023, the base cost of Lightspeed Retail for the first register is $69 per month, and the cost of each additional register after that is $59 per month.
Square and Helcim, on the other hand, let you have an unlimited number of registers with every POS package they offer.
Number of physical locations
Most point-of-sale (POS) systems charge an extra fee for each location where your business is open. This is because bigger businesses have more needs, like moving inventory from one place to another.
Revel POS comes with custom-priced services for managing multiple locations, while Square’s premium plans cost an extra $60 per location. Some of these features are centralized monitoring of inventory and pricing policies that are different for each location.
eCommerce & Online Ordering
POS companies charge extra for online ordering and online shop builders. Most restaurant POS systems charge extra for integrations with third-party delivery services and online ordering.
Some point-of-sale system providers, like Shopify, Square, and Helcim, have already built-in great omnichannel sales features.
Number of employees
Most point-of-sale (POS) software solutions have a set number of licenses for employees for each price tier.
If you need advanced tools for managing employees, your point-of-sale system might charge you a fee for each employee in the system (such as employee scheduling).
Many different kinds of businesses need very specific point-of-sale (POS) functions, and some of them may cost extra.
For example, catering companies need a way to set up appointments, take orders ahead of time, and collect deposits for the services they offer.
Subscription-based businesses need a safe place to store their customers’ credit card information and different pricing rules for each customer’s subscription. Helcim gives you both of these features for no extra charge.
There are POS providers which have built-in features for customer segmentation and marketing automation, as well as integrations with Facebook, Instagram, TikTok, and Twitter that let you market on social media platforms.
Those are the right platform for you if you want to use text or email marketing to bring in more sales. There are also a number of great free marketing apps in the Shopify app marketplace.
With the help another point-of-sale provider, you can build a customer database and send targeted discount marketing campaigns.
You will need to link your point-of-sale (POS) system with software from a third party if you wish to add a function that a point-of-sale (POS) supplier does not already have.
For instance, certain point-of-sale (POS) providers offer a number of pre-made interfaces with third-party services.
Transaction fees can be broken down into two parts: payment processing fees and a possible extra cost if you don’t use the payment processing solution built into a POS system.
For example, some POS providers give their customers an in-house payment processing system and charge a flat rate of 2.4% to 2.9% per transaction for payment processing.
When you use a third-party payment processor, you will have to pay a transaction fee that can be anywhere from 0.5 percent to 2 percent.
Before you buy a point-of-sale system, make sure it has all the features you need to run your business, such as inventory management, integration with your eCommerce platform, and the ability to report and analyze sales.
Keep in mind that the software-as-a-service (SaaS) business model is used by most point-of-sale (POS) systems. This means that, depending on the subscription levels they offer, they charge a fee either once a month or once a year.
In general, a point-of-sale system will have more advanced features the more it costs. For example, traditional brick-and-mortar stores with multiple locations need more detailed reporting and analytics, as well as more oversight and control over their employees.
Depending on what you require, you can either purchase or rent the point-of-sale (POS) hardware. You can rent point-of-sale (POS) equipment if you are just starting out and want to gauge customer demand before making significant financial commitments.
Pop-up shops and startup businesses often find it beneficial to rent point-of-sale (POS) systems. Buying your own point-of-sale (POS) hardware can be a better financial decision in the long term than renting one. These are the essential pieces of point-of-sale (POS) hardware for any retail establishment.
Payment Processing Fees
In addition to the cost of the software and hardware for the point-of-sale system, you will also need to consider the cost of credit card processing and any other fees you may have to pay to third-party providers.
A good rule of thumb is to choose a point-of-sale (POS) system that has integrated payment processing. This simplifies your monthly fees, speeds up payouts, and makes the customer experience easier.
Another important benefit of point-of-sale (POS) systems that include integrated payment processing is that they allow users to spend less time reconciling charges and make fewer mistakes in their reports.
There are a few problems with letting a third-party operator handle your payment processing. Most of the time, you will have to wait longer for your payouts, and you will have to manually reconcile payments from your card reader.
Before choosing a payment processor for your business, make sure to read the fine print. This is especially important when it comes to monthly software fees, higher payment processing fees, hardware costs, and long-term obligations.
You now know how much a point-of-sale system usually costs. This tutorial goes into great detail about how much POS systems for small businesses cost and what affects those costs. This should make it much easier for you to understand both of those topics.
When choosing a point-of-sale system, it’s more important to choose one with the features you need than to choose the cheapest one.
You should go at your own pace and think carefully about all of the options you have. When you do this, you’ll be able to make a list of the best POS systems for your business and figure out which one fits your needs the best.