We break down POS hardware and software costs and provider specialties by industry so you can easily determine which system is right for your business.
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POS system pricing depends on the software, hardware, payment processing, and transaction fees the payment processor charges.
In this article, we’ll discuss the basic factors that impact the price of a POS system. If you want specific numbers, recommendations, and comparisons, visit our article on the best POS systems for small businesses!
Table of Contents
- How Much Is A POS System In 2024?
- Factors That Affect POS System Pricing
- Final Thoughts On POS System Cost
How Much Is A POS System In 2024?
A POS system will run you around $0 to $300 per month for plan/software fees as of March 2024.
Along with the software fees, if you purchase the accompanying hardware you should expect to pay anywhere from $49 to $1,000 per POS register or card reader. Some POS systems offer monthly payment plans as well if that initial cost is too much for your budget, but we would recommend avoiding leases as much as humanly possible.
Extra features like loyalty programs, marketing, or pre-built online stores can add to your monthly expenses.
Factors That Affect POS System Pricing
Here are some of the things that will impact your annual or monthly cost.
- The number of registers or POS devices you have
- If you have more than one physical location
- eCommerce, online ordering, or BOPIS features
- The number of employees you need to manage
- Any industry-specific need that ends up being a paid add-on or third-party integration
- Customer loyalty programs/Customer Relationship Management (CRM) software
- Tools like SMS, email, and/or social media marketing
POS Software Price
POS system software costs $0 to $300 per month or more, depending on the number of software licenses and software features you need.
Smaller companies can use a free POS system like Square, while larger businesses usually get custom pricing. You may pay monthly fees for third-party software integrations, too.
POS Transaction Fees
Credit card processing rates range from 1.5%-3.5% plus a flat fee per transaction. Smaller businesses should consider flat-rate payment processing. Businesses with a lot of small transactions or large average transaction volumes should consider interchange-plus processing for the best fee rates.
Our article on POS transaction fees breaks down the ins-and-outs of these sometimes complicated additional costs.
POS Hardware Price
POS hardware costs $49-$1,000 for registers and card readers. Check out our guide to figure out what POS hardware you really need.
If you don’t want to purchase a separate piece of POS equipment, you can opt for a mobile POS system that allows you to take payments with your smartphone.
There are a lot of benefits to iPad-based POS systems for small and large businesses alike. If you’re interested in custom-made, durable hardware for a restaurant, as an example, you’re going to pay more than you would for more general equipment.
Add-ons like barcode scanners, a Kitchen Display System (KDS), and receipt printers will increase your hardware costs. Some POS providers offer curated hardware kits for different industries or new businesses to keep these costs down.
Avoid Fees By Steering Clear Of Leasing Agreements
Financing your equipment or getting a small loan to purchase your equipment is a better option in the long run. This is because you may end up paying higher monthly fees and higher interest rates if you lease your equipment.
Plus, with leasing, you don’t own your hardware. If you finance your equipment or get a small loan, you’ll own your POS hardware by the time you pay off your equipment.
These are the best small business loans and the best equipment financing companies to help you buy your POS hardware outright without relying on a lease.
Final Thoughts On POS System Cost
Your POS system costs will vary depending on what your business needs now and what it will need as it scales up. Most single-register businesses should be able to get the POS hardware they need for somewhere between $49 and $1,500 and spend less than $100/month for the accompanying POS software.
If you have very little money to invest upfront, though, consider one of our picks for the best free POS systems.
To keep costs down, we recommend finding a POS system provider that offers several subscription plans and allows businesses to scale or a provider that offers one plan with all its features available.
Take advantage of all the free software trials available, test out the customer service, get feedback from employees who will be using the POS every day, and always be sure to read any merchant contracts before signing.
