POS System Costs: What You’ll Actually Pay in Year One
POS vendors advertise the software subscription: but in year one, software is typically less than a fifth of what you’ll spend. Here’s the full stack of costs to budget before you commit.
The four cost lines
- Software: $0–$165 per month, per location, depending on tier.
- Hardware: $0 (a free reader) to $1,700+ for a full register, printer and cash drawer.
- Payment processing: 2.5%–3% of every card transaction, the dominant cost at scale.
- Extras: online ordering, loyalty, payroll integrations and premium support, $20–$100+/month each.
A worked example
A café doing $40K/month in card sales on a free software plan still pays roughly $1,050/month in processing at 2.6% + 10¢. Over a year, that’s ~$12,600, next to which the $69/month software tier is a rounding error. Negotiate processing first, software second.
When to take the "free" hardware
Free or subsidised hardware is usually financed through your processing rate or a term commitment. If you’re confident in the platform, it’s fine value. If you’re not, pay for hardware outright and keep your exit cheap.
Frequently asked questions
Can I use my own iPad?
Square, Shopify and Lightspeed all run on standard iPads, which cuts hardware cost significantly. Restaurant-grade systems like Toast use proprietary terminals.
What happens to my data if I switch POS?
Products and customers export as CSV from every major platform, but sales history and loyalty balances rarely migrate cleanly. Export everything before your old subscription lapses.