The average cost of a point-of-sale (POS) system for a small business varies depending on several factors. For a single register for a brick-and-mortar shop, you’ll likely need to invest about $600 to $1,500 for the hardware. The POS software averages $60 to $200 per month.
POS system costs differ for multichannel sales businesses, as well as by industry and type of register you need with the software you prefer. Most POS software follow a SaaS (software-as-a-service) model with your program and data in the cloud, rather than on a physical drive at your store. So, you’ll pay a monthly fee to use the software.
Keep in mind that even if you choose the lowest-priced POS for your small business, there are other costs to consider for your system. Many POS systems include built-in payment processing, so you’ll also pay a fee per non-cash transaction.
Costs of Popular POS Systems
Monthly software fees | $0–$60 | $9–$299 | $9.95–$39.95 | $69–$199 | $0–$272 | $25–$85 |
Hardware costs | $0–$1,343 | $29–$229 + cost of iPad | $99–$1,649 | $500–$1,000* | $899+* | $0–$1,203* |
Payment processing transaction fees | 2.6% + 10 cents | 2.4%–2.7% | 2.3% + 10 cents | 2.6% + 10 cents | Custom quote | 2.75% |
Installation costs | $0 | $0 | $0 | $0 | $699* (optional, quote-based) | $0 |
Free trial | Free plans available | 14 days | None | 14 days | Free plan (with hardware subscription) | 30 days |
Best for | Mobile businesses, cafes, retail shops, startups, ecommerce | Retail stores, boutiques, ecommerce | Retail stores and mobile businesses | Specialty shops, retail stores | Casual and full-service restaurants and bars | Salons, spas, gyms |
*Hardware and installation pricing is quote-based and can vary based on your business needs.
On-Premise POS vs Cloud-Based POS: Which Is Better?
Although most POS software follow the SaaS model, some legacy POS systems are locally stored or on-premise, while others (typically restaurant systems) offer a hybrid setup. On-premise systems typically have lower software fees, but higher initial hardware and installation costs.
The POS system most small businesses choose today is cloud-based, so there’s no need for bulky POS hardware and multiple drives to store data like on-premise (aka legacy) POS requires. Depending on your business needs, you may purchase a barcode scanner, cash drawer, and receipt printer. It’s far more affordable than on-premise POS systems.
One benefit of on-premise POS is that you can work with an account executive to customize your solution, which is ideal for a large business with multiple locations. Also, the hardware and software are powerful and more robust. However, the biggest benefit of on-premise or hybrid setups is reliable offline functionality.
For small businesses, especially retailers, cloud-based POS wins out most of the time because the software gets frequent updates and it’s less cost-prohibitive (ideal for startups and small businesses). Restaurants and other businesses that rely on POS systems for business operations (like sending orders to the kitchen or managing seating) are more likely to opt for a legacy or hybrid setup, though cloud options are increasingly popular.
Legacy POS System | Cloud-Based POS System | Hybrid POS System | |
|---|---|---|---|
Hardware costs | $30,000–$50,000 | $600 –$1,500 | $1,500–$20,000 |
Monthly costs | N/A | $0–$200 per month | $60–$200 |
Installation costs | $2,000–$5,000 | $0 | $0–$2,000 |
Requires physical servers | ✔ | N/A | ✔ |
Backup responsibility is yours | ✔ | N/A | N/A |
User-friendly | N/A | N/A | ✔ |
Maintenance | On-site support usually needed | Remote support usually needed | Typically remote support, sometimes on-site support needed |
Examples of POS | Aloha POS, Oracle MICROS Simphony | Square, Vend, Lightspeed | Toast, TouchBistro, POS Nation |
Factors That Impact a POS System’s Cost
A mobile business, such as selling at a vendor’s fair, is going to have minimal hardware needs compared to a large brick-and-mortar retail shop or restaurant. That’s just one example of a factor (business size) that impacts the cost of a POS system.
Here’s why POS systems are priced differently:
- Business size: Solo ventures, startups, small and medium-sized businesses, large enterprises, and corporate giants will all pay different rates for their POS systems because they each need different amounts and types of hardware and software licenses. Even the type of software can differ between business sizes.
- Example: Square is a free POS that can work well for solopreneurs and small to medium-sized businesses, but it wouldn’t be powerful enough for a corporation with dozens to hundreds of locations.
- Pricing: Small business POS systems are fairly affordable—around $50 per month. Larger businesses may pay $200+ per month. And enterprise-level businesses should expect to pay quite a bit more per month based on a custom quote.
- Industry: What you’re selling matters. Retail clothing shops have different needs than restaurants, and therefore have a wide difference in their POS setups. The POS system you choose should be tailor-made to the type of business you run. Software that handles complex inventory tracking or analytics will be more expensive than basic software that tracks payments.
- Example: Most POS software does not include ingredient-level inventory tracking, but POS systems like Toast do. That extra feature, along with restaurant-specific reporting, justifies a higher price tag.
- Pricing: An online store could pay nothing for a POS system like Square, or around $39 per month for a more robust solution such as Shopify. Retail stores should expect to pay anywhere between $0 to $200 per month, depending on the features they need. Restaurateurs should expect to pay around $100 per month. Grocers, gas stations, and chain stores pay much more because their needs are greater—most will require a custom quote and should expect to pay around $300 per month, at least.
- Hardware type: Tablet-based POS systems are very popular with bars, restaurants, retail stores, and mobile businesses. Retailers typically need a mix of stationary countertop POS systems and mobile-based POS systems. Stationary hardware typically costs more.
- Example: Gas stations will require monitors, heavy-duty credit card machines, and a separate system for fuel. And restaurant POS systems often include table management equipment and separate gear for hostesses, waitresses, and kitchen staff.
- Pricing: On the low end, hardware can cost as little as $0-$50 for a single card reader; on the higher end, you can expect to pay $300 to $1,000 per terminal, plus hundreds to thousands more on monitors, kitchen display system, and kiosks.
- Software: A small retail shop needs software to handle inventory, payments, reports, and possibly time-tracking and employee management. Larger businesses may need more advanced reporting, robust integrations, and macro-level inventory management.
- Example: A chain retail business likely uses a third-party inventory management app and they may need a customized solution to work with their chosen POS (and it may be a legacy POS system).
- Pricing: POS software designed for brick-and-mortar businesses will generally cost between $50 and $300 per month per register. Mobile vendors needing a POS system can usually use a free or budget solution with monthly fees ranging from $0 to $50.
- Payment processing: Some POS systems require businesses to use a third-party payment processor to collect sales, but many POS systems come with built-in POS processing with set rates. Credit card processing fees vary by provider—some are flat-fee percentages, while others use interchange-plus pricing, for example. Which you choose will depend a lot on your sales volume, credit score, and whether you want to apply for a separate merchant account.
- Example: Most established businesses already have a merchant account they’ll want to stick with to maintain their lower variable processing rates. Small businesses may prefer the ease of a flat-fee model, like Square’s.
- Pricing: Processing rates can be as low as <2% + 5 cents per transaction, or as high as 3.5% + 15 cents per transaction (the average is about 2.6% + 10 cents). A lot of it depends on the merchant services provider’s pricing model, your sales volume, and average sale order.
POS System Costs by Industry
Industry | Installation Costs* | Hardware Costs* | Software Fees* | Payment Processing Fees |
|---|---|---|---|---|
Retail | $0–$2,000 | $1,000–$5,000 | $0–$250 per month, $0–$60 per additional register | 2%–3% |
Restaurant | $500–$10,000 | $2,000–$10,000 | $0–$250 per month, $0–$60 per additional register | 2%–3% |
Cafe | $0–$2,000 | $1,000–$5,000 | $0–$200 per month | 2%–3% |
Health and Wellness | $0–$5,000 | $2,000–$10,000 | $0–$200 per month | 2%–3% |
Food Truck | $0–$1,000 | $500–$1,000 per truck | $0–$150 per month | 2%–3% |
*If you are part of a franchise, your setup, hardware, and software fees will likely be higher due to the specialized needs of your business and franchise requirements.
Click through the dropdown to learn more about the specific POS costs for each industry:
Retail POS System Costs
- Retail POS setup price: Smaller stores can often set up a simple retail POS system for free. However, restaurants, multilocation businesses, and franchise stores may have more demanding setups that require a professional installation fee. Some POS systems also offer remote setup for inventory product lists for a flat fee.
- Retail POS software subscription price: Most POS software subscriptions are billed either monthly or yearly. Generally speaking, this will be the most constant cost of any POS system. For example, Square for Retail is $60 per month, per location, whereas Lightspeed Retail’s Pro plan is $229 per month.
- Retail POS payment processing: You will pay a flat fee and/or percentage for every sale made. The exact amount will vary depending on your POS system and credit card processor. However, on average, your effective credit card processing rate will likely be between 2%-3%.
- Retail POS hardware: Hardware for retail stores can include but are not limited to the following:
- Terminals
- Tablets
- Barcode scanners
- Credit card machines
- Receipt printers
- Cash drawers
- Inventory management devices
If you’re running a multilocation retail chain or are a retail franchise, you may run a proprietary POS system. Meaning that instead of going through services like Square or ShopKeep, your company builds and maintains its system. The costs of this can be astronomical if you’re the owner of the business. However, if you’re just a franchisee, it takes all of the guesswork of picking a POS system—and is baked into the price of doing business.
Restaurant POS System Costs
- Restaurant POS setup: The very complex nature of restaurant POS systems almost precludes restaurateurs from setting them up themselves. Table layouts, menu management, and ingredient management make restaurant software more complex. Plus, if you need kitchen display solutions and tableside ordering or payment options, the hardware setup is also very complex. For example, Toast POS has a $499 minimum installation cost.
- Restaurant POS software subscription: The cost of your restaurant POS subscription will vary depending on what kind of restaurant you run. There will be no way to know for certain how much you’ll pay monthly or yearly until you get a quote from providers like Toast, Revel Systems, or Lavu.
- Restaurant POS payment processing: Like with retail POS systems, some restaurant POS services will have a flat rate for all transactions using their own processing service, while others will allow you to bring in an existing merchant account. Most systems will allow you to negotiate a discounted payment processing rate if you reach a certain sales threshold (usually above $20,000 monthly).
- Restaurant POS hardware: Restaurants have a variety of hardware options for different types of establishments. At the very least, any restaurant will need a credit card machine and a full-sized register terminal. However, a full-bodied restaurant POS system can include some or all of the following:
- Terminals
- Tablets
- Hostess stations
- Credit card machines
- Cash drawers
- Receipt printers
- Kitchen displays
- Wireless routers
- Tableside ordering devices
Café POS System Costs
Café POS systems are something of a hybrid between restaurant and retail systems. Since cafes generally have a small kitchen (if they have one at all), they’re much less complicated and expensive. And since they sell smaller, inventory-based food items, they function more like retail systems.
- Café POS setup: Café POS system setups resemble retail systems far more than restaurants. In fact, most café systems can get by with just a tablet system like Square or ShopKeep. Keeping setup costs to a minimum, and an outside installer is rarely needed.
- Café POS software subscription: Again, the costs of these are very similar to retail. Subscriptions for café POS systems like Square start at $0 and Lightspeed Restaurant starts at $59.
- Café POS payment processing: You can expect to pay around a 3% effective payment processing rate, similar to retail businesses.
- Café POS hardware: Since cafés are a mix of both restaurant and retail, your business may require aspects of both systems, including:
- Terminals
- Tablets
- Credit card machines
- Cash drawers
- Receipt printers
- Tableside ordering devices
- Handheld inventory devices
- Kitchen displays
Health & Wellness POS System Costs
Health and Wellness businesses have POS needs that are unique. Systems that cater to this specific business type usually include a combination of appointment scheduling, invoicing, and retail features. Examples include Square Appointments, Fresha, Vagaro, and Acuity Scheduling.
- Health and Wellness POS setup: Most health and wellness POS systems, such as Fresha, have zero setup fees. If you are using a franchise-specific option, it will likely come with mandatory professional setup fees.
- Health and Wellness POS software subscription: While Fresha software is free to use, other options like Vagaro start at $25 per month for a single user, and go up in price depending on how many users you have. Others, like Square Appointments, range from $0–$90 per month for up to 10 employees.
- Health and Wellness POS payment processing: While you can expect generalized payment processing prices with health and wellness POS systems, it’s important to note that online billing and invoicing payment processing fees are typically more expensive than card-present retail transactions.
- Health and Wellness POS hardware: Since most health and wellness businesses are appointment-based, they don’t require much in the way of hardware in the same way a restaurant or retail business would. But, it is common for spas and wellness businesses to invest in customer-facing tablets for intake forms, and tablets for each service provider to record chart notes, which can add up. You may also want the following:
- Countertop tablet or computer for checkout
- Smartphone
- Credit card reader
- Barcode scanner
- Cash drawer
Food Truck POS System Costs
Food trucks are another unique business that has its own particular POS system needs. A food truck POS must be mobile, wirelessly connected to the internet, and generally kept as minimal as possible.
- Food Truck POS setup: While other options for food truck POS systems exist, the most practical is a tablet-based system, like the ones that come with Square and ShopKeep. Both of which have minimal or free setup costs.
- Food Truck POS software subscription: Since food trucks require a mobile POS, these are often simpler software than a program designed for brick-and-mortar businesses, so they are also often less expensive. For example, Square POS, a popular option for food trucks, is completely free to use.
- Food Truck POS payment processing: Payment processing fees for food trucks will be similar to those of retail stores; effective rates will likely be around 3%. However, if you accept online or mobile orders, those online payment rates will be higher.
- Food Truck POS hardware: While you probably want to keep your hardware setup as minimal as possible, you will need to invest in at least some of the following:
- Tablet
- Credit card reader
- Cash drawer
- Receipt printer
- Kitchen displays
- Wireless routers
How to Budget for a POS System
If you run a business that depends on sales, your POS system should be one of the top priorities of your budget. Things to consider are if you want to pay monthly or yearly, whether you want to buy or rent your equipment, and if the system you choose can expand with your business as it grows.
Monthly vs Annual Billing
Most POS systems allow you to choose whether you want to pay month-by-month or for a whole year upfront. Businesses that don’t have much cash on hand might find monthly billing better for their cash flow, while more established businesses will find the discounts offered by annual plans to be more attractive. Monthly contracts also make it easier to switch POS software if you are not satisfied, and could be beneficial for new businesses not yet settled on a program.
Purchasing vs Leasing POS Equipment
Like all things tech, POS systems are constantly improving—adding new features and becoming faster and more durable. If you purchase your equipment outright, it’s a one-time cost and you won’t have to worry about monthly or yearly payments. If you lease equipment, you have the option to upgrade every few years.
However, leasing does come with extra monthly or yearly payments. For most small businesses like retailers and other brick-and-mortar storefronts with a few terminals, purchasing POS equipment outright is still the most economical option, even if you do replace equipment every few years. Leasing POS hardware often comes with a long-term POS software contract.
POS System Financing
If you don’t have the cash on hand to pay for a POS system upfront, many POS providers allow you to make payments on their systems. For example, Square allows you to pay for your POS system with interest-free installments.
Choose a System That Can Grow With Your Business
If you’re a small business or a startup, it may be tempting to get the least expensive system that fits your needs. However, some POS systems don’t scale very well. If your business grows to a medium or large size, and you need more advanced inventory or analytics tools or want to start selling online, it can be very disruptive to your business to switch systems down the road.
Bottom Line
When everything is calculated, paid for, and processed, you can generally expect to put out $3,000 to $10,000 a year for your business’s POS system. That’s a huge range and varies depending on your industry, business size, revenue stream, hardware needs, and more. Mobile businesses and occasional sellers will have minimal costs, while brick-and-mortar businesses will need to pay higher rates for more sophisticated hardware and software setups. For a more specific cost estimate, find the best POS system for your business, and request a direct quote.
