How Much Does a POS System Cost? 2025 Pricing Guide

Getting started with a POS system is easier and more flexible than most business owners expect. The total POS system cost can vary widely depending on your business needs and the features you require. Whether you’re opening your first retail shop, expanding a food truck fleet, or streamlining a salon, there’s a solution that fits your needs and budget. Some plans start for free or under $100/month, while full-featured setups for growing businesses can reach $300+ with hardware and processing fees included.

The best part? You can mix and match hardware, software, and payment plans to create a setup that works for your business, without paying for tools you don’t need. This guide breaks down everything you should know to make a confident, cost-effective choice.

Key Takeaways

• POS system pricing includes three core costs: software fees, hardware expenses, and credit card processing fees.

• Costs vary by business size and industry: startups may pay under $100 total, while restaurants or retail stores can spend thousands on multi-terminal setups.

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  The cheapest POS system options may be free or very low-cost, but most POS systems fall within a certain price range depending on features and long-term fees.

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  POS software typically costs between free and $150+/month, depending on features like inventory management, reporting, or third-party integrations.

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  Hardware costs can be minimal (e.g., mobile card readers) or reach $2,000+ for full countertop kits with scanners, cash drawers, and printers.

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  Credit card processing fees are unavoidable, usually between 2.3%–2.9% for in-person sales and higher for online transactions. Most POS systems impact these fees based on their features and payment options.

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  Some providers offer bundled pricing for hardware and software, while most POS systems offer a variety of payment and pricing models, impacting transaction fees and payment options.

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  Hidden costs (like installation, add-ons, PCI compliance, or cancellation fees) can significantly raise your total cost of ownership.

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  Retail and restaurant POS needs are very different: retail systems focus on inventory and multichannel support, while restaurants prioritize KDS, menu customization, and table management.

• Choose your POS based on actual needs, not feature overload, look for transparency in pricing, and flexibility in configuration.

Introduction to POS Systems

A point of sale (POS) system is the backbone of any business that needs to accept payments, whether you’re running a bustling retail store, a cozy café, or an online shop. At its core, a POS system is a combination of hardware and software that allows you to process transactions, manage sales, and keep track of inventory, all in one place. The cost of a POS system can vary significantly, depending on the features you need and the scale of your operations. Understanding the cost of a POS and the different types of point of sale POS solutions available is crucial for making the right investment. In this section, we’ll introduce the essentials of POS systems, helping you navigate the options and understand what to expect when budgeting for your business’s point of sale needs.

What are the costs of using a POS system?

Here’s a closer look at each component that goes into running a POS system. POS costs include both hardware and software expenses, as well as ongoing fees.

Note: POS hardware costs can vary significantly based on the specific POS hardware components and hardware components selected, such as cash drawers, receipt printers, barcode scanners, and card readers.

When considering POS costs, keep in mind that the choice of hardware components and software will influence your total costs. Selecting the right POS hardware components for your business needs can help manage overall expenses.

Software costs 

This covers the systems you use for processing payments, calculating discounts, tracking sales, and other tasks. POS software costs, also referred to as pos software cost, typically range from around $60-$150/month, but prices can vary dramatically from free basic software to a few hundred dollars per month for complicated setups and large businesses. Point of sale software can be cloud-based, on-premise, or hybrid, and each type comes with its own cost structure, including hardware, installation, and ongoing operational expenses. Some POS providers charge you a one-off upfront fee as well. It’s important to consider whether regular software upgrades are included in the price or if they will incur additional charges, as upgrades are essential for security and new features.

Hardware costs

This is the physical equipment. Not surprisingly, you’ll pay more for sophisticated and extensive equipment than a basic terminal. You could use your smartphone with POS software and keep hardware costs or POS hardware costs to $0, or you might need or choose to invest in a full suite of hardware, including:

• Countertop terminals $350-$2,000
• Barcode scanners $69-250
• Cash drawers $75-550 
• Card readers $20-$58, but can cost as much as $280+
• Receipt printer $130-550
• Tablet stand $50-200
• Touchscreen $250-800
• Kitchen display system (KDS) $64-$249

POS hardware components and hardware components can be purchased individually or as part of a bundle, and a cash register is often included in retail setups.

If you’ll need multiple POS systems and a lot of hardware, look for a provider that offers custom plans that bundle together multiple items. These start from around $300.

Credit card processing fees 

These are the fees that your payment processor charges every time someone makes a purchase using a credit or debit card or for digital payments like Google Pay. They include:

• The interchange fee paid to the issuing bank
• Assessment fee paid to the card network 
• Processor markup fee paid to the payment processor 

Credit card payments may incur different charges depending on the provider, and these can vary based on the type of credit card transaction and the POS systems charge structure.

Pricing structures can vary tremendously, so pay attention to the fine print. Some providers charge a fixed rate, and others charge variable fees depending on the payment methods. Many POS systems charge a flat fee per credit card transaction, in addition to percentage-based fees. The fee per transaction is typically higher when you’re processing fewer monthly payments, but the average is 2-3% for in-person transactions and 3-4% for online transactions.

What is the POS pricing model?

Usually, you’ll pay a single monthly or annual fee for both your POS software and POS hardware. The average POS system cost per month generally falls between $50 and $150. If you’re paying upfront, expect to pay around $1,200-$2000 for both software and hardware. 

However it’s important to note that the pricing model can vary, which is what makes it difficult to compare the POS price for different systems. You’ll find providers that: 

• Operate a subscription-based model for the software, hardware, or both, where you pay monthly or annual fees
• Charge you an upfront, one-off licensing fee for the software, hardware, or both
• Only charge you for the software and provide the hardware free of charge
• Only charge for the hardware, and provide the software free of charge
• Provide both the software and the hardware free of charge, and only charge you payment processing fees

What’s more, you can choose how to combine these options. For example, you might use your iPhone and pay a monthly fee for compatible POS software, or buy a POS terminal upfront and use free basic POS software.

In addition to recurring fees like monthly subscription fee and monthly fees, additional fees may apply for setup, support, or integrations, especially when implementing a new pos system. One thing that’s non-negotiable about the POS price is payment processing fees, which you’ll have to pay no matter which combination you choose.

Price Components of POS Systems

Understanding the total cost of a POS system means looking beyond just the monthly subscription. It’s crucial to calculate the total POS system cost, including all POS fees and any hidden fees, to avoid unexpected expenses. Here are the key components that make up the full price:

1. Software Costs

• Monthly or annual fees for using the POS software.

• Typically ranges from free to $150+/month, depending on features like inventory tracking, CRM, and reporting.

• Some providers offer one-time license fees instead of subscriptions.

2. Hardware Costs

• Includes physical equipment like:

  • POS terminals

  • Card readers

  • Barcode scanners

  • Receipt printers

  • Cash drawers

  • Tablet stands or touchscreens

• Costs can start at $50 for mobile setups and go up to $3,000+ for full-featured countertop systems.

3. Payment Processing Fees

• Charged per transaction (credit/debit cards, digital wallets).

• Includes:

  • Interchange fees (paid to banks)

  • Assessment fees (paid to card networks)

  • Processor markups (paid to your POS provider)

• Average rates: 2.3%–2.9% for in-person, 3%–4% for online.

4. Add-Ons and Upgrades

• Additional features like loyalty programs, advanced reporting, or third-party integrations.

• Can range from $10/month to $300/month depending on complexity.

5. Setup & Maintenance Fees

• Includes installation, onboarding, training, and support.

• May involve one-time charges or recurring maintenance costs.

6. Hidden or Conditional Fees

• Cancellation or early termination fees

• PCI compliance fees ($5–$30/month)

• Inactivity or minimum usage fees

• Chargeback and batch processing fees

What affects POS pricing?

The cost of your POS system will depend on several factors, including the specific needs of your retail business, which can influence POS pricing:

• How many users do you need to support
• How many terminals do you run, and what other equipmentdo  you need
• How many locations do you sell at
• Which features are included 
• Whether you’re running the POS system in the cloud or as on-premise software
• How many SKUs do you need to input into the system
• The average number of transactions you process each month

How much is a POS system for small businesses? 

As you’ve probably noticed, estimating the average cost of a POS system for a small business is difficult. You can expect to pay anything from around $50/month for a basic plan with just one POS terminal to around $150/month for multiple terminals and more comprehensive plans. 

If you’re paying upfront for hardware, you’ll probably pay around $50-100 for individual POS terminals, up to around $1,000 if you also need multiple barcode scanners, receipt printers, credit card readers, and cash drawers. Bundles of hardware start from around $300.

Transaction fees are generally around 2.3%-2.5% plus 10-15 cents for in-person transactions. Add-ons and upgrades can cost anything from $10/month to $300/month. 

How much is a POS system for different industries?

The amount you can expect to pay for your POS system varies slightly depending on the type of business you’re operating. Some industries require more robust systems with multiple types of hardware, such as restaurants, and some need to have compliance built in, like bars or liquor stores. The best POS providers have specialized packages for particular industries.

• Restaurant POS systems need to be able to handle customized menus, table plans, online ordering, shifts and overtime, and varying ingredient costs, and include handheld card readers and KDS. 
• Retail store POS systems should include robust inventory management and be able to support ecommerce and multichannel orders, as well as including barcode scanners and receipt printers. 
• Hair and nail salons should have powerful loyalty program management, easy customization for special offers and bundled services, and support online bookings. 
• Bar POS systems need to incorporate age verification capabilities together with similar capabilities to restaurant POS systems such as handheld card readers and KDS. 

Top POS system provider price comparison 

This table compares popular POS systems and highlights how most POS providers structure their pricing, including monthly fees, hardware costs, and payment processing charges.

A few examples: 

• You own a boutique clothing store processing $10,000/month on average. With Lightspeed, you’d pay $89/month for your POS system, plus $1,260 in payment processing fees, so you’d take home $8,740 each month. Most POS providers, including Lightspeed, often waive registration fees for small businesses, but payment processors determine your transaction costs.

• You own a busy restaurant. If you use Epos Now, you’ll pay $422/month for your POS system, KDS software, and an extra terminal. If you process $50,000/month in transactions, you’d pay $6,300 in payment processing fees, leaving you with $43,278/month to take home. Advanced restaurant POS systems rely on integrated payment processors to streamline transactions.

• You run an e-commerce business selling hand-carved wooden furniture and once a week you operate a stall at the local farmer’s market. You process about $7,000/month. With POS Nation, you’ll pay $39/month for an omnichannel POS system and $175 in payment processing fees, leaving you $6,786/month. Like other popular POS systems, POS Nation’s overall cost is influenced by the payment processors they use.

Credit card processing fees 

Credit card processing (CCP) fees make up an important part of your average POS system costs. You might be charged a fixed rate per transaction, or variable rates that drop once you pass a certain number of transactions each month. 

• Flat-rate, or blended, pricing 2.6% – 2.9% + $0.10 to $0.30
• Tiered pricing 1.5%-4.5%
• Interchange-plus pricing 1.5% – 3.5% + $0.05 to $0.30 per transaction
• Subscription-based pricing $49 – $199 + 0% – 0.5% + interchange fee

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Hidden costs in POS system prices

It’s important to be aware of extra costs that can arise when you set up a POS system. These include: 

• Setup fees. Some providers charge you to get your software and hardware up and running. They could add up to as much as $1,000 or more. 
• Upgrades and add-ons. You might have to pay extra for features like real-time reporting, loyalty program management, or marketing tools. This can run from $10/month to several hundred dollars/month. As your business grows, you might also need to acquire more equipment or add more users. 
• Multiple terminals or locations. You might need to pay for extra terminals in your existing location, but some POS providers bundle all the hardware you need and only charge more when you add a location like an additional store. 
• Maintenance and/or repair fees. You might need to pay for regular maintenance, technical support, and security updates, and for hardware repairs and extended warranties. 
• Inactivity fees. You might be penalized if you don’t reach a minimum number of transactions in a given period. 
• Cancellation fee. You may have to pay an early termination or cancellation fee if you decide to switch providers or end your service before the end of your contract. This could range from a few hundred to several thousand dollars. 
• Chargeback fees. If a customer disputes a payment and requests a chargeback, you could have to pay a fee of between $15-$25. You might get a refund if you win the dispute, but often it’s non-refundable. 
• Extra payment processing fees. You might have to pay extra for services like receiving a monthly statement or batch processing transactions, and gateway fees if you have a separate payment gateway for online payments. These fees aren’t large, typically around $5-10 for statements, $0.10-0.30 for batch processing, and $10-25/month for gateway fees, but they can add up. 
• PCI compliance fees. Some POS providers charge a monthly or yearly fee to cover the cost of PCI DSS compliance. The fee is typically between $5 and $30. 
• Training and onboarding. Depending on how complicated your POS system is, you might need to pay for employee training to use it efficiently. This could cost around $200-$1,000 for a small business with just 5-10 employees. 

Choosing the Right POS System

Selecting the best POS system for your business involves more than just comparing prices. Start by assessing your sales volume, industry requirements, and the specific features you need to run your operations smoothly. Carefully calculate the total cost of ownership, including hardware costs, monthly subscription fees, and payment processing fees, to avoid surprises down the line. It’s also wise to consider the reputation of the POS provider, the quality of their customer support, and the security measures they have in place to protect your business and customer data.

Scalability is another key factor; choose a POS system that can grow with your business, whether you plan to add more locations, expand your product range, or integrate with new ecommerce platforms. Look for solutions that offer seamless integration with your existing tools and provide flexibility to adapt as your needs change. By taking the time to evaluate all these factors, you’ll be able to select a POS system that fits your current needs and supports your long-term business goals, helping you streamline operations, improve customer satisfaction, and boost your bottom line.

The Bottom line on POS pricing

Lightspeed is a top choice for many growing businesses, because pricing is transparent, payment processing fees are reasonable, and you can choose which extras to add on, whether that’s more card readers and extra terminals or more advanced integrations like loyalty programs and analytics. 

Restaurants, cafes, and food trucks might do best with Epos Now, which has a robust POS solution designed with your needs in mind. Lightspeed also offers reasonably priced POS systems for hospitality and catering businesses. 

Meanwhile, POS Nation is a standout option for businesses with complicated compliance and reporting requirements, such as liquor stores and tobacco stores, but it doesn’t have a dedicated restaurant system.