Point of Sale (POS) systems are essential tools for modern retailers and restaurants—but how much do they actually cost? Whether you’re a startup, a growing chain, or an enterprise-level business, understanding the real cost of a POS system will help you budget smarter and avoid hidden fees.
In this guide, we break down the true costs associated with POS systems, including software, hardware, transaction fees, and optional add-ons.
How Much Does a POS System Cost?
POS pricing can vary dramatically depending on your business size, the hardware required, and your software provider. On average:
- Initial setup (hardware, software, installation): $0 – $2,000+
- Ongoing costs (subscription, support, etc.): $500 – $1,000+ annually
Let’s dive into the specific components that make up the total cost.
POS Software Costs
Subscription-Based Pricing
Most modern POS systems operate on a SaaS (Software as a Service) model, where you pay a monthly or annual fee based on usage and features. These fees typically cover:
- Sales tracking
- Inventory management
- Customer data
- Reporting and analytics
- Employee management
Examples:
- Shopify POS: Starts at $39/month for the Basic plan; $89/month for the Pro version with advanced features like smart inventory, multi-location support, and staff roles.
- Square POS: Offers a free version with essential tools, and a Plus plan at $89/month per location.
Free Plans
Some providers offer free POS software, but these usually come with limitations—such as fewer users, limited reporting, or lack of integrations. They’re ideal for small vendors, pop-up stores, or solo entrepreneurs.
POS Hardware Costs
Hardware expenses depend on whether you’re using your own equipment or purchasing a full hardware kit.
Basic Hardware Options:
- Mobile card reader: From $59
- Tablet stand or terminal dock: Around $100 – $300
- Receipt printer: $150 – $300
- Cash drawer: $100 – $200
Full POS Kit:
Some providers bundle hardware into countertop kits:
- Example: Shopify’s Retail Kit costs around $1,389, including tablet stand, barcode scanner, card reader, and cash drawer.
- Square Register kit: Around $1,199 – $1,699, depending on configuration.
Tip: If you already own tablets or smartphones, you might only need minimal hardware, cutting initial costs significantly.
Payment Processing Fees
Most POS systems include built-in payment processing, but they charge transaction fees per sale.
Typical Rates:
- 2.3% – 3.5% per transaction
- $0.10 – $0.30 fixed fee per transaction
Examples:
- Square: 2.6% + $0.10 per tap/swipe/dip
- Shopify Payments: Ranges from 2.4% to 2.9% + $0.30, depending on your Shopify plan
These costs can add up quickly, especially for high-volume businesses. Consider negotiating custom rates if you process large monthly volumes
Optional & Hidden Costs
Installation & Setup
Some providers offer free remote setup, while others charge for on-site installation and configuration—especially if it involves complex integrations or legacy systems.
Add-Ons & Integrations
Many POS systems offer third-party integrations, such as:
- Loyalty programs
- Advanced reporting tools
- Marketing automation
- Accounting software (like QuickBooks or Xero)
While some integrations are free, others come with additional monthly fees or require custom development.
Premium Support
Standard support may be free (email or live chat), but 24/7 priority support, dedicated account managers, or onsite tech assistance often come at an added cost.
POS Pricing Summary Table
| Cost Component | Low-End Estimate | High-End Estimate |
|---|---|---|
| Software Subscription | Free – $39/month | $89+/month/location |
| Hardware Setup | $0 (use existing) | $2,000+ |
| Transaction Fees | 2.3% + $0.10 | 3.5% + $0.30 |
| Installation | $0 | $500+ |
| Add-ons & Integrations | Optional | $100+/month |
| Premium Support | Optional | $50 – $200/month |
What Type of POS System Is Right for You?
| Business Type | Recommended Setup |
|---|---|
| Small retail shop | Free POS (Square), basic reader, no hardware kit |
| Growing boutique | Shopify POS Pro + card reader + receipt printer |
| Full-service restaurant | Touchscreen terminal + kitchen printer + custom integrations |
| Multi-location chain | Cloud-based POS + multi-location management + API access |
ConnectPOS Pricing & Positioning
ConnectPOS is a leading cloud-based POS solution tailored for omnichannel retailers. Built to integrate seamlessly with platforms like Shopify, Magento, and WooCommerce, it offers robust performance, scalability, and personalized support—making it a standout choice for growing businesses.
Pricing Overview
ConnectPOS offers custom pricing, based on:
- Number of stores or terminals
- E-commerce platform used
- Required features (multi-location, PWA consumer app, AI-powered inventory)
- Custom integrations or APIs
Estimated Pricing Range (2025):
| Plan Type | Monthly Cost (Est.) | Features |
|---|---|---|
| Basic Plan | From $39/month/terminal | Order sync, basic POS functions |
| Advanced Omnichannel | From $89/month/terminal | Real-time inventory, multi-store, loyalty, reports |
| Custom Enterprise | Custom Quote | API, warehouse integration, BI, global support |
Why Choose ConnectPOS?
- Omnichannel-ready: Syncs orders and inventory across offline and online stores in real-time
- Multi-platform: Integrates with Shopify POS, Magento POS, WooCommerce POS, BigCommerce, and more
- Customizable UI: Tablet-friendly, mobile-responsive interface
- Global-ready: Multi-language, multi-currency, and tax region support
- Excellent customer support: Dedicated onboarding and technical team
If you’re scaling across multiple locations or channels, ConnectPOS offers the power and flexibility to unify your retail experience—all at a competitive cost.
FAQ: POS System Pricing
1. Is there a free POS system available?
Yes! Some providers like Square POS and Loyverse offer free POS software for basic operations. However, free plans may lack features like inventory sync, reports, or customer loyalty programs.
2. What is the cheapest way to start with a POS system?
The lowest-cost setup is using:
- A free POS app (like Square or Loyverse)
- An existing smartphone/tablet
- A $59 mobile card reader
This setup can work well for market stalls, pop-ups, or small retail.
3. What hardware is necessary for a POS system?
At a minimum, you need:
- Device: Tablet, phone, or desktop
- Card reader
- Optional hardware includes:
- Receipt printer
- Barcode scanner
- Cash drawer
- Stand or terminal mount
4. Are there hidden fees in POS systems?
Yes. Watch out for:
- Transaction fees on payments
- Integration fees for third-party tools
- Support fees (e.g., 24/7 service)
- Upgrade charges to unlock essential features
Always check the full pricing page and consult the provider’s support before subscribing.
5. Should I pay monthly or annually?
Most providers offer a discount for annual plans (typically 10–20%). If you’re confident in your choice, go annual. Otherwise, start monthly until you’re sure the system meets your needs.
Final Thoughts
The total cost of ownership for a POS system depends on your specific business needs and how much you’re willing to invest in technology. While free or low-cost systems can work for smaller shops, larger retailers and restaurants often benefit from more advanced, integrated POS systems—even if they come at a higher price.
Before making a decision, consider:
- Monthly budget
- Required features
- Hardware compatibility
- Growth potential
- Payment volume
