Understanding POS system costs can be confusing with software fees, hardware costs, and processing rates. Heres a complete breakdown of what youll actually pay.
POS System Cost Components
1. Software Fees ($0 – $300/month)
- Free tier: Square, Toast Starter, Loyverse – $0/month
- Basic plans: Most systems – $29-69/month
- Advanced plans: Full features – $79-199/month
- Enterprise: Multi-location, custom – $200+/month
2. Hardware Costs ($0 – $2,000+)
- Mobile card reader: $0-49 (Square Reader: Free, Clover Go: $49)
- iPad stand with reader: $169-299
- Full countertop terminal: $299-799
- Complete restaurant setup: $1,000-2,500
3. Payment Processing (1.5% – 3.5%)
- Flat rate (most common): 2.5-2.9% + $0.10-30 per transaction
- Interchange plus: Interchange + 0.1-0.5% (better for high volume)
- Tiered: Variable rates (usually most expensive)
Real-World Cost Examples
Small Coffee Shop ($5,000/month in sales)
- Software: $0 (Square Free)
- Hardware: $0 (use existing iPad + free reader)
- Processing: $145/month (2.9%)
- Total: ~$145/month
Full-Service Restaurant ($50,000/month)
- Software: $165/month (Toast Growth)
- Hardware: $150/month (financed)
- Processing: $1,245/month (2.49%)
- Total: ~$1,560/month
Retail Store ($25,000/month)
- Software: $60/month (Lightspeed Basic)
- Hardware: $50/month (financed)
- Processing: $650/month (2.6%)
- Total: ~$760/month
Hidden Costs to Watch For
- Setup/installation fees ($100-500)
- Training fees ($0-300)
- Integration fees for third-party apps
- Early termination fees ($500-2,000)
- PCI compliance fees ($10-30/month)
- Chargeback fees ($15-25 each)
Calculate Your Costs
Use our free POS cost calculator to estimate your monthly expenses based on your transaction volume and business needs.
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Last updated: December 2025
