How Much Does a POS System Cost? A Quick Breakdown for Specialty Retailers

You're comparing point of sale (POS) system quotes, and the numbers are all over the map. 

One company says $99/month. Another wants $2,500 upfront, plus $150/month. A third claims their system is "free," but processing fees will be 3% of every sale.

It’s confusing enough for anybody, let alone a stressed retail store owner. You can’t afford to get it wrong, and picking the wrong POS is a waste of time and money. 

So, how much does a POS system cost? Here’s a quick breakdown to help you evaluate the true cost and avoid picking the wrong one.

How Much Does a POS System Cost? 4 Considerations

TLDR: Expect to pay $500–$2,500 for hardware and $50–$300/month for software, plus 2–3% processing fees per transaction. But the wrong system costs more than the right one, even when it's cheaper.

Before you shop around, consider which features you actually need, and look out for red flags. Cheaper doesn’t always mean better. Consider these scenarios:

• When your POS can’t handle your products: A grocery store owner switches to a cheaper system only to realize it can’t track items by weight or accept EBT payments. They’re left calculating produce prices by hand and turning away customers.
• When compliance features are missing: A liquor store owner chooses a restaurant-focused POS because “it’s the same thing” and $30 cheaper per month. Then they realize it doesn’t verify IDs or track bottle deposits. The first compliance fine puts a huge dent in their income.
• When processing fees eat into your profit margins: The advertised rate is 1.9%, but keyed-in cards incur a 3.5% fee. Wine and liquor stores average 2.5% credit card transactions. On $500,000 in annual sales, that extra percentage point costs $5,000 per year.
• When support isn’t available: You call support at 5:30 p.m. on a Saturday, your busiest day, because the system crashed — and you get voicemail. Now you’re manually ringing up sales on a calculator for the next three hours while customers wait in line.

These aren’t theoretical problems for independent retailers. They happen when you choose a POS system on price alone.

Related Read: What Is the Best POS System for Retail Stores? 12 Top Providers [Features & Pricing]

What You Actually Pay for a POS System

The cost of a POS system breaks down into three parts: hardware, software, and additional costs that providers don’t always mention upfront.

Hardware: $500–$2,500 per Register

A complete register setup includes:

• Touchscreen terminal
• Cash drawer
• Receipt printer
• Barcode scanner
• Card reader and PIN pad
• Customer display

Grocery stores will need to add scales ($300–$800). Liquor stores might need to add a second screen or camera system for loss prevention.

What to look out for: Things can get complicated when you discover compatible hardware doesn’t support EBT processing, or the barcode scanner can't read the smaller codes on craft beer bottles, or the receipt printer jams every 50 tickets during your Saturday rush. Scales also need to integrate with your software.

Naturally, adding multiple POS stations increases the cost per terminal. Other features that increase hardware costs include accessories and peripherals, and adding components missing from your current setup.

Also, consider any hardware you already have. Will new hardware be compatible? To integrate properly, many systems need specific hardware. Adding accessories or replacing incompatible equipment raises startup costs even more.

Standard Setup: $500–$2,500

Software: $0–$300+ per Month per Register

Software pricing usually follows three models.

Monthly subscription ($50–$150/month): You pay every month. Updates, support, and cloud access are usually included. This is the most common model for grocery and convenience stores because you can start with minimal upfront cost.

One-time purchase ($500–$2,000): You own the software. Updates and support cost extra after the first year. Some retailers prefer this because there are no surprise monthly bills.

"Free" with processing: The software costs nothing, but you must use the provider’s payment processor. They make money on the 2–3% transaction fees. This works if you're doing low volume, but on $400,000 in annual sales, you're paying $8,000–$12,000 in processing fees.

Related Read: How Does Payment Processing Work? 6 Retail Basics

If you choose the monthly subscription, fees will depend on:

• Number of store locations and terminals needed
• Depth of features and functionality
• Integration with other software systems
• Amount of setup, training, and support included

Basic POS software subscriptions start at $50–$99 per month per terminal. Advanced software designed for larger, complex retail stores can range from $79 to over $300 per terminal monthly, with enterprise-level systems at over $300 per month.

What To Look Out For

More advanced retail POS software might include deep inventory management, advanced customer relationship management (CRM), analytics, marketing tools, e-commerce integration, employee management, accounting system syncing, and robust reporting. 

Naturally, advanced features come at a premium — but they’re worth the investment.

You might want to consider basic software and see how it goes. But make sure to ask providers about customization and scalability. If personalization involves additional setup, training, and support fees, you need to know that in advance. As your business grows, will your software grow with you?

The right software provides the functionality you need, and doesn’t break the bank with unused features.

Costs That Show Up Later

While hardware and software costs make up the bulk of your outgoings, there are other costs you need to consider.

Processing Fees

Every credit card transaction costs money. Rates vary from 1.5% to 3.5% depending on how the card is processed (chip reader vs. keyed in), card type (rewards cards cost more), and your processor.

Run the actual math:

• $300,000 annual sales
• 60% credit card transactions = $180,000
• 2.5% processing fee = $4,500/year
• 3.0% processing fee = $5,400/year

That 0.5% difference costs $900 per year. Cheaper isn't always cheaper.

Training and Implementation

Some vendors include training. Others charge $500–$1,500 to set up your system and train your staff. If training isn't included, expect to spend 15–20 hours learning the system yourself, then teaching your employees.

Support Fees 

"24/7 support" often means 24/7 support if you pay for the premium plan. Standard plans get email support or business-hours phone support. When your system goes down during your Saturday rush, email support doesn't help.

Contract Penalties 

Three-year contracts are common. Early termination fees range from $500 to $2,000. If you realize six months in that the system doesn't work for your store, you're trapped, or you're paying to get out.

Retail Expansion

The larger your business gets, the more robust your POS system should be. As your store grows, detailed reporting, customer management capabilities, and complex inventory management are must-haves. 

Similarly, if you decide to expand your store to additional locations and online channels, you’ll need omnichannel POS capabilities.

Questions To Ask Before You Buy

Don’t go into demos or sales calls blind. Have your questions ready!

About the software:

• Does it handle [EBT/age verification/lottery/whatever your business needs]?
• Can I add features later without switching systems?
• What happens to my data if I stop paying?
• Can I export sales reports to Excel or QuickBooks?

About hardware:

• Is this hardware certified for [EBT/EMV/whatever you need]?
• What happens if a printer breaks? How fast is the replacement?
• Can I use my existing equipment, or do I need to buy everything new?

About processing:

• What's the actual rate I'll pay? (Get specifics: chip reader rate, keyed-in rate, rewards card rate.)
• Are there monthly minimums or per-transaction fees?
• Can I switch processors later, or am I locked in?

About support:

• When is support available? (24/7 or business hours?)
• Is phone support included or extra?
• How fast do you respond to system-down emergencies?
• What's included in training?

About contracts:

• How long is the contract?
• What's the early termination fee?
• What happens when the contract ends? Does it auto-renew?

These questions will help you evaluate POS providers and give you a clearer understanding of what you’ll pay.

How Much Does a POS System Actually Cost?

You're not just buying hardware and software. You're choosing whether you'll spend the next three years fighting a system that doesn't understand your business, or working with a system that handles age verification, EBT processing, and bottle deposits automatically.

The lowest monthly price often costs you the most. The right system costs less than the wrong system, even when the wrong system is cheaper.

POS Nation is committed to helping you find a point of sale system that makes sense for your business.

We actually understand liquor stores, grocery stores, and convenience stores. To find out how much a POS system costs for your store, use our Build and Price tool to create your perfect setup!