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.
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:
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]
The cost of a POS system breaks down into three parts: hardware, software, and additional costs that providers don’t always mention upfront.
A complete register setup includes:
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.
| Hardware Component | Cost Range |
|---|---|
| Terminal | $500–$800 |
| Receipt printer | $200–$400 |
| Cash drawer | $100–$200 |
| Scanner | $100–$300 |
| Card reader | $150–$300 |
| Customer display | $100–$200 |
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:
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.
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.
| Pricing Model | Cost | Pros | Cons | Best For |
|---|---|---|---|---|
| Monthly Subscription | $50–$200/month | • No high upfront cost • Updates and support included • Cloud access to sales data |
• Pay forever • Costs add up over time |
Starting without major capital, need remote access |
| One-Time Purchase | $500–$2,000 | • Own it outright • No monthly bills after purchase |
• Updates cost extra • Support fees after first year |
Solid cash flow, want to avoid monthly fees |
| "Free" With Processing | $0 software | • $0 software cost | • Must use their processor (usually 2.5–3%) • On $400,000 sales = $10,000–$12,000/year in fees |
Very low sales volume only |
While hardware and software costs make up the bulk of your outgoings, there are other costs you need to consider.
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:
That 0.5% difference costs $900 per year. Cheaper isn't always cheaper.
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.
"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.
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.
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.
Don’t go into demos or sales calls blind. Have your questions ready!
About the software:
About hardware:
About processing:
About support:
About contracts:
These questions will help you evaluate POS providers and give you a clearer understanding of what you’ll pay.
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!