Free POS systems can be ideal for startups and solopreneurs and can quickly expand to meet the needs of fast-growing businesses. However, optional features increase costs, plus you have to use proprietary hardware and built-in processing. Paid POS systems with business-specific features, more hardware options and payment processing flexibility offer more economical and growth-oriented solutions in the long run. Most POS systems make money through built-in payment processing services. A few, including Square, Zettle and Toast don’t let you connect your own payment processor to their POS system.

  1. When comparing POS system costs, always consider the base set of features plus potential plan upgrades and add-on costs needed to fit your business’s unique needs.
  2. While eHopper has free processing, a free card reader and no monthly fee, you’ll have to buy one if you want a full-sized POS system.
  3. Either way, it’s important to know how much you’re paying to accept credit and debit card payments.
  4. While some POS providers charge per register or terminal, others—like Shopify POS Pro—charge a fixed rate per store location.

As you’d imagine, different industries place different demands on their POS systems. To help you gain a more accurate overview of costs, we’re going to break down how much your business should expect to pay for a POS system depending on the industry it’s in. A merchant descriptor is the information that appears on a customer’s bank statement to identify the source of a charge. Soft descriptors allow merchants to include specifics that jog the customer’s memory and aid reconciliation without reprogramming descriptors for each charge. Typically, transactions are described as a POS debit when completed with a POS system using a debit card. If you’re trying to figure out what a transaction in your account history means, it probably refers to a purchase you made in-person at a retailer.

If you need several staff accounts, look for a POS provider that offers an unlimited-user package. With Shopify, cash drawers cost between $139 and $159, and Shopify’s card readers cost $39 or $49, depending on the model you choose. Most point-of-sale software often has either a monthly or annual fee, as well as different subscription tiers at different price points.

Some full-service POS systems offer a free tier, although you’ll likely have to pay for processing and other add-ons. Other companies let you use their software for free but require you to pay for the hardware, such as a tablet or terminal. Shopify POS Pro is an add-on subscription for $89 a month that unlocks additional features of your POS. If your retail business has several locations, multiple tiers of staff, a large product catalog, or high sales volume, consider upgrading to POS Pro. Payment transaction fees are a percentage, fixed, or blended fee charged by the payment gateway provider for processing a transaction. Some payment service providers have variable transaction fees depending on the payment method the customer uses, while others charge a fixed rate.

Verdict: How Much Does a POS System Cost?

To learn more about your rights when paying with plastic, read about credit card surcharges (and minimums) and debit card minimums. Surcharges and minimum purchase requirements pos decl fee are allowed in some states. But merchants sometimes charge consumers more than they’re allowed to, and they may set minimums when they’re not supposed to.

What Is a POS Decline Fee?

For businesses looking to keep overheads as low as possible free versions, like Square and Zettle, are available too. However, businesses on free tiers typically need to pay higher transaction fees on each sale. As a business owner or accountant, identifying transactions is critical for accurate bookkeeping and avoiding chargebacks from confused customers.

The best POS system for your business depends on a variety of factors, including the type of business you have, your budget and the features you need. For many situations, it makes sense to invest in the best system you can afford, and preferably, the system can grow with your business. Here’s a glance at subscription and add-on costs for seven top-rated POS systems. Restaurant businesses, https://1investing.in/ meanwhile, can get a fully-featured POS system with new hardware from just $559 — again, with most of the cost being hardware. Software and hardware can be bought separately and can also often be sold in bundles – making it easy for sellers to start from scratch. Every POS provider operates slightly differently though, so it’s best to do your research before committing.

Let’s upgrade your accounts receivable game.

Ensure that the POS you choose will let you create as many staff logins as you need to keep your store running smoothly. While some POS providers charge per register or terminal, others—like Shopify POS Pro—charge a fixed rate per store location. This is especially beneficial if you want to have more than one POS terminal in your store. The cost information provided on this page is based on hundreds of hours of research and years of familiarity with Point of Sale systems. POS costs are one factor in our extensive analysis process, which we re-run regularly, to help us determine provider value alongside features and more.

POS Credit Card Processing Fees

Dynamic descriptors are unique text that changes for each transaction to include specific purchase details. Debit-related bank statement descriptions, or merchant descriptors, help identify where a transaction occurred. Whether customers are making a debit transaction or a credit transaction, there are bank statement descriptions to identify where that transaction is occurring.

A third-party payment processor may provide a free card reader, but in most cases, that’s just a card swiper that only reads the magnetic stripe on the back of the credit card. You’ll need to upgrade to a higher-end card reader that properly accepts EMV chip cards so you won’t be liable for counterfeit fraud that occurs at the point of sale. Shopify is one that adds a per-transaction fee of .5% to 2% to online orders if you don’t use Shopify Payments. You can get around that on in-store Shopify POS Pro sales by connecting your payment provider’s terminal, but third-party hardware integrations can be tricky. That said, expanding your POS system beyond core features and adding checkout stations or locations increases hardware needs and monthly fees.

It doesn’t require you to use a merchant account or to pay any monthly costs. However, its flat rate and an added fixed fee can be too pricey for small businesses with a small average ticket. It is a machine or a terminal used for processing payments and transactions between a merchant and a customer.

The Best Free POS Systems of 2024

With its pay-as-you-go option, you won’t pay anything upfront, nor will you pay a monthly fee. Instead, you’ll pay a higher processing fee of 2.99% plus 15 cents per transaction. Integrated payments also means you’ll spend less time reconciling charges. A point-of-sale (POS) system is a combination of devices and software programs that help with processing transactions. They can be as simple as a checkout register, or they may be more complicated programs that integrate with other systems (like card payment networks).

Some POS systems are free to use while others charge a monthly or transaction fee. You may also have to pay for hardware, such as a card reader or barcode scanner. We also considered features that are important to small businesses, such as inventory management and customer loyalty programs. Finally, we read through expert and user reviews to get a sense of each software’s ease of use and customer support. You’ll also want a card reader that can accept contactless payments, including contactless cards and mobile wallets, like Apple Pay.

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