How Much Does a POS System Cost in 2025?

A point-of-sale (POS) system is one of the most important tools for managing and growing your business. Yes, a POS system lets you check out customers, accept payments, and route funds to your bank. But the right setup does much more: it helps you move through transactions faster, manage inventory, track sales, make informed decisions, and improve the overall customer experience. That’s why it’s essential to understand the total cost of a POS system before investing in one.

So, how much does a POS system cost in 2025? The answer depends on the type of system, your business needs, and the features you’re looking for. And no, you don’t have to spend a fortune.

We’ll cover the true cost of a POS system, including software, hardware, and payment processing. You’ll see what to expect whether you’re just starting out or upgrading your current system.

Are POS systems expensive?

They can be, depending on the type of system and the features you need. But there are affordable and even free POS system options available, especially for small businesses that want to keep upfront costs low without sacrificing quality.

Traditional server-based POS systems tend to be the most expensive. These systems come with high upfront costs, including licensing fees, setup charges, and IT support, and tend to lack strong integration with modern tools (like online ordering or loyalty programs). On top of that, you’ll need to budget for ongoing server maintenance and security updates, which can drive up long-term costs. 

Modern cloud-based POS systems, like Square, are typically more affordable. Since they don’t rely on physical servers, you save on infrastructure and maintenance. They’re also easier to scale, offer better uptime, and get frequent security updates without extra effort. 

In terms of actual pricing, you can start using some cloud POS systems for free. For example, Square Point of Sale software costs $0 when paired with an iPad and reader you already own. But if you want an all-in-one countertop solution, a system like the Square Register is available for a one-time cost of $799.

Before you make your decision, let’s break down the cost of a POS system.

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POS system cost breakdown

Most POS systems are made up of three parts: software, hardware, and payment processing. Each part contributes to the total cost of a POS system, and understanding how they work together can help you make a smarter decision for your business.

Here’s what goes into your total POS system price.

1. POS software costs

The POS software runs your checkout process. It lets you record sales, track inventory, manage customers, and access reports and analytics.

When you’re evaluating POS software, you want to make sure it includes features that your business needs, and is easy for you (and your employees) to use. For example, if you run a retail store, you may want a POS that supports item exchanges or vendor management in addition to standard features like inventory tracking.

Most POS software is sold on a monthly subscription basis, though pricing varies based on features, industry, and business size. If you’re just starting out or only need the basics, such as payments and basic sales reports, you’ll likely find free plans that meet your needs. For example, Square POS comes with a free software tier that includes core features for payments, inventory, and customer management, with no monthly fees.

In general, here’s what you can expect:

• Basic POS software costs anywhere from $0 to $30 per month.
• Advanced or industry-specific software can range from $60 to $100 or more per month, depending on the provider and features.
• Add-ons, like loyalty programs, email marketing tools, or multi-location controls, may come at an extra cost of $10 to $40 per month per feature.

Plans may also be priced per hardware, per user, or per location. Look closely at what’s included and watch out for hidden costs like customer support fees or upgrade charges. The key is to choose software that matches your workflow, fits your team’s skill level, and supports your growth without locking you into more or less than you need.

2. POS hardware costs

The POS hardware is the physical equipment you use at your checkout counter or service station to take payments and interact with customers. The right hardware setup depends entirely on how your business operates, and the costs can vary just as much. You can buy or lease POS hardware depending on your budget and your long-term needs.

At the most basic level, you might only need a mobile card reader and a smartphone or tablet. This kind of setup is ideal for pop-up shops, market stalls, or service businesses that accept payments on the go. Card readers typically cost between $0 and $60, depending on the brand and whether you want contactless, chip, or swipe functionality.

For a countertop setup, things start to scale. You might need a tablet stand, receipt printer, cash drawer, barcode scanner, or a dedicated POS terminal.

Based on publicly listed prices from leading POS providers, here’s what typical hardware costs look like:

• Tablet stand or POS terminal: $150 to $800
• Receipt printer: $150 to $300
• Cash drawer: $100 to $200
• Barcode scanner: $150 to $250
• Card reader: $0 to $60
• Self-service kiosk: $1,000 to $3,000 or more

When it comes to hardware, the most important thing is to think about how the checkout experience should feel for your customers and employees. Your hardware should match the pace and personality of your business.

For example, the Square Handheld is a portable POS that fits into your pocket and is great for fast-paced environments where people are always on the move. Quick service restaurants may prefer sleek dual-screen registers with customer-facing displays so customers can clearly view their orders and totals while staff move quickly through transactions.

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Depending on how your business is set up, you may choose to piece together your hardware setup over time, starting with the essentials and upgrading as they grow. Or you could invest upfront in complete hardware kits that include everything you need.

3. POS payment processing costs

In addition to POS software and hardware, there’s one more POS system cost to consider: payment processing fees. This is the fee you pay every time you accept a credit card, debit card, or digital wallet payment. Most POS providers charge a small percentage of each transaction, plus a fixed fee. These fees can add up quickly, especially for high-volume businesses.

Based on published rates from popular POS providers, here are typical rates for in-person payments:

• 2.5% to 2.7% per transaction for swipes, dips, or taps
• 2.9% to 3.5% per transaction for manually entered or online payments
• $0.10 to $0.30 fixed fee per transaction in some cases

These rates vary based on your provider, the type of card used, and whether the transaction happens in-person or online. Some processors also charge monthly account fees, PCI compliance fees, or require a minimum monthly volume, so be sure to read the fine print.

Many businesses choose an all-in-one POS solution that includes built-in payment processing to avoid juggling multiple vendors. For example, Square POS solutions include integrated payments with no monthly fees, no long-term contracts, and transparent, flat-rate pricing. That kind of simplicity can be a big advantage, especially for newer businesses that want predictable costs.

As you compare options, look for a provider that’s upfront about its rates. Understanding the real cost of payment processing helps you price your products accurately and keep more of each sale.

Pricing factors to consider

When estimating the total cost of a POS system, it’s not just about the listed prices for software, hardware, or payments. The actual cost will depend on how your business operates and what you need your system to handle, both now and as your business grows.

Here are a few key factors that can affect your final POS system cost:

Number of locations

If you’re running more than one location, make sure your POS software can support that. Many providers charge per location, while others offer bundled pricing. You’ll also want hardware that can sync across stores and reporting tools that give you a clear overview of performance across the board.

Business type and complexity

The more specialized your workflow, the more likely it is that you’ll need advanced features or extra hardware. A boutique may need barcode scanning and simple inventory tools, while a quick-service restaurant might require kitchen ticket routing and customer-facing displays.

Add-ons and integrations

As you’ve probably figured out, the base cost of your POS system doesn’t include everything. Features like customer loyalty programs, gift cards, or integrations with accounting tools often come at an additional monthly fee.

Scalability

Think about where your business is headed. Will you be opening new locations, hiring more staff, or launching online sales? A POS system that scales with your business, without dramatically increasing costs, can save you money and spare you the hassle of switching systems down the line.

As you evaluate your options, consider your business’s current needs and future plans. The right POS system should fit where you are today and grow with you, without surprise costs along the way.

Frequently Asked Questions

What is a POS system?

A POS system, or point-of-sale system, is a tool that allows businesses to take payments and record sales transactions. It can be a countertop register, tablet setup, or mobile app, and typically includes both hardware and software. Most POS systems also come with built-in tools to help you track inventory, manage staff and customers, and run your business more smoothly. Learn more about what POS systems are and how they work.

Do I need a POS system?

If you accept payments from customers, then yes. You likely need a POS system. At its core, a POS system allows you to process transactions securely and efficiently, whether you’re accepting credit cards, mobile wallets, or contactless payments. Beyond payments, a modern POS system can also help you manage inventory, track sales, monitor staff performance, and understand your customers better. These added features make it easier to run your business and manage day-to-day operations.

For a deeper dive into POS systems, learn about how to choose the best POS system for your business.

What is the cheapest POS system?

The cheapest POS systems are often cloud-based and come with free software plans. For example, Square offers a free version of its POS software with no monthly fees, as long as you use it with compatible hardware and pay standard transaction fees. Some providers also offer low-cost card readers or let you use your own phone or tablet to keep hardware costs down. Just be sure to review any additional fees for payment processing, upgrades, or customer support.

Save more on your POS with Square

Square offers you a few ways to utilize a compact, modern POS for your business. Below, we show the hardware, features, and costs of each system.