How Much Does a POS System For A Small Business Cost?
By Sam Nguyen
POS system costs can change flexibly depending on the locations, specific needs, and features each vendor wants. This article will explore the factors influencing the POS system price for small businesses in various countries, such as the USA, Australia, Canada, and the UK.
Key Takeaways
- A POS system cost can vary depending on the location, specific needs, and features each vendor requires.
- Several factors, including the cost of hardware and software, installation expenses, and additional features, contribute to the overall price.
- Shopify POS offers a comprehensive solution with rentable hardware, easy software installation, and flexibility for short-term events.
How Much Does a POS System for a Small Business Cost?
A POS system generally costs about $3,000 to $10,000. However, the cost can change depending on various factors such as location, specific needs, and features offered by each vendor, so no single answer fits all. Here are the costs of the five most popular cloud-based POS systems for your reference:
| Type of POS | Monthly Software | Hardware costs | Installation fee | Free trial | |
| Shopify POS | Cloud-based POS | $5-399 | $9-299 | $0 | 3 days |
| Square POS | Cloud-based POS | $0-29+ | $0-1.343 | $0 | Free plan available |
| Clover POS | Cloud-based POS | Contact to support team | $99-1649 | $0 | None |
| Toast POS | Cloud-based POS | $0-165 | $899+ | $0 | Free plan (with hardware subscription) |
| LightSpeed POS | Cloud-based POS | $69-199+ | $500-1000 | $0 | 14 days |
POS System Costs are affected by different locations
Additionally, each location has distinct markets and regulations that affect the POS cost. In the table below, let’s break down the specifics for countries like the USA, Australia, Canada, the UK, and Germany.
| Countries | Hardware costs | Software costs | Installation costs |
| The United States | $1,200 to $5,000 | $0 to $200 | $500 and $1,500 |
| The UK | £800 to £3,000 | $50 to $150 | $500 to S1,500 |
| Canada | $1,000 and $4,000 | $50 to $150 | $800 to $2,000 |
| Australia | $1,200 to $5,000 | $50 to $150 | $1,000 to $2,500 |
Here are the factors that affect POS system costs in different countries, including PCI Compliance and EMV Compliance:
- Market Conditions:
Each country has its unique economic conditions, including factors such as currency strength, labor costs, and market competitiveness. For instance, with higher labor costs or a stronger currency, the UK and the US may have higher overall prices for POS systems.
- Regulatory Requirements:
Countries have specific regulations and compliance standards for payment processing and data security. Two crucial compliance standards in the payment industry are PCI Compliance and EMV Compliance.
- PCI Compliance ensures that business owners handle customer card data securely.
- EMV Compliance refers to the use of chip-enabled payment cards to reduce fraud.
Meeting these compliance requirements involves additional costs, as owners need to invest in secure hardware and software.
- Legal and Financial Regulations:
Each country has legal and financial regulations governing payment processing, tax systems, and financial transactions. For instance, tax regulations may require specific reporting capabilities within the POS system.
Additional costs of a POS system
Understanding the potential costs associated with a POS system is crucial for small business owners.
Payment Transaction Fee:
A POS system’s payment transaction fee may range from 1.5%-3.5% per transaction. These fees are charges imposed by payment processors or merchant service providers for processing credit cards, debit cards, or other electronic payment transactions.
The fee structure can vary depending on card type, transaction volume, and payment processing service. By carefully evaluating and comparing transaction fees from different providers to ensure they are getting the most cost-effective solution for their POS system.
User Account Fees
Certain POS software has a limit on the number of user accounts available. A POS system cost may vary depending on how many users your business requires. It is essential to select a plan that suits your specific requirements.
Multiple Physical Locations
Some POS providers may charge extra fees for each additional location if you have multiple business locations. Consider the business scalability and the potential growth in various sites to evaluate whether the pricing structure aligns with your expansion plans. For Square’s paid plans, they charge $60 per location. In contrast, Revel POS offers multi-location management features with customized pricing.
Additional Features
Modern POS systems provide more than just payment processing. You will need to pay a higher fee to access these added features. Depending on vendors, the add-on cost can range from a few dollars to hundreds per month. Here are some additional features:
- Inventory management
- Employee management
- Customer relationship management (CRM) tools.
eCommerce Integration
This is the cost of connecting the system to an online store or eCommerce platform. It enables smooth synchronization of inventory, orders, and data between the physical store and online presence. The specific cost of eCommerce integration varies based on the POS system provider and integration complexity. To get accurate information about the eCommerce integration fee, it’s best to consult the POS provider directly.
Why should you choose Shopify POS for a small business?
Being a cloud-based system, Shopify POS is an exceptional choice for small businesses looking to sell their products across multiple channels, including online and offline sales. Here are some compelling reasons why you should choose Shopify POS:
Rentable hardware:
Shopify offers the renting POS hardware convenience, which can be a cost-effective solution for small businesses. You can rent the necessary hardware, such as cash registers, barcode scanners, and receipt printers, for a fraction of the cost.
Easy installation software::
One of the highlight reasons to choose Shopify POS is its easy installation software. The intuitive interface and step-by-step guidance make the installation process straightforward and hassle-free, allowing you to get your point-of-sale system up and running quickly.
Flexibility for short-term events:
With a compact POS machine, you can easily set up shop at trade shows, markets, or temporary locations. This flexibility allows you to extend your sales reach beyond your brick-and-mortar store.
Seamless integration:
Shopify POS seamlessly integrates with other Shopify products and services, such as the online store platform and inventory management system. This integration provides a cohesive and synchronized experience across your different sales channels, allowing you to manage inventory, sales, and customer data.
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FAQs
Its features enable streamlined transactions, accurate inventory management, improved customer service, detailed sales reporting, and simplified accounting
- Perpetual licenses require a one-time purchase fee
- (SaaS) licenses charge recurring monthly payments.
Bottom line
When considering a POS system for a small business, owners should evaluate the cost implications. The price of a POS system can vary based on factors such as features, scalability, and support, and it is essential to find a solution that aligns with the budget and requirements.
