Starting your business can be exciting and filled with many decisions, one of the most important being choosing a point of sale (POS) system.
A modern POS system is indispensable for small business owners, especially those engaged in multichannel selling. It streamlines transactions and integrates various sales channels, providing a unified ecommerce platform to manage your operations.
However, figuring out POS system costs can be daunting. There are a lot of parts making up the total costs. From the initial hardware purchase to ongoing software subscriptions and transaction fees, there are many things to consider.
In this guide, we’ll dive into the cost components of a POS system so that you know what to expect and how to choose the best solution for your ecommerce business.
The cost components of a POS system
Let’s break down the costs into manageable chunks to get a better view of how much a POS system costs. There are six factors that make up the total POS system cost.
01. Hardware: one-time fee paid upfront
You can expect a full suite of POS hardware to cost anywhere from $750 to $1,700. A complete system usually includes:
A touchscreen
A credit card reader
A barcode scanner
A receipt printer
A charging dock for each item
A lockable cash drawer
Some providers offer each of these pieces individually, but you usually get a better deal by purchasing an all-inclusive package.
Keep in mind that the hardware you choose depends on your business needs and will impact the total cost. For instance, if you manage a brick-and-mortar retail store, you’ll benefit most from a complete package that includes all POS hardware components.
For Wix, the Complete Retail POS Package costs $1,295. The setup includes:
A terminal with customer display
Wix POS software
A cash drawer
A barcode scanner
A receipt printer
If you mostly sell on the go, like at festivals and pop-ups, you’ll probably only need a card reader and charging dock. Wix’s Dashboard Card Reader is available for a one-time fee of $295.
02. Software: ongoing fixed subscription fee (or free)
Most providers charge between $40 and $100 monthly to access their POS software. Others charge a one-time fee when you purchase the system.
However, some, like Wix, offer cloud-based POS systems with integrated software. The pre-installed native software allows Wix platform users to start selling offline right out of the box at no monthly charge.
That said, when evaluating POS software options, find one with features that align with your business type. For example, retailers need software that syncs inventory data with your product catalog. Service providers need software that enables booking and managing appointments. And event hosts need software with features to sell and check tickets at the door.
03. Payment processing fees: variable usage cost
The third part of POS processing system costs you need to be aware of is the processing fees for credit card payments. Every POS transaction on your system incurs these charges.
Fees are handled by either your POS provider’s internal payment processor, like Wix Payments, or a third-party processing company, like Square. The cost is usually a percentage of your payment plus a fixed amount and varies from provider to provider. Think of the fixed amount as a sort of minimum payment safeguard for the processor.
For example, Wix Payments charges 2.6% of the transaction amount with no flat fees. Others, like Square, charge 2.6% of the transaction with an additional flat fee of $0.10 per transaction.
POS systems with native online payment solutions are often more cost-effective and provide smoother operations, support and maintenance because you can manage all your transactions in one place and deal with a single provider.
04. Registration POS fees
The cost of setting up a new POS system will depend on your provider. Some offer it for free, while others might charge a registration fee. This fee covers the cost of creating your account, configuring the software to meet your needs and sometimes training your staff to use the system.
Normally, most POS providers waive registration fees entirely for smaller businesses or those opting for simpler setups. However, a Magestore study found the costs can be as high as $10,000 for big restaurants that need more complex setups, like multiple countertop POS registers with tablet stands and kitchen printers.
If the provider includes registration charges, they might add the fees to the overall cost or charge them separately. Always ask about any additional fees during the evaluation process to avoid unexpected expenses.
05. Location-based POS fees
Location-based POS fees often apply if you want to install the POS software in more than one POS terminal or in multiple stores. These fees are a bit of a wildcard and significantly depend on the provider and the complexity of your setup.
Some POS solutions, charge per month for each additional location, while others charge per location and the number of registers. So, the more registers and store locations you have, the more you pay.
Since location-based charges and how they're calculated vary widely, be sure to get details when evaluating POS system costs. Otherwise, surprise charges could torpedo your budget.
06. Fees for add-on features to POS
Add-on features can significantly enhance your business operations with extra functionality, but they also impact your overall POS system costs.
The specific features you choose and your provider will influence costs. For example, some POS systems may charge a flat monthly fee for each additional feature, while others set up tiered pricing models based on how many users you need or groups of features.
With Wix, upgrading to the Retail POS plan activates valuable add-on features like:
Adding more staff members to your POS system as site collaborators.
Accepting additional payment types, including credit/debit cards and gift cards.
Allowing customers to exchange items.
Tracking staff member hours.
Loyalty point tracking for your online and brick-and-mortar stores.
How to choose a POS provider for your business
Before settling on a provider, it's important to do your homework. Start by jotting down key features you need for your sales channels and ensure the software can handle it all.
Next, take a close look at the pricing structure and available discounts, especially if you're dealing with high volumes. Check for any long-term commitments and extra costs for add-on services as well.
Finally, weigh the pros and cons of each option. Look at how each one fits with your business strategy and budget. Ultimately, you'll want to choose the solution that most closely matches your needs and goals.
Questions to ask when evaluating POS providers
Asking questions is the best way to ensure a POS provider meets your business needs. Here are some questions to ask when evaluating POS providers:
What features does the POS system offer? Ensure the system includes every functionality you need, such as multichannel inventory management, live inventory status and automated sales tax.
What are the costs involved? Beyond the initial POS system cost to purchase, ask about ongoing costs such as software updates, transaction fees and any charges for add-on services.
Is the system scalable? As your business grows, your POS system must keep up. Ask whether the system can handle increased transaction volumes and if more locations or staff can be easily added later.
Can it integrate with other channels? Your POS system should seamlessly connect with your other sales channels so that inventory can automatically sync whenever you sell a product.
How is customer support? Reliable support is a must. You can’t afford to be left without help if something goes wrong. Check that support is available during your business hours and how you can reach them.
How secure is the system? Security is a must for businesses dealing with sensitive customer data and payments. Ask about the security measures in place, such as end-to-end encryption and EMV-certified card readers.
Four popular POS purchase options
Now that you know what to look for when choosing a POS provider, let’s cover four popular options for buying a point-of-sale system.
01. Purchase from an all-in-one provider
If you already have an online store, your best bet is to get your POS system from the same eCommerce platform where you built your website. Having everything from one provider helps simplify and streamline operations, allowing you to manage everything in one place.
Purchasing an all-in-one option can also be a way to save on POS system costs. Some providers offer all-inclusive bundles with their POS hardware and software, payment solutions and website-building tools, which is ideal if you're into omnichannel retail.
This option often saves money on transaction fees compared to a third-party payment provider. Plus, you’ll avoid the hassle of building custom integrations connecting one system to another.
02. Use third-party hardware
Another option is to keep things separate with a third-party POS provider. For this option, you’ll need a payment provider that already partners with your ecommerce platform. Otherwise, you’ll incur extra costs creating custom integrations that sync your online and in-store operations.
For instance, if you're using Wix, you can choose from several integrated providers, like Square POS in several global markets or SumUp in Europe.
The risk of a fragmented business view from juggling different systems is the biggest downside of using third-party hardware. Since your e-commerce platform will handle the online part and the POS provider will manage the offline side, you'll have to piece together your payment history and inventory count from different sources.
Learn more:
03. Install POS software on your tablet device
Since consumer tablets and iPads are so powerful, some providers offer the option to install their POS software on your device instead of buying a stand-alone display. While it’s a great option if you’re selling on the go and need something more robust than a basic card reader, it’s not very scalable or a good long-term solution for a permanent store.
Personal tablet firmware and processing power might limit your business with slow performance or glitches, causing extra troubleshooting headaches. Plus, your tablet doesn’t enhance the customer experience.
In contrast, retail POS solutions with stand-alone customer-facing displays make checkout smoother and more engaging for customers.
Many providers, like Wix, avoid a software-only option because of concerns about poor performance. So, using a consumer tablet limits your provider options and often prevents managing your entire business from a unified system since you won’t have an all-in-one provider.
04. Lease a POS
The last option is to lease a POS system so you can spread the cost of hardware over time. This can be an ideal solution for short-term events or pop-up shops. However, it falls flat as a long-term solution.
Over time, the monthly lease payments add up to more than the original cost of the POS system. That said, some providers, like Wix, offer the option to split your POS hardware costs into interest-free payments at no additional cost to get the best of both worlds.
When shopping for POS options, ask yourself, "How long will I use this system?" before considering a lease.
Questions to ask when evaluating your purchase options
As you analyze your POS options, here are some points to help you make the best decision:
Are you running a brick-and-mortar store, or do you sell on the go—like at markets, pop-up shops or a food truck? Your business type dictates certain features you'll need and the type of POS system and purchase option you choose.
How much are you willing to spend on a POS solution? Know your spending limits and set a budget that fits your financial plans.
Does your website building platform offer a unified POS system? Combining your website builder and POS system provider makes managing online and offline sales easier.
Are you looking for a POS solution that will serve you for the long haul, or do you need something just for a short-term event or seasonal sale? Knowing how long you need the system makes a difference when picking a POS system. You may need something flexible and low-cost or scalable and long-term.
Want to learn more about Wix POS? Book a call with a POS expert today.
Your options at Wix
Here are the POS options available to you as a Wix merchant:
Wix POS is available only in the U.S. and Canada. U.S. pricing and Canada pricing documents provide more details.
POS system cost FAQ
What is the average price of a POS system?
POS system costs can vary widely, but generally, you can expect to spend anywhere from $750 to $1,700 for a full suite of POS hardware. This typically includes items like a touchscreen, credit card reader, barcode scanner, receipt printer, charging dock and cash register or drawer.
An all-in-one package might be a better deal as you typically get a discount compared to buying each component separately. For instance, if you purchase a complete retail POS package from Wix, you get a terminal with a customer display, card reader, cash drawer, barcode scanner and receipt printer. You also save on POS software costs as Wix bundles it with its hardware.
How much does a POS transaction cost?
POS transaction costs are payment and credit card processing fees. These fees are typically a percentage of each card transaction plus a small fixed amount. These costs can add up quickly if you have a high sales volume.