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The Hidden Cost of Free POS

Choosing a new EPOS system is rarely just a technology decision. It’s a commercial one, sometimes made under pressure because something has gone wrong, often while juggling a dozen other priorities. So, when a provider offers to remove the upfront cost altogether, it’s easy to see the appeal. 

But “free” is worth looking at closely before you sign anything. 

What “free” usually means 

As seen across the industry, a system marketed as free rarely stays that way once everything is added up. For operators a % of sales isn’t unusual but often creeps up once processing, software and add-ons are combined.  

That cost can easily start to increase month by month, and for a system that was never meant to cost anything, it can be hard to budget and control over time.  

None of this makes the provider dishonest. It just means the ‘POS’ cost hasn’t disappeared, it’s moved somewhere less visible. 

Hidden costs 

It’s rarely one large number, it’s a handful of smaller ones, each reasonable enough on its own: 

  • Processing rates often set above the market, wrapped inside one combined fee (the percentage charged each time a customer pays by card)
  • Software subscriptions for solutions such as mobile ordering, loyalty, reporting and business insights, priced separately from the core platform (for example, separate monthly charges for each of these services)
  • Additional feature modules that wasn’t obvious they were included from the start (extra functions you may later find are not included in the core price)
  • The cost of switching, which only really becomes clear the day you try to leave 

Individually, each is easy to justify, but when set against total sales, they add up to more than most operators expect from a system that was supposed to be ‘free’. 

What to ask 

Most conversations start with “what’s the rate?” It’s a fair question, but it only covers one part of the cost. It says very little about the software, or how that cost behaves as the business grows. 

Be clear in what’s in the cost and get a breakdown for every module or solution you need. You may find that cost changes from what was initially advertised. It’s the core platform underneath it you need to ensure is covered, and how many separate costs have been built into it now, and more crucially over time. 

Why we offer choice 

We offer a connected system, with EPOS sitting at the core. And because we’re payment agnostic, you have the freedom to choose the payment provider that works best for your business, gives preferred rates, instead of being tied to whichever processor happens to fund the “free” hardware. In most cases, due to the relationship we have with our partners, these costs are often 4 x less than those proposed with the free POS. 

There’s no hidden markup, and no essential modules that cost extra, just one core platform, connected to your tech partners of choice and full visibility over what you’re paying for each month. 

Growth should improve your margin, not quietly work against it. If your technology costs more every time your sales go up, it’s worth asking whether the system is really serving your business, or the other way around. 

Before you sign anything 

Whichever provider you’re considering, ask them to set out the true all-in cost as a percentage of sales, covering processing, software, support and every module you’re likely to need in year one. 

If you’d like to explore our EPOS and how we work with our trusted partners, get in touch for more information

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