Here’s a number most retailers don’t calculate until it’s too late: the total cost of transaction fees in their POS software every year. The cost of transactions is part of the total cost of ownership of your POS software when it is a mandatory cost imposed by the POS software supplier.
What transaction fees actually cost
Some POS platforms charge a percentage of every EFTPOS transaction. A common rate is 1.4%. Some charge 1.75%. Some charge 2–3%.
If your shop takes $400,000 a year in card payments:
- At 1.4%: $5,600 per year in fees
- At 1.75%: $7,000 per year in fees
- At 2.5%: $10,000 per year in fees
That’s on top of your monthly software subscription. On top of your merchant facility fees. On top of your hardware costs. It’s best to calculate these costs before you sign up to use POS software as some POS software companies can value customers by their transaction value rather than value them as a POS software customer, a retailer. There is a difference.
The payment processor lock-in problem
Some platforms require you to use their own payment processing system. If you choose a different EFTPOS provider — your bank, Tyro, whoever you prefer — they add a significant monthly penalty fee. This is effectively the same cost, structured differently. And it removes your choice about who processes your payments.
What to look for
- Are there transaction fees on EFTPOS payments? At what percentage?
- Are there fees if I choose my own payment processor?
- Are there monthly fees per terminal or per location?
- What is the all-in monthly cost, including everything?
Get the answers in writing and compare on the same basis — not advertised prices, but actual all-in costs for your transaction volume.
How Tower Systems handles this
Tower Systems charges a flat monthly subscription: $220, $246, or $275 per month (as at May 2026) depending on your plan (GST inclusive). That is the cost.
No transaction fees. No EFTPOS penalty fees. No per-terminal charges. No turnover limits. Your EFTPOS provider is your choice — we work with Tyro, Linkly, and others.
We also don’t lock you in. No minimum term. Cancel any time.
Transparent pricing shouldn’t be a differentiator. But in this market, it is.
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