TagPOS transaction fees

The advertised monthly price on POS software is rarely the whole story. Two systems can look identical on a comparison table and end up hundreds of dollars a month apart once everything is added up. Here is what to check before you sign, including the costs providers tend not to volunteer.

The headline price is only the start

Most POS software is sold as a monthly subscription. For specialty and independent retail in Australia, ongoing fees usually land somewhere between $40 and $300 a month depending on what is included. That is a wide range, and the gap between two quotes usually hides in the fees underneath the headline number.

The costs that are easy to miss

Start with how the licence is counted. Some systems charge per register, per device or per staff login. Run two counters and a back-office computer and a “low” monthly fee can quietly double. Ask whether the price covers every computer at your location.

Then there is card processing, and this is the big one. Many providers bundle payments and take a cut of every sale, typically 1.1 to 1.9 per cent. On $40,000 a month in card sales, 1.5 per cent is $600 a month. That is more than most retailers pay for the software itself. Check whether you must use the provider’s payments platform, or whether you can shop around with your own bank and keep that margin.

Some platforms also charge a separate fee on each transaction just for using the software. Your bill climbs as your sales do, which is a strange thing to pay for.

Support deserves a close look. Cheap software often means expensive help. Check whether phone and email support is included, what hours it runs and whether the team is local. You find out what support is really worth on the day the system goes down.

Ask what it costs to go live, too. Moving your stock file, customer records and sales history into a new system takes real work. Some providers include setup and training. Others charge thousands for it.

The same goes for integrations. Accounting links, e-commerce sync, supplier ordering and loyalty tools are sometimes included and sometimes sold as add-on modules. A cheap-looking system gets expensive once you switch on the features you actually need.

Lock-in is a cost too

A 24 or 36 month contract puts the risk on you if the software turns out to be a poor fit. Month-to-month terms cost nothing to leave. A provider willing to offer them clearly expects the product to keep you there on its own.

Questions to put to every provider

• Does the price cover every computer at my location, or is it per terminal or per user?
• Do you charge a fee on each transaction?
• Must I use your payments platform, or can I choose my own?
• Is phone and email support included, and where is your team based?
• What is the one-off cost to migrate my data, set up and train my staff?
• Which integrations are included, and which cost extra?
• Is there a lock-in contract?
• Who owns my data if I leave?

Cheapest is not the same as best value

The lowest monthly fee often carries the highest total cost once payment margins, add-ons and support charges are counted in. The better question is not “what is the monthly price?” but “what will this cost me over a full year, the way my business actually runs?” A system built for your retail category, with local support and no lock-in, will usually cost less to own even when its sticker price is not the smallest on the list.

Work out the all-in annual cost before you decide. Compare that, not the pricing page.