Unraveling the Pricing Mysteries of Touch POS Terminal Systems.

With the evolution of technology and the rise of new business models, the way transactions are conducted has dramatically transformed. Point of Sale (POS) systems, specifically Touch POS Terminal systems, have revolutionized the retail sector, hospitality industry, and many other businesses. These devices have simplified payment processes, steered customer engagement in a new direction and contributed to an increase in business efficiency.

However, along with these advantages, comes the complexity of determining their pricing, which varies based on several factors. Today, we will demystify this complexity and provide an in-depth understanding of the cost of Touch POS Terminal systems.

When it comes to the pricing of Touch POS Terminal systems, three crucial components typically factor in: Software cost, hardware cost, and payment processing fees.

The Software Cost

The heart of any POS system is its software, which allows the core execution of operations from sales transactions to inventory management. The software cost is primarily dependent on a subscription-based model and varies depending on the provider, package, and features.

Subscription Plans

Most POS software providers offer monthly or annual subscription plans. The monthly subscription prices typically range from $50 to $200 per terminal. The annual subscriptions, on the other hand, tend to offer some savings and can range around $500 to $1500 per terminal.

Additional Features

Custom features or specialized industry-specific functions may incur additional costs. For instance, features such as CRM integration, eCommerce syncing, staff management, advanced reporting might add to the overall software cost.

Hardware Costs

The physical terminal is a significant part of the Touch POS system, which contributes to the overall pricing. The cost of the hardware could vary by the vendor, the quality, the components, and the number of terminals your business needs.

Terminal and Component Costs

A Touch POS Terminal, an integrated system with a touchscreen monitor, can cost from $1000 to $2500, based on its specifications and functionality. Other components like barcode scanners, cash drawer, printer, and card reader may also add extra, ranging from $100 to $700.

Bundle Purchase

Some vendors offer bundled hardware packages that include the terminal and all necessary peripherals. Bundling your purchase can usually save a significant amount and the total cost can range between $1200 and $4000.

Payment Processing Fees

Last but not least, payment processing fees are another significant chunk of the cost puzzle of the Touch POS Terminal system. The payment processing fee is a slight percentage of each transaction that goes to the payment processor.

Fee Structures

These fees have different structures, such as flat rate (like 2.7% + $0.10 per transaction), interchange-plus (interchange fee + small markup), or tiered-pricing (different rates for different transaction types). Aware of these structures helps business owners to choose the most cost-efficient option.

Contract and Termination Fee

Some payment processors may require a contract, and breaking such contracts can result in a termination fee. Business owners should carefully review terms before signing a contract.

As is evident, the pricing of Touch POS Terminal systems depends on various components and can vary quite significantly. It is crucial for businesses to understand their requirements and weigh them against the features and services of various systems before making a decision.

By doing a comprehensive analysis of your business requirements, you can capitalize on the best system features at the most economical price. While the initial investment may seem daunting, the return on investment in terms of efficiencies and growth potential would be immensely rewarding for your business.

Remember, the best Touch POS Terminal for your business is not the most expensive one but the one that fits your business needs and budget while delivering maximum efficiency.