Fee Guide
The Hidden Costs of POS Systems
Rates verified August 2026
The quoted price of a POS is the software subscription. The real price adds payment processing — usually the largest line by far — plus hardware, add-on modules, statement side fees, and the cost of leaving. This page lists every place the money hides and how to find it before you sign.
A useful rule: every dollar you will pay lives in one of five places — the software fee, the processing rate, the hardware, the add-ons, or the exit. Price all five before comparing systems.
Processing Fees: The Biggest Line on the Bill
On $50,000 a month in card volume, a 2.8% blended rate is $1,400 a month — next to which a $69 software fee is a rounding error. Two things hide inside the rate:
The per-transaction fee
A quoted 2.99% + 49c is an effective 4.95% on a $25 ticket, because the fixed cents do not scale down with the check. The smaller your average ticket, the more the quoted rate understates reality.
Required processing
Some POS contracts require the vendor's own payment processing — you cannot shop the rate separately. The software price and the processing rate must then be judged as one number, not two.
The Free-Software Trade
Free plans fund themselves through the rate
Toast Starter charges $0 a month but processes at a commonly reported ~3.09% + 15c, while Toast's $69 plan processes at 2.49% + 15c. On $50,000 a month, that 0.6-point gap is about $300 — so the free plan costs roughly $231 more per month than the paid one. Free software is not free money; it moves the price into the rate.
Statement Side Fees
These never appear in a quote, and every one of them counts toward your effective rate:
- -PCI compliance fees — and much larger non-compliance fees — charged monthly or annually.
- -Statement, batch, and gateway fees: small, per-batch deductions that are easy to miss.
- -Monthly minimums that bill you even when you did not process enough volume.
- -Chargeback fees charged per dispute.
- -Rate creep: promotional rates that rise after the first months. An identical passthrough figure every month is the tell of a blended rate.
Hardware and Add-Ons
Proprietary hardware is a lock-in cost
Vendor-specific terminals cannot follow you to the next system — the money is gone when you switch. Leases can multiply it: a terminal leased at $50 a month for three years costs $1,800. Browser-based systems that run on devices you already own avoid the whole category.
The add-on menu
Online ordering, gift cards, loyalty, kitchen displays, and advanced reporting are often priced as separate modules on top of the base plan. Ask for a written quote with every module you will actually use — the base price is not the price.
The Cost of Leaving
Early termination fees and auto-renewal
Multi-year terms carry ETFs that can run from a few hundred dollars to several thousand, and auto-renew clauses extend the term if you miss a 30-90 day notice window. Know both dates when you sign, not when you want out.
Your data
Historical sales, tax reports, and customer lists may only be exportable while the account is active — and sometimes only in limited formats. Export everything you will ever need before you cancel.
Six Questions That Surface Every Hidden Cost
- -What is my all-in effective rate at my average ticket size — in writing?
- -How long is the term, what is the ETF today, and when is the renewal notice window?
- -What does every add-on I will use cost — online ordering, gift cards, loyalty, reporting?
- -Is the hardware purchased, leased, or included — and what happens to it if I leave?
- -Which fees are deducted per batch rather than monthly?
- -Who owns my data, and in what format can I export it?
Where Ginger lands on all five: free POS software, processing as low as ~2% + 5c through payment partners (subject to volume), no contracts, and hardware included for eligible restaurants — the Ginger Box, up to two printers, a card terminal, and a touchscreen or tablet. See the full price list
Frequently Asked Questions
What are the hidden costs of a POS system?
Beyond the advertised software fee: payment processing markup and per-transaction fees, statement side fees (PCI, batch, gateway, monthly minimums), hardware purchases or leases, add-on module pricing for features like online ordering and gift cards, and exit costs — early termination fees, auto-renewal lock-ins, and data you cannot take with you. Processing is almost always the largest of these.
What is the single biggest hidden cost?
The payment processing rate, and inside it the per-transaction fee. On $50,000 a month in card volume, processing at 2.8% costs $1,400 a month — twenty times a $69 software fee. And on small tickets the fixed fee quietly adds one to two points: 2.99% + 49c is an effective 4.95% on a $25 ticket.
Why do free POS plans sometimes cost more than paid ones?
Because the software fee moves into the processing rate. Toast Starter is $0 a month at a commonly reported ~3.09% + 15c while the $69 Toast plan processes at 2.49% + 15c — on $50,000 of monthly volume the free plan works out roughly $231 a month more expensive. Always compare plans on the all-in number at your volume.
What side fees appear on processing statements?
PCI compliance and non-compliance fees, statement fees, batch fees, gateway fees, monthly minimums, and per-dispute chargeback fees. Individually small, they are deducted per batch or per month and all count toward your effective rate — add up one full month of them before judging any quote.
What should I ask before signing a POS contract?
Six questions: the all-in effective rate at your ticket size, in writing; term length, current ETF, and the renewal notice window; the price of every add-on you will use; whether hardware is bought, leased, or included, and what happens to it on exit; which fees deduct per batch; and who owns your data, with what export formats.
How do I find out what my current POS really costs me?
Take one full month: add the software fee, every processing deduction (percentage, per-transaction, and side fees), any add-on charges, and one-twelfth of annual fees. Divide the processing portion by your card volume for your effective rate. If the total surprises you, run the numbers through an effective-rate calculator and get a competing quote in writing.
Price the Whole Thing, Not the Sticker
Send us a statement or a quote and we will price all five categories against Ginger — in writing. No contracts, and hardware included for eligible restaurants.
© 2026 Ginger. Free restaurant POS with built-in AI phone ordering.