EPOS (Electronic Point of Sale) systems cost between £600 and £2,500 for a single-terminal setup, plus £0–£165 per month for software. The total you pay depends on whether you choose a free plan with higher transaction fees (compare merchant account costs) or a paid subscription with lower rates and more features.
FREE QUOTE COMPARISON
Compare EPOS Quotes from Trusted Suppliers
✓ EPOS systems from £0 upfront
100% free • No obligation • Takes under 2 minutes
The UK EPOS market has shifted dramatically in recent years. Three major providers – SumUp, Square, and PayPal POS (formerly Zettle) – now offer genuinely free software plans, meaning the real cost comparison has moved from monthly fees to transaction rates and hardware bundles.
In this guide, we break down exactly what EPOS systems cost by component, compare the 7 most popular UK providers on pricing, and show you the true 3-year cost of ownership – including the hidden costs most providers don’t advertise.
- Transaction fees outweigh software costs for most businesses - a 0.26% fee difference equals £260/year on £100K turnover, so prioritise low rates over feature-rich plans
- Full EPOS setup costs £500–£3,000+ for a single terminal - software from £0–£69/month, hardware from £29 (card reader) to £959+ (full terminal), plus installation from £50–£200
- Free plans from Square, SumUp, and PayPal Zettle - viable for single-location businesses with basic needs, but transaction fees are higher (1.75% vs 0.99% on paid plans)
- 3-year total cost of ownership is the real comparison - a “free” plan at 1.75% on £200K turnover costs £10,500 in fees vs £7,080 for a paid plan at 0.99% + £69/month
- Negotiate rates above £100K annual volume - Clover goes as low as 0.2% for high-volume merchants; SumUp’s Payments Plus drops to 0.99% for £19/month
How Much Does an EPOS System Cost?
An EPOS system costs £600–£2,500 for hardware and setup, plus £0–£165/month for software. Transaction fees of 1.49–1.75% apply on every card payment. Three providers offer free software: SumUp, Square, and PayPal POS.
EPOS costs break down into four components: hardware (the physical equipment), software (the app that runs it), transaction fees (a percentage of every card sale), and installation/training.
| Cost Component | Budget | Standard | Premium |
|---|---|---|---|
| Software (monthly) | £0 | £25–£50 | £69–£165 |
| Card reader | £19–£29 + VAT | £49–£79 + VAT | £149–£169 + VAT |
| Receipt printer | £145–£189 + VAT | £199–£250 + VAT | £319+ VAT |
| Cash drawer | £40–£49 + VAT | £79–£100 + VAT | £319+ VAT |
| Installation | £100–£300 | £200–£500 | £500–£1,000 |
| Total Setup | £600–£1,200 | £1,200–£2,000 | £2,000–£3,500 |
iPad-based systems (Square, SumUp, PayPal POS) are typically 30–50% cheaper than proprietary terminals (Epos Now, Lightspeed) because you supply your own tablet. However, proprietary systems often include dedicated support and more robust hardware.
EPOS Software Costs by Provider
EPOS software ranges from £0 to £229/month. SumUp, Square, and PayPal POS offer free plans with no monthly fees – you only pay transaction fees of 1.69–1.75% per card sale.
| Provider | Free Plan | Starter | Standard | Premium |
|---|---|---|---|---|
| SumUp | £0/mo | £19/mo (Plus) | £49/mo (Pro) | – |
| Square | £0/mo | £49/mo (Plus) | Custom | – |
| PayPal POS | £0/mo (forever) | – | – | – |
| Shopify POS | £5/mo (Starter) | £69/mo (POS Pro) | – | – |
| Epos Now | – | £25/mo | Custom | – |
| Lightspeed | – | £89/mo | £149/mo | £229/mo |
| Clover | – | Custom | Custom | Custom |
Free doesn’t mean limited. SumUp’s free plan includes inventory management, basic reporting, and table management for hospitality. Square’s free plan adds team management and a loyalty programme. PayPal POS’s forever-free model has no paid tiers at all – the same features for everyone.
Paid plans become worthwhile when you need advanced inventory tracking, multi-location management, or detailed analytics. Lightspeed’s £89–£229/month plans, for example, include e-commerce integration, supplier management, and custom reporting that smaller providers don’t offer at any price.
For a detailed review of Lightspeed’s features, see our Lightspeed EPOS review.
Transaction Fee Comparison
In-person transaction fees range from 1.49% (Clover) to 1.75% (Square, PayPal POS). On £100,000 annual card revenue, a 0.26% difference equals £260 per year – making fees more important than monthly software costs for most businesses.
| Provider | In-Person | Online (UK Cards) | Keyed-In | Annual Cost on £100K Revenue |
|---|---|---|---|---|
| Clover | 1.49% | 2.5% + £0.25 | 3.5% + £0.10 | £1,490 |
| SumUp | 1.69% | 2.5% | 2.95% + £0.25 | £1,690 |
| Square | 1.75% | 1.4% + £0.25 | 2.5% | £1,750 |
| PayPal POS | 1.75% | 2.5% | 2.5% | £1,750 |
| Shopify | 1.5–5% | 1.5–5% + £0.25 | N/A | £1,500–£5,000 |
For businesses processing under £50,000 annually, the fee difference between providers is negligible (under £130/year). Focus on features and ease of use instead.
For high-volume businesses processing £200,000+, transaction fees dominate your total costs. Clover’s 1.49% rate saves £520/year versus Square’s 1.75% on £200K revenue. SumUp’s Payments Plus add-on (£19/month) reduces your rate to 0.99% on UK cards – potentially saving over £1,000/year for qualifying businesses.
EPOS Hardware Costs
EPOS hardware costs £19–£169 for a card reader, £169–£1,329 for a full countertop kit, and £619+ for a complete retail bundle with receipt printer, cash drawer, and barcode scanner.
| Hardware | Budget | Mid-Range | Premium |
|---|---|---|---|
| Card reader | £19 + VAT (Square) | £49–£79 + VAT | £149–£169 + VAT |
| iPad stand/terminal | £99–£109 + VAT | £169 + VAT | £599–£959 |
| Receipt printer | £145–£189 + VAT | £199–£250 + VAT | £319–£335 + VAT |
| Cash drawer | £40–£79 + VAT | £95–£100 + VAT | £319–£320 + VAT |
| Barcode scanner | £60–£89 + VAT | £150–£219 + VAT | £311–£335 + VAT |
| Complete retail kit | £619 + VAT (PayPal POS) | £959 (Epos Now) | £1,329+ VAT |
The cheapest entry point is a Square Reader at £19 + VAT paired with a smartphone – no other hardware required. This works well for market stalls, pop-up shops, and mobile businesses – sectors where mobile payment adoption has grown fastest.
For a permanent retail counter, expect to spend £600–£1,200 on a card reader, receipt printer, cash drawer, and tablet stand. Budget-conscious businesses can save by using their own iPad or Android tablet rather than buying proprietary hardware.
EPOS Costs by Business Size
A solo trader can get started with EPOS for £1,200–£3,600 in the first year. Small retailers with 3–5 staff should budget £4,100–£11,900, while multi-site businesses face £35,000–£145,000 depending on complexity.
| Business Size | Hardware | Software (Annual) | Transaction Costs* | Year 1 Total |
|---|---|---|---|---|
| Solo trader | £600–£1,000 | £0–£600 | £500–£1,500 | £1,200–£3,600 |
| Small (3–5 staff) | £1,500–£3,000 | £600–£2,400 | £1,500–£5,000 | £4,100–£11,900 |
| Medium (10 staff) | £4,000–£8,000 | £2,400–£7,200 | £3,000–£10,000 | £10,400–£28,200 |
| Multi-site (25+ staff) | £10,000–£25,000 | £12,000–£60,000 | £10,000–£50,000 | £35,000–£145,000 |
*Transaction costs based on £50K–£500K annual card revenue at 1.69% average.
For the full comparison of top-rated systems, see our guide to the 7 best EPOS systems in the UK.
Hidden Costs to Watch For
Hidden EPOS costs can add £1,000–£6,000 to your total bill. Common surprises include installation fees, staff training, integration charges, network upgrades, and payment terminal rental fees buried in contracts.
The advertised price of an EPOS system rarely tells the full story. Here are the costs most providers don’t mention upfront:
1. Installation and setup (£100–£3,000). Some providers include basic setup for free, others charge £500+ for on-site installation. Remote setup is cheaper but may require technical confidence.
2. Staff training (£50–£500 per person). Complex systems like Lightspeed or Epos Now may require paid training sessions. Simpler systems (Square, SumUp) are designed to be self-taught.
3. Integration fees (£10–£100/month each). Connecting your EPOS to accounting software (Xero, QuickBooks), delivery platforms (Deliveroo, Uber Eats), or e-commerce (Shopify, WooCommerce) often requires paid add-ons.
4. Network upgrades (£300–£2,000). EPOS systems need reliable internet. If your premises has poor connectivity, you may need to upgrade your broadband or install a dedicated business line.
5. PCI DSS compliance. All businesses accepting card payments must comply with Payment Card Industry Data Security Standards. Most modern EPOS providers handle this for you, but some charge a monthly compliance fee (£10–£30).
6. Contract exit fees. Some providers lock you into 12–36 month contracts with early termination fees of £100–£500. Always check the minimum term before signing.
7. Hardware replacement. Card readers and receipt printers typically last 3–5 years. Budget for 30–50% of your original hardware cost every 3–5 years for replacements.
3-Year Total Cost of Ownership
Over 3 years, a free-plan EPOS system costs approximately £5,700 total (hardware + fees). A £25/month subscription totals £6,600, while a £69/month premium plan reaches £9,184 – all assuming £100K annual card revenue.
| Pricing Model | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| Free software (e.g. SumUp) | £2,700 | £1,500 | £1,500 | £5,700 |
| £25/mo subscription (e.g. Epos Now) | £3,000 | £1,800 | £1,800 | £6,600 |
| £69/mo subscription (e.g. Shopify POS Pro) | £3,528 | £2,328 | £2,328 | £8,184 |
| £89/mo premium (e.g. Lightspeed) | £3,768 | £2,568 | £2,568 | £8,904 |
Based on £1,200 hardware + £100K annual card revenue at 1.5% average fees. Excludes installation and training.
The cheapest 3-year option isn’t always the best value. A £69/month Shopify POS Pro plan gives you integrated online + in-store selling, which could generate more revenue than the £2,484 difference versus a free plan over 3 years.
Don’t just compare monthly fees – calculate the 3-year total cost including transaction fees and hardware. Free-plan EPOS systems save £900–£3,200 over paid plans, but paid plans offer features that may generate more revenue than they cost.
EPOS Costs by Industry
Retail EPOS costs £1,000–£2,500 for initial setup. Hospitality businesses pay £1,500–£3,000 due to kitchen display systems and table management. Multi-site businesses face £5,000–£15,000+ per location.
| Industry | Setup Cost | Monthly Cost | Key Requirements |
|---|---|---|---|
| Retail (boutique/shop) | £1,000–£2,500 | £0–£50 | Barcode scanning, inventory, purchase orders |
| Hospitality (cafe/restaurant) | £1,500–£3,000 | £25–£100 | Table management, kitchen display, tipping |
| Salon/spa | £800–£1,500 | £0–£50 | Booking integration, client records |
| Mobile/market stall | £19–£300 | £0 | Portable card reader, smartphone app |
| Multi-site retail | £5,000–£15,000+ | £100–£500 | Multi-location inventory, central reporting |
Hospitality businesses pay more because they need specialised features: table mapping, kitchen printers, course management, and split-bill functionality. These are typically only available on paid plans (£25–£100/month) rather than free tiers.
For industry-specific recommendations, see our guides to EPOS for hospitality, EPOS for spas and salons, and EPOS for gyms.
Free vs Paid EPOS: Which Is Worth It?
Free EPOS plans suit solo traders and small retailers processing under £100K annually. Paid plans become worthwhile when you need multi-location management, advanced inventory, or integrated e-commerce – typically when annual card revenue exceeds £150K.
For a full comparison of free options, see our best free EPOS systems guide.
How to Reduce EPOS Costs
Save 20–40% on EPOS costs by starting with a free plan, using your own tablet, negotiating volume transaction rates, and timing your purchase for end-of-quarter discounts when providers offer the best hardware deals.
1. Start with a free plan. SumUp, Square, and PayPal POS all let you start for free. You can always upgrade later – and you’ll have a better idea of which features you actually need.
2. Use your own hardware. An iPad Air costs £599 and runs Square, SumUp, or Lightspeed. That’s often cheaper than buying a proprietary terminal at £959+.
3. Negotiate transaction rates. If you process £100K+ annually, most providers will negotiate lower rates. Clover can go as low as 0.2% for high-volume merchants. SumUp’s Payments Plus (£19/month) drops your rate to 0.99%.
4. Buy hardware outright. Leasing spreads costs but is more expensive long-term. A £1,200 hardware bundle on a 3-year lease at £50/month costs £1,800 – 50% more than buying outright.
5. Claim capital allowances. EPOS hardware qualifies for 100% Annual Investment Allowance, meaning you can deduct the full cost from your taxable profits in year one.
6. Compare at least 3 providers. Prices for identical setups can vary by 30–50% between providers. Always get written quotes from at least 3.
For a full comparison of systems, see our guide to comparing EPOS systems.
EPOS Financing Options
EPOS systems can be financed through outright purchase, leasing (£50–£200/month), provider financing (often 0% for 12 months), or business loans. Buying outright is 30–50% cheaper over 3 years than leasing.
Outright purchase: The cheapest long-term option. Hardware costs £600–£2,500 upfront, and you own the equipment with no ongoing lease payments. Qualifies for capital allowances.
Provider financing: Epos Now and Lightspeed offer 0% interest for 12 months on hardware bundles. After the interest-free period, rates typically jump to 15–25% APR.
Leasing: Spreads costs to £50–£200/month but costs 30–50% more over the contract term. Useful for cash-flow management but not cost-effective.
Business loan: If you need a full multi-terminal setup (£5,000+), a business loan at 5–8% APR is typically cheaper than provider financing after the interest-free period ends.
Buy hardware outright if you can afford it – leasing costs 30–50% more over 3 years. If cash flow is tight, take advantage of provider 0% financing for 12 months, but set a reminder to pay off the balance before interest kicks in.
How to Choose the Right EPOS System
Choose your EPOS system based on business type (retail vs hospitality), transaction volume (free plan vs paid), number of locations, and integration needs. Always test with a free trial before committing to hardware.
Follow this decision framework:
Step 1: Define your must-haves. Do you need inventory management? Table service? Online selling? Kitchen displays? Make a list of non-negotiable features before comparing providers.
Step 2: Calculate your transaction volume. Under £50K/year? Transaction fee differences are minimal – choose on features. Over £100K? Fees become the dominant cost – optimise for the lowest rate.
Step 3: Consider growth. If you plan to open additional locations within 2 years, choose a system that supports multi-site management now. Switching EPOS providers is disruptive and costly.
Step 4: Test before you buy. Most providers offer free trials (Square, SumUp, Lightspeed). Use the free period to test with real transactions before investing in hardware.
Step 5: Get written quotes. Always request a formal quote including all costs – hardware, software, installation, training, and transaction fees. Compare the 3-year total, not just the monthly price.
For reviews of individual providers, see our Epos Now review and Lightspeed review.
Use our free EPOS System Cost Calculator to estimate hardware, software, and setup costs by business type and compare ownership models. EPOS System Cost Calculator →
