Is free POS cheaper? A worked US store cost example
A free POS software plan is cheaper overall only when its combined software, processing and other required costs are lower. In the invented one-store example below, the $0 software route saves US$19 in a normal month, but US$350 of new equipment makes it US$122 more expensive over the first year. Replace every sample input with your written quote.
Set one store and one period before comparing
Suppose one US shop processes US$20,000 in card sales across 500 card transactions per month. Offer A has US$0 monthly software and an invented processing quote of 2.60% plus US$0.10 per transaction. Offer B has US$99 monthly software and an invented processing quote of 2.20% plus US$0.10. Assume no other recurring charges for this exercise.
These processing rates and equipment costs are fictional teaching inputs, not VoVi rates, a competitor quote or a result achieved by a customer. The software amounts reflect VoVi’s US options: US$0 with its processor, subject to merchant approval, or US$99 per month per location with another processor. Processing and hardware remain separate.
Calculate the normal month
For each offer, multiply card volume by the percentage, add the number of transactions times the per-transaction charge, then add software and every other recurring fee. Compare the same types of card sales in both columns. If different card types have different rates, calculate each category separately before adding the total.
| Monthly line item | Offer A: $0 software | Offer B: $99 software |
|---|---|---|
| Card volume × percentage | US$20,000 × 2.60% = US$520 | US$20,000 × 2.20% = US$440 |
| Per-transaction charges | 500 × US$0.10 = US$50 | 500 × US$0.10 = US$50 |
| Software | US$0 | US$99 |
| Total modeled recurring cost | US$570 | US$589 |
Bring equipment back into the first-year budget
Now suppose A needs US$350 of new equipment and B can reuse confirmed-compatible equipment at no new cost. Twelve normal months cost A US$570 × 12 + US$350 = US$7,190. B costs US$589 × 12 = US$7,068. A has the lower monthly bill, while B uses US$122 less cash in the first year.
With every assumption unchanged, recovering A’s US$350 upfront difference at US$19 a month takes about 18.4 months. This is a simple cash comparison, not a forecast. A financing payment, added terminal, change in sales or contract charge changes the result. Costs absent from this example, including taxes, must be added where they apply to your actual quote.
Check a busier month before choosing
Double card sales to US$40,000 and transactions to 1,000, keeping both sample quotes unchanged. A becomes US$1,040 + US$100 = US$1,140 a month. B becomes US$880 + US$100 + US$99 = US$1,079. The paid-software route is now US$61 cheaper per month. A useful comparison includes both a normal and a busy trading period.
The recurring-cost crossover in this particular example is US$24,750 of monthly card sales: US$99 divided by the 0.004 difference between the percentage rates. The identical per-transaction fees cancel out. This shortcut stops working as written if those fees, payment mix, fixed charges or software amounts differ. It also ignores the upfront equipment difference.
Replace the sample with the evidence for your shop
Use a complete recent statement, your location count and two comparable written proposals. List migration costs, recurring terminal charges and required add-ons explicitly. Run the cost calculator with those inputs, then keep a dated copy of the assumptions next to the quotes. If the arithmetic is close, checkout fit, support and an achievable changeover can matter more than a small modeled saving.
Sources & verification
Provider details can change. Confirm your written quote and local requirements before signing.