The short version
- The software on a real free plan costs nothing per month. Not a trial, not a teaser.
- You pay a percentage plus a few cents on each card sale. Cash costs nothing.
- Hardware is optional. Your phone can take tap payments on its own.
- Walk away from any "free" deal with a lease, a monthly minimum or an early termination fee.
What do you actually pay for with a free POS?
Card processing. That's the one cost you can't dodge, and you'd pay it on any POS, free or not. Everything else is either genuinely free or something you opt into.
| Cost | Do you pay it? | When it shows up |
|---|---|---|
| POS software | No | Never, on a true free plan. |
| Card processing | Yes | On every card sale, taken out before the money hits your bank. |
| Cash and checks | No | Recording them is free. |
| Hardware | If you want it | Once, when you buy a reader, stand or printer. |
| Paid add-ons | If you want it | Monthly, only for extras you switch on, like payroll or loyalty. |
| Instant payouts | If you want it | A small cut when you want money today instead of the next business day. |
On Square Free
What this looks like on Square Free
Square Free is the plan we set most people up on. Here's how it lines up with the list above.
- 2.6% + 15¢Tap, dip or swipe
- 3.3% + 30¢Online and invoices
- 3.5% + 15¢Keyed in or card on file
- No monthly software fee. Square's own pricing page says no hidden fees and no locked-in contracts, and you can cancel or switch plans anytime.
- PCI compliance is handled at no extra cost when you run payments through Square.
- Cash and checks cost nothing to record.
- Hardware is bought outright, not leased, and you don't need any to start: Tap to Pay works on a phone.
Full rate table and the monthly math on our pricing page. Readers and counter hardware are on Square rates and hardware.
Why would anyone give POS software away?
Because the software isn't the product. The payments are.
A free POS company earns a small slice of every card sale you run through it. If your business does well, they do well. Some of them also sell hardware, and most have paid plans with extra features for the businesses that need them. Give the software away, make it good, and enough people stick around and grow.
We'll be upfront about our side too. Free POS System is a division of POSUSA, and we get paid by the provider when you sign up through us, not by you. You pay the same published rates either way. The details are on our disclosure page.
Where does "free" stop being free?
Usually in the paperwork, not the pitch. These are the free POS hidden fees and traps that show up again and again:
The hardware lease
"Free" equipment paid off through a lease, often years long, that can't be canceled and keeps billing after you stop using the system.
Early termination fees
Leave before the contract ends and you owe a flat fee or, worse, a charge based on every month left on the term.
Monthly minimums
Process less than a set amount in fees and you pay the difference. Slow months get expensive.
Junk fees
PCI fees, statement fees, "account" fees. Small lines that add up, and nobody mentions them on the sales call.
A higher rate in disguise
Free gear in exchange for a processing rate that's well above the going rate. You pay for the hardware many times over.
Fees pushed onto customers
Some "free processing" setups add a surcharge or cash discount at checkout. Legal in most places, but your customers notice.
None of that is required to run a POS. A truly free plan has no lease, no minimum and no contract, so you can leave whenever you want. If you're already stuck in one of these, our guide to switching POS systems covers how to get out cleanly.
How do you spot a bad "free" deal before you sign?
Search the agreement for five words. If any of them come with a dollar amount or a number of months attached, slow down.
- Leasewho owns the gear?
- Termhow long?
- Terminationwhat does leaving cost?
- Minimummonthly floor?
- Auto-renewnotice window?
Then ask for the whole fee schedule in writing, not a "typical" rate. A provider with nothing to hide will send it in one email. We keep a longer list of questions to ask before signing up for any free POS on our pricing page.
So is a free POS cheaper than paying for one?
For most small businesses, yes. A POS system with no monthly fee only costs you when you make a sale, which is hard to beat when things are slow. A paid plan has to save you more in lower rates or earn you more through extra features than its monthly fee costs, and at small volumes it rarely does on rates alone.
It flips at some point, though. If you want the math and the signs you've outgrown free, read free POS vs paid POS. And if you're wondering what gear you actually need, the POS hardware guide keeps it cheap.
Questions people ask
Is there a catch with free POS software?
Not with every one. On an honest free plan the catch is just the processing fee on card sales, which you'd pay on any POS. The catches to watch for are leases, early termination fees, monthly minimums and "free" hardware tied to a higher rate.
Do free POS systems charge a monthly fee?
A real free plan doesn't charge one for the software. Paid add-ons and upgraded plans do, but only if you turn them on. If a "free" offer has any required monthly line item, it isn't free.
Is free POS hardware really free?
Sometimes, for one small item like a basic reader. When a whole countertop setup is "free," it's usually paid for through a lease, a contract, or a higher processing rate. Ask who owns the equipment and what leaving early costs.
Do I have to sign a contract to use a free POS?
You shouldn't. A good free plan is month to month with no early termination fee. If someone asks you to sign a multi-year agreement for "free," read it twice and get the exit cost in writing.
If you go with Square
Is Square Free really free?
The software is. Square Free has no monthly fee and no contract. Square makes its money from a fee on each card payment, and on the hardware and paid add-ons you choose to buy. Current rates are on our pricing page.