Processing fees dominate POS TCO.
Most POS buyers focus on the headline software price ($0, $69, $89, $165/mo). The real cost is processing. At $40K/mo card volume — a typical small restaurant — processing runs $1,000-$1,150/mo, multiples of the software line. At $150K/mo it's $3,800-$4,500/mo, an order of magnitude more.
Per-vendor fee structures vary. Square's 2.6% + $0.15 is consistent at all volumes. SpotOn's 1.99% + $0.25 has a higher flat fee that hits low-ticket verticals harder. Toast's 2.49% + $0.15 only applies to Point of Sale ($69/mo) tier — Starter Kit ($0/mo) has higher locked processing.
Monthly processing cost by volume — $25 avg ticket
Representative for restaurants and mid-ticket retail.
| Monthly volume | Square | Toast | Clover | Lightspeed | Shopify POS | SpotOn |
|---|---|---|---|---|---|---|
| $10K/mo | $320 | $309 | $300 | $300 | $300 | $299 |
| $25K/mo | $800 | $773 | $750 | $750 | $750 | $748 |
| $40K/mo | $1280 | $1236 | $1200 | $1200 | $1200 | $1196 |
| $80K/mo | $2560 | $2472 | $2400 | $2400 | $2400 | $2392 |
| $150K/mo | $4800 | $4635 | $4500 | $4500 | $4500 | $4485 |
Coffee shop scenario — $8 avg ticket
Low-ticket high-volume vertical. Watch SpotOn flip from cheapest to most expensive.
| Monthly volume / tx | Square | Toast | Clover | Lightspeed | Shopify POS | SpotOn |
|---|---|---|---|---|---|---|
| $25K / 3,125 tx | $1119 | $1091 | $963 | $963 | $963 | $1279 |
| $50K / 6,250 tx | $2238 | $2183 | $1925 | $1925 | $1925 | $2558 |
At $8 average ticket, SpotOn's $0.25 flat fee on every transaction adds up fast. A coffee shop doing 6,250 transactions/mo pays $1,563 in flat fees alone with SpotOn — more than the entire processing cost on Square. The break-even average ticket where SpotOn beats Square is approximately $20.
Practical recommendations by vertical
- Coffee / QSR (avg ticket under $15): Square or Clover (both 2.6%) win on low-ticket volume. SpotOn loses badly.
- Full-service dining (avg ticket $25-$60): Toast 2.49% wins on volume. SpotOn 1.99% beats Toast above $35 average ticket.
- Mid-market retail (avg ticket $30-$80): Lightspeed or Shopify POS at 2.6% + $0.10 is competitive. SpotOn wins above $40 ticket.
- High-volume merchants (over $100K/mo): Negotiate with Toast / Clover / Heartland for sub-2.5% rates. The published headline rates are starting points for high-volume buyers, not ceilings.