POS Pricing Transparency
Most POS companies hide their real costs. Here is why -- and how to protect yourself.
Your Biggest Expense Is the One You Don't See
For most tobacco retailers, the single largest technology expense is not the POS software. It is not the hardware. It is not the monthly subscription.
It is credit card processing fees.
A tobacco shop doing $50,000/month in credit card sales at the industry average rate of 2.6% pays $1,300/month in processing fees. That is $15,600 per year -- $46,800 over three years. Most POS companies do not mention this number because they profit from it.
$15,600
Annual processing fees
$50k/mo at 2.6%
$46,800
3-year processing fees
$50k/mo at 2.6%
$0
TORO with pass-through
Fee passed to customer
Why Most POS Companies Hide Their Pricing
The POS industry relies on complexity and confusion to extract more money from retailers. Here is how they do it.
When a POS company says their software is "free" or "$0/month," they are not being generous. They are making their money somewhere else -- almost always on processing fees. The business model is simple: give away the software to lock you into their payment processor, then take a cut of every transaction for the life of the relationship.
This is why you rarely see a specific processing rate on a POS company's website. They do not want you to do the math. Because if you did, you would realize the "free" POS costs $15,000-$50,000+ per year in processing fees.
Red Flags in POS Pricing
"Contact us for a quote"
They want to size you up before giving a price. The quote will be tailored to extract the maximum you'll pay, not the minimum they'll accept. Published pricing means everyone gets the same deal.
"Competitive processing rates"
Competitive compared to what? Without a specific number, this phrase is meaningless. Ask for the exact rate and watch the conversation shift to "it depends on your volume."
"Free POS system"
Nothing is free. If the hardware and software are free, the company makes its money on processing fees -- typically 2.6% or higher on every single transaction, forever. You pay far more over time.
"Low monthly fee" (with no mention of transaction costs)
A $0 or $50/month software fee sounds great until you realize you are paying 2.5%+ on every credit card swipe. On $50,000/month in sales, that is $1,250/month in hidden processing fees.
"Custom pricing for your business"
Translation: they will charge you as much as they think you will pay. Custom pricing benefits the seller, not the buyer. Transparent pricing benefits everyone equally.
6 Questions to Ask Any POS Company Before Signing
Arm yourself with these questions. If a vendor cannot answer them clearly, that tells you everything you need to know.
What is your exact credit card processing rate?
If they cannot give you a specific percentage (e.g., 2.6% + $0.10), walk away. Vague answers like 'competitive' or 'it depends' are designed to obscure the real cost.
What is the total 3-year cost including all fees?
Monthly software fees, transaction fees, per-user fees, add-on features, hardware leases -- add it all up. Most retailers are shocked when they see the real number.
Can I use my own credit card processor?
If the answer is no, the POS company likely profits from your processing fees. That is a conflict of interest: they benefit when your processing costs are high.
Are there per-user or per-location fees?
Some POS systems charge $15-50 per additional user per month. If you have 4 employees, that could add $720-2,400/year in hidden costs.
What features require paid add-ons?
Loyalty programs, SMS marketing, advanced reporting, e-commerce integration -- these are often sold as add-ons at $20-100/month each. Ask what is actually included in the base price.
What happens if I want to cancel?
Long-term contracts with early termination fees are common. Some companies lock you in for 3-5 years. Ask about contract length, cancellation fees, and data portability.
TORO Publishes Everything
No "contact for quote." No hidden fees. Here is every cost, published publicly.
| Item | Price |
|---|---|
| Software (one-time) | $5,000 |
| Monthly subscription | $119/month |
| Processing rate | 1.8-2.2% (avg 2%) |
| Fee pass-through option | Available (retailer pays $0) |
| Per-user fees | $0 |
| Per-transaction software fees | $0 |
| Feature add-ons | $0 -- core features included |
| SMS marketing | Usage-based fees (currently paused for new accounts) |
| Mailchimp integration | $8.99/month |
| E-commerce integration | Included |
| Support | Unlimited, included |
| Software updates | Free, forever |
| Contract length | Month-to-month |
That is it. $5,000 upfront + $119/month. All features included. No per-user fees. No transaction fees with pass-through.
Why We Publish Our Pricing
TORO was built by tobacco retailers for tobacco retailers. We are not a tech company trying to monetize your transaction volume. We run cigar shops. We know what it is like to get a statement full of unexplained fees.
We publish our pricing because we believe you deserve to know what you are paying before you pick up the phone. If our pricing does not work for your business, we would rather you know that upfront than waste your time and ours.
We also believe that transparent pricing builds trust. When you sign up with TORO, you know exactly what your costs are today and what they will be next year. No surprises. No rate increases buried in contract amendments.
For detailed processing rate comparisons across the industry, see our industry average rates analysis.
Honest Pricing. No Surprises.
See TORO in action and verify every number on this page in a live demo.