15 Questions to Ask Before Buying a POS System

Purchasing a POS system is a multi-year commitment that affects every aspect of your daily operations. Asking the right questions upfront ensures you avoid hidden costs, functionality gaps, and vendor lock-in. Here are 15 essential questions to ask every POS vendor before making a decision.

Pricing and Contracts

1. What is the total monthly cost including all modules I need? Get an itemized quote that includes every feature you require, not just the base subscription price.

2. Am I required to use your payment processing, or can I choose my own processor? This is the single most important question. Proprietary processing often costs significantly more than competitive alternatives.

3. What is the contract length, and what are the early termination fees? Month-to-month agreements are ideal. If a long-term contract is required, understand the exact cancellation penalties.

Hardware and Setup

4. Do I own the hardware outright, or is it leased? Leased hardware must typically be returned upon cancellation and may cost more over time than purchasing.

5. What happens to my data if I switch to a different POS? Confirm that you can export your transaction history, customer database, and inventory data in a standard format.

6. What is the installation timeline and cost? Understand who handles setup, data migration, and on-site installation.

Functionality and Support

7. What integrations are available out of the box? Verify compatibility with your accounting software, ecommerce platform, marketing tools, and any other systems you rely on.

8. How does the system perform when the internet goes down? Offline processing capability is critical for uninterrupted service during outages.

9. What does customer support include, and what are the hours? 24/7 phone support is essential for restaurants and businesses with evening or weekend hours.

10. How often is the software updated, and are updates included? Regular updates ensure security patches and new features without additional cost.

Scalability and Growth

11. What is the cost to add additional terminals or locations? Understand the per-terminal pricing and whether multi-location management is available.

12. Can the system handle my projected growth over the next three to five years? Choose a system that scales with your business rather than one you will outgrow.

13. Are there transaction volume caps or throttling? Some plans limit the number of transactions or processing volume per month.

Security and Compliance

14. Is the system PCI DSS compliant, and how is compliance maintained? Payment security should be built into the system, not an afterthought.

15. How is customer payment data stored and protected? Tokenization and end-to-end encryption should be standard features, not paid add-ons.

Get an Independent Evaluation

POS vendors are incentivized to sell you their system. Mogil Partners provides independent POS evaluations focused on your actual business needs and total cost of ownership, with special attention to payment processing costs. Contact us before you sign.