One-off vs. subscription: what does a payment solution really cost?
Two terminals with the same shelf price can cost very differently over a year. The gap lies in four items that are easy to overlook. Here is how to do the maths properly.
The four costs that matter
- Hardware: one-off or paid off over time? Do you own it afterwards?
- Software and licence: is the POS app included, or is there a monthly licence on top?
- Transaction fee: the percentage you pay per payment — the big item at high volume.
- Contract and exit: how long are you tied in, and what does it cost to leave?
A concrete example
Picture two businesses with the same €99 terminal but different turnover. One taking €15,000 in card sales a year pays about €224 in fees at 1.49%. One taking €60,000 pays €894. For the latter, a subscription with a lower rate can start to pay off — for the former it almost never does.
Rule of thumb: the lower and more variable your volume, the more a no-contract one-off purchase makes sense. The higher and steadier your volume, the more a low-rate subscription can be justified.
See how the contract-free terminals score in our comparison.
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