How to choose a POS system in Australia: A 7-step guide

Key takeaways

• Choose a POS system by mapping how you sell, listing must-have features, then comparing total cost – software, hardware and card fees – over a set period, not just the headline rate.

• Card fees now matter more: surcharging on eftpos, Mastercard, and Visa ended on 1 October 2026, so businesses absorb the full cost of every card payment.

• Airwallex lets you accept online payments in 130+ currencies today, with POS Payments for in-person sales launching soon in Australia, giving you one platform for every channel.

To choose a POS system, start with how and where you sell, then compare systems on features, total cost, payment terms, integrations and contract terms. Knowing how to choose a POS system stops you from overpaying for features you don't need, or signing up for a rate that gets expensive as you grow.

Getting it right matters more now. Since 1 October 2026, businesses can no longer pass card fees on to customers as a surcharge, so those fees comes straight out of your margin. This guide gives you a 7-step process, a worked cost example and a checklist to score each system on your shortlist.

How to choose a POS system in Australia

You can choose a POS system in Australia by working through these seven steps in order:

1. Map how you sell: Take note of your channels, locations, transaction volumes and growth plans.

2. List your features: Separate must-haves from nice-to-haves.

3. Pick a setup: Decide between all-in-one POS or POS software plus an EFTPOS terminal.

4. Work out total cost: Add software, hardware and card fees over 12 months.

5. Check payment terms: Compare pricing models, least-cost routing and settlement speed.

6. Check integrations, security and support: Confirm it connects to your tools and stays reliable.

7. Trial it and check the contract: Test it on a busy day and read the exit terms before signing.

Each step is explained in detail below.

Step 1: Map how, where and what you sell

The right POS system depends on how your business sells, so start by writing down how you trade today and how you expect to trade in two to three years. Answer these questions first:

• Which channels do you sell through – in-store, online, markets, events or phone?

• How many transactions do you process on an average day, and when are your peak times?

• How many products or SKUs do you carry, including sizes, colours and other variants?

• How many locations and staff will use the POS system?

• Do you serve international or tourist customers?

• What are your growth plans for the next 2–3 years?

Use your answers to narrow down the type of setup you need:

Countertop, mobile, tablet, self-service kiosk and SoftPOS are among the main types of POS systems – your sales pattern will usually point clearly to one or two.

Step 2: List your must-have and nice-to-have features

Split your feature list into must-haves and nice-to-haves, then rule out any POS system that misses a must-have. Many Australian businesses need the features in the left column; the right column depends on your industry and size.

Retailers usually weigh inventory and variant management most heavily. Hospitality businesses tend to prioritise table management, split bills and kitchen displays.

Don't pay for features you won't use. Many POS system software plans are tiered, and the jump to a higher tier often adds tools – advanced analytics, multi-location management – that a single-site business may never touch.

Step 3: Decide between an all-in-one POS or POS software plus an EFTPOS terminal

You can buy a POS system that bundles software and payments from one provider, or pair POS software with a separate EFTPOS terminal from a payment provider you choose. Neither is better – the right choice depends on your card volume and the features you need.

An all-in-one POS suits businesses that want a simple setup with one point of contact. It's often the fastest way to start trading, especially for new or single-location businesses.

POS software plus a separate terminal can suit businesses with specialised software needs. Separating the two may let you negotiate payment rates independently and use least-cost routing to send eligible dual-network debit payments through the lower-cost network where available, without changing the software your staff already know.

Step 4: Work out the total cost of ownership

The total cost of a POS system is your software, hardware and card fees added together over 12 months – not the monthly subscription on its own. Include all four cost buckets:

• Software subscription: From $A0 to A$300+ per location per month.

• Hardware: Buy a terminal outright, rent one monthly, or use your own phone or tablet.

• Card processing fees: A percentage, a per-transaction fee or both.

• Extras: Setup fees, add-ons, extra registers, chargeback and refund fees, and instant payout fees.

Card processing fees can become the largest variable cost as sales grow. The worked example below compares two setups over 12 months.

Illustrative example only – not based on any provider's pricing. 

• Setup A: A$0 for software, A$329 terminal (purchased once), 1.6% flat rate

• Setup B: A$129/month for software, A$29.50/month terminal rental, 0.99% rate

The lowest monthly fee isn't always the lowest total cost. As your card volume grows, the rate difference matters more – Setup B costs A$841 more at A$10,000 a month but saves A$623 at A$30,000 a month. Run your own numbers using last year's card sales and compare online payment gateway fees too.

Eligible small businesses with aggregated turnover below A$10 million may be able to immediately deduct the business portion of eligible POS hardware costing less than A$20,000 per asset, if it is first used or installed ready for use in the income year; exclusions apply, so speak to your accountant.

Step 5: Check the payment processing terms

Payment processing terms decide how much each sale costs you and how quickly you get paid, so check them as closely as the software. Focus on these six areas.

Pricing model

Providers use several pricing models, including flat or blended rates, cost-plus (interchange-plus), tiered pricing and custom pricing. Flat rates are simpler to understand. Cost-plus pricing can be cheaper at higher volumes – ask for a sample statement so you can compare models at your volume.

The surcharging ban

From 1 October 2026, businesses can't surcharge eftpos, Mastercard or Visa card payments, and American Express will also voluntarily remove its surcharges. Weekend and public holiday surcharges aren't affected, and you can still offer discounts for other payment methods.

Least-cost routing

Least-cost routing (LCR) lets merchants choose how eligible dual-network debit payments are routed; eftpos is often cheaper, but compare network and plan costs. RBA analysis found debit acceptance costs were nearly 20% lower on average with LCR enabled, with results varying by merchant size and pricing plan. Ask each provider whether LCR is on by default or requires a request.

Settlement speed

Settlement speed is how quickly card payments reach your account – same day, next day or two or more business days.

• Check whether faster settlement requires you to hold an account with the provider.

• Ask whether instant payouts cost extra, and how much.

Payment methods

Your POS system should accept the ways your customers already pay: tap, chip, mobile wallets such as Apple Pay and Google Pay, international cards, QR codes and local wallets, and buy now, pay later (BNPL). International cards often cost more to accept than domestic cards, so check the rate if they are part of your payment mix.

Refunds, chargebacks and other fees

Fees outside the headline rate can add up quickly. Ask about:

• Per-refund and per-chargeback fees.

• Minimum monthly fees, and whether they apply in quieter months.

Understanding how payment processing works makes it easier to spot where each fee is charged.

Step 6: Check integrations, security and support

A POS system needs to connect to your other tools, protect your customers' data and keep working when something goes wrong. Check these four areas before you commit.

Integrations

Your POS system should share data automatically with the software you already use. Look for a native, two-way sync rather than a CSV export you upload by hand.

• Accounting software such as Xero or QuickBooks

• Your eCommerce platform and inventory tools

• Staff rostering and payroll

Security and compliance

A secure POS system protects card data at every step. Ask for certifications in writing.

• PCI DSS compliance

• EMV-certified terminals and end-to-end encryption

• Staff permissions that limit who can issue refunds or discounts

Offline mode and reliability

Check whether the POS system can take payments when the internet drops – a real issue for regional businesses and market stalls.

• Does it store offline transactions and process them once you reconnect?

• Does the terminal have 4G backup?

• How quickly will the provider replace a faulty terminal?

Support and onboarding

Good support means help is available when you're trading, not just during business hours.

• Do local support hours cover your trading hours, including weekends?

• Is setup help and staff training included?

• Will the provider migrate your product and customer data from your old system?

Step 7: Trial it and check the contract before you sign

Test your shortlisted POS systems in real conditions and read the contract in full before you commit. Run your trial in three steps:

1. Shortlist two or three systems that meet your must-haves and fit your budget.

2. Run a free trial or demo using your busiest-day scenario: a peak queue, refunds, split bills and a stock count.

3. Get the staff who'll use it every day to test it and give feedback.

Questions to ask a POS provider

• What's my total monthly cost at my card volume?

• Is least-cost routing on by default?

• When do funds reach my account?

• What happens if the internet drops?

• Which of my tools does it integrate with?

• What support hours do you offer?

• Can I export my sales, product and customer data if I leave?

• What are the cancellation terms?

• How long have you been operating in Australia, and who are your other merchants in my sector?

Contract checks

• The lock-in period and any exit fees

• Whether you buy, rent or lease the hardware, and what happens to it if you cancel

• How much notice the provider must give before changing prices

• Who owns your data, and what format you can export it in

• Whether you can switch payment provider later

POS system checklist

Use this scorecard to compare each POS system on your shortlist against the same eight criteria:

Score each shortlisted system out of 40 and compare the totals.

Common mistakes when choosing a POS system

The most common mistakes come from comparing the wrong numbers or skipping the fine print:

• Comparing headline rates, not total cost: A low monthly fee can hide a higher rate that costs more as you grow.

• Paying for features you won't use: a higher plan tier adds cost every month, so confirm you’ll get value out of the additional features.

• Ignoring settlement times: Long wait times for funds can squeeze your cash flow.

• Not checking data export before signing: Without it, leaving a provider can mean rebuilding your product and customer lists.

• Relying on surcharges to cover card fees: Surcharging on eftpos, Mastercard,and Visa ended on 1 October 2026, so factor this new cost into your budgeting and pricing.

Weighing up your options alongside other payment solutions for small businesses helps you see the full picture before you commit.

Accept payments across every channel with Airwallex

Airwallex lets you accept online payments today through Checkout, Payment Plugins and Payment Links, with in-person payments launching soon in Australia. Manage every sale from one account, and sync your transactions to your accounting software through integrations such as Xero.

• Accept 160+ local payment methods and all major card schemes (Visa, Mastercard and Amex), plus Apple Pay and Google Pay.

• Collect in 130+ currencies across 180+ countries and settle like-for-like in 20+ currencies into Global Accounts.

• Pay transparent online card pricing: 1.65% + A$0.30 for domestic cards and 3.45% + A$0.30 for international cards. 

POS Payments is launching soon in Australia: one platform for online and in-person payments, with an M90 terminal or SoftPOS on compatible phones and tablets, unified reporting and API connections to your POS, OMS or ERP. Connect your online store too with eCommerce plugins.

Frequently asked questions

What is the most popular POS system in Australia?

There's no single most popular POS system in Australia. Widely used options include all-in-one POS providers and bank or fintech EFTPOS terminals that integrate with separate POS software. The right choice depends on how you sell, your card volume and the features you need, so compare total cost over 12 months rather than popularity alone.

What are 5 types of POS systems?

The five common types of POS systems are countertop (traditional) POS, mobile or handheld POS, tablet POS, self-service kiosks and SoftPOS, which turns a phone into a payment terminal using Tap to Pay. Most modern POS software is cloud-based, storing data online, while some older systems run on-premise on a local computer or server.

What should I look for in a POS system for a small business?

A small business POS system should accept all major cards and wallets, calculate GST automatically, track inventory, report on sales and integrate with your accounting software. It should also work offline. Compare the 12-month total cost at your card volume, check whether least-cost routing is on and confirm there's no lock-in contract.

What questions should I ask a POS provider?

Ask a POS provider what your total monthly cost will be at your card volume, whether least-cost routing is on by default and when funds reach your account. Also ask what happens if the internet drops, which tools it integrates with, what support hours it offers, and whether you can export your data and cancel without penalty.

Can I switch POS systems without losing my data?

Yes, you can usually switch POS systems without losing data if your current provider lets you export sales, product and customer records in a standard format such as CSV. Check the export options and data ownership terms before you sign any contract, and ask your new provider whether it offers data migration as part of onboarding.

Sources

1. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/faqs/

2. https://www.rba.gov.au/publications/bulletin/2024/apr/the-effect-of-least-cost-routing-on-merchant-payment-costs.html

3. https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/20000-instant-asset-writeoff-iawo-here-to-stay

4. https://www.airwallex.com/au/pricing