What Is EPOS and How Do Card Payments Work With It?

EPOS stands for Electronic Point of Sale. It's a system that combines hardware (like tills and scanners) with software (to manage sales, stock, payments and more).

In short: an EPOS system is a modern till system that helps you run your business more efficiently.

There are two main ways your EPOS system can work with your card machine (PDQ terminal):

1. Standalone Card Machine (Non-Integrated Setup)

In this setup, your EPOS till and card terminal work separately.

• You enter the total amount into the EPOS system to record the sale

• Then you manually enter the same amount into the card machine

• The customer taps or inserts their card, the payment goes through, and you manually confirm the sale in the till

🧾 Pros:

• Simple to set up

• No integration costs or technical setup

• Works with almost any card terminal

⚠️ Cons:

• Takes longer per sale

• Higher risk of mistakes (e.g. entering the wrong amount)

• Harder to track sales and payments together

💷 Best for: Small businesses with lower volumes or those using older till setups

2. Integrated Card Machine (Fully Connected to EPOS)

This is a more modern, automated setup where your EPOS system talks directly to the card machine.

• You enter the sale in the EPOS till

• The exact total is automatically sent to the card machine

• The customer pays and the system updates the sale record instantly

🧾 Pros:

• Faster transactions and shorter queues

• Fewer errors (no need to retype amounts)

• Sales and payment data stored in one place

• Easier for reporting, stock control and refunds

⚠️ Cons:

• May cost more upfront for integration

• May restrict your choice of merchant service provider (check before committing)

💷 Best for: Busy retailers, hospitality businesses, or anyone looking to save time and simplify operations

✅ Tip: Some EPOS providers lock you in to using their preferred payment provider for integration. Others give you the freedom to choose. Always check the terms and compare rates.

A complete EPOS setup typically includes:

Hardware (Physical Equipment):

• EPOS Terminal (touchscreen till)

• Card Machine (PDQ Terminal)

• Receipt Printer

• Cash Drawer

• Barcode Scanner (if applicable)

• Tablet or Mobile Device (for portable setups)

💷 Hardware Costs:

• Basic touchscreen till bundle: £500–£1,000

• Card machine (rental): £15–£25/month

• Handheld/mobile EPOS units: from £300

Software (The System Behind It All):

EPOS software powers the system and often includes:

• Sales tracking

• Stock management

• Staff management

• Reporting & analytics

• Integration with payment providers

💷 Software Costs:

• Monthly licence fees: £25–£80+ per month (per terminal)

• Some providers include software in a bundle; others charge separately

• Cloud-based systems are now common and offer remote access

Card Payment Integration:

Many EPOS systems come with built-in payment integrations or allow you to choose your own merchant services provider.

💳 Transaction Charges:

• Debit card: 0.2%–0.6%

• Credit card: 0.6%–1.5%

• Amex or international cards: 2%–3%

• Flat-fee providers: around 1.69% per transaction

• FX fees may apply to overseas card payments

✅ Tip: Choose an EPOS that lets you pick your own payment provider — that way, you can compare fees and avoid being locked into a costly contract.

When comparing EPOS and card payment solutions, it’s important to understand the full range of potential costs beyond just rental and transaction fees. Here are some common additional charges to look out for:

• Set-up Fees:
  Some providers charge a one-off fee to install and configure your EPOS system. This can range from £0 to £300, though many offer free setup as part of a bundled package.

• Installation & Training Costs:
  If you need an engineer to install the system or on-site training for staff, expect to pay around £100 to £500, depending on the level of support offered.

• Maintenance & Servicing Plans:
  These optional support packages typically cost £10 to £30 per month and may include repairs, technical assistance, and hardware replacements if needed.

• PCI DSS Compliance Fees:
  Some providers charge a monthly fee for ensuring your payment system meets security standards. This is usually £5 to £15 per month, though some providers include it in their core pricing.

• Software Updates & Licensing:
  Most cloud-based EPOS systems include updates in the monthly software licence fee, but it’s worth checking whether certain features or add-ons come at an extra cost.

• Early Termination Fees:
  If you’re tied into a long contract and want to cancel early, you may face hefty penalties. Always check the terms before signing.

• Hidden Charges:
  Watch out for less obvious fees, such as authorisation charges, FX fees for international card payments, and statement or reporting fees. These small extras can add up over time.

✅ Tip: Always ask for a full breakdown of all potential charges before committing to any provider, and be cautious of “cheap headline rates” that don’t reflect the full cost of ownership.

One of the biggest decisions when choosing an EPOS system is whether to buy the equipment outright or rent it from a provider. Both options have their pros and cons depending on your business size, cash flow, and long-term plans.

✅ Buying Your EPOS System Outright

Paying upfront for your EPOS hardware and software gives you full ownership.

Pros:

• One-off cost – no ongoing rental payments

• Better long-term value if you're planning to keep the system for years

• Freedom to switch providers more easily in future

• No early termination fees

• Some suppliers offer interest-free payment plans

Cons:

• Higher initial cost – could range from £500 to £2,000+ depending on setup

• You may need to pay separately for software licences and support

• Hardware may become outdated in a few years

• Ongoing maintenance costs are your responsibility unless covered by a warranty

Best for: Established businesses with stable cash flow or those wanting full control over their system

🔄 Renting Your EPOS System

Renting is a popular option for new or growing businesses, as it spreads the cost over time.

Pros:

• Lower upfront cost – usually a small setup fee or no fee at all

• Monthly payments help with budgeting

• Often includes support, maintenance, and replacement cover

• Access to the latest hardware and software updates

• Good for businesses that don’t want to commit to buying straight away

Cons:

• Higher long-term cost – ongoing rental fees add up over time

• Contracts often range from 12 to 48 months

• May include early termination fees if you switch or cancel

• You're tied to the provider, especially with integrated payment solutions

• May limit your ability to negotiate better merchant rates elsewhere

Best for: New businesses, seasonal traders, or those who prefer an all-inclusive monthly cost

✅ Tip: Always ask for a total cost of ownership comparison over 1, 2 and 3 years. What seems cheaper at first might cost more in the long run. And whether you rent or buy, make sure the system meets your business’s specific needs — don’t pay for features you’ll never use.