How much does a VSE cost, and how can I cut my expenses?

Electronic payment terminals, more commonly known as Eftpos terminals, are essential tools for restaurateurs, facilitating credit card transactions. However, their acquisition and maintenance entail significant costs, which merit in-depth analysis. In this article, we explore the various financial aspects of Eftpos terminals, as well as strategies for reducing these expenses.

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What is a TPE? 

An electronic payment terminal (EPT) is a device used by retailers and restaurateurs to process credit card payments. It reads cards, verifies bank details and authorizes transactions, ensuring fast, secure payment for customers. Different models are available: 

• Fixed VSE : Connected to a telephone line or the Internet.

• Portable TPE : Wi-Fi or Bluetooth-enabled, particularly suitable for restaurants, allowing payments to be made at different locations.

• Mobile POS : These small, compact, portable devices connect to a smartphone or tablet via Bluetooth. Thanks to a dedicated application, your mobile device becomes a cash register. They use your phone's Internet connection (Wi-Fi or 4G/5G) to process payments.

• Integrated POS : Integrated directly into a cash register system, offering an all-in-one solution for supermarkets or shops with high transaction volumes.

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How much does it cost to acquire a VSE?

So how much does it cost to buy a VSE? 

Purchase price of a TPE

The initial investment in a VSE varies according to the model and features chosen. 

Types of VSE :

• TPE fixed : between €150 and €400,
• Portable VSE with printer : between €130 and €250,
• TPE portable without printer : between €30 and €80,
• TPE mobile (mPOS) : from €1 to around €30.

Features : 

• Receipt printing,
• Connectivity (fixed or mobile),
• Compatibility with several payment methods (electronic wallet),
• Possibility of integration with a point-of-sale (POS) system,
• Possibility of making refunds,
• Software updates can be synchronized.

The price of a top-of-the-range model with advanced features such as contactless payment acceptance and software integrations can far exceed this budget and reach 1,000 euros. 

TPE rental costs

Would you like to avoid a high initial investment? Then renting a VSE can be an interesting alternative. Rental costs, ranging from €15 to €50 per month, are generally invoiced on a monthly basis and sometimes include additional charges for maintenance and technical service. This option is particularly relevant for new businesses, establishments with seasonal needs, or restaurateurs moving to a festival or trade show, for example.

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Is it better to lease or buy a VSE?

Are you torn between buying and leasing a VSE? Here are a few arguments to help you decide.

Rental advantages

Renting a VSE:

• reduces initial costs,
• offers a degree offlexibility to benefit from more recent equipment, with the possibility of exchanging it as your needs and technological advances change,
• allows you to commit to a shorter timeframe,
• usually includes maintenance and technical support services, which can reduce operating costs.

Benefits of purchasing

Buying an EFTPOS terminal can be more profitable in the long term. Once the terminal has been paid for, the only recurring costs are maintenance and transaction fees. This can represent significant savings over several years.

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What are TPE transaction fees and how are they calculated?

Transaction fees include the commissions charged by banks or payment processors for each transaction carried out via the Eftpos terminal. These fees may be fixed, based on a percentage of the transaction amount (from 0.5% to 2.5%), or a combination of both. For example, a transaction may cost €0.1 plus 1.5% of the total transaction amount.

Please note that transaction fees for debit card payments are often lower than those for credit, commercial or international cards, since the risks and processing costs associated with the latter are greater.

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How can I reduce the transaction costs associated with an EFTPOS terminal?

Now that you're aware of the costs involved in buying, leasing and using a VSE, a crucial question arises: what strategies can you adopt to reduce transaction costs? 

Negotiating with suppliers

Negotiating transaction rates with payment service providers (both incumbents and fintechs) can lead to more favorable terms. It is generally possible to negotiate more advantageous rates as your transaction volume increases, and as often as your sales increase. Before committing yourself, remember to compare different offers and use your transaction volume as leverage to benefit from better rates.

Optimize your transaction volume

Increasing the volume of transactions can sometimes lead to reduced fees, as some providers offer sliding-scale tariffs based on the number of transactions per month. 

Perform regular maintenance 

Preventive maintenance is extremely useful, as it helps to avoid costly breakdowns and extend terminal life.

Use alternative technologies

Exploring technologies such as smartphone payments (NFC, QR codes) can reduce dependence on traditional POS terminals and potentially cut transaction costs. These technologies also have the merit of offering a fluid, modern customer experience.

👉 To find out more : 5 criteria for choosing the best VSE for a fast-food restaurant

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How much does it cost to use a VSE?

Now you know that there will be transaction costs, but are there any other expenses you haven't thought of? 

Preventive and corrective maintenance

The maintenance of a VSE includes both preventive (regular software updates) and curative (repairs in the event of malfunction) aspects. The associated costs depend on the complexity of the problem and the duration of the intervention. 

Some suppliers offer extended maintenance contracts which may cover some or all of the costs of repairing and replacing faulty parts. These contracts generally cost between €10 and €30 per month, depending on the services included. They give you peace of mind by guaranteeing constant technical support and the availability of spare parts.

Installation costs

Installing a VSE can also generate additional costs, particularly if specific adjustments or configurations are required to suit your needs. These costs can include setting up the network connection and integration with existing management systems. On average, installation costs can vary between €50 and €200.

Connection fees

Some VSEs require an Internet connection or a specific subscription to operate, which can add extra monthly costs. We therefore advise you to include these costs in your overall budget to avoid any unpleasant surprises. 

Update and obsolescence costs

Software and technology updates are essential to maintain your device's security and compatibility with new payment standards, sometimes entailing additional costs. Bear in mind, too, that POS terminals can become obsolete over time, requiring costly replacements or upgrades.

Other indirect costs

Administrative or unforeseen costs associated with the day-to-day use of the EFTPOS terminal can also add to the bill. These may include staff training or the cost of paper receipts. Have you considered this when calculating your budget? 

This list is not exhaustive, so don't hesitate to ask your supplier directly for a summary of all the costs involved in buying or leasing your VSE. 

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What are the alternatives to Eftpos terminals for fast-food payments?

Contactless payment‍

Contactless payment enables your customers to pay for their purchases simply by bringing their bankcard or smartphone close to a terminal equipped with NFC technology. This simplifies and speeds up the payment process, while offering a secure solution.

SoftPOS and Tap to Pay: what are they?‍

SoftPOS (Software Point of Sale) is a technology that turns mobile devices such as smartphones and tablets into payment terminals. This enables you to accept contactless payments, eliminating the need for a physical POS terminal. Tap to Pay is a SoftPOS feature that enables your customers to pay simply by placing their compatible card or device on your device.

POS terminals without TPE‍

Our latest-generation POS systems, such as the Move and Nano models, incorporate SoftPOS technology. They enable you to accept payments directly at your till, without the need for an Eftpos terminal, offering an all-in-one solution for cash collection and transaction management.

Contactless terminals‍

Ordering terminals equipped with SoftPOS technology enable your customers to place and pay for their orders independently. They accept contactless payments, providing a smooth, fast customer experience ideal for busy restaurants.

Online payment‍

At the same time, online payment solutions are gaining in popularity. You can now offer QR codes enabling your customers to order and pay directly at the table via their phone. What's more, click & collect services enable your customers to pre-order their meals and pay online, then collect their order from your restaurant, avoiding queues and making it easier to manage peak traffic.

💡 Did you know? At Innovorder, all our SoftPOS solutions (checkouts and order terminals) are compatible with IO Pay, our dedicated payment solution. Why choose IO Pay? To have a single provider for your cash and payment solutions, with all your data perfectly synchronized, simplifying the management of your establishment.

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VSEs offer undeniable convenience for restaurateurs, but they require rigorous financial management to minimize costs. By carefully analyzing acquisition, maintenance and transaction costs, and exploring innovative alternatives, you can optimize your investment while improving its long-term profitability.

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Would you like personalized assistance with your cash and payment solutions to reduce your restaurant's structural costs?

Contact an Innovorder consultant who will answer all your questions!