POS contracts and replacement

Before signing for a point of sale (POS) system, read the software, payment and hardware commitments together. Before replacing one, confirm how the business will retrieve its records and what it will pay during the changeover.

Identify each agreement

Ask for a written list of every subscription per location, payment processor, terminal purchase or rental, hardware, setup, support and add-on. Note which company supplies and bills each part. For every agreement, check the term, renewal date, cancellation method and notice deadline. Confirm the quoted plan includes any demonstrated features.

Shopify POS Pro is a monthly add-on charged per location and can be added to specific locations. Neither statement settles a separately supplied terminal agreement or an individual quote.

Some POS arrangements rely on several sets of terms, not just the general contract. Square’s General Terms refer to additional terms for services such as payment processing, certain POS features, hardware and direct debit. Identify which apply to the services and equipment being purchased.

If you accept terms for a business, Square requires you to have authority to bind that business. Its General Terms also flag provisions requiring arbitration for potential legal disputes. Read the applicable dispute terms before agreeing.

Review the payment path

Find out who processes each payment type, which reader or terminal is assumed, and whether changing processors would alter the checkout workflow. Compare fees for the payment methods the business uses. Check refund, dispute and payout terms in the applicable agreement.

Shopify-supported Australian readers listed by Shopify use Shopify Payments. Shopify POS can also run with an unsupported external card reader; ask the payment processor which card types that terminal accepts.

Square’s Payment Terms apply to its payment services alongside its General Terms and other applicable terms. Confirm the terms and rates for the actual account.

For Shopify Payments card transactions at POS Pro locations, payment is authorised first and captured after a delay of up to 15 minutes. Staff can cancel an order during that window; transaction fees do not apply to cancelled orders. After capture, changing the items or amount requires a refund. Account for any authorised or captured payments when planning a cut-over.

Pros and cons of using Shopify Payments with Shopify POS Pro

Check what the hardware purchase covers

List each checkout device, reader, printer, drawer, scanner and required cable or hub by model. Compare a bundle with separate purchases for the same usable counter setup. Confirm the supported POS, operating system and connection for each component, and who handles a fault.

Square’s Stand Kit includes a Stand, cash drawer, receipt printer and receipt paper. Its Register Kit includes a Register, cash drawer, receipt printer and receipt paper. Ownership alone does not establish that a device can be reused with another POS.

Square states that Register has a two-year limited warranty and its other hardware has a one-year limited warranty. It also advertises free returns within 30 days. Check that the particular item and purchase are covered; do not treat these statements as universal hardware rights.

POS hardware options: Square Stand Kit vs Register Kit

Prepare the exit

Decide which transaction, payment, product and customer records must remain accessible. Confirm how the old provider makes those records available before closing the account.

Australian Government guidance says businesses must keep records of transactions relating to tax, super and registrations, including income and sales transactions. Establish the applicable retention and retrieval method before closing the old account. Provider retention and business access are different questions.

Set a cut-over date and assign an owner to open returns and unsettled payments. Tell staff which system records new sales during any overlap. Compare the costs of staying and switching over the same period, including any cancellation or early-termination fees and remaining hardware payments.

The ATO accepts electronic images of paper records if they are true, clear reproductions and follow record-keeping rules. Paper originals do not need to be kept after the images are saved.

Protect digital records

The Australian Government says records must be in English or easy to translate into English. Depending on the business, required records can also include business expenses, bank records, GST records, asset or stock expenses, and employee and contractor records, as well as income and sales transactions.

The ATO recommends digital record keeping where possible. Digital records must be stored to prevent change or damage, backed up, and accessible to the business, including through the relevant passwords. The business must also control the information being processed, entered and sent.