The short answer
SoftPOS, also called tap to pay on phone, lets a payment app accept contactless cards and digital wallets on an ordinary phone or tablet, with no separate card reader. It changes the device you take payments on, not the agreement that sets what you pay. Interchange, network fees and your provider's markup still apply unless your provider prices the app differently, so before you add a phone or app to your checkout, check your current effective rate, any per-device or app fees, and how your contract treats the new device.
What SoftPOS is
The PCI Security Standards Council describes its mobile payment standards as covering solutions that let merchants accept contactless payments or PINs using a smartphone or other commercial off-the-shelf (COTS) mobile device. In practice, the phone's contactless chip reads the customer's card, phone or watch, and a payment app sends the transaction to your provider. Apple, for example, says Tap to Pay on iPhone requires iPhone Xs or later and needs no extra terminals or hardware.
Tap to pay: contactless cards, wallets and phones as terminals
What changes when checkout moves to a phone
The hardware side changes the most. There can be fewer boxes on the counter, a second checkout for a busy day can be a phone you already own, and staff can take payment on the floor, at the curb or at a pop-up. There are limits too. A phone reads contactless payments only, so a card without contactless still needs a chip terminal. The phone also depends on its battery and its connection, and it is a device staff use for other things.
What does not change
Every card payment still carries the same three layers: interchange set by the card networks, network fees, and your provider's markup. If the new app runs on the same processing agreement, the same pricing method and the same monthly fees usually come with it. A flat rate stays a flat rate, and an interchange-plus account stays interchange-plus. A new way to take a payment is not a new price for taking it.
Flat rate vs interchange-plus · Can you keep your terminal when you switch processors?
Costs to check before you add a device
Ask your provider for answers in writing. How are tap-on-phone payments priced compared with chip payments at a terminal, and are they treated as card-present? Is there a monthly app or software fee, and is it charged per device, per user or per location? Is there a setup fee? Does the app work only with one processor? Do tips, receipts, refunds and end-of-day reports work the way you need? And does adding the app change, extend or restart your contract term?
POS device and software fees: what you pay monthly
Know your effective rate first
Your effective rate is your total processing fees for a month divided by your total card sales for the same month. Work it out from your most recent statement before you compare any new device or app. If the number is higher than you expected, the fix is in the pricing and the fee lines, not in the hardware, and changing devices will not move it.
How to work out your effective rate
What changes for multi-location and enterprise operations
One phone at a market stall is simple. Dozens of phones across many locations are a device fleet. Decide who can issue refunds, how staff log in and out, how the app is kept updated, and what happens when a phone is lost. Ask the provider which PCI standard its solution is validated against, and check that reports show each device and each location so finance can roll them up. Make sure pricing is the same at every site unless the agreement says otherwise, and test at one location before rolling it out everywhere.
Get the numbers before the hardware
Send us a recent statement and we will show you, in plain terms, what you pay today and where it comes from, so you can judge any new device or app against real numbers. The statement review is free and there is no obligation.
Key takeaways
- SoftPOS lets a phone or tablet accept contactless payments with no separate reader
- It changes the device, not the agreement that sets your price
- Ask how tap-on-phone payments are priced and whether the app has its own fees
- Check whether adding the app changes or restarts your contract term
- Know your effective rate before you compare any new device
Related guides
Sources
Want this checked against your own statement?
We are an independent agent — we shop every processor we work with and bring you the best deal for your profile. Free analysis, every fee named, back, usually within 4 hours. Or call now and we will quote you on the phone.