POS System vs Cash Register: What’s Best for Retailers

Having a cash management system is crucial for any retail store owner. A basic cash register may be suitable for some businesses, but most retailers are choosing feature-filled point-of-sale (POS) cash register software programs that run business operations much more effectively. We compare both options to pinpoint what’s best for your business.

When To Use POS Systems

A POS system is best for most businesses because it allows retailers to manage all types of sales, transactions, and business operations under one streamlined computer system. Square is a top-rated POS that provides small businesses in any environment with robust management tools. Visit Square POS for a free trial.

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When To Use Cash Registers

Cash registers are best for small businesses that just need to ring up sales, run receipts, and receive cash, check, and credit card payments. Entry-level Casio cash registers, which can be purchased for under $100, are a popular option.

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POS System vs Cash Register at a Glance

Curious about which POS system suits your business? Answer this quiz to find out:

POS System vs Cash Register: What’s the Difference?

A cash register and a POS system are miles apart in terms of pricing and features. A cash register will cost you about $100 upfront, and as you can see from our comparison chart, offer basic sales features. Most sophisticated POS cash register systems will cost you about $99 per month with startup costs at around $1,000 but offer dozens more features—including advanced sales reports, inventory management, employee management, and marketing features.

POS System vs Cash Register: Pricing

Hardware and software pricing are the major considerations for choosing between POS systems and cash registers. Both options allow you to purchase hardware upfront; however, while a cash register’s software is included in the one-time payment, a POS system’s software is a subscription-based cost. This huge price point difference depends heavily on their respective functionalities.

Cash Register Pricing

Unlike POS systems, which typically have a monthly software fee, cash registers are a one-time purchase. You can purchase a decent cash register for about $100, although some higher-end models can cost up to $299. The differences usually come down to LED versus LCD screen, backup capabilities, and Bluetooth connectivity.

Basic cash registers are more affordable than POS software systems by a long shot. Cash registers cost around $100 in total. Popular Casio cash register models include:

• Casio SE-G1: $99.99; available in pink, blue, and red; entry-level register
• Casio PCR-T280: $130; register for medium-sized businesses
• Thermal receipt paper: ~$11 for six rolls

Casio PCR-T540

POS System Pricing

Cash registers have one upfront fee for the physical hardware, whereas POS systems are software systems that typically have a monthly subscription fee. Square POS software is free to use and even comes with a free card reader that can be connected directly to a stand or wirelessly to your phone or tablet. However, unless you already have an iPad or extra computer handy to operate your POS, then you will need to purchase one.

Here are all the necessary costs associated with setting up a POS system:

• Software fees: Free for Square POS
• Hardware fees: Varies; need a tablet or computer; iPads can be purchased for under $400
• Cash drawer: Quoted pricing from POS provider, typically under $200

This is a quick comparison of Square’s popular hardware options:

Square Register	Square Terminal	Square Stand
Cost: $799	Cost: $299	Cost: $169
Accepts contactless, chip, and magstripe payments	Accepts contactless, chip, and magstripe payments	Accepts contactless, chip, and magstripe payments
Requires a wall outlet to power	Requires batteries or wall outlet to power	Requires a wall outlet to power
Connects to the internet via ethernet or Wi-Fi	Connects to the internet via ethernet or Wi-Fi	Connects to the internet through your iPad
No additional device required to start accepting payments	Uses 2.25” x 1.4” thermal printer paper	Requires an iPad with Lightning connector running iOS 11.0+

POS System vs Cash Register: Features

A POS system offers more functionalities compared to cash registers. Ultimately, cash register features are designed to manage sales alone. On the other hand, those who prefer a POS system do so because they want to manage other aspects of their business along with their sales.

Cash Register Features

All cash registers can ring sales, add tax, and offer daily reports. High-end versions also have Bluetooth connectivity and cloud back office software that can keep track of all your sales transactions for accounting purposes.

Payment Processing on Cash Registers

If you simply need to receive payments, then an inexpensive cash register will handle it all for you. Even the $100 models will track cash and check sales along with credit cards if you add a credit card terminal. With even the most basic models, you can print receipts for customers, add and track sales taxes, and tally the day’s sales. Prices can be entered manually or programmed with specific department keys.

Unlike POS systems, which typically come with built-in credit card processing (or at least offer a few options for direct integrations), cash registers do not have credit card processing capabilities. You will need to apply for a separate merchant account in order to accept card payments.

Sales Tracking & Reporting on Cash Registers

Cash registers can offer basic daily sales totals, and some can offer reporting by departments if you configure that setting. However, basic cash registers don’t provide very robust sales or tax totals, nor do they have a way to automatically deduct inventory as it sells. You’ll need to manually track inventory and business financials using spreadsheets or notebooks.

Inventory Management on Cash Registers

Cash registers have no inventory management functions. You’ll need to manage your inventory in a separate system or spreadsheet and rely more heavily on manual stock counts. If you have lots of inventory, then using a POS system can save lots of time and workforce hours by tracking inventory automatically.

Employee Management on Cash Registers

Some cash registers have features to track sales by employee. This typically involves assigning employees a sign-on code that then tracks their sales. However, POS systems also have features for tracking employee sales and typically have more advanced employee management features. These include time tracking, reports on commissions and detailed employee sales, and sometimes payroll and employee scheduling.

Marketing Features on Cash Registers

Most cash registers give you the ability to customize the top or bottom of customer receipts. Other than that, cash registers don’t have any marketing capabilities. Most POS systems come equipped with a customer database feature for tracking shoppers and typically have options for email marketing and loyalty programs.

Casio’s Customizable Receipt

POS System Features

The “point-of-sale” in retail terms is the customer checkout process. A POS cash register is a computerized cash register that rings up sales in a retail setting, processes payments, and tracks all of your sales, inventory, and customer data within one system. The best POS systems also have employee management and marketing features for your business built-in. These cloud-based programs typically cost anywhere from $50 to $100 per month and can be operated on a variety of tablets and computers.

Payment Processing on POS Systems

Like cash registers, POS systems can accept cash and check payments. And unlike cash registers, POS systems typically have built-in credit and debit card payment processing. Having all of your payment processing tied together in one system allows for more accurate sales reporting and helps prevent human error at checkout.

Sales Tracking & Reporting on POS Systems

Cash registers can provide daily totals and sometimes departmental totals, but POS systems can run reports on dozens of data points. Square POS, for example, can offer you sales reports by any time period, detailing your sales by product category, payment type, customer type, and employee. Square POS even includes a reporting dashboard that you can customize to display your key metrics at a glance. You can also access key metrics such as gross sales, sales count, and refunds—from the Square app.

Square POS Reporting and Analytics Dashboard

Inventory Management on POS Systems

Cash registers do not track inventory. You will have to create a separate system, which often means relying heavily on manual stock counts. Meanwhile, POS systems automatically tie each sale to your inventory levels to deduct the specific products from your on-hand quantities. You can also create and print bar code labels, set up low stock alerts, and create purchase orders right from your POS.

Employee Management on POS Systems

POS systems almost always have settings to create specific employee logins to track their hours and transaction activity. Many POS systems also have options for processing payroll and scheduling shifts.

For example, Square lets businesses run reports on employees, including sales per employee, and track their issued refunds, comps, discounts, and voids. It also offers a time tracking app so that employees can use their phones to clock in and out and get an overview of their hours worked and estimated pay.

Marketing Features on POS Systems

POS systems have customer databases where businesses can track customer names, contact information, and extra tidbits like birthdays and product preferences. POS systems also tie each transaction to a customer, so you know who shops at your business the most and who your biggest customers are. Many POS systems also have options to create email marketing campaigns or loyalty programs based on your customer database.

For example, Square has a solution called Square Loyalty, which you can customize with reward levels, terminology (ex: points, punches, or stars), and a points system that fit your business best. You can then track total loyalty customers, loyalty rewards, and even compare average spend and visits from loyalty versus non-loyalty customers on your Square Dashboard. Square’s CRM tools are also available to help you create automated email and social campaigns with its host of templates and customizable features.

POS System vs Cash Register: Ease of Use

Both cash registers and POS systems are relatively easy to use. Cash registers have manual buttons for entering items or prices, whereas POS systems typically operate on a touch screen. They both have minimal training times and are built for use in fast-paced retail environments.

Cash Register Ease of Use

Cash registers have push-buttons for entering prices and items. A cash register’s functionality is very basic compared to a POS system, so there are fewer things to learn. However, whether someone is more comfortable with an analog system or a digital touch screen often comes down to personal preference.

POS System Ease of Use

POS systems might have a steeper learning curve than a traditional cash register, but this is mostly because they have many more capabilities than just ringing sales. However, if you are comfortable navigating other software programs and touch screen devices, then learning how to use a POS system should be easy.

POS System vs Cash Register: Customer Service

Comparing customer service for cash registers and POS systems is a bit like comparing apples and oranges. One is a piece of hardware and the other is a software program. If a cash register breaks or if you need troubleshooting, then your best bet is to contact the manufacturer. With POS systems, your monthly subscription fee typically includes speedy customer service and a designated account representative.

Cash Register Customer Service

Cash registers can be purchased directly from the manufacturer or a retailer like Staples, Office Depot, and Walmart. Purchasing directly from the manufacturer often offers the best customer service and product warranty.

POS System Customer Service

POS systems typically have customer service agents available via phone, email, and sometimes live chat on the POS’s website. Many POS companies, like Square, can offer users a dedicated representative. POS cash register systems also have community forums, whitepapers, and other guides available.

POS System vs Cash Register: Customer Reviews

Our chosen cash register (Casio) and POS system (Square POS) both have high user reviews. Casio’s reviews come from retail sites like Amazon, Walmart, and Office Depot. Meanwhile, Square reviews come from software review sites, so their customer reviews are not a direct comparison. However, both systems are reported to be strong and reliable.

Cash Register Customer Reviews

Casio cash registers have very positive reviews. Users say that Casio models are lightweight, easy to use, and don’t take up a lot of space. Users also say that it is easy to program different keys and functions.

POS System Customer Reviews

Square POS also has positive reviews on our in-depth review article. Users like that it is easy to use and, unlike cash registers, provides a lot of real-time business data and insights upfront.

Still not sure which to choose between a POS system and a cash register? Follow this decision tree to help you decide which one’s best for you.

Is a POS System or Cash Register Right For You?

Frequently Asked Questions (FAQs)

Deciding between a traditional cash register and a POS software system is a huge decision, especially if you are opening your first business.

When should I use a cash register?

If you simply need to receive payments, then an inexpensive cash register will handle it all for you. If you have limited or no internet connection, then a cash register may also be the better choice. If you don’t have internet access on a regular basis, then a cash register with a phone line connection for credit card processing (if needed) is your best bet.

Are POS systems expensive?

They are more expensive than a cash register. But, if you’ve avoided switching to (or starting with) a POS cash register for financial reasons, then modern POS cash register systems may surprise you with their low operating costs and ease of use.

Having all of your data stored and accessible within one system makes your operations more efficient and, in many cases, more profitable. With a POS cash register, you get more than an electronic cash till with a glorified calculator. You get an entire retail store management solution.

What are the necessary components of a POS system?

A POS system requires a tablet or computer to run the software and a cash drawer. If you are a retailer, then you will also want a bar code scanner and a receipt printer. As with a traditional cash register, you will also need a card reader for accepting credit and debit card payments. Altogether, the hardware for a POS system can cost anywhere from $500 to $5,000, depending on whether or not you already have an iPad or computer and what model hardware you purchase.

Which types of businesses should use a POS system?

POS systems are ideal for any brick-and-mortar business because they make inventory tracking, sales reporting, and customer management much easier. Particularly, restaurants, boutiques, and specialty shops should use a POS cash register system.

Bottom Line

A budget-friendly electronic cash register runs about $100 and can handle basic retail checkout and payment needs. For some, it’s a just-right solution. But if you want to efficiently run your retail operation and have growth-driving data and tools at your fingertips, then a POS cash register system is the answer.

Want to find out more about POS systems? Check out our articles on the benefits of a POS system and how to use it for your business.