POS System vs Cash Register: Why Most Businesses Need a POS
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
With more than a decade of hospitality experience, Mary has worked in some of the most celebrated restaurants in the world. Her expertise is featured across Fit Small Business in restaurant, retail, and starting a business content.
This article is part of a larger series on POS Systems.
Cash registers are essentially high-performing calculators with attached cash drawers used to process sales transactions. Point-of-sale (POS) systems are a combination of hardware and software that can process transactions as well as perform a variety of other functions from employee time tracking to real-time inventory management.
If you’re trying to decide which is best for your business, our experts recommend:
- POS systems for most small business types
- Cash registers for cash-only businesses that don’t need reporting
POS System vs Cash Register Deciding Factors
POS System | Cash Register | |
|---|---|---|
Typical Hardware |  ($659) |  ($649) |
Monthly Software Fees | Yes, $0*–$100 for most systems | None |
Card Payment Processing | Integrated | Usually separate |
Payment Types Accepted | Cash, ACH, gift cards, online payments | Cash |
Sales Tracking | Detailed, searchable | Very basic |
Reporting | Advanced | Very basic |
Customer Service | 24/7 phone, email, live chat, and online knowledge bases | limited phone support** |
Advanced Features | May include
| None |
Our Rankings |
*Square and Toast both offer their baseline POS for $0 per month
**Support may not be available for cash registers that have been discontinued.
This article features the expertise of our retail and restaurant experts Mary King and Meaghan Brophy. In addition to a combined two decades of real-world small business management experience, they each have several years’ experience evaluating POS and cash registers for a variety of small business types.
Payment trends research, along with our real-world retail and restaurant experience, indicates that cash transactions are declining at a rapid pace while contactless, mobile wallet, online, and BNPL payments are rapidly increasing. POS systems can handle these changes while cash registers struggle to keep up—so much so that major electronics companies have stopped manufacturing cash registers altogether.
We’ll go into all the ins and outs below, but if you want to save time, the short answer is that a POS is the better choice for small businesses in almost every case.
If you want to dive right into finding the best POS for your business, see our specialized guides to various POS types:
- Best Free POS Systems
- Best Retail POS Systems
- Best Restaurant POS Systems
- Best Bar POS
- Best Food Truck POS
- Best Quick Service Restaurant POS
- Best Salon POS
- Best Grocery Store POS
- Best Convenience Store POS
- Best Open Source POS Systems
If you need more information about how cash registers stack up against POS systems, keep reading.
POS System vs Cash Register Pros & Cons
Best Pricing: Tie
Nowadays you can get a cash register or a POS system for around the same price. The difference is with a register you’ll typically spend most of your money upfront, while with a POS system, your costs can be ongoing. A basic electronic cash register (like the Royal 140DX) runs around $300, while a higher-functioning device (Like the SAM4s SAP-630) costs more than $1,700.
Many POS systems (like Square) can operate on tablets and smartphones you already own, with card reader options around $50 and cash drawer add-ons for under $200. Some POS brands (like Toast) also offer free hardware when you sign on for a long-term software subscription. Many cloud-based POS systems—like Square and Toast—also offer a free baseline POS software subscription.
So if cost is a concern, you can find a POS system that allows you to get started for $0 upfront cost. There is no electronic cash register that comes at $0 upfront.
For a comparable price, you get dozens more features with a POS—including advanced sales reports, inventory management, employee management, and marketing features. The systems listed in the table at the top are a good example; the price for the POS and the cash register fall within $10 of one another, but the POS comes with built-in tap, dip, and swipe card readers along with built-in payment processing. The featured cash register model includes a swipe card reader, but you’d need to find your own payment processor in order to use it.
POS System vs Cash Register Pricing
POS System | Cash Register | |
|---|---|---|
Hardware Pricing | $0 to $1,500 | $150 to $1,700 |
Monthly Software Pricing | from $0 to $100 | None |
Card Payment Processing | Varies by system; most include built-in processing, some support multiple processors | Varies by processor; you’ll need to find your own |
Square is our recommended POS system for most small businesses. It is free to use, operates on iOS and Android devices, and offers specialty software for retail, restaurant, and appointment-based businesses. Visit Square to create a free account or read more about Square and its products for small businesses.
Best Features: POS Systems
A cash register and a POS system are miles apart in terms of features. Cash registers are like trains; they run really well if you keep them on their predetermined track. A POS is like a car that goes exactly where you want to go, can turn on a dime, and is nimble enough to change directions if your plans change.
Cash registers are designed to handle cash transactions, and they do that efficiently. Doing anything else—correcting mis-rings, generating reports, running credit cards—can take a lot more time and extra steps.
POS System vs Cash Register Features
POS System | Cash Register | |
|---|---|---|
Baseline features |
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Advanced features |
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With a POS, you can manage digital payments as quickly as cash payments and pull detailed transaction reports in a matter of seconds. You can add employees with custom permissions in minutes. Most importantly, adding new functions is as simple as adding a new integration or upgrading your software subscription.
Cash registers simply cannot offer this degree of flexibility. And they cannot offer nearly as many features. You can see more head-to-head features comparisons by expanding the sections below.
Cash registers can offer basic daily sales totals, and some can provide reporting by departments if you configure that setting. However, basic cash registers don’t give very robust sales or tax totals, nor do they have a way to deduct inventory automatically as it sells. You’ll need to track inventory and business financials manually using spreadsheets or notebooks.
A POS system can run reports on dozens of data points. Square POS, for example, can offer you sales reports by any 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.
A cash register is a simple solution that focuses mostly on cash management and sales tracking. It doesn’t include features for back-end management, such as inventory or purchasing management. You can assign employees sign-on codes to track sales by employee, but usually there are no time-tracking or payroll features.
Some of the higher-end cash registers let you customize your receipt, so you can add a thank-you note to the bottom of each receipt. This also gives you the chance to offer a coupon or discount. You can’t track customers or implement a loyalty program through a basic cash register, though.
Some cash registers, like high-end Casio models, let you customize receipts. However, this option (and customizable digital receipts) is standard for POS systems. (Source: Casio)
The software that runs a POS system is much more robust and usually includes numerous features to help you manage the back end of your retail shop or restaurant. Integrated inventory can help you track your stock—with each sale, your POS system updates the inventory, so you always know what you have on hand.
With a POS system—even a free to low-cost one like Square—you can generate barcode labels for your products. (Source: Square)
Many POS systems let you set up employee logins that track sales and employee hours. Some offer payroll and shift scheduling features. Plus, several POS systems have customer relationship management (CRM) features, making it much easier to keep in touch with customers and clients through email marketing campaigns or loyalty programs.
Pro tip: Use a POS system to create and print barcode labels and create purchase orders.
Best for Ease of Use: POS
Both cash registers and POS systems are relatively easy to use, but POS systems invariably come with 24/7 customer support and much more detailed installation guidance. Cash registers have manual buttons for entering items or prices, while POS systems typically operate via touch screen. Both are built for use in fast-paced environments, but you’ll typically find POS systems are more intuitive—and thereby faster—to operate.
A cash register’s functionality is very basic compared to a POS system, so it appears at first that there are fewer things to learn. However, programming departments, tax values, and receipt layout is not as intuitive as with a POS. You’ll need to be comfortable reading a manual and following a detailed series of button sequences to program your register. Depending on your register brand, you may or may not have access to live customer support.
Because they have many more capabilities, POS systems might appear to have a steeper learning curve than a traditional cash register. But their touch screens and back-office dashboards are much more user-friendly. If you have ever used a smartphone, you can use a modern touch-screen POS. Most POS systems also come with live customer support and detailed online knowledge bases to guide you through the setup process.
Need sharp-looking receipts? See our ranking of the best thermal receipt printers for small businesses.
Comparing customer service for cash registers and POS systems is a bit like comparing apples to 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 (unless your register has been discontinued). With POS systems, your monthly subscription fee typically includes speedy customer service and a designated account representative.
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.
If you purchase a discontinued Sharp or Casio cash register through a site like eBay or Amazon, you may not be able to receive troubleshooting support. Purchasing a discontinued piece of hardware also means finding replacement parts will be difficult.
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.
Best in Expert Opinion: POS
Sales of new cash registers have declined so much that many brands have stopped manufacturing them altogether. By contrast, POS systems’ market share is growing every year, reflecting the growing consumer demand for digital payments and personalization. The future of small business transactions is definitely POS.
Twenty years ago, there was a huge price difference between cash registers and POS systems, because POS from that era required local networking with on-site servers. But in 2023, most POS systems operate at least partially via Wi-Fi, Bluetooth, or LTE signals, and you can self-install them using commonly available hardware like iPads and smartphones. Many POS brands—Square, Toast, Loyverse, Floreant—offer a free baseline software subscription. So small businesses no longer need to sacrifice functionality to get the best price.
POS System vs Cash Register Frequently Asked Questions (FAQs)
Cash registers and POS systems vary in both their hardware configuration and supported functions. Cash registers are more basic tools that function like robust calculators with secure cash drawers. POS systems include much more functions than cash registers and typically include card readers for processing card and digital payments in addition to cash.
Cash registers feature a single, static keypad of flat or raised keys that must be configured manually. POS systems tend to have touch-screen displays that can be programmed to feature different products at different times of day or based on item availability. A POS system also includes robust reporting, employee time tracking, and inventory tracking. So, POS users get a much more detailed look at their business than cash register users.
Yes and no. Like a cash register, a POS can ring in sales and process cash payments. But a POS also does a lot more than a traditional cash register. It also tracks sales in real time, acts as a timeclock to record employee hours (and tips, if collected), and supports deeply detailed reporting. In short, a POS can be a cash register, but a cash register cannot match the functionality of a POS.
Some micro-businesses still use cash registers, but their popularity is steadily declining. Competing POS systems are simply much easier to use, less expensive, and offer more features. The micro-businesses and solopreneurs that once relied on cash registers can get much more portable tools from a simple smartphone with an attached card reader, enabling them to accept the card and digital payments that customers prefer to use.
People tend to use the terms cash register and POS interchangeably. This is not entirely correct, but it’s not entirely incorrect either. POS is an acronym for point of sale. The term point of sale has two meanings; it is the location (the “point”) in a store where sales are processed. A point-of-sale system—a hardware and software tool that processes sales—is also called, simply, a POS.
So, both cash registers and POS systems appear at the point of sale in a store. But when people use the term “POS,” they are generally referring to the hardware and software used to process purchases. A POS is not technically a cash register (it is much more advanced), but with a cash drawer and receipt printer attached, a POS looks a lot like a cash register.
Bottom Line
A budget-friendly electronic cash register runs about $150 and can handle basic retail checkout and payment needs. With the recent development of free POS software that you can operate on hardware you already own, some POS systems can cost even less. A cash register may be all some small, cash-only businesses need, but if you want to efficiently run your business with growth-driving data and tools at your fingertips, then a POS cash register system is a must-have. If cost is a concern, look for free systems like Square or Toast.
