Cash Register Buying Guide: POS vs. Cash Registers vs. Tablet mPOS

What is a cash register?

A cash register is a stand-alone device with a cash drawer, adding machine and receipt printer. Many cash registers can connect to barcode scanners and credit card terminals to accept credit card payments. 

Cash registers offer various capabilities depending on their price point, but most let you calculate tax, tips and discounts. They can also process returns, track inventory, run daily sales reports and connect to external hardware.

Michael Seaman, CEO of Swipesum, noted that if your business needs are limited to ringing up sales, completing payment transactions, storing money and printing receipts, a register system may be sufficient. “Small mom-and-pop shops or businesses with low transaction volumes may still find value in a traditional cash register,” Seaman said. 

How do cash registers work?

Cash registers are typically electronic devices. They record daily sales and calculate change for individual transactions for customers paying with cash. Here’s how they work:

• Customers bring items to the checkout stand.
• A cashier enters the price of each item into the machine (or scans the item if the register is connected to a barcode scanner).
• The cash register totals each item’s price and calculates the sales tax. 
• The cash register displays the total amount the customer owes for the purchase. 
• If the customer uses cash, the cashier chooses “cash” on the register and enters the amount tendered. The cash register calculates the change due and signals the cash drawer to open. 
• With other payment forms, the customer will use an attached credit card reader to complete the transaction. 
• When the transaction is complete, the cash register or an attached receipt printer will print a receipt.

Cash register features

Cash registers are relatively basic machines that have been around for a long time. They typically have the following: 

• A numeric keypad for entering prices
• Keys to indicate the general type of product being purchased
• A tax-exempt key
• Keys for selecting a payment type
• A total key to finalize transactions
• An attached or integrated cash drawer
• An attached or integrated credit card reader
• An attached or integrated receipt printer

Costs of cash registers

Cash register costs vary widely depending on their features and functionality.

• Low-end cash register costs: Inexpensive cash registers range from $100 to $300. These registers typically have traditional keypad desktop designs with attached cash drawers and built-in thermal receipt printers. They have excellent longevity but fall short when it comes to digital integration or reporting. When registers like these are used in food service, servers must submit tickets the old-school way.
• Midrange cash register costs: Midrange cash registers typically cost $300 to $600. In this price range, you’ll see mostly keypad designs and some touchscreen options. You’ll also find high-speed, built-in thermal printers and specialized registers designed for specific industries, such as food service. If you run a high-volume business and prefer a traditional cash register, this price range should be your starting point. 
• High-end cash register costs: High-end cash registers blur the line between traditional cash registers and POS systems. In the $700 to $1,100 price range, you’ll find touchscreen cash registers with built-in inventory and reporting software, barcode scanners, credit card readers and online integration options. If this is your budget, consider looking at similarly priced POS systems. You’ll likely find more intuitive interfaces and valuable features.

Pros of cash registers

Ira Bornstein, founder and owner of IraBornstein.com, a financial technology and payment processing consulting firm, noted that cash registers are ideal for smaller, cash-based businesses. They offer the following benefits:

• Cash registers are cheap and easy to purchase: Cash registers can cost as little as $100 and are easy to buy. A small business owner can pop into Staples and walk out with a cash register. Although the pricing disparity between POS systems and cash registers has narrowed, a traditional cash register still tends to be a cheaper option for new small businesses.
• Cash registers are easy to use: Using a cash register is straightforward and doesn’t require much of an investment in employee training.
• Cash registers are safe and secure: Cash drawers on electronic cash registers lock automatically and can be accessed only by authorized users, reducing the likelihood of someone stealing from your till.
• Cash registers have excellent longevity:. Cash registers last a long time. POS systems usually don’t last as long as cash registers and often require add-on products, such as external printers and credit card scanners, to reach full functionality.
• Cash registers are a simple solution for small, traditional stores: A register-based system doesn’t have as many features as a POS system, but that’s perfectly fine for many business owners. A cash register is ideal if you just want to ring up sales and process payments. Business owners wary of technology may feel more comfortable with a traditional cash register.

Cons of cash registers

Consider the following downsides of traditional cash registers:

• Cash register capabilities are limited: Cash registers do a good job of ringing up sales, processing payments, printing receipts and handling returns and refunds ― but that’s about it. They have some reporting capabilities but lack a full suite of features or data to help you run your retail shop or restaurant.
• You can lose data with cash registers: One of the benefits of using a POS system is that your data is saved in the cloud or on a local server. That’s not the case with a cash register. If your cash register breaks or there’s a power outage, you may lose data.
• Cash registers may require a merchant account: When you use a cash register, you have to open a merchant account that will hold payments from your customers. With a POS system, that’s part of the software.

What is a POS system?

A POS system, sometimes called a POS cash register, includes hardware and software to process customer payments, record sales data, manage inventory and more. POS systems can integrate numerous features to help your business run smoothly, including sales reporting and customer loyalty programs. 

When retailers refer to a POS system, they usually mean a traditional POS system permanently installed in a fixed checkout location. This system can include a single primary terminal with a built-in computer at the main checkout counter. Sometimes, retailers place POS systems in multiple checkout lines. In specific industries like restaurants, multiple employees can access the POS system in an order placement area. 

Bornstein pointed out that POS systems are becoming even more popular as retailers strive to meet customer needs and preferences, including trends like buy online, pick up in-store (BOPIS) options. “As businesses evolve, so does the need for more dynamic POS systems that not only track sales but enhance customer interactions through streamlined services,” Bornstein explained.

How do POS systems work?

POS systems have two primary components: hardware and software. The hardware typically included a specialized computer with a built-in screen (the POS terminal), while the POS software is usually preloaded into the system.

The POS system is connected to the internet or a local server. In addition to the POS system basics, most businesses use other connected devices, such as credit card readers, handheld scanners, receipt printers and cash drawers.

POS system features

There are various types of POS systems with wide-ranging features ― your industry and specific needs will dictate what’s best for your business. However, some essential POS system features include the following:

• Hardware: POS systems typically feature a touchscreen interface and often come with an integrated or external credit card reader. Some systems include a cash drawer, printer and stand but require the merchant to buy and use their own tablet (usually an iPad). 
• Software: POS system software typically supports customer purchase histories, loyalty management, coupons, discounts and promotions management. The software will help you run POS sales reports by product, location and salesperson. You’ll also be able to run financial and business intelligence reports to determine the busiest times of the day and week, the most effective promotions, the hottest-selling products and the most efficient employees. 
• Employee scheduling and management: POS systems make it easy to schedule and manage your employees and their time-off requests.
• Integration with your accounting system: POS systems can mesh seamlessly with the best accounting software, sharing information automatically, so you don’t have to upload and download reports manually.

Specialized POS systems and their features include the following:

• Retail POS software systems: The best POS systems for retail businesses allow you to manage inventory by size, color and item. You can also calculate shipping costs, manage barcodes, look up products quickly and efficiently handle returns, refunds and exchanges.
• Restaurant POS systems: The best POS systems for restaurants let you allocate orders to the appropriate prep stations in the kitchen and utilize open-table management. You can also manage reservations, waitlists, online ordering and delivery options and preauthorize bar tabs. 

POS system costs

While POS system costs vary widely, most small and medium-sized businesses (SMBs) should be able to find a terminal that suits their needs for between $1,000 and $2,500. However, specialty models can cost as much as $5,000 or more. 

Tablet-based POS setups are often more affordable than systems with built-in computers, as businesses can use off-the-shelf tablets like iPads. These setups work well for many businesses and offer added flexibility. (We’ll explain more about tablet-based POS systems in the following section on mobile POS systems.)

Pros of POS systems

POS systems can bring your business the following upsides:

• POS systems can provide detailed sales reports: POS systems have powerful software that tracks sales by item, category, feature, employee or period, helping to improve buying and maximize sales revenue.
• POS systems help you manage inventory: A POS system with inventory controls can significantly reduce stockouts and overstocks. The system will alert you when your stock drops below a preset level so you can reorder before selling out. Some POS systems even connect to your suppliers for automatic reordering.
• POS systems can improve marketing: Tying purchases to customer accounts creates detailed purchase histories. This data can help you craft effective marketing communications, including personalized emails and targeted promotions.
• POS systems provide improved employee tracking and security: Since employees must sign in with a unique employee number when they start their shift, tracking employee hours, theft and mistakes is easy.
• POS systems are durable: One significant advantage of a POS system with all necessary hardware is its durability. These systems are built for heavy business use and can withstand demanding environments.

Cons of POS systems

Some downsides to POS systems include the following: 

• POS equipment (and sometimes software) can be expensive: The more cashiers and locations you have, the more the costs of individual POS stations can add up.
• POS systems require some employee training: Although most POS systems are relatively easy to operate, you must implement a training process so employees know how to use all the features.
• POS systems may have a steep learning curve: It may take some time for managers, owners and employees to fully utilize POS system reporting functions and apply the insights to better manage the business.

What are mobile POS (mPOS) systems?

mPOS systems, refer to software products designed to run on compatible mobile devices, usually tablets, which must be purchased separately. Some mPOS systems include card scanners, drawers and printers; in fact, packages that include all these features are often listed under “POS systems,” even though they don’t include a computer.

However, most mPOS systems are typically offered à la carte. The purchaser buys a tablet stand and software and then chooses the add-ons that best suit their business. These systems typically have easy-to-use interfaces, plenty of customization options and robust reporting capabilities. 

How do mPOS systems work?

Software — typically provided via a software-as-a-service (SaaS) model — is central to mPOS systems. The software is compatible with mobile devices like tablets and smartphones. Sometimes, mPOS software isn’t as robust as regular POS software, so ensuring the system has the features you need is crucial. 

mPOS systems can process payments by manually keying in customers’ card information. However, connecting the mPOS system to a mobile credit card reader is less expensive and more efficient. Mobile card readers usually connect to the tablet or phone via Bluetooth, but some plug into the headphone jack (for Android devices) or charging port (for iOS devices). 

mPOS system features

mPOS systems typically offer many of the same features as traditional POS systems, including the following:

• Primary hardware: mPOS systems generally require a mobile device, such as an iPad, proprietary tablet or device or mobile phone. 
• Stand: An optional hardware feature is a stand, which can be integrated with the screen or used with a tablet.
• External hardware: Some mPOS systems include an external mobile credit card reader and an external receipt printer.
• Software: mPOS system software allows you to enter credit card information manually. While functionality varies, you should, at minimum, have access to customer data, reporting and product information. If your business needs more advanced features, mPOS systems may integrate with more robust POS software.

mPOS system costs

When choosing an mPOS system, your primary concerns will be hardware and software prices and replacement costs. 

Use frequency dictates mPOS system hardware costs: 

• If you need receipt printers only: For example, if you’re a solopreneur conducting business at farmers’ markets or craft shows, you can probably get away with using your existing smartphone loaded with mPOS software from your payment provider. You may decide to keep it simple and send customers digital receipts by text or email or you may have an external receipt printer. A receipt printer may cost as little as $25 or as much as $399.
• If you need mobile card readers: You can enter credit card numbers into the mPOS software manually or use an external mobile reader connected via Bluetooth. Some credit card processors, including Square, offer new merchants a free mobile card reader. Otherwise, these devices range in cost from $29 for the PayPal Zettle (for your first card reader) to $169 for a SumUp Bundle that includes an embedded printer.
• If you need multiple devices: Alternatively, you may want to use mPOS hardware to speed up the checkout lines at your fixed-location business. For example, Chick-fil-A uses this setup in its drive-thru lines. In this case, your hardware costs will multiply as you add devices.

Here’s what you should know about software costs: 

• Software costs vary by processor: Prices vary widely by payment processor. Processors like Square, PayPal Zettle and Helcim offer merchants POS software for free. Others, like Shopify, charge as much as $89 per month. On the lower end, Clover offers plans starting at $14.95 per month. (For more information, see our detailed Square review, our PayPal review, our review of Helcim, our review of Shopify and our Clover review.)

Many SMBs start with one centralized POS or mPOS terminal and add satellite tablets gradually. If this approach appeals to you, ensure any system you purchase can be used with other mPOS tablets. Also, ask the company if it charges additional fees for more devices, which is often the case.

Pros of mPOS systems

“[Mobile POS systems] are best for businesses with high foot traffic, outdoor sales opportunities or those looking to maximize space and enhance customer engagement during peak hours, like the example set by Chick-fil-A,” Bornstein explained. The following benefits explain why:

• mPOS systems are small: Some SMBs choose mPOS systems for their size and appearance alone. mPOS machines are much smaller than traditional POS terminals or cash registers. Also, many entrepreneurs feel an iPad checkout aligns with their brand image better. 
• mPOS systems are mobile: Entrepreneurs with pop-up stores or food trucks or who travel to multiple locations opt for mPOS systems almost exclusively due to their portability and quick setup.
• mPOS systems provide speedy checkout: Many restaurants and some retailers have servers or sales associates carrying mPOS tablets with credit card scanners attached to check out customers quickly. This technology helps speed up table service, shorten checkout lines and improve employee accountability. “It’s becoming increasingly common for restaurants to come to you with a processing device or cell phone leveraging NFC to accept cards at the table,” Seaman noted.
• mPOS systems support self-service options: Some early adopters in the smart dining scene are taking things a step further and placing tablet terminals at each table so customers can place their own orders.

Cons of mPOS systems

The following downsides of mPOS systems may be considerations for some businesses:

• mPOS systems are vulnerable to wear and tear. mPOS systems rely on the daily use of machines that aren’t designed for heavy business use. Employees transporting mPOS devices may accidentally drop them, crack screens or otherwise damage them. Replacing devices like iPads can get expensive.
• mPOS systems need reliable internet. If your location has spotty connectivity, payment processing or customer assistance can be delayed, leading to a poor customer experience.
• mPOS systems have cybersecurity risks. If you’re on a public Wi-Fi network, you’re more vulnerable to having your device infiltrated by would-be cybercriminals.
• mPOS systems aren’t great for cash payments. Without a cash drawer for security and to make change, it’s harder to accept cash payments for purchases.

What to consider when choosing a cash register, POS or mPOS

Once you’ve set a budget and chosen your checkout device system type, compare a few top contenders. Focus on the following factors:

• Future costs: Are you considering opening another register area, adding handheld tablets to your business or opening another business location? Inquire about costs for additional credit card scanners, barcode scanners or other external accessories you may require.
• Interface: Try to get hands-on experience using any checkout machine you’re considering. If that’s not possible, request a demo. Consider how intuitive the interface is, customization options, security and administrative features and the learning curve. A hard-to-navigate system can cause employee misuse, time inefficiency and unnecessary frustration.
• Physical setup: Unless your space is unlimited, measure the exact space you’ll have for a checkout counter setup. Envision where you’ll put a desktop machine and store scanners, external printers, keyboards, cash boxes and other peripherals. As you browse different register and POS models, check their sizes.
• Integrations: If you opt for a basic cash register and aren’t worried about integrations, you can skip this step. However, if you plan to integrate your checkout system with your online store or use it with other software, ensure compatibility.
• Reports and exports: If you get a POS or mPOS, how it reports and exports information is a significant consideration. For example, do you want to export inventory data to a third-party system or pull a specific report about employee behavior? 

Should you use a cash register, POS or mPOS?

When choosing a checkout system, consider your current business requirements and future needs.

A cash register makes the most sense for these cases:

• Businesses that are starting out and short on capital
• Established businesses that need to ring up sales, accept payments and print receipts only

A POS system makes sense for these cases:

• Businesses that want a system that rings up sales, tracks and manages inventory and helps with customer and employee management
• Retailers and restaurant owners with multiple sales channels, both online and offline
• Businesses with several locations or that need more than one register

An mPOS system makes sense for these cases:

• Businesses that want to process payments outside a physical store, such as at an event or outdoor market
• Retailers and restaurant owners who want to offer immediate or tableside payment processing 

Whether you ultimately choose a POS system, an mPOS system, an old-school cash register or some hybrid setup, be aware that these systems aren’t standardized. Ensure you know precisely what’s included in your setup, understand all costs and know what to expect in terms of performance and ease of use.