How to Choose a POS Cash Register

What is a POS cash register?

A POS cash register is a key component of a POS system and is more advanced than a traditional cash register. These modern registers, commonly used in small businesses, go beyond tallying totals, handling payment processing and printing receipts. They also integrate with broader POS software to streamline operations.

“A POS cash register is a computerized register that is connected to a wider control system and will usually have multiple individual registers on the network processing sales and accepting payments,” explained John Moss, chief executive officer of English Blinds. 

There are two primary types of POS cash registers: fixed and mobile. However, today’s POS systems have a lot of overlap as the best retail POS systems allow businesses to create bundles with elements of traditional checkout setups and mobile solutions. 

What is a fixed POS cash register? 

A fixed POS cash register is a stationary cash register integrated with a business’s POS system. It’s typically installed at designated checkout locations and includes terminals, screens, cash drawers and receipt printers. Most fixed POS systems also include or connect to card readers, allowing businesses to accept credit card payments and digital payment methods.

These registers are typically tied to robust POS software. Their stationary setup makes them ideal for retail stores, restaurants and other businesses with a centralized checkout process.

For example, the image below shows the Square Register system from the top POS vendor, Square. It’s shown with a cash drawer, receipt printer and retail touchscreen screen and also comes with a customer-facing display where customers can manage their end of the transaction easily.

The Square Register works well as a fixed POS cash register. Source: Square

What is a mobile POS (mPOS) cash register?

A mPOS cash register is a system that combines a cash drawer with a mPOS system. mPOS systems operate on tablets, smartphones or proprietary mobile devices and typically include a card reader that accepts near-field communication mobile payments and card payments. For businesses that want to accept cash payments, a cash drawer is required to store money and provide change.

While some businesses, such as restaurants using mPOS systems for tableside service, may not need a cash drawer, others — like food trucks and retailers selling at local events — often require one to simulate traditional register functionality.

The image below is a PayPal Zettle setup with a mounted iPad, a mobile card reader for smartphones or tablets and a compatible cash drawer. This setup would be suitable as an mPOS/POS cash register operation. 

PayPal Zettle hardware bundles include ideal setups for mobile businesses that need a cash drawer. Source: PayPal

William Dawsey, vice president of sales at Chetu ― a custom software developer that works with payment service platforms ― emphasized the payment versatility of mPOS solutions.

“Developments in payment technology allow transactions to be held on ubiquitous devices, such as mobile phones, that utilize near-field communication, quick response, barcode configurations, Bluetooth Low Energy and magnetic secure transmission technology,” Dawsey explained. “Additionally, mobile payment systems can utilize cryptocurrencies and digital wallet services.”

How to choose a POS cash register

Choosing the right POS cash register is directly tied to the POS system you select. To choose the right POS system for your business, you’ll need to evaluate your business’s needs, budget and future growth plans carefully. To make the right choice, follow these steps.

1. Evaluate the type of POS hardware you’ll need.

What are your POS system hardware requirements? For example, a retail store might need one or more fixed POS cash register terminals with receipt printers and barcode scanners. If you own an eatery, the best restaurant POS systems have options like robust kitchen display systems, payment terminals and handheld mPOS systems for easy tableside checkout. A small service-based business may need a simple smartphone card reader with a cash drawer to accept mobile payments. 

Hardware appearance and durability are also crucial factors. Businesses that need customer-facing POS systems will prioritize attractive, sleek hardware, while restaurants may seek out the most durable hardware possible. 

In short, the POS system vendor you select must offer the hardware you need to run your business.

2. List the POS system features you’ll need.

While software needs may not seem to be a factor in choosing a POS cash register, they’re a crucial consideration when evaluating POS software — and it’s all tied together.

Numerous POS system features exist, but you don’t want to pay for features you don’t need. Consider the following features and their importance to your business.

• Inventory tracking
• Sales analytics
• Employee management and scheduling tools
• Employee permissions
• Customer loyalty tools
• Appointment-setting tools

Your industry will dictate many of your POS system needs. Some industries require specialized management, while others are more straightforward. For example, if you own a service business, such as a bookkeeping or tutoring service, you’ll likely charge by the hour. Accepting customer payments will be simple — you’ll likely just select the customer name and input the number of hours worked with a short description. 

In contrast, a specialized outdoor equipment retailer will have a complex inventory of clothing and equipment. Each product and its variations must be loaded into the POS system for inventory management purposes. These businesses will need robust inventory management features. Similarly, an appointment-based business will need a POS system with appointment-setting features and reminder communication functionality. 

3. Set a budget for your POS system.

POS system costs vary widely — there are free POS systems and setups that can cost hundreds of dollars per month. Do some budget planning to establish what you’re willing to spend on your POS solution. Consider the upfront hardware and software costs and ongoing expenses such as monthly subscription fees, maintenance costs and potential transaction fees.

4. Choose between a cloud-based or on-premise system.

Some businesses prefer cloud-based POS software for its flexibility and remote access functionality. Others opt for an on-premise system that stores data locally. Cloud-based systems often have lower upfront costs but require a stable internet connection.

5. Ensure hardware and software compatibility.

You may already have hardware you want to use with a POS system or you may have a specific hardware preference. If so, you must ensure the POS system works with your chosen POS cash register or hardware setup. If you’re starting from scratch, you’ll likely opt for a vendor that can provide all the hardware and software you need. If not, research software that meets your needs and verify that it integrates seamlessly with your chosen hardware. Read reviews, ratings and testimonials to ensure reliability.

Similarly, you may need your POS system to integrate seamlessly with your business software. Ensure any potential POS system can work with your accounting and email marketing software if you want to tie all your systems together. 

6. Test potential POS cash register solutions.

Your POS cash register must be intuitive for you and your staff to operate. Request a demo or free trial to evaluate any potential system’s usability. A complicated interface can slow operations and require extensive training and clunky or flimsy hardware just won’t work.

7. Evaluate potential vendors’ customer support and scalability.

Your POS provider should offer reliable customer support and be able to handle potential technical issues during your business hours. Additionally, consider whether the solution can scale as your business grows, such as adding new locations or integrating advanced features.

8. Look at payment processing fees.

The POS cash register you select must support your customers’ preferred payment methods, including credit cards, mobile payments and contactless transactions. Look for a vendor with competitive POS charges and fees, including payment processing fees, to keep costs manageable.

9. Verify the POS platform’s security.

It’s crucial to choose a system with robust security measures, such as end-to-end encryption and Payment Card Industry compliance, to protect customer data and reduce the risk of credit card fraud.

10. Compare vendors and finalize your choice.

Once you’ve narrowed your options, compare pricing, features and contracts among the most promising vendors. Select the one that offers the best combination of features, cost and support for your business.

What are the benefits of POS cash registers?

A POS cash register and robust overall POS system can bring numerous benefits to your business, depending on the software features you’ve opted for. The following are some of the most important:

• Inventory management: Inventory is one of a POS system’s primary selling points. Top POS systems have built-in inventory management. They can track stock changes automatically after every sale and make replenishment much easier to manage.
• Data analytics: A POS reduces labor costs by digitizing sales data. Instead of manually entering receipt information into a computer automatically, you can utilize data analytics to create POS reports. POS retail reports can help you make informed decisions on staffing, inventory and more.
• Time and attendance tracking: If you integrate a time clock into your POS system, you can easily track employee hours, sales and labor statistics. Helpful timers can schedule mandatory breaks, rotations in stations or responsibilities and staffing changes to handle sales traffic patterns.

How much does a POS system cash register cost and where do you buy it?

The cost of a POS system cash register depends on the hardware and features your business requires. Monthly software subscription fees typically range from free for basic plans to several hundred dollars for advanced systems with robust features. Hardware costs, such as terminals, card readers, receipt printers and cash drawers, can vary widely, with total costs ranging from a few hundred dollars to several thousand.

Additionally, payment processing fees are a crucial factor to consider. Most POS systems charge a fee for each transaction, which is typically a percentage of the sale plus a flat fee, such as 2.6% plus 10 cents). These fees can add up quickly, so be sure to compare processing rates when choosing a system.

You can purchase POS system cash registers directly from POS providers like Square, Clover and Toast or third-party retailers like Amazon, Best Buy or specialized POS vendors. Many providers also offer bundled packages that combine software, hardware and customer support for a single price.

Should you use a POS cash register or a traditional cash register?

Despite the ubiquity of POS cash register systems, traditional cash registers are still an option for retailers. They’re typically inexpensive, so they’re a plus if you’re operating on a tight budget. Still, the advantages of POS systems can’t be overstated. Moss emphasized that traditional cash registers are a realistic option only if you oversee one small store with one register and have the time to check, monitor and control stock levels manually. You must be familiar with all item prices, as well. 

“As is self-evident, this means that a traditional register is very limited and will only be appropriate for a very narrow demographic of store owners and, aside from the purchase cost saving of a traditional register, they offer few to no advantages and many disadvantages,” Moss explained.

Dawsey emphasized that conventional cash registers aren’t a fit in a predominantly cashless society. And even if you do have cash transactions, traditional cash registers create data silos, hindering integration with other critical business software.

If cost is a concern, Moss noted that POS systems pay for themselves over time. “Many small business owners are reluctant to invest in both the purchase cost of a POS system and also the time required to train management and operators in its usage,” Moss said. “However, POS systems pay for themselves many times over in a reasonably short period of time when you view the big picture.”

Donna Fuscaldo contributed to this article.