Cash Register vs. POS System: Which is Right for Your Store? (2026)

Today’s sales process extends beyond the traditional metal cash register. 

Businesses often use retail POS (point of sale) systems, a combination of hardware and software that gives you the option to accept payments in cash, by credit, debit, or gift card, and via mobile payment—plus, can integrate your online shop and other business activities. 

A cash register POS merges the best of both worlds. Here’s a look at how it works and why having a cash register POS in place can be important for your business.

What is a cash register?

A traditional cash register is a metal machine (also known as a till) where you can ring up the price of goods sold at the time of purchase, accept payment, and return the change to the customer. 

How cash registers work

Cash registers are machines that do three main jobs: they record when something is sold, they hold money, and they make a paper record that can be checked later. They are still important, as the Federal Reserve Bank of Atlanta reports that almost a quarter of in-person purchases are made in cash. 

Today's cash registers still follow the same basic six-step process that James Ritty created in 1879, just with more silicon and a Bluetooth connection. 

1. Open the drawer with a starting float. 
2. Ring up items.
3. Select the tender and calculate the change. 
4. Handle cash and issue a receipt.
5. Make mid-shift cash drops.
6. Count and reconcile at close.

Key features of cash registers

A cash register helps your business do the following:

1. Ring up cash sales 

With any type of cash register, you can collect payment for purchases that customers pay for in cash. Without POS technology, you may have to manually input product prices and taxes, and calculate totals. POS software like Shopify POS does these calculations for you.

2. Securely store cash 

A cash register is where you store cash when you collect payments and make change. The cash drawer opens when it’s time to collect payment; otherwise it stays securely closed. Most cash registers come with a key or can be opened by staff logged in to your POS system, which gives added theft protection.

3. Track cash payments 

A cash register helps you collect cash payments and track how much cash is going in and out of your business. However, this is much easier when you connect your cash register to a POS system like Shopify, since it comes with tools that facilitate cash flow management.

4. Balance cash register

Balancing a cash register means counting the money in the cash drawer (at the end of a shift or day, for example) and removing all but what’s needed in the drawer to make change for customers.

A cash drawer simplifies the balancing process because it neatly separates cash and coins into different sections by denomination. This separation makes the cash more organized from the start, which makes counting faster and easier.

When you connect your cash register to a POS system, balancing the cash drawer becomes even simpler, thanks to cash tracking tools.

Pros and cons of cash registers

Pros:

• Low upfront cost and offline reliability. A basic shop till costs as little as $150 and keeps ringing even during an internet outage or power blip (with battery).
• Fast for cash-heavy transactions. One or two button presses and the drawer opens, ideal for concession stands, farmers’ markets, and pop-ups.
• Physical theft deterrent. A metal drawer with a lock is still harder to pocket than a stack of bills in an apron.

Cons: 

• Manual data entry and errors. Staff must memorize prices, tax rates, and discounts. Errors can grow as your catalog grows.
• Poor omnichannel experience. No way to collect customer info or link online orders to in-store activity.

What is a POS system?

A point-of-sale (POS) system combines software, connected hardware (scanner, receipt printer, card reader, cash drawer), and a cloud database so you can sell, take payment, and sync inventory everywhere you operate. 

In Shopify’s case, the POS software runs on iOS, Android, or mobile Tap to Pay versions, and it shares the same product, order, and customer data as your online store.

How POS systems work 

POS systems operate differently than cash registers. Here is the typical flow:

1. Device sign-in. Staff log in with a PIN and record the starting cash amount in the shift.
2. Product selection. Items are added to the cart by barcode scan or search; taxes and discounts apply automatically from your Shopify catalog. 
3. Payment capture. The customer pays by card, tap-to-pay wallet, cash, or custom tender. Shopify POS accepts them all and routes card transactions through its paired reader.
4. Real-time sync. The moment the sale is completed, inventory is decremented, and the order appears in Shopify Admin, keeping online and in-store stock in lockstep. 
5. Receipt and customer profile. You can print, email, or text a receipt; the shopper’s purchase history is added to their customer profile for future marketing purposes.
6. Shift close and reporting. Staff count the drawer, enter totals, and POS automatically flags over/short amounts and generates sales, payments, and inventory reports. 

Danish retailer Teselskabet is just one merchant already using Shopify POS to manage its liquor store operations. It needed an omnichannel inventory management system that could track product ingredients, create categories, and sync quantities across its online and offline sales channels.

“Our online and in-person sales are now all unified with Shopify,” says owner Lars Hansen-Damm. “We have a variety of apps that all run seamlessly within Shopify, so we never need to jump from one program to another. This saves us a huge amount of time and allows me to feel in control of my own brand.”

POS subscriptions start at $39 per month for unlimited logins and a full-featured online store. Payment processing fees start at 2.6% + 10¢ USD for in-person transactions and 2.9% + 30¢ USD for online orders. There are no additional POS hardware costs with Tap to Pay.

Key features of POS systems 

A POS system has added capabilities that cash registers are missing, such as:

1. Portability

With a mobile POS system, you can turn every employee into a walking checkout counter. When employees are equipped with handheld devices like Shopify Tap to Pay, they can check out and assist customers from anywhere in your store. If customers want to pay with cash, they can still do so at your store’s primary checkout point.

2. Inventory management 

A POS system does so much more than just facilitate sales. This technology also simplifies inventory management.

POS systems automatically track inventory data. For example, when a customer buys an item, it’s deducted from your physical inventory count. Your POS lets you know when you’ve reached your reorder point and can even automatically order new inventory for you.

3. Collect and view customer data 

A POS is also a treasure trove of customer data. You can collect customer information such as purchase history, purchase frequency, and more. Then, you can use that information to send targeted marketing offers and create hard-to-resist personalized shopping experiences to engage customers. 

4. View store reports and analytics 

APOS enables you to collect data and analytics about your business to make more informed (and faster) business decisions. 

For example, by looking at retail reports, you can determine which items sell the best, how often to replenish stock to avoid stockouts, and which products to put on sale.

5. Track all payment types 

POS systems enable you to take all kinds of payments—including cash, card, and mobile wallet—and track data about those transactions. You can use that information to understand customers’ preferred payment methods, introduce new payment options, and shop around for a payment processor that can give you the best deal.

6. Ecommerce integrations 

Using a POS system makes it easier to sell online by integrating with the best ecommerce platforms that suit your needs. When your ecommerce platform integrates with your POS, you can see all of your business data—including customer information, inventory, and sales—in a centralized location. 

Pros and cons of POS systems 

Pros of POS systems

• Unified omnichannel view. One database for inventory, orders, and customers eliminates double-entry and overselling.
• Faster checkout everywhere. Scan-and-go devices cut lines and improve conversion, especially helpful during peak periods.
• Flexible payments. Meet shoppers where they are with cards, wallets, cash, gift cards, or buy-now-pay-later, then negotiate better processing rates armed with hard data.
• Scales with you. Add locations or seasonal pop-ups by logging in on another device instead of buying a new cash register stack.

Cons of POS systems

• Higher upfront spend. Handheld devices and card readers cost more than a basic till, and advanced POS features require a subscription.
• Ongoing maintenance. Regular software updates, hardware firmware, and staff training demand attention, but the payoff is smoother operations and better data.

Cash register vs. POS system: key differences

Portability

• Cash register: Fixed to a countertop and requires mains power. If you run a sidewalk sale or holiday pop-up, you’ll need to lug the whole unit or keep a separate cash box.
• POS system: Runs on tablets, smartphones, or dedicated handhelds. Shopify Tap to Pay combines scanner, card reader, and screen in one device so staff can check customers out anywhere on the sales floor.

Use case

• Cash register: Best for single-location shops with a small catalog and predominantly cash sales, like seasonal farm stands or concession kiosks.
• POS system: Built for retailers who need unified online/offline inventory, multi-location visibility, staff permissions, and customer profiles in one dashboard.

Payment types

• Cash register: Handles notes and coins. Card transactions require a separate terminal that doesn’t sync totals automatically.
• POS system: Accepts cash, chip cards, contactless wallets, gift cards, Shop Pay Installments, and even custom tenders. It records every payment method in a single report in Shopify POS.

Integrations 

• Cash register: Stand-alone unit. Sales data lives on paper and must be re-entered into accounting or inventory tools.
• POS system: Connects natively to your Shopify online store, automatically updates inventory across warehouses or retail locations, and pushes order, customer, and product data to marketing, loyalty, or analytics apps through the Shopify ecosystem.

Hardware 

• Cash register: A single metal till plus optional bolt-on peripherals (receipt printer, barcode scanner) that may not talk to each other.
• POS system: Modular and scalable. Choose from Shopify-approved card readers, receipt printers, barcode scanners, cash drawers, label printers, and stands, all certified to work together and supported in one place.

Can POS systems connect to cash registers?

When you use a POS system and an electronic cash register together, you can more easily accept and manage cash and other forms of payment. 

When you find a cash register that’s compatible with your POS system and connect it, your cash drawer will open when you select a cash transaction on your POS system. POS software comes with features that make it easier to balance a cash drawer at the end of the shift or day, simplifying your accounting.

How to use a POS system and cash register

Ready to get started with a POS system and cash register? Follow these four steps to learn how to use the tools together, from setup to balancing the cash drawer.

1. Find a cash register compatible with your POS system

Your POS vendor should be able to provide you with a list of compatible cash drawers. If you’re looking for cash registers that are compatible with Shopify POS, you could use the following cash drawers:

• Star Micronics 14-inch cash drawer
• VPOS 14-inch cash drawer
• VPOS 16-inch cash drawer

2. Connect your cash drawer to your POS system 

Connect your cash drawer to your POS system per your POS vendor’s instructions. The best POS systems are able to sync data from both your retail and online shops. 

3. Use the POS system and cash register

At the start of each cashier’s shift, have them (or a manager) start a payment tracking session on their POS and enter how much cash is in the cash drawer. This system of accountability helps balance your books, reduce errors, and deter fraud. 

If a customer wants to pay with cash, the cashier must select cash payment when ringing up a customer. The cash drawer opens, and the cashier collects cash from the customer. The cashier counts the cash and places it into the cash drawer. If needed, the cashier issues change to the customer. Finally, the customer receives a receipt for their purchase.

The POS system can also handle card payments, as well as other contactless payment methods like mobile wallets.

4. Balance the cash drawer

At the end of the day or their shift, the cashier balances the cash drawer. They start by ending the tracking session. 

Each cashier counts how much cash is in the register and input the final amount into the POS. A manager may confirm the final balance. Ideally this number will match the amount recorded in the POS, but due to human error there may be minor discrepancies from time to time.