Cash register Vs POS device: Which is the best for your business?
Choosing the transaction and managing devices that assist in running any business is critical for starters and those who are updating their business. Point-of-sale devices and cash registers are the core of every business. Transactions, accounting, and management all take place there. However, there is a significant distinction between cash registers and point-of-sale (POS) devices. Choosing one of them could have a notable impact on doing business and profit. Here in the blog, we will try to determine the difference between the cash register and POS device.
What is a cash register?
Invented in 1879 by Ohio saloon owner James Ritty, a cash register is a cash management device that calculates totals, records sales, and has a drawer for holding cash. It is used in retail and other transactional businesses.
The idea behind creating a cash register was to prevent employee stealing. It can do whatever the employee at the cash counter could do. Modern cash registers provide codes for each item to be billed, tax, sales records, etc. Also, credit card readers and barcode scanners are integrated into the most recent cash registers.
A cash register consists of:
What is a POS system?
A POS (Point of Sale) device combines modern software and hardware that makes them more interactive in business. It has all the functions of a cash register plus other advanced functions. POS systems can generate financial reports, manage inventory, and serve as a centralized platform for customer management, transactions, and targeted marketing. Since POS devices are software-enabled, custom software can be developed for specific businesses.
Nowadays, mobile POS (mPOS) is the trend in retail stores. It is a portable POS device. Rather than having customers come to the POS, mPOS can go to the customers. mPOS works on cloud software, and it supports almost all the features supported by standard POS devices.
Latest POS devices support:
Contactless card reader
Credit card reader
Cloud storage support
Secured with biometrics
Store and customer monitoring with the help of connected cameras
Difference between the Cash register and POS device
A cash register and POS device will perform the same function for a customer purchasing from a store. It will collect cash or cards and generate the bill. However, it will undoubtedly alter the way businesses are managed, allowing the company to provide better customer service in the long run. A cash register only allows for transactions, whereas POS devices can do much more. Let's check the basic functionalities of both:
The choice of different payment modes; smart cards, cash.
Need to add inventory quantity manually
can set up tax rules.
Provide price look-up
Generate daily, monthly, and sales reports
can set up tax rules.
They provide card readers, contactless payment systems, and QR code reading.
Complete inventory management, automatically updating inventory quantity
Set up tax rules
They have extra space to incorporate third-party accounting software. So that it can do a more sophisticated accounting process.
The above-mentioned mTerminal100 has 1GB RAM and 8GB flash memory, useful for running additional apps and functions.
Facilitate marketing, connects with email marketing tools and services.
Provide access to cloud systems
More secure with the biometric login feature. Only authorized employees can access the device.
POS can manage sales across different platforms. Manage both online, offline, and delivery businesses.
It enables targeted marketing.
A single point of managing the entire business
Touch screen interface
Less time to learn the processing
mTerminal100 is built on the Android platform. Such devices must be more user-friendly.
We have mentioned the functionalities of both cash registers and POS devices. Though, we have the responsibility to elaborate on some key differences.
Cash registers have nothing to do with the marketing of a business; they only provide coupons that can store in drawers. While POS devices can play a crucial role in marketing, in other words, they can centralize marketing. POS devices can be used to collect and save communication data and customers' preferences. The data collected can be used for targeted marketing or SMS or email marketing through the POS device itself.
POS can manage online and offline businesses. It can notify the shortage of products or over demand for products on the online platform and suggest actions.
As the business grows, the POS can also grow by integrating new software and applications. For example, mTerminal100 runs on the Android platform, on which users can download and use different accounting software or application. The latest POS devices can integrate with facial recognition cameras, and these cameras can detect regular customers and recommend products and offers to them. Users can also use productive apps like scheduling apps, ERP apps, marketing automation software, etc., with the POS.
Ease of use
Although a cash register is a device with basic functionality, users must train to use it. However, it is simple to learn. In the case of POS devices, it is similar to smartphones. So, it is simple to use, and no special training or instructions are required; a manual will be enough.
It is the tricky part. Compared to POS devices, basic cash registers are inexpensive. But if users want additional features such as card readers and barcode readers, then the cash registers are not cost-effective. The POS device is not just for billing. So, while considering POS, value for money is the right thing to consider. Investing in the right device will yield a faster return on investment. The additional features in the POS device will provide more functionalities that will improve staff efficiency and productivity. So, it will pay off more than it costs.
A cash register will be enough if all you need is a billing machine. However, if you want to make a long-term investment, the POS device is an excellent choice. POS devices will help you stay updated in the ever-changing retail industry. For a wide range of POS devices and micro ATMs, visit MerePOS.