A cash register POS is a point-of-sale system with checkout hardware such as a cash drawer and receipt printer. Businesses use it to accept cash and other payment types. Unlike a basic register, a retail POS system can record sales and connect in-store activity with an online shop.
Brick-and-mortar businesses still need a way to process cash at checkout. According to the Federal Reserve Bank of Atlanta’s 2025 Survey and Diary of Consumer Payment Choice, 81% of US consumers reported using cash in the previous 30 days. Consumers made about 6.4 cash payments per month.
Here’s how a cash register POS works and why businesses use one.
What is a cash register?
A cash register, also known as a till, is a machine used to ring up the price of goods sold at the time of purchase, accept payment, and return change to the customer, if necessary.
How cash registers work
Cash registers do three jobs: they record when something is sold, they hold money, and they print a paper record of the transaction. Many businesses follow the same basic procedures when operating a cash register:
- Open with a starting float in the cash drawer.
- Ring up items and calculate the order total.
- Select the tender amount and provide change, if necessary.
- Issue a receipt.
- Make mid-shift cash drops.
- Count cash 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 cash payments for purchases. 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. Many cash registers can also be opened with a key or by staff logged in to the POS system.
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 task is much easier when you connect your cash register to a POS system like Shopify’s, which comes with tools that simplify cash flow management.
4. Balance cash register
Balancing a cash register involves counting the money in the cash drawer at the end of a shift or day, subtracting the float, and comparing the total to the recorded cash sales. A cash drawer can simplify this process by separating denominations of cash and coins into different sections. This organizes the cash and makes counting faster and easier.
When you connect your cash register to a POS system, cash-tracking tools can make balancing a cash register even more simple.
Pros and cons of cash registers
Pros:
- Offline reliability. Basic shop tills may keep ringing even during an internet or power outage.
- Fast for cash-heavy transactions. Transactions can be completed in a few button presses. Ideal for concession stands, farmers markets, and pop-ups.
- Physical theft deterrent. A locked drawer is harder to steal than a stack of bills in an apron.
Cons:
- Manual data entry and errors. Staff may need to memorize product codes, prices, tax rates, and discounts. Errors can grow as your catalog grows.
- Poor omnichannel experience. May not be able to collect customer info or link online orders to in-store activity.
What is a POS system?
A POS system enables retailers to process payments, track inventory, and collect customer data. In brick-and-mortar stores, it combines software with connected hardware (e.g., cash register, scanner, and card reader). Modern systems are cloud-based so you can accept payments and sync inventory across locations and sales channels.
Shopify offers store owners POS software and hardware, and you can accept in-person payments using Tap to Pay on iOS and Android devices in the Shopify app.

How POS systems work
Here's the typical workflow of a POS system:
- Device sign-in. Staff log in with a PIN. If there’s a till, open each day or shift with a starting float.
- Product selection. Items are added to the cart by barcode scan or search; taxes and discounts apply automatically.
- Payment capture. The customer pays by card, tap to pay, cash, or custom tender.
- Real-time sync. The moment the sale is completed, inventory is decremented, keeping online and in-store stock in lockstep.
- 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.
- Shift close and reporting. The POS system can generate sales, payment, and inventory reports at the end of a day or shift. If there’s a till, staff count the amount in the cash drawer, minus the float, and enter the total. Any over or short amounts will be flagged by the system.
Madrid-based retailer WOW Concept found that setting up Shopify POS at new locations takes about a minute, and requires little to no staff training.
“Installing it takes literally minutes,” says Sylvie Degrange, head of “phygital” sales at WOW. “Even without training, anyone can take a payment with Shopify. It’s that simple.”
Key features of POS systems
A POS system has added capabilities compared with basic cash registers, such as:
1. Portability
With a mobile POS system, you can turn every employee into a walking checkout counter. When staff are equipped with handheld devices like Shopify Tap to Pay, they can check out and assist customers from anywhere in your store.
2. Inventory management
A POS system does more than process sales. It can also simplify inventory management by tracking inventory data from different store locations and sales channels. For example, when a customer buys an item, it’s deducted from your business’s physical inventory count. Your POS can let you know when you’ve reached your reorder point and can even automatically create purchase orders for you.
3. Collect and view customer data
A POS system can also create a trove of customer data. You can collect customer information, such as purchase history and purchase frequency, and use that information to send targeted marketing offers and create personalized shopping experiences to engage customers.
4. View store reports and analytics
A POS system enables you to collect data and analytics about your business to make more informed business decisions. For example, by looking at retail reports, you can determine which items sell the best and how often to replenish stock.
5. Track all payment types
POS systems enable you to take all kinds of payments, including cash, card, and digital 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 system, you can see all of your business data, including customer information, inventory, and sales, all in one place.
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, which is especially helpful during peak periods.
- Flexible payments. Meet shoppers where they are with cash, cards, digital wallets, gift cards, or buy now, pay later options. 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 can cost more than a basic till, and advanced POS features may require a subscription.
- Ongoing maintenance. Regular software updates and ongoing staff training may be required.
Cash register vs. POS system: key differences
Both cash registers and POS systems are a means of collecting payment from customers, but there are key differences between them.
| Category | Cash register | POS system |
|---|---|---|
| Portability | Fixed at a checkout counter | Runs on compatible mobile devices |
| Use case | Simple sales at one location | Online and in-person sales across locations |
| Payment types | Cash; other types often require a separate terminal | Cash, cards, gift cards, and configured payment methods |
| Integrations | Sales data may require manual transfer | Syncs with connected apps and platforms |
| Hardware | Register with optional peripherals | Compatible device with selected retail hardware |
Portability
Portability is the main difference between a fixed cash register and a mobile POS system. A cash register stays at one checkout counter.
Shopify POS can run on compatible phones and tablets, so staff can process sales around the store or at a pop-up shop. With Tap to Pay, staff can accept contactless cards and digital wallets using a compatible phone.
Use case
A cash register can handle sales at a single-location. A POS system can manage inventory both online and in person across multiple locations. It can also store staff permissions and customer profiles.
Choose a system based on how your business sells:
- Mostly cash sales. A farm stand with one checkout, for example, can use a cash register.
- Online and in-person sales. A POS system can keep orders and inventory updated across all channels.
- Across multiple locations. Brands can view stock and manage staff access via a POS system.
Payment types
A basic cash register records cash payments. Card sales typically run through a POS terminal, so staff may have to reconcile the totals.
Shopify POS accepts cash, card, and gift card payments. Eligible stores can also activate Shop Pay Installments. Custom options can record payments processed outside Shopify. See the available Shopify POS payment methods.
Integrations
Cash register data often stays in printed reports or on the POS device. Staff may need to re-enter the totals into accounting and inventory tools.
Shopify POS syncs orders and inventory with the Shopify admin. The records update across retail locations and the online store. Apps can connect the data to other business tools.
Hardware
A cash register is a single till with optional peripherals. A POS system lets retailers select hardware based on their checkout setup.
How much does a cash register POS cost?
The cost of a cash register POS can depend on factors like hardware costs, software subscriptions, and payment processing.
Businesses can buy their own hardware, which may require high upfront costs, or they may pay vendors a monthly fee to use their equipment. Shopify sells customized hardware kits compatible with its POS system, including card readers, barcode scanners, receipt printers, cash drawers, and other accessories. Devices range from around $50 to $500. Store owners with a compatible smartphone may also be able to use Shopify’s Tap and Pay.
A POS software provider may use a subscription-based model and charge for add-ons. Shopify POS is included in each of the platform’s plans, which start at $39 per month for the Basic Plan. Shopify POS Pro costs an additional $89 per month for each location. It adds unlimited staff access and permissions. Retailers also get more inventory and customer management features.
Payment processing fees can vary. On the Basic Plan, Shopify Payments credit card rates start at 2.6% plus 10¢ for in-person transactions. Online payment rates start at 2.9% plus 30¢. Higher-tier plans have lower rates.
A basic register may cost less in the first year for a cash-heavy shop with a single counter. A POS subscription can add inventory syncing, customer profiles, and online sales tools. Compare the first-year cost using 12 months of software fees, required hardware, and estimated payment processing charges.
Can POS systems connect to cash registers?
When you use a POS system and a cash register together, you can 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 them, your cash drawer can open when you make a cash transaction. POS software comes with features that make it easy 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
Use these four steps to set up and use a POS system and cash register for everyday transactions.
1. Find a cash register compatible with your POS system
Check the POS vendor’s hardware list before buying a cash register. Shopify, for example, has supported cash drawers by region and model. Same goes for receipt printers.
2. Connect your cash drawer to your POS system
Follow the vendor’s installation instructions. With Shopify POS, most cash drawers connect through a compatible receipt printer. After connecting the hardware, open the Hardware menu and select Test cash drawer.
3. Use the POS system and cash register
As part of staff training, show each cashier how to open a register session and enter the starting cash amount. Staff can accept cash at checkout when a customer pays with notes or coins. Shopify POS calculates the transactions and tracks the amount in the drawer.
4. Balance the cash drawer
At the end of a day or shift, staff count the cash and close the register session. The final count is entered into the POS, which compares the physical total with the expected amount. A manager can review any differences in the session report.
POS cash register FAQ
What does POS mean in cash register?
POS stands for “point of sale,” the moment and place a transaction occurs. In modern retail, a cash register POS refers to the hardware and software stack that processes payments and records the sale.
What are the three types of POS?
Three POS types are desktop, cloud-based, and mobile:
- A desktop POS runs on a fixed terminal.
- A cloud-based POS stores data online.
- A mobile POS works on a smartphone or tablet.
What POS system is the cheapest?
The cheapest option is often a mobile POS that runs on a smartphone. Shopify’s Tap to Pay accepts contactless payments with no extra payment hardware. Shopify’s Basic plan starts at $39 per month, with in-person processing rates starting at 2.6% plus 10¢.
Is a sales cash register a POS system?
No. A cash register is simply the hardware that rings up a sale and stores cash. A POS system layers software onto that hardware so it can also sync inventory, customer data, and multichannel orders, which are functions a register alone can’t perform.
What POS system do most cashiers use?
Many cashiers now work on cloud-based point-of-sale (POS) platforms rather than stand-alone tills. Shopify POS offers built-in tools to help cashiers and store owners.




