Every store needs a cash drawer of some kind. Even at high-tech events, it’s good to have the option to receive cash from paying customers in case an internet connection fails or some unknown glitch interrupts payment processing. An envelope for petty cash will work just fine. But if you are running a modern business, is a traditional cash register still adequate to run a successful store, salon, restaurant, or bar?
Of course, you can still process card credit cards and receive other payment cards with a credit card machine connected to the internet. You then record the payment in the register by type and store the merchant receipt. Payment processors work in sync with credit card equipment to provide a wide range of options for merchants all over the globe.
But what if you need more? Maybe this entails more features and capabilities, more data, or even just a more aesthetic appearance at your front of store. POS systems support:
- Live data connection to accounting software
- Analytical reporting packages
- Scheduled data back-up
- Online merchandising (eCommerce)
- Offline payment receipts
- Sleeker and more mobile options for tablets
The POS Systems vs cash register question is one you need to ask, and can open a wide range of possibilities for proactively managing your business transactions.
POS System vs Cash Registers: Credit Card, EMV Processing and Fraud
No one likes credit card fees except, well, the credit card processors. If you run an all-cash business, you never have to pay these fees, which can run more than 3% depending on the service agreement. Discount fees that are too high can hurt thin margin businesses such as restaurants and bars.
When EMV chip technology was developed, it set the industry-wide security standard for major credit cards when the older mag-stripes failed to prevent credit card fraud. If you accept cards, you will need to have a way to read these chips.
Near Field Communication (NFC) is even more modern technology that allows smartphone users to make contactless payments. More businesses are encouraging customers to make touchless payments and to decrease cash and coin transactions amid widespread public health concerns.
Cash Register Security
It has been said that cash is king. Unfortunately, it does cost money to manage cash. If your business relies heavily on cash transactions, then you probably need a safe onsite. Armored cash-in-transit bank trucks provide peace of mind and security for a lot of companies, too.
Internal controls stop customer and even employee theft from cash registers. Proper training and routine audits lower the risk of revenue loss. Audit reports can be run on the frequency of a cash drawer being opened. Managers can then tie activities to sales receipts. POS systems, on the other hand, produce live data on the cash drawer. Available in-depth reporting allows you to compile data and identify activities that can be potentially risky for your business operations.
POS Platform Integration
Cloud-based POS systems can fully integrate multiple POS tablets, cash registers, credit card processing, and eCommerce transactions. Cash drawers usually cover the needs of most small stores that have a low volume of sales and transactions. However, if your company is considering ever going online or replacing your current system with POS touchscreens, it’s best to find a robust pos system vs cash register. POS platforms act as the hub for all your front-office, back office, and eCommerce operations.
Merchant Banking Services
Earlier, we covered auditing and security for cash registers and payments in cash and coins. One topic that doesn’t get discussed enough is the cost of managing cash. Commercial bankers charge businesses to handle cash and coin drop-offs, overnight deposits, and merchant services. Relying more on a pos system vs cash register usually means less cash to be counted and transported, and fewer banking fees to have to factor in.
A Consultative Approach to POS Systems
An industry leader in cash-to-POS platform integration, system migration, eCommerce, training, and technical support, talech packs extensive features into its powerful POS software. Business owners in a range of industries have benefited from an intuitive user interface (UI) and the lightning speed that comes with talech’s cloud-based systems. Cash can still be crucial, but as businesses grow, it’s important to explore modern, dynamic options that can support every goal you have.
The POS experts at talech can help you consider a POS system vs cash register for your business. We will help you assess your business needs and determine which features are going to matter the most to your success. Reach out to us today to sign up for a demo and to learn more about how talech can be your valued POS partner.
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