1) Battery Powered Digital Registers
This type of encoded register displays the total water usage on an LCD as well as transmits that total to other electronics or reading and recording devices at timed intervals or when called upon to do so. If the battery runs out (there will be an alert or indication well before that happens), any water usage will NOT be accounted for.
2) Mechanical Registers with Roller Wheels and/or Dials
These are know as "passive" encoded registers. In this case, the reading device provides the power only at the time of reading. The register itself does not require power to function properly. It will successfully serve as a mechanical meter at all times.
1) You will never miss a pulse!
If the wire gets disconnected, or the reed switch stops working on a pulse output register, any water usage during this condition will not be accounted for - ever! Encoded meters, however, will transmit the actual total usage once the connection is restored.
2) You will know if water is running backwards!
A pulse is a pulse for pulse output registers. There is no way to determine whether the meter is running backwards or not. Each pulse will get counted as a positive unit. If the meter goes back and forth for any reason... the total will increase each time a pulse is triggered. Encoded registers, however, will actually count backwards when the water is flowing backwards. The electronics can then send an alert immediately.