An encoder for a fluid dispensing system comprising: a magnet operatively associated with an output shaft of a fluid metering device, wherein the magnet is arranged within a magnet holder, wherein the magnet holder is configured to couple with the output shaft of the fluid metering device, wherein the magnet holder is moveably arranged within a magnet cavity of a housing of the encoder, namely slidably arranged within the magnet cavity, a magnetic sensor configured proximal to the fluid metering device to generate a first output signal indicative of a sensed magnetic field associated at least in part with the fluid metering device, the magnetic sensor is configured to sense the magnetic field created by the magnet, namely the flux density and direction of a magnetic field created by the magnet and configured to output a signal indicating the magnetic field created by the magnet, namely indicating the flux density and direction of the magnetic field, wherein the magnet is biased into a first position relative to the magnetic sensor, namely biased to a given distance relative to the magnetic sensor when the magnet holder is coupled to the output shaft of the fluid metering device and wherein the magnet is biased into a second position relative to the magnetic sensor when the magnet holder is not coupled to the output shaft of the fluid metering device and a controller responsive to the first output signal and configured to compare the first output signal to a predetermined threshold value, wherein the predetermined threshold value corresponds to at least one of the strength and direction of a magnetic field generated by the magnet as sensed by the magnetic sensor, when the magnet is at a given distance from the magnetic sensor, the controller further configured to generate a second output signal when the first output signal is above or below the threshold value, indicative of the movement of the magnet relative to the magnetic sensor in an axial direction greater than a predetermined threshold distance from the given distance. a magnet operatively associated with an output shaft of a fluid metering device, wherein the magnet is arranged within a magnet holder, wherein the magnet holder is configured to couple with the output shaft of the fluid metering device, wherein the magnet holder is moveably arranged within a magnet cavity of a housing of the encoder, namely slidably arranged within the magnet cavity, a magnetic sensor configured proximal to the fluid metering device to generate a first output signal indicative of a sensed magnetic field associated at least in part with the fluid metering device, the magnetic sensor is configured to sense the magnetic field created by the magnet, namely the flux density and direction of a magnetic field created by the magnet and configured to output a signal indicating the magnetic field created by the magnet, namely indicating the flux density and direction of the magnetic field, wherein the magnet is biased into a first position relative to the magnetic sensor, namely biased to a given distance relative to the magnetic sensor when the magnet holder is coupled to the output shaft of the fluid metering device and wherein the magnet is biased into a second position relative to the magnetic sensor when the magnet holder is not coupled to the output shaft of the fluid metering device and a controller responsive to the first output signal and configured to compare the first output signal to a predetermined threshold value, wherein the predetermined threshold value corresponds to at least one of the strength and direction of a magnetic field generated by the magnet as sensed by the magnetic sensor, when the magnet is at a given distance from the magnetic sensor, the controller further configured to generate a second output signal when the first output signal is above or below the threshold value, indicative of the movement of the magnet relative to the magnetic sensor in an axial direction greater than a predetermined threshold distance from the given distance.