A surgical stapling system including a shaft assembly transmits actuation motions from an actuator and an end effector compresses and staples tissue. The end effector comprises an channel; an anvil having a staple forming surface is moveable relative to the channel between open and closed positions; the anvil having a magnet at the distal end; and a staple cartridge removably positionable within the channel. The staple cartridge comprises a body supported for a confronting relationship with the anvil in its closed position; a plurality of staple drivers located within the cartridge body support a staple; a Hall effect sensor located at the distal end of the body; and a microprocessor in communication with the Hall effect sensor. The Hall effect sensor and microprocessor receive power when the staple cartridge is positioned within the channel, and the system is operable to identify the staple cartridge.