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ATM and Kiosk Cash Recyclers
In the past bi-directional cash handling for customers was primarily cash dispensers like the Fujitsu F-series coupled with a large cassette Bill Acceptor (such as the MEI SC66, SCR, or XL). In
corrections industry we see addition of coin sorters where “inductees” empty their pockets during booking process. At the supermarket self-service the soccer mom may get change in coins back.
In that scenario the variables are:
- Is this a bank application or a custom application like utility bill pay?
- Is change required for customer and to what extent (coins?)
- How many input transactions?
- How many output transactions?
- What denoms in
- What denoms out
- What is the average transaction.
- How much cash onhand is needed?
- What recycling capacity (virtually) is required?
But these days we have new choices. Cash recyclers have progressed from expensive and beta release to second generation. Now we get to take those variables and see how they match up with cash recycling versus conventional cash acceptance + cash dispensing. From Crane Payment on cash recycling denominations:
Truth be told, the answers to the above questions are somewhat intertwined. For example, recycling fewer denominations could mean that a larger cash box is necessary to take in the non-recycled banknotes. It could also mean that to maximize machine uptime and minimize recycler replenishment calls, larger recycling capacity is required for the recycled denominations, which might now have to be dispensed in larger quantities to make up for the absence of the non-recycled ones.
Here is an infographic on why you might need that cash recycler, and maybe why not..
And the above discussion is focused on accepting payment and dispensing change, but there is another discussion to be held on ATM and Kiosk machines which are Cash Back function. You may pay with a credit card at Walmart, but while there it would be nice to get your $40 in cash as part of that transaction rather than walking 100 yards to the other end of Walmart to the ATM machine (which charges a fee too). From our friends at Crane…
Self-Checkout applications in the US market can offer cash back functionality (as this machine strives to automate the services rendered by the human cashier). This cash back functionality (like ATMs) typically dispenses $20 notes. Therefore, if we had reached the conclusion above that the maximum count of denominations to recycle in the US market (in general) is 3, the SCO application would require an additional 1, for a total of 4. In Alternative Financial Services applications (wire transfer, payday lending and cheque cashing, pawn etc…, where a kiosk in existence would also typically enable bill payment), there is a need to dispense all denominations up to and including the $100 note. Such dispensing transactions require this because they are not related to change. As such, for some of those AFS kiosks, a recycler that can dispense all 6 US denominations ought to be considered.
In the Euro Zone applications that attempt to also mimic ATM functionality, dispensing of the €50 note is required (in Austria, possibly also the €100 note).
Key takeaway from the discussion here is to ensure that the recycler of choice is fit to not only return change, but to dispense all denominations necessary to successfully enable all transaction types at the end machine.
Cash recyclers come in different capacities from the new 2 denomination SCRs (Crane) to the much larger BNR to banking-specific Fujitsu models. Costs are in thousands of dollars and you will still have cash replenishment and cash collection cycles (ie Loomis with their armored car looming on the horizon…) but at reduced frequency and levels (aka cost).
For banking – recyclers are latest craze in trying to save costs (see KMC article with Elan and Hyosung)
Cash is not dead. It is 50% of transactions and given the flux going on between EMV, Apple Pay, Walmart, Amazon and MPOS multiply that by your underbanked population or non-banked population, throw in a dash of security paranoia and cash looks pretty good!
For more information on ATM and Kiosk Cash Recyclers contact us and we can direct you to multiple resources.