What are Cashless ATMs?
When first hearing about Cashless ATMs, also known as Point of Banking terminals, the first thing most people want to know is "where does the money come from if the machine doesn't give cash?" which is a good first question as you consider this money saving program.
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The customer runs their own transaction just like they would on an atm and they receive a receipt for the approved transaction. They take their receipt to the register to make their purchase and get any remaining balance back in cash. That money is passed from the customer's bank through the banking system to the merchant's bank account through ACH direct deposit, just like any other card payment system.
The primary difference that this program provides is giving merchants the ability to have the consumer pay for the cost of the bankcard transaction through a convenience fee. This can save merchants hundreds or even thousands of dollars each month in bankcard processing fees that merchants have to pay to accept credit cards and debit cards.
Many merchants don't know they have been setup to pay for all the perks you hear about in the TV and radio ads where banks and credit card companies promise major perks to their card holders. How do merchant's pay for these perks? With the high cost of processing bankcards with a regular credit card machine. Merchants need an option that will save them money while providing the convenience of cash back options for their customers. Cashless ATMs avoid high bankcard processing fees and saves merchants money every time it's used!
Merchants often ask "If I have to provide the cash from my cash register, do I have to keep alot of extra cash on hand?" The answer is no, because merchants can control the dollar amounts that their customers can run transactions for by choosing lower preset amounts for their machine. Most merchants designate their machine for customer use only so only those who are making purchases can use the machine to make withdrawals to pay for goods and services. This eliminates customers getting money without purchasing and helps merchant's sales!
Accepting a $40 or $60 scrip receipt is just like receiving cash in those amounts and making change for a purchase, something merchants are already doing. Many times, the actual funds don't even leave the cash register. Accepting each scrip receipt is just like making a bank deposit, and giving small cash back amounts helps to prevent large amounts of cash build up in merchant's cash drawer. Many locations choose $20, $30, $40, and maybe $60 since the terminal is primarily used to accept bankcards at no cost to the merchant. This helps merchants keep more of their store profits, making their business more profitable.