Retail Cash-Handling Technology

Tags: Cash Dispenser / Recycler / Acceptor, Transaction Processing, Vault Cash / Cash Management

Source: MEI

Type: White Paper

In particular, understanding the total cost of cash is vital; from fees charged by cash in transit operators (CIT) and fees charged by banks for the issuing of cash, to the internal costs of cash handling at the store both known (movement of cash to and from the point of sale [POS] and the cash room in labor costs) and the unknown (shrinkage – directly related to the time employees are exposed to cash.)

Cash recycling can positively influence all these factors. A cash-recycling device accepts and stores banknotes for dispensing at a later time. The same physical bills fed into the device by one customer can then be dispensed to a subsequent customer for change or cash-back on a debit card purchase. In theory, if the number of deposits for each bill denomination were equal to the number dispensed, there would be no need to replenish the cash, as the number of bills would remain constant. The system would continue processing transactions as long as it did not fail or require service.

Thus, by increasing the time between the need to replenish cash at the POS using a cash recycler that is more self-sufficient, the number of employee interventions is reduced, thereby positively impacting labor and shrinkage costs. Savings are achieved because there is less float needed, translating to lower cash holding, reduced related handling, CIT and banking fees.