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Remanufactured vs. refurbished ATMs: A difference with a distinction

For financial institutions mulling their plans for Windows 10 migration, the purchase of previously deployed equipment can be an important option, and one perhaps not considered before. But what is available in the market and how can a buyer ensure success and longevity after the purchase?

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April 2, 2019 by marvin bowers — Global Sales Director, ACG

This is a year of change in the ATM space. Windows 10 migration is resulting in the expenditure of tens of millions of dollars on new equipment, PC cores, and fleet upgrades in the field.

After speaking to many community bankers at the ICBA show recently ago, it is also obvious to me that it has caused much confusion. As financial institutions mull their plans,  the purchase of previously deployed equipment can be an important option, and one perhaps not considered before. But what is available in the market and how can a buyer ensure success and longevity after the purchase?

Let's first define the four conditions of previously deployed equipment that are available in the market:

New — Obvious, right? This is new product directly from one of the OEMs with warranty, new and updated features, and a price to match.

Used — This is dangerous; untested product redeployed from old stock or prior de-installations.

Refurbished — from Merriam Webster: "brightened, freshened, or polished up again; renovated."

Remanufactured — from Merriam Webster: "manufactured into a new product."

The first two are obvious — very few (and with good reason) are choosing to deploy used equipment in this market. And, the financial institutions that choose new product, in many cases, have no choice due to marketing or geographic factors.

However, the majority of banks and credit unions could opt for previously deployed equipment and feel comfortable doing so with a bit of education regarding the differences between refurbished and remanufactured equipment.

"Refurbished" most commonly refers to the distribution of equipment that been previously returned to a manufacturer or vendor for various reasons.

These products are normally tested for functionality and defects before they are sold.

The only real difference between "refurbished" and "used" products is that refurbished products have been tested and verified to function properly, and are thus free of defects, while "used" products may or may not be defective. In a nutshell, the term refurbished means tested and clean, but it gives no real guarantee of future performance or longevity.

Remanufactured products may be unused customer returns that are essentially "new" items, or they may be defective products that were returned under warranty and resold by the manufacturer after repairing the defects and ensuring proper function.

Remanufacturing is a more thorough and costly process because it is more rigorous and requires a much higher standard than refurbishing. In the world of ATMs, this constitutes all of the following:

1. All components of the ATM are removed completely.
2. All components are completely remanufactured individually and tested prior to re-installation in the ATM. If remanufacture is not possible, then new components must be used.
3. The machine body is completely repaired including the removal of dents, scuffs, and weather damage. Sanding and painting of the interior and exterior of the machine body to original OEM specification is standard.
4. All components are reinstalled and tested in the machine with ample "burn-in" time allowed and cash cycling performed.
5. A power conditioner is installed so that clean power at the ATM site is not a problem — this is a huge issue with ATMs during and after installation, including new ones.
6. The machine is QC inspected to ensure that original OEM specs are met.
7. The ATM is packaged and shipped via air-ride to its destination to ensure integrity of remanufacturing process during transit.
8. Product support is made available during installation and after to enable field personnel to install and bring live the ATM properly.
9. The machine is accompanied with an ample warranty to back up the remanufacturing process. 

If the vendor cannot meet the actual definition of remanufactured (reassembling to meet or exceed the OEM specifications), then it should be considered a used refurbished product and should be considered skeptically prior to purchase.

Purchasing equipment that has been deployed in the past can be an economical, environmentally friendly way to upgrade and expand ATM presence and should almost always be discussed as an alternative to brand new equipment. But … buying from a reputable firm with strict quality control standards and full remanufacturing capabilities is imperative. 

Included In This Story

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ACG

Industry leader since 1986, ACG operates offices in Atlanta, Las Vegas, London, and Poland. Providing ATM hardware and services to financial institutions, ATM service providers and gaming industries. ACG is proud to be a Master Distributor of the ATEC LTA-450, LTA-380 and LTA-100 Teller Cash Recyclers.

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