Whether you are a bank or a small business, you need to dispense cash to your customers with efficiency and accuracy.
This is where cash recyclers can help. But what are they? How do they work? And what benefits do they offer?
Let’s find out.
What is a cash recycler?
A cash recycler is a machine used by businesses and financial institutions to automate the cash handling process.
It securely validates, stores, and recycles physical money.
Cash recyclers are used by a broad spectrum of companies and industries, ranging from those that deal with small to large amounts of cash.
What exactly is ‘cash recycling’?
Cash recycling refers to depositing and re-dispensing the same physical cash by the same machine or organization.
How does a cash recycler work?
Here is an overview of the steps involved in the cash recycling operation:
- Deposit cash: Users put money into the cash recycler machine, where it is counted and recorded.
- Authentication: The cash recycler verifies the authenticity of money using advanced sensors and security checks.
- Storage: Validated cash is stored securely in separate cassettes (see below) based on the value of denominations.
- Withdrawal: When dispensing cash, the recycler calculates the optimal combination of bills and coins from its inventory needed to meet withdrawal requests.
- Transaction recording: All transactions are logged, providing an accurate record for auditing and reconciliation.
- Recycling: The recycler re-uses the deposited cash for subsequent transactions.
What is a cash recycling ‘cassette’?
Cassettes are the secure storage compartments within cash recycler machines. They are organized by denomination to ensure that cash is safeguarded against theft or unauthorised access.
Are cash recyclers the same as ATMs?
Cash recyclers and ATMs are not the same thing, but both are involved in handling and storing of cash. The main difference between them is that cash recyclers are for financial institutions and businesses’ use, whereas ATMs are for use by bank account holders.
Benefits of cash recyclers
1. Faster cash processes
Cash recyclers speed up cash transactions. They do this by automating key processes, such as validation, counting, and dispensing of cash.
These factors reduce the need for frequent cash refills and ensure cash is readily available. They also transform the overall pace of financial transactions.
2. More accurate cash processes
Cash recyclers can improve the accuracy of processes involving cash. Their technology reduces the potential for human error (and the work involved in finding and correcting it).
3. Better security
Cash recycler machines have advanced authentication and security features, including high-tech sensors and authentication mechanisms.
These features reduce the risk of accepting counterfeit currency and provide a strong defense against other fraudulent activities.
4. Free-up employees
Cash recyclers’ help to free-up employees from time-consuming and labour-intensive tasks. This includes tasks associated with manual cash handling, such as counting, sorting, and validating currency.
Instead, employees can focus on important customer-centric or strategic tasks.
5. Reduce costs
The net effect of the above benefits is typically a notable reduction in costs.
For example, reducing the frequency of cash refilling in turn lowers costs associated with transportation and security of cash.