31-08-2012, 01:20 PM
Cashless ATMs
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.
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!
Money in a Cashless System
1. Imagine a time when plastic cards have taken over and cash is no longer used. Paper checks or their equivalent would still be needed, but check cards and credit cards would eliminate the need for notes and coins. Most retail transactions would be made by sliding a card through a reader, entering a PIN, and confirming the amount.
Realistically, there will never be a completely cashless system. Cash will still be needed by those without bank accounts, or when card readers are not available at the point of sale. Cash that migrates overseas for use as local currency can be ignored since it plays no role in the domestic money supply.
Two Types of Money
The monetary system employs two types of money: Fed money and bank money. Fed money is created when the Fed buys Treasury securties from the public, and credits the seller's bank with a deposit at the Fed. At the same time, the bank credits the seller with a deposit in his account. That deposit is bank money. Bank money is also created when a bank issues a loan and credits the borrower with a deposit in his account. In fact bank loans are by far the largest source of new bank money.