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What is a Cashless ATM Machine? |
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Our ever-changing world has been heading toward electronic transactions for several years. This transition will continue because of convenience and acceptance by the general public and because electronic transactions bring down operating costs at every step. Electronic payments enable the public to buy more, which increases their average purchase. This also increases impulse buying, something every merchant needs to increase their daily sales in order to see bigger profits. Merchants are in business to make money and accepting bank cards help them make more by providing a method the public has grown to expect. Until recently, a business that wanted to accept bank card payments for their customers' convenience had to sign up for a costly merchant account through a financial institution. Merchant accounts charge businesses a percentage of the sale plus a transaction fee on each purchase made by credit/debit card, and all processors charge a monthly fee on top of that. Plus, the extra fees that are charged to the merchant each month takes a financial wizard to figure out. There are fees for non standard purchases, extra fees for non conforming credit cards (government cards for example), extra fees for phone sales, extra fees if they manually key in the credit card number, extra fees if the merchant does not batch out the same day the sale was made, and so on, and so on. Cashless ATM Machines are a much sought after option verses traditional merchant accounts because they can be used as a POS transaction tool, but with one major difference - it pays for itself and makes money for the retailer through the surcharge fee that all ATM machines charge. In other words, the customer pays for the convenience of using a bank card to make purchases, instead of the merchant. Cashless ATM Machines will work with bankcards and debit cards with a valid PIN number. There are rarely any chargebacks with Cashless ATM Machines, like there are with credit card sales. During the first six (6) months of 2002, according to a recent survey by Visa, consumers made more purchases using their debit cards than they did using credit cards! And the numbers will continue to increase as more and more people carry less cash and are realizing the value of paying with their debit cards rather than trying to pay by check (since more and more businesses refuse to accept checks). This is where the CASHLESS part comes in. When a customer uses a Cashless ATM Machine they swipe their card and enter their PIN number as they normally would, but the machine prints out a receipt of the transaction, instead of dispensing cash. The customer then redeems the receipt to pay for whatever products or services that are being rendered. The receipt can ONLY be used at that particular place of business, therefore this results in increased sales and profits. The merchant presets the amount of money a customer can get through their Cashless ATM Machine. The cashier, in return for the receipt, issues change to the customer just as though the customer is using cash. Within 48 - 72 hours the merchant has all the money taken in through their Cashless ATM Machine electronically deposited into their bank account, AT A PROFIT!. Each transaction earns the merchant a portion of the user fee that is charged to the customer's card. This is how ATM machines make money. If the business accepts cards in the traditional way, the MERCHANT WOULD PAY for the customer's convenience to use their bankcard by being charged a fee by the processor, INSTEAD OF MAKING MONEY FOR THE CUSTOMER'S CONVENIENCE TO USE THEIR BANKCARD THROUGH THE CASHLESS ATM MACHINE! This is the reason the popularity of Cashless ATM Machines is exploding across the country. Businesses are looking for ways to increase their profits, while still providing the convenience of card payment as an option. The public has proven they will gladly pay an access fee for the convenience of doing so. Cashless ATM Machines can sit on the counter top right next to the cash register. All that is needed is a place to plug the machine into an electrical outlet, and a place to plug into a phone line. THAT'S IT! No complicated wiring is needed. The business does not even need an extra phone line with the Cashless ATM machine; they can use their existing phone line. When a customer is ready to make a transaction using the Cashless ATM Machine, all they do is swipe their card, enter their PIN number, and choose an amount they want to withdraw from their account, and hand the receipt to the cashier, who treats the receipt the same as cash! Merchants can preset up to five different amounts to simplify the transaction. The merchant does not have to keep extra cash on hand in order to give cash back to the customer. If the merchant has the ability of being able to give change for $50 and $100 bills, like most businesses, then they have no problem with a Cashless ATM Machine in their place of business. After the customer has made their dollar amount selection, the machine validates the transaction within a few seconds. The EFT network is the same as the major financial institution use. There are several large corporations that manage nationwide EFT debit networks (Cirrus, Pulse, Star, etc.). These companies process transactions for sales organizations like ours who go out in the business community and obtain merchants, both large and small, who are in need of offering the convenience of card payment as an option for their customers at the point of sale. There are certain rules and standards set for the by the Federal Government, and state agencies to protect the merchant by ensuring they are treated fairly according to applicable laws and regulation that govern the Electronic Funds Transfer Industry. So any business can rest assured that ACE is in compliance and is working within these industry standards.
Retail locations that accept card payments consistently have a higher average purchase rate per customer than locations that do not (statistics show that introduction of acceptance of credit or debit cards increase sales an average of 27%). This margin usually means the difference between success and failure of a small business. Providing bank cards as a payment option also leverages impulse buying, which is income that is generated when a customer decides to go ahead and buy more that they normally would because of the convenience of being able to charge the sale. Tipping usually increases in businesses that provide services, such as restaurants. This will usually provide additional income for them and their employees. Bankcard usage is here to stay, and will continue to grow in the years ahead. Businesses who rely soley on cash transactions are losing too much business to expect to survive in the long run. Nationwide, the average card transaction is 16% higher than a cash transaction for the same goods and services. Why would any business throw a 16% increase in business out the door? |
What is Cashless ATM? |
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A. The customer swipes their ATM card through the terminal to access their bank account. B. Customers will have the option to choose a variety of options described here.
They are then prompted to select one of four amounts, which have been preset by the merchant (for example: $5.00, $10.00, $20.00, $40.00) and to enter their PIN (Personal Identification Number) code. The terminal verifies that the funds are available in the customer's account and that the PIN code is correct. It then prints the receipt with the value requested.
The receipt is then redeemed as payment for the customer's merchandise and the balance is given to the customer in cash.
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Home Page | Contact Us | Features of a Cashless ATM Machine | Frequently Asked Questions | More Pictures |