by Grace Barone
Cashless ATM is a term you probably haven't heard too often. It kind of doesn't make sense right? Isn't the whole point of an ATM to take out cash? Hence the term "Automated Teller Machine". If you're referring to a traditional ATM, then yes. But recently, a new development in the world of payments has evolved. Enter, the cashless ATM. In this blog, I'll talk about what a cashless ATM is. Why it's a thing, and what businesses could seriously benefit from implementing it at their business.
What is a Cashless ATM?
A cashless ATM is also known as point-of-banking technology. This allows customers to make purchases with a debit or credit card in the same way as they would make an ATM transaction to withdraw cash. The system was originally created as an alternative payment solution to serve high-risk businesses. These are businesses such as legal marijuana dispensaries and certain types of “blacklist” businesses. Any business that typically accepts cash as the primary form of payment. Now, many other types of businesses use this method of payment acceptance as well. Including food trucks and vendors like farmer’s markets, for example.
How a Cashless ATM Works
A cashless ATM system uses a payment terminal similar to a POS device. It can process PIN-based transactions like debit or credit card payments. For example, the customer inserts or swipes their card at the payment terminal and enters their PIN chooses a type of transaction, and the dollar amount to debit from their account. The terminal prints a voucher which the customer gives to the merchant confirming that the transfer has been made, and they receive their goods or service. The swiped payment is deposited into the merchant’s account usually within two to three days.
Just like a traditional bank ATM dispenses cash in predetermined dollar amounts, the cashless ATM is programmed to process transactions in increments of $10, $20, or whatever amounts are preprogrammed into the terminal up to $1000. If the amount of the purchase is less than the withdrawal amount the customer selects, the merchant provides change to the customer. For example, if the purchase is for $17.20 and the customer selects $20 as the withdrawal amount, the customer receives $2.80 in change. In addition to the voucher, the customer also receives a transaction receipt showing that the transaction was processed as a cash advance. In addition, there is an option for either the merchant or cardholder to pay the ATM fee.
Why Point of Banking is Important
Why are cashless ATMs and POB (point of banking) such a big deal? Well, for starters, it opens up a whole new world of payment possibilities for businesses. No more turning away customers who only have credit cards or possibly losing out on money that could be made with upselling and impulse buys. With cashless ATMs, you can accept payments from anyone with a card and a PIN.
But the benefits don't stop there. POB also offers lower transaction fees compared to traditional credit card processing, which means more money in your pocket at the end of the day. Plus, with fewer intermediaries involved in the transaction process, there's less risk of fraud or chargebacks. It's a win-win for both businesses and customers alike.
Who Stands to Benefit?
Now, let's talk about which businesses could benefit the most from implementing cashless ATMs. The short answer: pretty much everyone. But here are a few standout examples:
- Mom-and-Pop Shops: Small businesses with tight budgets and high transaction volumes can save big bucks with POB's lower fees and streamlined processing.
- Food Trucks and Mobile Vendors: For businesses on the move, using a cashless ATM solution offers the flexibility and convenience they need to keep transactions flowing smoothly, no matter where they roam.
- Event Planners and Organizers: Whether it's a music festival, a trade show, or a pop-up market, event organizers can simplify payment processing for vendors and attendees alike with point of banking.
- Dispensaries: Ah, yes – the moment you've been waiting for. Dispensaries, rejoice! Cashless ATMs could be a game-changer for your business, offering a secure and convenient way for customers to pay for their greenery without the hassle of cash.
Dispensaries: A Match Made in Heaven
Let's shine the spotlight on dispensaries and why POB could be a game-changer for this budding industry (pun intended). Picture this: You're a customer strolling into your favorite dispensary, ready to stock up on your favorite strains. Instead of fumbling for cash or dealing with a missed sale since technically, dispensaries are not allowed to accept credit card payments. You whip out your card and breeze through the transaction with a quick PIN entry. No fuss, no muss. Just smooth sailing from start to finish.
But the benefits don't stop there. For dispensaries, POB offers a variety of advantages, including:
- Security: With cash transactions come security risks, from theft to counterfeit bills. Point of banking offers a safer alternative, reducing the need for large cash reserves and minimizing the risk of theft or fraud.
- Convenience: Let's face it, cash is so last century. With POB, dispensaries can offer customers the convenience of card payments without the hassle of traditional credit card processing. Not many people carry substantial amounts of cash anymore.
- Compliance: In the evolving landscape of cannabis regulations, compliance is crucial. Cashless ATMs give dispensaries a compliant payment solution that meets all state and federal regulations, giving them peace of mind and keeping regulators happy.
In Conclusion: Embrace the Power of a Cashless ATM
In a world where cash is no longer king, Point of Banking and Cashless ATMs are paving the way for a new era of payment processing. With its convenience, security, and cost-saving benefits, POB offers businesses a smarter way to accept payments – one PIN at a time. So why wait? Embrace the power of POB and watch your business thrive in the digital age. If you need a workaround to start accepting credit cards at your business, visit getvms.com and start implementing your cashless ATM ASAP.