Everything You Need to Know About Cashless ATMs
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Originally Posted On: https://mypaymentsolutionsusa.com/cashless-atm-machine-explained/
Business owners in today’s society are leaning more towards using a cashless ATM for customer purchases. In fact, the cashless infrastructure is rapidly growing in the United States and with the increase of the gig-economy. Nevertheless, the trend towards cashless payments will continue to lean towards a cashless society. Although it is hard to see and feel the cashless effects today, in the next 5 years, paying with cash will be as cumbersome as writing a check is today. As a business owner, you should make sure that your business supports cashless transactions to avoid losing potential customers. At My Payment Solutions USA, we are dedicated to helping businesses go cashless with Point of Banking terminals. Keep reading to learn everything you need to know about cashless ATMs.
What Exactly is a Cashless ATM?
A cashless ATM, also known as a Point of Banking machine, allows customers to buy products with their debit or credit card. The process for retrieving cash with a cashless ATM is the same process as a traditional ATM transaction. However, a cashless ATM gives the customer a receipt that acts as a voucher instead of dispensing cash. Once the transaction is approved, the funds then get transferred directly from the customer’s bank account to the merchant’s bank account via an ACH direct deposit.
Are Cashless ATM’s Secure?
Cashless ATMs are secure and widely accepted, just like traditional ATMs. The customer pays for the charges for each transaction instead of the merchant paying a fee or rate for each transaction as it is the case with a traditional merchant account. Initially cashless ATMs, were only used for high risk businesses. Some of those businesses include, legal medical marijuana clinics, dispensaries and other types of blacklisted businesses that couldn’t accept cash as their main form of payment. Today, cashless ATMs are commonly seen in all types of businesses. Including hair salons, donut shops, bars, restaurants, coffee shops, gas stations, lunch trucks, government agencies, kratom, CBD, vapor shops, barber shops, nail salons, ice creams shops and more.
How Does a Cashless ATM Work?
A cashless ATM works just like a traditional ATM. However, the transaction is completed with a voucher instead of cash. Here are four simple steps of using a cashless ATM:
Step 1: Sale of Goods
The merchant rings up the sale of goods or services
Step2: Consumer Authorizes Payment
The customer swipes their card, follows a series of on-screen prompts and then enters the 4-digit pin number associated with the card to complete their digital ATM withdrawal. All transactions are encrypted and done through the EFT Network, which makes the exchange process just as safe and secure as if the consumer had walked into a bank.
Step 3: Confirmation of the Digital Transaction
A voucher is printed to confirm the cash withdrawal was successfully completed and the funds were sent to the Merchant’s bank account.
Step 4: Merchant Keeps the Voucher
The merchant keeps the payment voucher for accounting purposes and will complete the transaction as if it was a cash purchase providing change if necessary. Merchants can reconcile and are provided with access to our portal on line that is provided free of charge.
What Are the Benefits of A Cashless ATM?
- Safe and Secure
A cashless ATM provides a safer and more secure business model since there is no need to retain a large amount of cash on hand at the business. This helps you to reduce the risk of robbery and also eliminates the theft of ATM machines as well as the hassle of filling the ATM. In addition, cashless ATMs are also less susceptible to fraud. Each transaction is encrypted and processed through the EFT Network. On the other hand, with cash payments, there is always a risk of customers trying to use counterfeit money.
- It is Faster
Cashless ATMs are three times faster than traditional cash transactions. According to Visa, cash payments take between 6 to 7 seconds to process, while cashless payments take one or two seconds. With a cashless ATM you can process transactions much faster and serve more customers. Thus, you will be able to make more sales in a day, which will boost your profits. For businesses that usually find themselves with hefty queues, especially during peak hours, installing a cashless ATM would go a long way in helping reduce queuing time.
- Eliminate Credit Card Merchant Fees
A cashless ATM helps you avoid the high fees and rates that may accrue with traditional credit card merchant accounts. Better yet, the transaction fees are paid by the customer. Therefore, you will only be responsible for a monthly fee of $2.50. To make your life easier, we automatically deduct that fee from your account each month. The cashless ATM is a huge money saver for all our clients, since it does not charge the merchants an outrageous monthly fee. Instead, the customer pays a small fee for using the terminal.
- Easy to Set Up
When we receive the required paperwork to process your order and payment for the machine, it takes about 7 to 10 business days to ship your programmed POB machine to your location. In addition, the actual set up and use of a cashless ATM is much easier than installing a traditional ATM. You also save yourself from the hassle of having to run to the bank to fill up your ATM machine. No security concerns. You just plug in the cashless ATM into a landline or connect it with an ethernet cord. You can also avoid using the traditional methods and set it up on wifi as well. We also can provide a mobile terminal if your business requires mobile processing.
- More Convenient
Installing a cashless ATM makes spending money more convenient for your customers. Going cashless eliminates the need for shoppers having to find an ATM and withdraw cash or head to their bank’s nearest branch to wait in a line or worry about carrying cash to make a major purchase.
- Avoid Fraud and Chargebacks
When you signup for a cashless ATM you can minimize fraud and chargebacks. Most fraud is committed when a customer does not use a 4-digit code. However with the cashless ATM, customers must enter a 4-digit pin code to complete their purchase. Thus, merchants can feel confident knowing all their purchases are verified transactions.
- No Batching
Once the customer has authorized the transaction by entering their card’s 4-digit pin code, the money is transferred to the owner’s bank account, negating any batch timelines. In addition, our cashless ATMs record all transactions and offers real-time reporting. That way you know valuable information, such as time of purchase, transaction amount and much more. This enables you to adjust your business based on customer habits.
How To Sign Up To Get A Cashless ATM?
Now that you know everything there is to know about cashless ATM machines, if you are thinking about getting one contact the merchant processing experts at My Payments Solutions USA. With over 20 years of experience, we can help you with all you payment processing needs. Don’t hesitate to give us a call today at 1-800-734-3424.