Reverse ATMs becomes solution for cashless business

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To accommodate the expanding number of cashless companies, reverse ATMs that dispense stored-value cards in exchange for cash are being installed in a variety of locations such as amusement parks, casinos, and sports stadiums.

Reverse ATMs, also known as cash-to-card kiosks, are believed to provide a cash transaction option that does not exclude the unbanked or violate the law. It also provides a temporary solution for both users and retailers as the move to cashless transactions proceeds.

Customers use the reverse ATM by depositing cash into the machine and receiving a prepaid plastic card in return. The card might be venue-specific or a reloadable Visa or Mastercard. The merchant is charged an interchange fee when a consumer uses a Visa or Mastercard. Some of these cards incur dormancy fees, such as $3.95 if the card is inactive for more than three months.

The installation of a reverse ATM begins at $6,000, with extra expenses for machine service, which includes cash removal and card refilling. Advertisements on the machine’s displays can help merchants cut costs. Airports, hotels, college campuses, movies, zoos, restaurants, and retail outlets are among the places where reverse ATMs are being installed.

The sources for this piece include an article in Axios.

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