Cashless ATM: Why Your Business Needs One ASAP
You may have heard of the term “cashless ATM,” but it remains a mystery to you as to what this type of ATM really is. How can an ATM not have cash? Why would somebody need a cashless ATM if they already have an ATM machine on site? Or maybe one of your competitors offers a cashless ATM option to their customers, and you are wondering if there is really a benefit to this service. This article will address exactly what a cashless ATM is, why it is imperative for certain business types to offer this option for consumer transactions, and how to procure one of these valuable devices.
What is a Cashless ATM?
A cashless ATM is also referred to as a point of banking solution. It enables customers to use their debit card to make a purchase for a product. However, instead of dispensing cash, the cashless ATM (which looks like an average credit card terminal) will print out a receipt at the sale and the funds are then deposited into the merchant’s account. This payment option serves as a valuable solution for merchants who are considered to be high-risk by credit card processors or whose industries fall under federal regulations that prevent them from processing credit cards.
How does a cashless ATM work, you ask? Let’s say you pop into your local brick and mortar store to buy your favorite cannabis infused product after a rough day at work. You peruse the shelves and spot exactly what you need. You grab what you need, and head over to the checkout counter. The lovely cashier states that at this time their shop hasn’t been approved to accept credit cards, but they are currently using a cashless ATM. “Great,” you think. “I don’t want to use the ATM machine in the lobby because I don’t want to carry around a bunch of cash.” As you hand over your card to the cashier, you spot a CBD ointment behind the glass case that you have been meaning to try. Since you didn’t pull out the $50 you needed for the product that you came in for (which would not have been enough cash for the second product), you can now get the second product without having to go back to the ATM machine and paying an additional fee, or just skipping the CBD ointment altogether.
You whip out your ATM card, slide your chip into the cashless ATM machine (which looks like a regular credit card terminal) and enter in your pin. The cashier rounds your purchase up to the nearest $5, and you pocket the change from your purchase. It’s a win-win. You, as the customer can make unanticipated purchases without accruing another ATM fee, and your awesome local shop sees an increase in sales.
Customer Ease
As demonstrated in the situation above, a cashless ATM provides a seamless transaction for your customers. On average, merchants who offer a cashless ATM option see a 25% increase in sales due to the customer not being limited to buying what they can with the cash that they previously withdrew from the traditional ATM machine. When it comes time to check out, many customers conduct impulse purchases at the front counter (hence, strategic product placement). Even though the customer may see another product that they want when ready to check out, most customers forgo the additional purchase because they don’t want to get out of line to go back to the ATM machine and incur another fee.
Merchant Benefits
There is a myriad of benefits for merchants that offer cashless ATM services. In addition to increased spending by consumers, there are also no fees accrued by the merchant. All transaction charges are passed on to the customer. In fact, the merchant has an option to increase the fee a customer pays per transaction so that the merchant makes a profit off of each sale. Let’s say that you work with 365 Glacier Payments, who secures you with a cashless ATM at a partner bank. You then negotiate a rate of $2.50 for each transaction. You discover that your competitor next door is charging $3.50 per transaction. You can decide to charge your customers $3.00 per transaction, and profit from the extra .50 per transaction while still being competitive in the market.
Additionally, it is much easier to prevent theft and to account for transactions with a cashless ATM. All transactions are accounted for in an online portal, which summarizes multiple metrics for the consumer. Getting approved for an account is painless and quick, whereas getting approved to process credit cards requires comparatively more information from the merchant. The approval process generally occurs within the same day of receiving the application, and the terminals are then programmed and sent out within 1-2 business days.
If you decide to partner with a reputable cashless ATM provider, you will find that the cashless ATM terminals possess the latest technology, with options for either 4G or 5G capabilities, and Wi-Fi. This makes it a great option for merchants who offer delivery services for their products or who conduct transactions off site, such as in farmer’s markets.
You may wonder how difficult it is to set up the equipment and portal for a cashless ATM. It is extremely simple, as the terminals are preprogrammed and sent to you, resulting in a plug and play scenario. With a reputable distributer, you will have one-on-one guidance on how to set up your online portal and physical terminal, as well as someone to answer any questions you may have along the way. Additionally, there are no contracts or early termination fees. Even better, your terminal is free! You also receive your funds quickly, as all transactions are deposited into the merchant’s account within 24 hours.
How Do I Secure a Cashless ATM Account?
After reviewing the benefits of utilizing a cashless ATM, many merchants decide that this option is a no-brainer due to customer ease, zero out of pocket expense, as well as the option to generate additional revenue. If you are ready to start accepting payments through a cashless ATM (also known as point of banking), 365 Glacier Payments has partner banks that can assist. We have over two decades of experience in providing high-risk merchants payment solutions that enable businesses to be more profitable. In addition, we provide personalized knowledge that allows our clients’ businesses to thrive. If you have additional questions or are ready to apply for your cashless ATM, please schedule an appointment here. If you prefer, you can reach us at 866.857.8766 or email info@365glacierpayments.com. We look forward to hearing from you!
