The Death of coins, its coming to a store near you

[ldm]

[quote=Howard;69872]Mike, in not so many words you did say that there is a decline in the use of cash - otherwise there would be zero reason for an ATM.

Howard: But wait, what are they getting out of the ATM ?

Larry; The guy I bought my store from told me he droped, lost, or othrwise misplaced around $5,000 a year in quarters. Very unorganized individual : ) Les

[Adamski]

...Larry; The guy I bought my store from told me he droped, lost, or othrwise misplaced around $5,000 a year in quarters. Very unorganized individual : ) Les

Les,

That's a common ploy to plant the thought in Mr Buyer's mind that there is another $5,000 in Sales waiting for you and all you have to do to get it is not spill the collection buckets. It sounds enticing for a prospective newbie buyer but it's just words.

[Howard]

[quote=ldm;69903]

Originally Posted by Howard

Mike, in not so many words you did say that there is a decline in the use of cash - otherwise there would be zero reason for an ATM.

Howard: But wait, what are they getting out of the ATM ? ..... Les

They are getting temporary paper that they then insert into a change machine to get quarters. They would rather skip all those steps and just start the washers with a quick swipe of a credit card.

[STOUT]

[quote=Howard;69911]

Originally Posted by ldm

They are getting temporary paper that they then insert into a change machine to get quarters. They would rather skip all those steps and just start the washers with a quick swipe of a credit card.

Howard;

Even though I do not have an ATM machine in my place yet. We are not the only industry that utilizes CASH from an ATM machine. Hardware stores, Convenience stores, Wall Mart, Costco, etc and even BANKS have ATM that are used extensively! both in this country and most countries all throughout the world.
Cash will probably be around for some time.

[Howard]

[quote=STOUT;69921]

Originally Posted by Howard

Howard;

Even though I do not have an ATM machine in my place yet. We are not the only industry that utilizes CASH from an ATM machine. Hardware stores, Convenience stores, Wall Mart, Costco, etc and even BANKS have ATM that are used extensively! both in this country and most countries all throughout the world.
Cash will probably be around for some time.

Yes but why do they all have these machines? Because people don't want to carry and use cash. It makes little sense to walk into a store with a debit card, get cash from a machine, and then hand the cash to a person (or another machine) to pay for your goods. Seems to make much more sense to cut out the middle man (middle paper) and just pay with the plastic.

[STOUT]

[quote=Howard;69923]

Originally Posted by STOUT

Yes but why do they all have these machines? Because people don't want to carry and use cash. It makes little sense to walk into a store with a debit card, get cash from a machine, and then hand the cash to a person (or another machine) to pay for your goods. Seems to make much more sense to cut out the middle man (middle paper) and just pay with the plastic.

That is true to a point; But how many drive up ATM machines people use to get cash then drive away and carry that cash for other purposes. Yes Cash IS CARRIED around more than we acknowledge that it is. Both in our industry and all others.

[DaveLevenson]

I have had an ATM in my mat for a couple of month. So far, I have found that about half of the cash dispensed by the machine is spent in my store. The rest must be going somewhere else!

The public would probably prefer to use their credit or debit cards to operate my machines directly. It is more user-friendly than using the ATM, then the bill-changer, and then the laundry machines. But there is also an economic incentive: when I accept a credit card or debit card for a purchase, I pay the merchant account provider. (In effect, I'm paying the interest on the purchase price for the first billing cycle; the cardholder starts paying interest after the first billing cycle, if she doesn't pay in full.) When the customer uses the ATM, I don't pay the merchant account provider; she does -- in the form of the ATM surcharge.

Bottom line: offering card-acceptance at the laundry machine offers both convenience and a cash savings to the customer. So why do I not install card-acceptance on my machines? As Howard and others have mentioned, retrofitting a store full of existing machines is a significant expense. How many additional customers or turns will such an expense generate?

[apartment_guy]

Originally Posted by STOUT

It makes little sense to walk into a store with a debit card, get cash from a machine, and then hand the cash to a person (or another machine) to pay for your goods. Seems to make much more sense to cut out the middle man (middle paper) and just pay with the plastic.

In some cases it may not be in the merchant's interest to accept plastic. I used to shop at a local convenience store which is always busy, and almost always had customers lined up at the cash register. Recently they started accepting debit and credit card purchases, and now the line-ups are even longer as customers fumble with the card terminals (and complain that they are SURE that there is money in their account when their purchase of a quart of milk is declined)

So I now shop at a competing store which does not accept plastic but which has an ATM (which generates revenue).

Speed is the reason I prefer cash. A few days ago I was out of coin and needed to use my credit card at one of those "pay and display" parking thingys. I was late for an appointment, it was pouring rain, and the machine took more than a minute to authorize my card. For $2.

There are, I am sure, faster methods and technologies, and when I find them I might use them.

As for my laundry machines, while it is possible that the technology could come down in price I doubt that it will ever make economic sense for small laundry rooms like mine, and so long as my tenants can do a wash and dry with two $2 coins I doubt that they would regard the marginal convenience of credit card acceptence to be worth the higher vend price that I would need to charge.

[MrMachine]

Originally Posted by DaveLevenson

I have had an ATM in my mat for a couple of month. So far, I have found that about half of the cash dispensed by the machine is spent in my store. The rest must be going somewhere else!

The public would probably prefer to use their credit or debit cards to operate my machines directly. It is more user-friendly than using the ATM, then the bill-changer, and then the laundry machines. But there is also an economic incentive: when I accept a credit card or debit card for a purchase, I pay the merchant account provider. (In effect, I'm paying the interest on the purchase price for the first billing cycle; the cardholder starts paying interest after the first billing cycle, if she doesn't pay in full.) When the customer uses the ATM, I don't pay the merchant account provider; she does -- in the form of the ATM surcharge.

Bottom line: offering card-acceptance at the laundry machine offers both convenience and a cash savings to the customer. So why do I not install card-acceptance on my machines? As Howard and others have mentioned, retrofitting a store full of existing machines is a significant expense. How many additional customers or turns will such an expense generate?

It's not just the retrofit. Not by a long shot. It's also the carrying charges and fees. Fees which both the banks and the govt will use to put their hands into your pockets. The powers that be haven't figured out how to squeeze fees out of cash which is why cash & coins will always be around for quite some time.