Show me the money

LAS VEGAS -- While there are some secondary reasons, the primary reason all of us work so hard is to acquire as much money as possible.

For kiosk designers, there are several revenue sources. Advertising sales is an obvious option, but for the most part, a customer has to "pay to play", so to speak, with cash, coin or credit cards at the kiosk.

For the most part, people understand the basic functions of a kiosk's main components, including keyboards, monitors, touchscreens, PC motherboards, etc. When it comes to the hardware that actually validates and accepts the product we endeavor to make (money), most people have little or no knowledge of even the basic styles, operation or interfacing of the hardware that validates currency, namely bill and coin validators.

The kiosk market is a relatively new and dynamic industry. It seems that I talk to dozens of new customers every week who are contemplating new kiosk designs. Many talented software and mechanical designers come up with bells and whistles they believe will make their kiosk stand out. However, they totally underestimate or forget how the kiosk is going to actually take and store money from customers.

Though the basic function of a bill/coin validator is a constant, there are many available styles. Certain industries have specific requirements for validating and storing currency.

It's not a game in gaming

One perfect example is the gaming (slot/video machines) industry. The bill acceptors used in each slot/video poker machine must provide a high level of security both for validating and storing currency. Most regulated jurisdictions mandate this level of security. So when you look into a slot machine in Las Vegas or in Atlantic City, you see the same style of bill acceptor.

Would you use the same style in a kiosk? In 90 percent of the cases, the answer is absolutely no. These levels of security and the associated higher pricing of the hardware are seldom needed for a kiosk application.

In future columns, I will talk about the various types, styles and platforms of bill/coin acceptors available. I'll also discuss how these products actually work, how manufacturers specify and test them, and how the criminal element tries to cheat them. I'll explain some of the way to prevent short and long-term problems with bill/coin validators.

We'll explore new and innovative technologies in currency validation. My goal is to never single out or endorse any particular brand of validator, but to provide an overview of the industry and help users gain the knowledge required to make an educated decision.

Vocabulary lesson

Our first priority is to learn to use the correct terminology for the products. There are many common terms for the hardware of currency validation. With paper currency validation, the terms bill acceptor, bill validator, bill reader, bank note reader, money reader are all acceptable terms. In North America bill acceptor/bill validators seem to be the most popular, while in Europe and Australia, bank note reader (BNR) is the description of choice.

A common and misused term is `bill changer'. A bill changer is a device that includes a cabinet, a bill validator and a hopper with coins. When paper money is inserted; a corresponding amount of coin is dispensed. At least 30 percent of new customers think a bill validator also gives change, but a bill validator's sole function is to validate paper currency and report its `findings' to the system controller.

Bill validators are available in several platform types roughly common amongst manufacturers. Some bill validators, called stackerless or non-stacking, validate the currency, and then pass it on through to fall out the backside. Some bill validators, called stacking validators, stack it in a cashbox or cassette. The orientation of the cashbox/cassette can be vertical, up/down or horizontal, as measured from the point of insertion of the currency. This gives the cabinet designer various mounting options for the bill validator.

Coin validations are similar to paper. When it comes to validating coins, the hardware is generally referred to as a coin validator, coin mech's or a coin acceptor. Again, one misunderstood term is `coin changer.' A coin changer is a device that contains some sort of coin validator, 3-5 tubes for dispensing change and a system interface. Typically, coin changers are used in soda or vending machines.

Coin validators are available in various types and configurations. Some validate only one coin and are called mechanical coin validators or coin comparitors. For validating multiple coins/tokens, the electronic coin validator serves this purpose. Most electronic coin validators come with features such as onboard programming, onboard diagnostics and high levels of security and discrimination.

These are the basics that anyone entering the industry must know. We'll talk about some more advanced topics as we get further into the series.

Not all of these columns will contain somber, technical writings. Over the past 10 years, I've picked up a lot of funny stories about people trying to cheat validators. Believe me, if people would spend just half the time working or thinking about solutions for world peace as they do trying to steal a buck from a validator, this world would be a better place.

As I cover the various aspects of currency validation, I would like to encourage questions and comments. I will try and answer each question either directly or through this venue, if I believe the question can benefit all that read this column.

John Petkus is the owner of Hemisphere West, which specializes in international currency validation products. John has been involved in the design, engineering and marketing of currency validation products for more than nine years. For further information contact John at info@hwlvegas.com.