News

Cash: An analog product in a digital world

January 24, 2006

This article appeared in the Retail Self-Service Executive Summary, Winter 2006.

Credit and debit transactions might be on the rise, but cash isn't going anywhere - in order for most kiosks to reach their potential, they still need to accept bills and coins. But increased numbers of foreign currencies, poor quality notes and the ever-present scourge of counterfeiting make handling cash tougher than ever.

The crinkled bill

Essential though it is, cash-handling capability can be one of the toughest parts of a kiosk design. Money, after all, is an analog product in a digital world, and one that can easily become physically damaged or otherwise rendered unrecognizable.

But even if everyone kept their cash neatly folded in a crisp wallet, bill acceptors would still have the challenges of recognition, counterfeit detection and simple inventory management. Of course, most money moves from one pocket to the next, collecting wrinkles, tears and the marks of vandals in the process. This introduces an enormous variable into the kiosk design, one that can cause the operator's worst possible outcome: downtime.

"For a cash acceptor to be a success within a kiosk it needs to enjoy a high uptime," said Andrew Osborne, global marketing manager for the retail division of West Chester, Penn.-based MEI. "Unfortunately, coin and bill acceptors can experience jams, and when this happens the ability for the kiosk to accept further transactions is impeded, and an expensive call-out by a service technician to clear the jam is required."

Osborne said that the currency acceptor is one area of kiosk design where you truly get what you pay for, and skimping is not an option.

"Build in quality," he said. "It will undoubtedly save you money and improve customer satisfaction and usage rates. A good quality component always pays for itself."

Jason Siemens, solutions architect for Ontario-based NamSys, urges an emphasis on security when designing a cash-handling device. He said a proper safe is essential, especially given that most kiosks operate in a 24-hour environment. Balancing this need with the desire to minimize footprint makes for a tough juggling act.

Global focus

Compounding the issue is the geographic nature of money - cash looks very different depending on where you are in the world. Despite all the talk of a global economy, currency is still decidedly regional. This means that kiosk designers need to make some big decisions on the front of a project about what currencies will be accepted, and how new ones might be added down the road.

"Many cash acceptors are great at handling U.S. currency, or perhaps European denominations, but there are few that have truly global abilities," Osborne said. "Add to the mix the need for coin and note acceptors to both have this ability, and you narrow down the field quite considerably. New notes and coins are being issued with increased frequency by the world's banks as part of their continued efforts to deter the fraudster."

Osborne said that MEI's acceptors are built upon a modular design - using remote management, a kiosk operator can easily update the device to accept new currencies.

Aubrey Meador, vice president of sales and marketing for ArcaTech Systems, added that even if cash from different nationalities can be properly accepted, the road is even tougher for devices that need to give change in more than one type of currency. "Multiple devices within one kiosk may be required to accomplish this task," he said.

Fighting fraud

To any business that accepts cash for products or ser- vices, the threat of counterfeiting is always looming at the back of every transaction. As unattended devices, cash- accepting kiosks must include basic protections against bogus bills - and given the ever-escalating nature of the fraudster's arsenal, those protections must constantly be improved. That means if the fraud protection on your cash-accepting devices hasn't been updated or checked for vulnerabilities lately, it is time to do so.

Siemens said that NamSys's products incorporate ultraviolet and multiple magnetic sensors, "the same technology used in the cash processing centers of the major banks," he added.

"(As long as there is) perceived value in doing so, counterfeits will continue to be produced, and of course they become ever more sophisticated," said Osborne. He said that his company works to maintain close relation- ships with both banks and law enforcement, ensuring that "kiosk operators are always one step ahead."