Automated cash handling is the process of dispensing, counting and tracking cash in a
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
, retail, check cashing,
payday loan
A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a short-term unsecured loan, often characterized by high interest rates.
The term "payday" in payday loan refers to ...
/ advance,
casino
A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions. Some casinos are also known for hosting live entertai ...
or other business environment through specially designed hardware and software for the purposes of loss prevention, theft deterrence and reducing management time for oversight of cash drawer an unable operations.
[Ed Grondahl, Integrated Solutions For Retailers, April/May 2009]
Hardware for automated cash handling usually consists of one or more of the following devices:
*
Automatic teller machine (ATM)
* Cash dispenser
* Cash validator (acceptor)
* Cash recycler
* Rolled coin dispenser
* Loose coin validator (counter)
* Intelligent banknote neutralization system
In an automated cash handling environment, a cashier or teller opens a cash drawer at the start of shift by dispensing cash from the automated cash handling equipment. At the end of the shift, the cashier or teller deposits cash into the automated cash handling equipment which counts the cash and deposits it back into the safe. A manager sets permissions for each teller or cashier for dispensing and counting cash. A few automated cash handling systems allow for networking and remote operation (dispensing, counting, reporting). Remote operation of automated cash handling equipment facilitates cost savings and efficiency by centralizing all cash-related activity to one location that can remotely monitor and control cash operations.
Benefits of automated cash handling
The primary benefits of automated cash handling include:
* Manual labour is reduced
* Faster customer service
* Safer transactions with fewer person to person interaction
* Consistent reliability
* Cheaper and much more efficient than a hired employee
Disadvantages
Disadvantages of automated cash handling include:
* Regular system maintenance in order to keep operating systems running
* Losing of certain jobs due to advanced automated cash handling systems that require little human interaction
Role in economy
There are several different roles Automatic cash handling systems play in an everyday economy. With few setbacks these systems do much more than dispense money, read checks, transfer money through bank accounts, etc. Automatic cash handling systems are now found in prisons to help inmates' relatives transfer money to prisoners. This process is done electronically and is much more efficient and faster than previously manual money transfers. These systems also help prisoners psyche by dissuading prisoners from committing fraud or stealing money. In 1987 automated cash handling systems started to become a favourite among retailers nationwide. The effectiveness and quick checkouts by customers encouraged to use debit/credit cards, acted as an attractant for customers. It would not be long until most businesses had installed automated cash handling systems as way to keep customers satisfied.
In states such as Oregon and New Jersey, where pumping your own gas is outlawed, automated cash handling has played an important role as a crime deterrent and economical sound system. Gas attendants now do not have to worry about being burglarized. With automated cash systems in place at these gas stations, everything is used by computer, making transactions faster than ever. These systems also allow petroleum companies to save money and ensure a higher level of security.
Effect on banking jobs
Automated cash systems have been changing the way society operates since becoming popular in the 1980s. Banks have evolved the way they operate around these advanced systems.
[American Banker, Tellers' role changing from counting cash to sales 1996, pg. 5] Bankers are finding themselves less physically dealing with money; rather, they are finding themselves more in a sales position than a traditional banker who handles money. These automated systems now count most of the money and dispense the proper amount to bankers.
See also
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Automated teller machine
An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, fun ...
*
Teller Assist Unit
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Banknote
A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand.
Banknotes were originally issued ...
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Banknote counter
A banknote counter or bill counter is a device designed primarily to accurately count a quantity of banknotes. Additionally, a banknote counter may sort banknotes into batches and check for damaged or counterfeit notes.
History
The first automa ...
*
Currency-counting machine
A currency-counting machine is a machine that counts money—either stacks of banknotes or loose collections of coins. Counters may be purely mechanical or use electronic components. The machines typically provide a total count of all money, or ...
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Currency detector
A currency detector or currency validator is a device that determines whether notes or coins are genuine or counterfeit. These devices are used in a wide range of automated machines, such as retail kiosks, supermarket self checkout machines, ...
*
Manual fare collection
Manual fare collection is the practice of collecting fares manually (without the aid of an automated machine). "Fare collection" generally refers to the collection of fares in the transport industry in return for a ticket or passes to travel. Co ...
References
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Payment systems