By Bryan Harris,
reporter
This article originally published in Self-Service World magazine, May/Jun 2006.
Dispensing cash is trickier than it looks. It requires resources, security and an effective strategy for stocking and maintaining the machines. We asked Jim Ekeland, new business developer for ArcaTech Systems, to explain a few key concepts to consider when purchasing a bill dispenser.
1. How much cash will it dispense?
With small volumes, speed isn't so important, but when filling armored cars or retail cash-drawers, slow dispensers can cause a serious labor expense. Also important is to know how the unit's speed is measured.
"Most people measure the speed of the path of the bill through the machine," Ekeland said. "What you should measure is the total transaction time. The time it takes to enter it in, the path speed, and the time it takes to dispense the bills. And the path speed can be interrupted by a rejection: a bad note or a faulty note, or a double pick, when it inadvertently grabs two bills instead of one. That happens frequently in everyone's machines."
2. How harsh is the environment?
Dispensers for outdoors need to be much more durable, but don't assume their indoor brethren always have an easy ride.
"We put these machines in casinos, and they run heavy, heavy cash (volume)," Ekeland said. "They out-pace banks three to one. The environment in a casino is usually so dirty and smoky, and when the machines come in for servicing they get cleaned and the nicotine on the belts and gears and parts is just amazing."
3. Big or small capacity?
Holding more cash means fewer costly armored-car visits to off-site dispensers, but increases security concerns. Also factor denominations you'll use.
"You really have to assess your business and how much cash you go through in the course of a day, or a week, or whatever," Ekeland said. "And that will point to how many tens, how many twenties, how many fives you need to store."
4. Is the software up to snuff?
Ekeland said software requirements depend on the dispenser's application. Typically, middleware will help tie the dispenser into the legacy system. Windows-based machines, for example, often use Win ACD software to control the dispenser.
But whatever software you use, Ekeland said, implementing it usually is a smooth process.
"We have not stumbled into big problems," Ekeland said. "It's minor problems, user error, temporary glitches that somebody overlooked, or users pushing the wrong button at the wrong time."
5. How will it be maintained?
Ekeland says potential buyers should budget for the total cost of ownership over the life of the machine when buying a cash dispenser, rather than just the up-front costs. Issues like being able to change assigned cassette denominations in the field can amount to significant costs over the life of the machine.
"As a rule of thumb, we kind of use 10 percent per year of the purchase price for maintenance, and that's a real broad guideline," he said.
