How a Service from Retail Helps Keep Costs Low for Private Households
7th ALVARA INNOVATION DAYS in Leipzig Provide Solutions to the Challenges of Cash
The piggy bank is full of copper coins, and the wallet is bursting at the seams. Cashiers are instructed not to accept more than 50 coins per payment. But how to "get rid of" the small change?
Credit institutions do accept the coins, but they sometimes charge hefty fees or only accept them if the effort and the business relationship are proportionate. One thing is clear: handling cash, especially coins, involves a lot of work and costs not just for business customers, but also for individuals.
For households, depositing coins into a coin depositor with direct transfer to the savings account with most banks and savings banks is increasingly subject to fees. Furthermore, the machines are being reduced as they cause high costs. Also, depositing coins into a current account can incur fees at savings banks. Safebags with uncounted, loose coins can cost customers up to 5 euros per security bag. For cash exchange at the counter, the coins must be sorted, counted, and rolled in paper coin wrappers beforehand. However, whether rolls are accepted depends on the institution, as breaking the rolls open in the cash center involves a lot of effort. Moreover, this method of cash exchange is rarely found due to security reasons. One thing is clear: the path of the coins, whether via machine, safebag, loose or rolled, increasingly does not matter anymore—it always costs money. For those who find this too cumbersome, too time-consuming, and not worth the extra trip, there is a solution from the specialist for deposit machines for retail, Tomra Systems GmbH, in cooperation with Coinstar, the coin expert.
The collaboration between the companies creates a win-win situation for retail and customers: The company offers an additional service, and buyers save themselves time and costs. This means: cash in, value voucher out, and redeem—without tedious coin rolling. A flat service fee of 9.9 percent of the value of the exchanged coins is charged for machine, transport, and processing, regardless of how small the value or how many coins are deposited.
These and other solutions regarding cash will be presented at the two-day conference in Leipzig, alongside expert lectures, open discussions, and a high-tech accompanying exhibition. For the seventh time, ALVARA Cash Management Group AG is organizing the ALVARA INNOVATION DAYS for cash actors from financial institutions, retail, and service providers from all over Europe.