
What is a Cashless ATM Processor?
What is a Cashless ATM Processor?
Cash transactions still lie at the heart of the retail world. Most business days, payment processing can take a variety of forms. These can be anything from card payments via pin-based debit cards, to cash purchases or even contactless payment transactions that require a credit card processing solution. A cashless ATM processor is a point of banking (POB) solution that has proven to be successful for cannabis dispensaries.
For brick-and-mortar business operations, this requires the basic ability to accept credit cards and debit cards of various types. Ideally, specific merchant types should also have an ATM machine on site to dispense cash to credit cardless customers.
But the future of cash itself is uncertain. The financial world is dynamic and ever-changing. New technologies and innovations appear almost weekly that move us ever-closer to a truly cashless society.
But outside factors like the current pandemic can also affect our financial lives. In the era of social distancing, handling customer cash can become a high risk proposition.
Permitting card-only transactions would seem the obvious solution. But not every customer carries debit or credit cards with them.

Cashless ATM
Having an ATM machine on site for your cardless customers is the obvious solution. But ATM machines take up valuable retail floor space. They can also bring complications to your daily business operations in the form of fees, operating requirements and security requirements as well as cash on hand. The solution to this problem is a cashless ATM or point of banking terminal (a.k.a., pob system).
A point of banking system functions in the same manner as a traditional ATM. The only difference is that the transaction is entirely virtual.
Cashless ATM transactions are processed via a PIN-pad terminal similar to a debit card machine. POB terminals enable customers with debit cards to directly access their bank accounts. Using the technology, they can transfer money directly to a merchant in exchange for a purchase.
Point of banking systems mimic traditional ATM transactions. Customers are provided with a series of on-screen prompts that end with a Personal Identification Number (PIN) screen. Much like a standard ATM, the PIN screen prompt enables customers to enter their personal four-digit ID code to validate an approved transaction.
Once this code is entered, cashless ATMs can accept cards to process payments of up to $1,000 in $5 increments. Upon final authorization, cash is transferred directly from the customer’s account to the merchant’s account. Similar to traditional ATMs, there are processing fees for the transaction that are usually paid by the customer in the form of a convenience fee. Occasionally, the merchant is only responsible for a low, monthly maintenance fee.

Benefits of a Cashless ATM Processor
The cashless ATM was developed as a merchant services payment solution for American medical cannabis dispensaries. This was a way for customers to purchase an alternate medical solution that is still illegal at the federal level. (US federal law prohibits the use of debit or credit cards for cannabis transactions.)
Cashless ATMs enable merchants to process transactions without directly handling cash or having to perform some type of cash withdrawal. For suppliers of medical marijuana who cater to a cash-based clientele, the benefits are obvious. POB transactions also enable merchants to avoid chargebacks while minimizing the chance of fraudulent transactions. As we move toward a truly cashless society, cashless ATM systems represent the wave of the future.