
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, debit cards, and cashless ATM payments of various types. Ideally, specific merchant types should also have an ATM machine on site to dispense cash to 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.

What is a Non Cash ATM?
So what is a cashless ATM?
A cashless ATM is a machine that allows customers to run their banking cards for a withdrawal. The cashless ATM prints out a receipt that can be redeemed for cash.
A cashless ATM processor allows businesses to run PIN-based with debit or credit cards. With a cashless ATM processor, there is no need to use a traditional ATM to make withdrawals.
A cashless ATM is easy to use with users expected to simply swipe their cards, input their pins and confirm their transactions.
Cashless ATM: How Does It Work?
Having a cashless ATM terminal 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.
A cashless ATM transactions is 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.
A Cashless ATM mimics 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, a cashless ATM 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.

ATM Processors: How Do They Make Money?
ATM processors make money by deducting a little transaction charge called an interchange fee. Banks are comfortable with paying this small fee because it saves them the hassle of having to employ the services of a teller.
Sometimes, fees are also passed to business owners. This is the reason why some ATM processors list 2 service charges; a convenience fee and an interchange fee.
If you own a cashless ATM, make sure that it is from an ATM processor that does not charge you any hidden fees.
With your bottom line, it is always best to settle for an ATM processor that charges zero processing fees. Surprisingly, a majority of ATM processors offer this and do not compromise by going ahead to offer premium customer service and a secure network.
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.

Non Cash Debit Payment Processor | Processing Your Transactions
Your non cash debit payment processor for your cashless ATM is only as good as the organization behind the transactions. If the ATM processor is not reliable, your customers will experience slow and frequently declined transactions.
This might make them ditch your store or business and go elsewhere anytime they want to use a cashless ATM.
An ideal ATM processor has an iron-clad network and can be trusted to accept every card. Additionally, transactions are fast on these ATM processors with network errors sorted out as quickly as they happen.
Selecting an ATM Payment Processor for Your Business
If you plan on operating multiple cashless ATMs, pay close attention to the contract terms placed in front of you.
Dig up background information, including customer reviews about any ATM payment processor that catches your eye. If there is any indication that the ATM payment processor offers below-par services, you should stay away.
A good ATM payment processor will offer you competitive and transparent rates devoid of confusing contractual terms and unforeseen fees.
The ATM payment processor should also offer you around-the-clock support in case of hardware or software malfunctioning.
Considerations for Choosing a Cashless ATM Payment Processor
A summary of things to put into consideration when choosing an ATM payment processor:
- Multiple banking network availability-Look for an ATM payment processor that supports all mainstream networks.
- Customer support-It is always best to work with an ATM payment processor that offers 24/7 support along with installation services.
- Cost and fees-Hidden fees affect your bottom line. Before signing the dotted lines, read the fine print and negotiate terms that are not beneficial to your business.
- Potential to scale earnings-Profits depend on the fees you dole out to your ATM payment processor. Ensure you get the best deal around.
- Equipment selection-Most ATM payment processors offer equipment to their customers. It should not be the only thing they offer technical support and compatibility is also vital.