Cash Recycler vs. Deposit Safe: The Right Choice for a Solid ROI
From cash transit fees to labor spent on tedious cash processes, managing cash is expensive. Labor costs are compounded when you consider the most valuable employees often spend the most time managing cash. And until it's deposited to your bank account, cash is more of a security risk than a performing asset. Recyclers and deposit safes are two different cash automation solutions that address many of the same problems for retailers — increasing the visibility of cash while reducing the risks and costs of cash management.
Different Approaches to the Same Problems
From a technology prospective, the difference between these cash automation devices is pretty simple. A deposit safe automates and balances cash deposits. A recycler also automates cash deposits but it also dispenses the same notes while balancing all the transactions. There's no doubt using a cash recycler or deposit safe to automate cash processes will streamline cash operations. But how do you determine which solution is right for your retail business?
Look at Your Numbers
Joan Brancaccio, a banking technology expert, suggests a smart safe solution is sufficient for retailers that average daily cash receipts of less than $5000. “A smart deposit safe that counts, validates, and secures currency will reduce risk and errors and increase staff productivity” she explains. A deposit safe solution supports remote cash deposit, provides a deposit receipt and communicates the daily cash totals to the retailer's bank to accelerate credit for cash deposits.
Conversely, retailers averaging more than $5000 in daily cash receipts likely require a recycling solution. Given the cost difference between a deposit safe and a recycler, here's a good rule of thumb to follow: if you have at least five cash registers, your cash needs justify the cost of a cash recycler.
Recyclers address the inefficiencies and expenses inherent with larger cash volumes. They allow retailers to securely store their cash on site but also make that cash available for daily operating needs. This reduces the risk and expense of maintaining a large cash float and provides accountability and reporting for till management processes.
A Hybrid Approach
Some retailers use a hybrid approach. A cash recycler manages smaller denominations and a deposit safe stores higher denominations. This scenario maximizes the bill capacity of the recycler by limiting recycled cash to the most frequently used denominations and removing large bills from working cash inventory.
It's important to evaluate your own cash volumes and processes. Ultimately, the right choice is the one that fits your needs and gives you a solid ROI.