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Bulk vending & tokens


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There's two options when it comes to taking credit cards for bulk vending machines. First is to design an electronic motorized mechanism that replaces the mechanical coin mechanism, and have a control unit designed that facilitates the product selection process, and a method of accepting electronic payment. Finding a mechanical engineering company willing to take on this task has been a bit of a problem. The second method is much more simple. American Changer has a credit card accepting token-changer, and Northwestern offers mechanisms that accepts tokens.

The largest hurdle with bulk vending is the fact that most people do not carry quarters. They break bills at cash registers or use spare change after a transaction... but to me this presents a large enough obstacle that most people, given a lack of quarters, will opt against making a purchase they otherwise would have made had quarters been on hand.

Which leads me to wanting to accept credit cards. Do you think the 2-step process involved in the credit card to tokens conversion will reduce sales to the point where no benefit will be seen?

Has anyone done this? What has been your experience?

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There's two options when it comes to taking credit cards for bulk vending machines. First is to design an electronic motorized mechanism that replaces the mechanical coin mechanism, and have a control unit designed that facilitates the product selection process, and a method of accepting electronic payment. Finding a mechanical engineering company willing to take on this task has been a bit of a problem. The second method is much more simple. American Changer has a credit card accepting token-changer, and Northwestern offers mechanisms that accepts tokens.

The largest hurdle with bulk vending is the fact that most people do not carry quarters. They break bills at cash registers or use spare change after a transaction... but to me this presents a large enough obstacle that most people, given a lack of quarters, will opt against making a purchase they otherwise would have made had quarters been on hand.

Which leads me to wanting to accept credit cards. Do you think the 2-step process involved in the credit card to tokens conversion will reduce sales to the point where no benefit will be seen?

Has anyone done this? What has been your experience?

I don't know about your scenario, but I do know that adding CC acceptance to my full line equipment has led to a nice jump in sales. The one thing I see is that by giving tokens you set a scenario where the person has to either spend all the tokens at once or take them home where they will inevitably be lost and if the customer is a repeat to the location they may not make additional purchases due to being forced to "use it or lose it" . What would be wrong with the unit kicking out quarters instead of tokens?

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What would be wrong with the unit kicking out quarters instead of tokens?

This is what I would prefer but apparently the banks don't allow it... I believe it has something to do with being a "cash advance" or something. If you go and check out American Changer's products you'll see nothing of this sort is offered.

How much of an uptick in business did you see when you implemented electronic payment acceptance?

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Purchases from bulk machines are usually less than $1.

How would you get around costly merchant and gateway fees of accepting credit cards for so small a transaction?

Are you anticipating people would buy more than $5 worth of tokens?

If not, the transactions would cost you too much in fees to make it worth your while...especially when you consider COG's and/or commission payouts.

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