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Manage Vault Cash: How to Operate Your ATM Route More Efficiently

PAI – Aug 6th, 2014

Managing the vault cash logistics of an ATM network is complicated to say the least. Metaphorically speaking, it’s like a high wire balancing act: Without enough cash, your machine will sit idle, losing out on precious revenue opportunities and creating disappointments for cardholders in search of quick cash. However, if you put in too much cash, you run the risk of tying up precious capital and stagnating cash flow.

Add in any number of unaccounted factors for security, exposure, theft and insurances risks, and managing ATM vault cash becomes a huge obstacle standing in the way of your profitability and growth.

Optimizing your ATM vault cash management operation

  • The value of a trusted partner: Think about it from this perspective – If you are using your own capital to stock your ATMs, you are effectively limiting your ability to use that capital in other areas to grow your business. Not to mention the many hours spent traveling to/from your ATMs, wear and tear on your vehicle, and the "opportunity time” you miss out on just so you can enjoy life a bit more.

    However, keep in mind that not every partner is created equal. When evaluating any ATM cash management provider, it is important to carefully evaluate any number of factors – including: cash availability, cash forecasting services, insurance provisioning, and security.

  • Forecasting and ATM monitoring: As stated earlier, managing vault cash is like a carefully orchestrated balancing act, requiring a constant dedication to ensuring that each ATM has just enough cash. This is where ATM cash forecasting and monitoring software tools can pay major dividends.

    Unfortunately, for a small to mid-size ATM operation, these tools and services can be expensive, eating up their already thin profit margins. This is another area where cash management partners have an impact. They often employ their own tracking and predictive analytics tools to deliver a cash management cycle specific to each of your machines, which helps to maximize cash flow at all times.

  • Side-stepping security risks: The simple truth is that managing an ATM business is not without a certain amount of security and fraud risk. From unexplained inventory shrinkage to fraud and theft, your cash and revenue are always in some amount of danger.

    Insurance is, of course, a major factor in reducing risk. Beyond this, you will also want to consider increasing your cash management cycle. The more you frequent your machines, the less chance you have of experiencing fraud. This is also where a cash management provider can play a major role. They have the processes, insurance and tools in place to ensure your capital remains secured and protected.

    In the end, it is important to note that ATM vault cash management remains a critical element in ensuring the profitability of your ATM business. The good news is that PAI is here to help you eliminate some of the guesswork and security risks.

Learn more about the advantages of the PAI CA$H Alliance vault cash management program.

Tags: [Merchant Solutions] – [ATMs]