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Cash management systems keep money safe

There are a number of risks associated with the handling of cash in retail operations. These include armed robbery and cash shortages. New technology reduces or eliminates the risks involved for a safer, more efficient and more profitable operation.

A 10 000 note counting machine was launched in 2013 and has proved to be a great success with large retail operations. This is according to Richard Phillips, joint CEO of Cash Connect Management Solutions, whose company lays claim to the only SABS Category 4 electronic cash vault. He says that the company’s client base has doubled in size since 2012 and the demand for its technology has increased exponentially as retailers are changing their mindset with regard to automated retail cash management services.

Phillips points out that a staggering 84% of payments are made in cash. This is the preferred method of trading for many who remain sceptical of electronic payments and high levels of cybercrime, credit card fraud and the like. Furthermore, as CIT and bank robberies have drastically reduced over the past few years, criminals have turned their attention to softer targets where the cash is readily available. Read ‘retail operations’.

With R100-billion in banknotes currently in circulation in South Africa and a growth in cash circulation of 25% in the past decade, the risk potential is clear. There are up to 45 business robberies occurring daily, which clearly identifies cash theft as high on the risk scale. The aim of retail cash solutions is to remove cash from circulation and thereby eliminate the cash as a target for crime. In addition, retailers can reduce or remove third-party intervention and concurrently create a positive emotional bank account.

An emotional bank account, says Phillips, is the condition where the psyche of the store customer and the staff is such that they feel comfortable and safe in the store environment. This psyche develops when crime is eliminated and customers and staff no longer feel threatened.

With 93% of business robberies occurring with insider participation and 95% of robberies being for cash, attention to this high-risk area was clearly needed. The solution, according to Phillips, is the deposit of cash into an electronic cash vault, expediting online electronic payments to retailers’ bank accounts upon receipt of deposited cash and the elimination of cash within the store confines for any extended period of time.

CIT safety

Hannes Venter, sales director at G4S Cash Solutions SA, claims that automated cash handling is definitely the way to go. He says that G4S, SBV and Protea Coin have developed a joint operations centre (JOC) which is connected to the SAPS and benefits the whole cash handling industry through its collaborative information sharing and anti-crime drive.

“The larger shopping malls are quicker to adopt automated cash handling than the smaller retailers are. We have also implemented cash counting in our CIT vehicles as well as within special cash handling facilities at customer premises,” says Venter.

He highlights the company’s new Mixed Telematics system which is situated within the company’s cash in transit vehicles and uses tracking technology via both satellite and cellphone networks, for uninterrupted signal.

He explains that the system allows users to integrate all communication modes, including both audio and video feed from the vehicle. This data is fed back to the control room to allow operators to dispatch reaction units and contact the SAPS if the vehicle crew is under attack. The system also allows the vehicle to be rerouted, utilising an on-board GPS system. This is especially useful for new drivers who are unfamiliar with alternative routes.

In addition, the vaults within the vehicles are controlled remotely from the control room and the operators can shut vehicles down if there is an imminent threat. All CIT vehicles in the G4S fleet are currently being upgraded and a quarter of the fleet is already using the new system.

G4S has deployed its new DOA foam protected vehicles in Gauteng, Cape Town and Durban. These vehicles were specifically designed for bulk cash movements (trunking) between G4S cash centres and bank cash centres or airport vaults. This means they will only move bulk cash from one secure location to another secure location with no drops or collections on the way.

These vehicles are tracked live and escorted by the company’s TSU units. They will not do any retail collections and therefore safety is increased due to the fact that there is no person in the back of the vehicle who could possibly open the escape hatch or back door.

G4S has signed a four-year agreement with the road freight union whereby salaries and working conditions have been predetermined and employees will in turn not undertake strike action. This provides both employees and the company’s customers with a sense of stability and comfort, critical elements in the transportation of cash.

POS cash handling

Patrick van Aart, director region central Europe for Gunnebo, says that since the adoption of its POS closed cash handling solutions, European retail store customers have seen decreases in robberies of between 70 and 100%.

The whole cash chain is a fully protected process – no gaps in security and no weak links – from the customer paying until arriving at the cash-counting centre. Closed cash handling establishes a single, secure, controlled routine for the whole store and automates counting and checking. What’s more, management always has full control of the cash, with a minimum of time consumption. There is no longer manual cash handling or responsibilities for the staff and SafePay delivers automatic reconciliation and cash control, by online reporting and cash management.

Not only does the system lend itself to very high levels of personnel and customer security, but it also substantially increases store efficiency. According to Van Aart, cashier productivity has increased due to the enhanced security levels afforded by the system. “Cashiers can now concentrate on their interactions with the customer, without having to worry whether their tills balance at the end of a shift or if they will be the victim of a cash robbery.”

From the outset, SafePay was a closed system for the checkout, and it has gradually developed since 2002, now being a mature system with the second-generation solution – launched in 2010. The subsequent introduction of a transfer unit to the concept integrated the store’s back office into the system and eliminated not only cash differences, but also the need for manual administration.

An ink-protected transport cassette which protects the cash both in the checkout and during in-store transport, has further improved the system. The development process has also led to integration with SafePay and the security cases used by the CIT companies to collect and transfer the cash to the bank or a counting centre. Alternatively, the cash can be automatically counted and dropped into a heat seal bag for transfer into the CITs own cross-pavement carriers.

Other benefits that derive from automated cash handling are the elimination of counterfeit banknotes and invalid coins, as well as the elimination of fraud and human error.

Gail Carew, sales director – banks, retail, projects and commercial and consumer indirect for Gunnebo South Africa, says that the system will be launched in South Africa at the Retail Africa show in March. Initially, the local operation will concentrate its efforts on the top of the range SafePay system and will later introduce the entry-level products, which are suitable for smaller retail operations.

Gunnebo end-to-end solution

While Gunnebo South Africa already offers a number of cash protection solutions, including vaults and cash lockers, the introduction of the POS cash handling machines and ink-protected cartridges, will provide retail customers with an end-to-end cash management solution.

This complete solution complements the entrance control and EAS systems available from Gunnebo for a comprehensive retail security answer.

Cash Connect acquisition

Since its acquisition by a consortium of Old Mutual’s specialist investment fund, Future Growth Asset Management together with Ivan Epstein, founder of Softline and Steven Heilbron (formerly of Investec), Cash Connect Management Solutions has been given the capacity to increase its stock levels and respond immediately to customer demands.

The company’s systems have resulted in zero cash theft from the retail customers in its portfolio. According to Phillips, the company is currently busy with some exciting new developments which will be launched in the near future.

G4S Cash Solutions

G4S Cash Solutions employs more than 3000 people who manage a network of 33 branches and over 800 armoured vehicles nationally. Their expertise includes cash transportation (CIT), valuables transportation, cash processing and CASH360 retail solutions.

G4S operates a network of cash centres across South Africa where teams validate and count the bank notes, coin and cheques collected from customers. Once verified, the amount counted is reported back to the customer to reconcile against their records, and is then credited directly into the customer’s bank account by the next working day.

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