An end-to-end, highly secure cash management and deposit solution that uses biometric, networking, GPRS and web technology, is closing the value chain between retailers and the banks.
Square One Capital, the financial services arm of IT-based business enabling solutions provider Square One Solutions Group, has entered into an alliance with ePOS Supply Chain Systems to offer a totally outsourced cash collection, transit, deposit and management system that also gives retailers the major benefit of immediate access to cash deposit credits made to their bank accounts within hours of collection.
“Our involvement in the alliance means that despite the sophistication of the hardware and software technology employed in this solution, it is affordable to smaller retail outlets such as convenience stores,” says Reggie Muzariri, executive vice-chairman of Square One Solutions Group and head of Square One Capital.
“Retailers using the service are billed monthly for the overall service, which includes the cost of the equipment, maintenance and insurance.”
e-POS Supply Chain Systems’ managing director Craig Edmondson says the solution builds the cost of the equipment required into the total cost so that it becomes an option for almost any outlet that deals in cash. Small shops grouped in a single location at a shopping centre can also reduce costs through a single, co-ordinated collection.
The retailer is supplied with an electronic device that counts and verifies all cash deposits as they are made. A special 10 mm steel safe box fitted with a biometric fingerprint reader validates the cash entries and controls the opening and closing of the safe. A GPRS link to the e-POS SCS back office server records the total amount deposited into the box. It also offers debit and credit card transaction, bill payments, stock payments, airtime purchases and utility payments.
“As soon as the cash goes into the box, which is fitted with both seismic and tilt sensors to detect and warn of any tampering, the risk passes from the retailer to us and the bank,” says Edmondson. “It is our responsibility to manage the risk and take out the appropriate insurances.”
The safe box with the cash is then loaded into the cash-in-transit vehicle and transported to one of the three e-POS partner banks. When it is removed from the vehicle at the bank and verified, a signal is transmitted to the e-POS SCS server. Upon receipt of that signal the cash value is immediately electronically uploaded into the retailer’s bank account. The proven accuracy of the built-in counting system means no time-consuming manual count of the cash is required at the bank before the amount is credited.
“All transactions are monitored online and there are reconciliation processes to protect both the bank and the retailer,” adds Edmondson. “Our experience, having been involved in these transactions for the past decade, is that discrepancies in the amounts credited are infrequent and minimal – less than 0,005% of the value credited.”
There are many benefits to both retailers and the banks. Deposits are continuous, double counting and re-counting of cash is eliminated, the technology behind the solution is customer-driven, the risks are well controlled and same-day banking is guaranteed.
“For all of the parties involved the system reduces operating costs, helps to overcome cash shortages, improves overall security and the quality of the cash-in-transit service is driven by the industry, not the security company.”
Edmondson says retailers will save money through adopting such cash management electronic operating systems to manage the value chain system between the point of sale and the bank.
“The system is such that we add value by taking responsibility for retailers’ cash right through their relationships with both cash-in-transit companies and the banks. We have agreements in place with three major commercial banks to facilitate this process and a preferred partner in cash-in-transit service. Retailers making use of the service don’t have to change their bank, the service is transparent.”
For more information contact Square One Solutions Group, +27 (0)21 464 4000, www.sq1.co.za
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