Coinstar

Coinstar is a service at most grocery stores or malls which offers to take loose change and turn it into paper currency or gift cards. However, there is a usage fee for Coinstar when consumers turn their coins into cash.

The fee, deducted as coins are processed through the coin counter, is 8.9 cents on the dollar (USD, 2005). A new service that is currently being introduced in the U.S., allows users to put their coins onto a gift card from merchants such as Starbucks, Amazon.com, Borders, Pier 1, Hollywood Video, and Linens n Things without the usual fee.

Coins do not need to be separated by denomination prior to placing them in the machine. When the Coinstar Center finishes counting coins it issues a scrip, termed a voucher, which the place of business providing the coin counting service will then redeem at face value for hard currency. The same mode of operation and redemption is provided on those Coinstar machines situated in Great Britain, Canada, and Puerto Rico.

If the user chooses the fee-free option, the machine issues a plastic gift card or, in the case of online merchants like Amazon.com, a voucher with a redemption code.

As time goes on, and the Coinstar service grows in popularity around the world, additional functionality is being added to the system, including adding the value of change to prepaid credit card and cell phone airtime.

Users should be aware than any bank will convert coins into currency free of charge but may require that coins be separated by denomination.

External links

• Coinstar website