As a retail and consumer expert, I‘ve noticed that many shoppers overlook the value of their spare change. According to a recent survey by Coinstar, the average American has about $90 in loose coins sitting around their home or car. That‘s nearly $100 in forgotten money that could be put to better use.
One convenient solution for cashing in your change is Coinstar machines, which have been a fixture in Kroger stores for over two decades. These self-service kiosks allow you to pour in your coins and receive cash, e-gift cards, or donate to charity in return.
In this comprehensive guide, I‘ll share everything you need to know about using Coinstar at Kroger – from how the machines work and where to find them to insider tips for getting the most bang for your buck (or in this case, change). Let‘s get started!
Coinstar and Kroger: A Profitable Partnership
Coinstar was founded in 1991 and has since grown to over 22,000 locations in nine countries, including the US, Canada, UK, Ireland, and Japan. In the late 1990s, Coinstar began partnering with major retailers like Kroger to place its coin-counting kiosks in high-traffic areas of stores.
This partnership has proven mutually beneficial for both companies. For Kroger, having Coinstar machines on site provides a valuable service to customers and encourages them to spend their change at the store. Coinstar pays Kroger a percentage of the transaction fees collected from the machines.
In a 2019 interview with Grocery Dive, Jim Gaherity, CEO of Coinstar, spoke to the success of the Kroger partnership: "Our long-standing relationship with Kroger has been instrumental in our growth and ability to provide a convenient coin-counting solution to millions of consumers. We‘re proud to be a part of the Kroger shopping experience."
How Coinstar Machines Work
Using a Coinstar machine is a simple process. Here‘s a step-by-step breakdown:
- Locate the Coinstar kiosk in your Kroger store (usually near the entrance or customer service desk).
- Touch the screen to begin and select your preferred payout method (cash voucher, e-gift card, or charity donation).
- Lift the tray and pour in your loose change. The machine will sort and count the coins automatically.
- Once complete, the screen will display the total value of coins counted. If you selected a cash voucher, it will show the 11.9% processing fee deducted.
- Confirm the transaction and collect your voucher, e-gift card, or donation receipt from the machine.
- If you chose the cash voucher, bring it to a Kroger cashier or customer service desk to exchange for bills.
The whole process typically takes less than 5 minutes, depending on how many coins you‘re depositing. Coinstar uses advanced technology to sort and count coins quickly and accurately.
Fun fact: Coinstar‘s coin sorting mechanism can process up to 600 coins per minute, which is much faster than sorting and rolling coins by hand!
Coinstar Payout Options at Kroger
When using Coinstar at Kroger, you have three payout options:
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Cash Voucher: Receive a printed voucher that can be redeemed for cash at a Kroger register. An 11.9% processing fee applies.
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E-gift Card: Get the full value of your change issued as an e-gift card to popular retailers and restaurants like Amazon, Starbucks, Sephora, and more. No fees apply.
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Charity Donation: Donate all or a portion of your coins to one of Coinstar‘s nonprofit partners. A 7.5% fee is deducted for processing.
Here‘s a more detailed breakdown of each option:
Cash Voucher
The cash voucher is the most straightforward choice if you want physical money to spend immediately. After processing your coins, Coinstar will print a voucher with a unique barcode that can be scanned at any Kroger register or customer service desk to receive bills and change.
However, this convenience comes at a cost. Coinstar charges a hefty 11.9% processing fee for cash vouchers. So, for every $100 in coins deposited, you‘ll only receive $88.10 in return.
Some argue that the time and effort saved by using Coinstar is worth the fee. Rolling coins by hand can be tedious, and many banks no longer accept loose change without it being sorted and wrapped first.
Others feel that losing nearly 12% is too steep and prefer to find other ways to cash in coins for free, even if it takes more work. It‘s a personal decision based on your time, preferences, and how much change you‘re working with.
E-gift Card
If you want to avoid fees and get the full value of your change, opting for an e-gift card is a smart choice. Coinstar partners with over 20 major retailers and restaurants to offer e-gift cards as a payout option.
Current e-gift card partners include:
- Amazon
- AMC Theatres
- Applebee‘s
- Bed Bath & Beyond
- Build-A-Bear Workshop
- Burger King
- Domino‘s
- GameStop
- Gap
- IHOP
- iTunes
- Lowe‘s
- Regal Cinemas
- Nike
- Sephora
- Southwest Airlines
- Starbucks
- Steam
- The Home Depot
- Uber
When you select the e-gift card option, the machine will print a receipt with a unique code that can be entered online or scanned in-store to access the funds. E-gift cards are a great way to treat yourself or save up for a larger purchase without any extra fees.
Tip: Keep an eye out for promotions that give bonuses for selecting certain e-gift cards. For example, Amazon occasionally offers a 5-10% bonus for adding coins to an Amazon e-gift card.
Charity Donation
For those who want to give back, Coinstar allows you to donate some or all of your change to charity right from the machine. Current charity partners include:
- American Red Cross
- Children‘s Miracle Network
- Feeding America
- Leukemia & Lymphoma Society
- The Humane Society
- UNICEF
- United Way
- WWF (World Wildlife Fund)
When you choose the donation option, Coinstar waives the 11.9% processing fee, so more of your money goes to the charity. However, they still deduct a 7.5% administrative fee to cover the costs of processing the coins and distributing the funds to the nonprofit.
Keep in mind that these donations are not tax-deductible since you‘re receiving something of value in exchange (the coin counting service). But it‘s still an easy way to support causes you care about with spare change.
Coinstar Fees: What You Need to Know
As mentioned, the main drawback of using Coinstar for cash payouts is the 11.9% processing fee. This means for every $100 in coins deposited, Coinstar keeps $11.90.
To put this in perspective, if you cashed in the national average of $90 in spare change, you‘d only receive about $79 after fees. For some, losing over $10 is worth the convenience of not sorting and rolling coins themselves. For others, it‘s an unacceptable loss.
It‘s worth noting that this fee is standard across all Coinstar machines, regardless of location. The fee goes directly to Coinstar to cover the costs of maintaining and operating the kiosks, not to the host retailer.
So while you may be using the machine inside a Kroger store, Kroger is not profiting off the 11.9% fee. In fact, stores like Kroger actually pay a fee to Coinstar to have the machines on site as a service to customers.
If you want to avoid fees entirely, your best bet is selecting an e-gift card as your payout method. Coinstar does not charge any fees for e-gift cards, so you‘ll receive the full value of your change.
For charity donations, the 7.5% fee is significantly lower than the cash voucher fee. Plus, you have the satisfaction of knowing your spare change is going to a good cause.
How to Prepare Your Coins for Coinstar
To ensure a smooth and efficient experience at the Coinstar machine, it‘s important to properly prepare your coins before depositing them. Here are some tips:
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Sort out any foreign currency, arcade tokens, or damaged coins. Coinstar machines can only accept valid, undamaged US coins. Attempting to deposit other objects can cause the machine to jam or reject them.
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Give your coins a quick rinse if they‘re dirty or sticky. While not required, this can help the machine process them more quickly and prevent jams. Just be sure they‘re fully dry before depositing.
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If you have an especially large amount of change, consider breaking it up into smaller batches. Most Coinstar trays can hold about 1,500 coins at a time, so you may need to feed them in gradually for bigger loads.
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Check for any obvious signs of damage on the machine before starting your transaction. If the screen is frozen or the coin tray seems jammed, notify a Kroger employee right away.
By following these simple steps, you can help keep Coinstar machines running smoothly and avoid any unnecessary delays or issues during your transaction.
Coinstar‘s Environmental Impact
Beyond just providing a convenient service to consumers, Coinstar also has a positive impact on the environment. By recirculating coins back into the economy, Coinstar helps reduce the need for mining and production of new coins.
According to the US Mint, producing new coins requires a significant amount of energy and natural resources. The process involves mining metals like copper and nickel, transporting them to minting facilities, and using large amounts of electricity and water to create the coins.
By contrast, reusing existing coins through Coinstar keeps them in circulation longer and decreases the demand for newly minted coins. This helps conserve resources and lower the overall carbon footprint of coin production.
In fact, Coinstar estimates that if all the loose change sitting idle in American homes was recycled through their machines, it would save enough energy to power over 6 million homes for a full year!
So next time you deposit your change at Coinstar, remember that you‘re not just decluttering your own space – you‘re also contributing to a more sustainable coin supply for everyone.
The Future of Coinstar and Cash Use
As digital payment options like credit cards, mobile apps, and cryptocurrency continue to gain popularity, some wonder if coin usage will eventually phase out altogether. However, experts predict that cash and coins will likely stick around for the foreseeable future, even if in smaller quantities.
According to the Federal Reserve, cash remains the most frequently used payment method for transactions under $25. As of 2022, there was over $2 trillion worth of coins circulating in the US economy.
While the pandemic accelerated the shift towards contactless payments, cash rebounded in 2021 as businesses reopened and consumers returned to in-person spending. Some experts believe that economic uncertainty and privacy concerns will keep a portion of the population loyal to physical money.
Coinstar seems confident in the staying power of coins, too. The company has continued to innovate and expand its offerings in recent years. In 2020, Coinstar launched Coinme, a Bitcoin ATM that allows users to buy and sell Bitcoin for cash using Coinstar kiosks.
The company also introduced "Coins that Count," a program that collects coins left behind by Coinstar users and donates them to partnering charities. Since the program‘s inception in 2013, Coinstar has donated over $1 million worth of change to causes like the American Red Cross and UNICEF.
These initiatives demonstrate Coinstar‘s ability to adapt to changing consumer needs and preferences while still providing a valuable service to those who rely on cash and coins.
Moving forward, it seems likely that Coinstar machines will remain a fixture in grocery and retail environments even as digital payments continue to grow. The company‘s leadership role in self-service coin counting and its expanding offerings suggest that Coinstar will be well-positioned to evolve along with consumer behavior in the years to come.
Methodology:
The information and statistics cited in this article were sourced from Coinstar‘s website, press releases, and executive interviews, as well as Federal Reserve data on coin circulation and usage. The author‘s analysis and opinions are based on over a decade of experience covering the retail and consumer goods industry.
