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How Do Coin Machines Work? A Step-by-Step Breakdown

squirrelz by squirrelz
18/08/2025
in Coin
Reading Time: 2 mins read
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Coin machines, like the ones used in banks or at Coinstar kiosks, use a combination of physical and electronic methods to sort, count, and even validate coins.

Here’s a breakdown of how they generally work:

  1. Coin Input and Initial Filtering:

– Coins are poured into a hopper or tray.
– Some machines have mechanisms to spread the coins out, or allow them to fall into slots or channels, preventing them from jamming.
– Initial filtering may occur here, rejecting coins that are excessively dirty or too thick/thin.

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  1. Coin Sorting and Identification:

– Size-based Sorting: A common method involves channels or holes of progressively larger sizes. Small coins fall through the first opening, while larger coins continue until they reach a hole that matches their diameter.
– Weight-based Identification: Some machines utilize scales to determine the weight of individual coins or batches, helping to identify denominations.
– Magnetic and Electrical Property Analysis:
– Coins are often passed through electromagnetic fields, and the way they disrupt the field reveals information about their metal composition.
– Different metals have distinct magnetic properties, so this helps in discerning valid coins from foreign currency or slugs.
– Optical Scanning: More advanced machines may employ optical sensors to visually examine the coins’ surface, checking their color and reflectivity, [according to YouTube].

  1. Counting and Validation:

– As coins pass through the sorting and identification stages, sensors count the individual coins of each denomination.
– The machine’s internal computer keeps a running tally of the total value.
– In addition to sorting and counting, these systems can perform validation checks to ensure the coins are legitimate currency. If a coin fails these checks, it is usually returned to the user through a reject tray.

  1. Output:

– Once the counting and sorting are complete, the machine typically provides a summary of the total value.
– Users can choose to receive a voucher for cash, an eGift card, or in some cases, donate the amount to a charity.
– Some machines also dispense the sorted coins into separate compartments or bags for easier handling and banking.

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squirrelz

squirrelz

Seasoned cryptocurrency analyst and expert with 10 years of extensive experience in blockchain technology, digital assets, trading strategies, and market analysis for informed investment decisions

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Comments 8

  1. Thomas J. Johnson says:
    1 month ago

    How much does Coinstar take out of $100?

    Reply
    • Mr. Kimberly Robinson says:
      1 month ago

      Thanks for asking. Calculate Coinstar’s Fee
      Coinstar’s fee is currently set at 11.9 percent of the value of the coins you’re exchanging. Basically: That’s nearly $12 for every $100 in coins you feed to the machine. You’d have to guess how much change you have accumulated to calculate the Coinstar fee.

      Reply
  2. John Y. Brown says:
    1 month ago

    How do I avoid the fee at Coinstar?

    Reply
    • Mrs. Linda Young says:
      1 month ago

      Opt for eGift Cards. To sidestep the Coinstar fee, opting for an eGift Card with a 0% fee is your best bet. …
      Donate to charity. Coinstar also waives their fee when you donate directly at a kiosk (bonus: it’s a tax deduction).

      Reply
  3. George O. Young says:
    1 month ago

    Is it worth going to Coinstar?

    Reply
    • Mrs. Michelle B. Fisher PhD says:
      1 month ago

      Yep, Coinstar will give you full value of your coins if you get a gift card or eCertificates instead of cash. No fee at all.

      Reply
  4. Mary E. Johnson says:
    1 month ago

    What percent of your money do coin machines take?

    Reply
    • Dr. Amanda D. Robinson says:
      1 month ago

      If you decide to turn your coins in for cash, there is a service fee up to 12.9% + $0.99 transaction.

      Reply

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