If you’re just getting started in the vending industry, you might run into some unfamiliar terms. Cantaloupe’s Vending Glossary will help clear up confusion and define common vending-related terms.
The device in a vending machine that sorts, accepts or rejects coins or paper money. See also: bill acceptor, bill validator
The business/company you service. You can have multiple [locations] at one account, either on the same premises or at separate ones.
Used to audit cash and cashless sales totals of a given machine. When this card is swiped your card reader, the device is triggered to display cash and cashless totals.
Another term for a card reader on a vending machine.
Any non-cash payment made at a vending machine by swiping, inserting/dipping, or tapping a credit/debit card, mobile wallet, loyalty card, or campus card.
Stands for cost of goods and services. COGS is the total amount you spend on your business, and is used to help you calculate your net when factored into your gross income. It’s a key metric for understanding your profitability and financial performance.
COGS includes:
COGS doesn’t include indirect costs, like:
Coil alerts are notifications about which exact coils have not sold any product in a specified time period. Coil alerts could indicate one of two things:
Contactless payments are cashless payments made by tapping a debit/credit card that has a chip, or a mobile wallet.
Stands for consumer packaged goods, like the fast-moving consumer goods or convenience goods often sold out of vending machines, convenience stores, grocery stores, and big-box stores. Think: candy, sodas, chips, toiletries, cosmetics, over-the-counter medicines, and more.
Stands for Data Exchange. It’s used in the context of card readers on vending machines which report sales and transaction data (and more) to your terminal management system (like Seed Live). It helps in maintaining up-to-date information about the card reader’s status and transactions.
The DEX cable from the G11 telemeter can be connected to the vending machine’s DEX port for remote DEX reporting, or it can be left hanging loose if remote DEX is not used. It is not hardlined, meaning it can be connected or disconnected as needed.
Used for fill-to-fill reporting. When filling a machine, a swipe of the driver card will create a “bookmark” in the system which groups transactions that occurred since the last fill swipe into a fill batch. The fill-to-fill process is designed to improve driver accountability and better assist in accounts receivable reconciliation.
Dynamic scheduling is a type of scheduling algorithm in which the schedule is calculated based on a set of criteria to optimize servicing assets. The criteria that are considered when creating a schedule are geography and product depletion of a vending machine based on real-time data. Based on such criteria, a schedule (comprising of the list of vending machines that need to be serviced on a specific day) is created. Dynamic scheduling ensures that your drivers only go to the machines that need attention and are running low on inventory, and allows you to more efficiently pre-kit inventory in the warehouse.
EMV is the security standard jointly created by Europay, Mastercard, Visa (i.e. “EMV”), which requires cards to store payment information within a chip on the card instead of in the magnetic stripe. This standard reduces the chance of in-person credit/debit card fraud and increases the security of consumer financial data.
Contact EMV (also known as “chip” or “dip”) is a method of payment where consumers insert their debit card or credit card into the slot of the terminal and wait for the purchase to be authorized.
Contactless EMV (also known as “tap”) is a method of payment where consumers with contactless-enabled chip cards or mobile wallets tap or wave their card or device over an EMV Contactless-enabled terminal.
This replaces the hold of a predetermined amount (pre-authorization) with a hold that is the exact amount of the transaction. This is not the final charge.
For example: With the exact authorization setting in place on your card reader, a customer who buys a $2.25 Snickers bar from your vending machine will see a hold is placed on their card for exactly $2.25.
Stands for “first in, first out.” FIFO is the practice of moving older stock to the front of any sales display rather than the newest product in order to avoid any losses due to spoilage.
A bank of vending machines in one location that offers cold drink, coffee, snacks and food products.
The total amount of money collected from all machines at your locations, before commissions, taxes, etc.
The number of times that your or a driver can service a machine before a physical inventory is required. Once the inventory interval is met, you should schedule a machine service specifically for a physical count of existing stock in order to reconcile with the numbers indicated by your vending management software.
One building or site which provides space for vending machines.
A platform that allows you to handle your micro market business, including inventory and revenue tracking and reporting. Could be a standalone platform (like Cantaloupe Go) or be part of a VMS like Seed.
Stands for micro coaxial connector. MCX cables are frequently used to connect external antennas to GPS receivers.
Stands for Multi-Drop Bus. It is a serial bus interface used for electronically controlled vending machines.
The act of arranging or displaying products in your vending machine or micro market that is based on past sales patterns and current demand preferences. Merchandising typically involves presenting products in a visually appealing way, to try and encourage purchases.
Some advice: Study geographic and seasonal demand trends to project estimated sales, and stock only products that fit demand. Leverage technology to evaluate current product performance in the machine and adjust merchandising plans accordingly.
Micro markets are unstaffed, self-service retail spaces that provide food and drink options in unexpected locations. Instead of an employee at a register, micro markets have a self-checkout kiosk for customers to “grab, pay, and go.”
Stands for magstripe data. MSD security standards store payment information within the magnetic stripe on the back of a cashless card, and that information is transmitted when the card is “swiped” on a card reader.
The single sale of multiple items from a vending machine.
The total amount of profit left after subtracting product and other costs (COGS) from your gross income.
When you restock a machine with more or less product than normal. There are certain periods where you might plan to do this: during the summer months at a school location, or during holidays when an office location might be closed for a period of time. See also: par, par level
Stands for office coffee services, which are services for specific locations that could include providing coffee supplies (coffee machines, beans, grounds, cups, milk, creamer, stirrers, etc.) and other drinks and snack offerings on a regular replenishment schedule. You could potentially offer OCS alongside full line vending or micro market placements.
Stands for original equipment manufacturer. An OEM is a company that makes machines for vending, gaming and amusement, photobooths, etc.
The amount of units to fill a vending machine or micro market. When restocking, you refill to par, which means replacing all the inventory sold since the last restocking.
A visual plan that designates the placement, pricing, pars, and capacity of products on specific coils of a vending machine or within the coolers/freezers and shelves of a micro market. The planogram provides the number of SKUs, the quantity per SKU and the exact location that the SKU must be placed.
Some advice: Place products in the same category side by side in the planogram, especially for your top-performing SKUs. This will ensure customers can find them easily. Also consider color breaking as a technique to separate like products and package colors so that consumers can see the variety within the machine or market.
A hold for a pre-determined amount that is put on a consumer’s card when they swipe their card or tap their card/mobile wallet at a vending machine. The pending charge stays in place until the final amount is posted approximately 24–72 hours later. Pre-authorizations are intended to ensure a payment can be processed.
For example: With pre-authorization settings on your card reader, a customer purchasing a candy bar for $2.25 will see a predetermined hold amount (like $5) placed on their account before the payment is posted. Once the payment is processed a few days later, that hold amount will change to $2.25 when the transaction is eventually posted.
The act of organizing product inventory by machine/market into individual totes, creating a “pre-kit” or pre-packs of exactly what’s needed. Pre-kitting reduces the number of trips that the driver makes between the machine and the truck during replenishment at a location, which ultimately makes routes more efficient.
A reporting feature on a vending management system (VMS) that allows you to follow the product lifecycle from the initial warehouse, truck, and machine-level inventory to the most inventory on-hand for a particular period. At a glance, you can view what has been received, transferred out, transferred in, and the projected final inventory for the accounting period. You can also view the dollar value of the current inventory as well as the dollar value of your over/shortages that drivers have tracked at your vending machines. This enables you to accurately report the true value of product sitting both in and outside of your warehouse from an accounting perspective.
Pulse refers to electronic pulses that mimic the movement of a coin through a coin slot. Pulse card readers are commonly used in devices like air/vacuum machines, arcade games, golf ball dispensers, photo booths, and shooting galleries.
Remote Price Change (RPC) allows you to change prices on compatible vending machines remotely. To use RPC, ensure your machines have a Cantaloupe card reader and telemeter installed, and update the machine firmware to the latest version. You can check machine compatibility by consulting the RPC Compatibility Report in Seed.
A series of locations on a prescribed path that are serviced regularly. Could comprise full line vending, micro market, or OCS locations.
Putting together a route plan is the most efficient way to service a number of locations. It is generated in your vending management software (VMS) by computing the most cost-effective route involving several stops by minimizing the distance traveled and/or time taken, and can take into account:
Loss of product due to theft.
How often a product spoils (i.e. is no longer consumable) in relation to how often it sells.
For example: If you have to throw out 5 of a product for every 95 you sell, that product has a spoilage of 5%.
Used for forcing a scheduled DEX on your device and displaying your device’s signal strength and static score. The DEX display will show the DEX Data or any potential DEX errors.
The device placed inside the vending machine (or located within the card reader) that collects machine sales and performance data for transmission.
The wireless transfer of data from your vending machine to a database, viewable in a platform like Seed Live.
Two-tier pricing allows you to set different prices on your product for cash payments versus cashless payments. Essentially, you’d charge more for a product in your vending machine if your customer pays with a card or mobile wallet.
The device in a vending machine that accepts and reads paper money. It is also referred to as a validator. See also: acceptor, bill acceptor/bill validator
Stands for virtual desktop infrastructure. VDI allows your card reader to connect to your vending management software (VMS).
A cloud-based platform that allows you to control all aspects of your vending business, from inventory and revenue tracking to back-office management and reporting. A VMS like Seed can also fold in all business areas – including micro markets and OCS delivery.