A Complete Guide to Coinstar Kiosks: How They Work, Fees, and Payout Options

1. Introduction: What is a Coinstar Kiosk?

Tired of that massive jar of loose change gathering dust? You’re not alone. Many people accumulate a significant amount of coins over time, but the thought of manually rolling them all is a major deterrent. This is where Coinstar kiosks come in.

A Coinstar kiosk is a self-service machine found in thousands of grocery stores, retailers, and banks across the United States. Its primary purpose is to quickly and accurately count your loose coins and give you a convenient way to cash them in. Essentially, it takes all the tedious work out of turning your spare change into usable funds, whether that’s cash, a gift card, or a charitable donation. The convenience factor is the core reason for its popularity, offering a simple solution to an age-old problem.

2. The Coinstar Process: A Step-by-Step Guide

Using a Coinstar kiosk is a straightforward process. Here’s a step-by-step walkthrough of what to expect:

1. Prepare Your Coins: Before you head to the kiosk, it’s a good idea to remove any foreign objects from your coin jar. Things like paper clips, lint, buttons, or any non-U.S. currency can jam the machine or be rejected.
2. Select Your Payout: On the Coinstar machine’s touch screen, you’ll be prompted to choose how you want to receive your money. You have three main options, which we’ll detail later: cash, a no-fee eGift card, or a charitable donation.
3. Pour Your Coins: Carefully pour your coins into the tray at the top of the machine. The machine will automatically start counting them. As it counts, you’ll see the total amount tallied on the screen. The process is usually quite fast, even for large amounts of change.
4. Rejected Coins: The kiosk has a separate return slot, usually on the side or front, where it will deposit any items it cannot count. This includes foreign coins, slugs, or anything that doesn’t meet its internal criteria. Don’t worry, these are simply returned to you and were never added to your total.
5. Get Your Payout: Once the machine is finished counting, it will print out a voucher for your chosen payout option. The voucher will have all the necessary information, such as the total amount, and instructions on how to redeem it.

3. Understanding the Technology: How Coinstar Counts Your Coins

The magic behind Coinstar’s speed and accuracy lies in its internal technology. While it’s a proprietary system, we can explain the general principles of how it works:

• Size and Weight Sorting: The machine uses a series of precision measurements to identify and sort coins. Each U.S. coin has a unique diameter, thickness, and weight. As coins pass through the machine, they are directed into different channels or bins based on these physical properties. For example, a quarter is heavier and larger than a dime, allowing the machine to easily differentiate them.
• Optical Sensors: In addition to physical sorting, some advanced systems also use optical sensors to verify the coins. This can help to identify counterfeit coins or slugs that might have a similar weight and size to a real coin but look different.
• Rejection Mechanism: If a coin or object does not match the specifications of any U.S. denomination, a rejection mechanism, often a simple paddle or lever, diverts it to the return tray. This is how items like Canadian pennies or washers are filtered out.

This combination of mechanical and optical sorting allows the kiosk to count and verify a large volume of mixed coins very quickly and with a high degree of accuracy.

4. The Coinstar Fee: What to Know Before You Go

One of the most common questions about Coinstar is about the fee. If you choose the cash voucher option, Coinstar charges a service fee for the convenience.

• Standard Cash-Out Fee: The fee is typically 11.9% of your total counted amount. This fee is automatically deducted from your total before the voucher is printed.
• Why the Fee? The fee covers the costs of operating the business, including kiosk maintenance, armored car services to collect the coins, and the labor involved in processing and handling the change. It’s the price you pay for the convenience of not having to sort and roll the coins yourself or deal with a bank.

Example Calculation:

Total Coins Counted	Coinstar Fee (11.9%)	Voucher Amount You Receive
$25.00	$2.98	$22.02
$50.00	$5.95	$44.05
$100.00	$11.90	$88.10

It’s crucial to be aware of this fee before you use the machine so you can make an informed decision on your payout method.

5. Choosing Your Payout: Three Main Options

The beauty of Coinstar is that it offers more than just cash. You have three distinct payout choices, each with its own pros and cons.

Option 1: Cash Voucher

• How it Works: You select the “cash” option, the machine counts your coins, deducts the fee, and prints a voucher.
• How to Redeem: You take this voucher to the customer service desk or a cashier at the store where the kiosk is located. They will give you the cash equivalent. Important: The voucher must be redeemed on the same day it is printed.

Option 2: eGift Card (No Fee)

• How it Works: This is Coinstar’s most popular alternative to the cash voucher. When you choose this option, you select from a list of popular retailers and restaurants. The machine prints a voucher with a code for an eGift card.
• Why It’s “No-Fee”: Coinstar has a business agreement with these retailers. The retailers pay Coinstar a fee for the business, which allows Coinstar to offer you the full, no-fee value of your coins.
• Popular Examples:
  • Amazon
  • Starbucks
  • Home Depot
  • The Cheesecake Factory
  • And many more.
• How to Redeem: You can typically redeem the eGift card code online or by scanning the voucher at the retailer’s checkout.

Option 3: Charitable Donation

• How it Works: Coinstar partners with several major charities. You can choose to donate your coin total to one of these organizations.
• Fee: There is a small processing fee for charitable donations, but Coinstar handles the rest of the transaction. You will receive a receipt for your donation.
• Tax Benefits: Your donation is often tax-deductible. The voucher/receipt will contain the necessary information for you to use when filing your taxes.

6. Coinstar Alternatives: Other Ways to Cash In Your Coins

While Coinstar is a convenient option, it’s not the only way to get rid of your loose change. Here are a few alternatives to consider:

Method	Pros	Cons
Your Bank or Credit Union	Often free for customers.	Many branches no longer offer coin counting services. Some banks require you to roll your coins.
Self-Service Checkout Lanes	No fee.	Tedious for large amounts. Not all machines accept all coins.
Manually Rolling Your Coins	No fees.	Very time-consuming and requires you to buy coin wrappers.

7. Takeaway & Conclusion

Coinstar kiosks are a convenient, efficient, and widely available solution for turning your loose change into spending money. They are a great time-saver and eliminate the hassle of manually sorting and rolling coins.

• If you need cash, be aware of the 11.9% fee and budget for it.
• If you want the full value of your coins and plan on shopping at a partner retailer anyway, the no-fee eGift card is an excellent option.
• If you’re feeling generous, the charitable donation option is a simple way to give back.

Before you go, do a quick check to remove any junk from your coin jar to ensure a smooth transaction. By understanding how Coinstar works and your various payout options, you can make the best choice for your needs and finally get rid of that mountain of spare change.