TD Bank Coin-Counting Machines Removed: Alternatives & Tips
Why TD Bank removed its Penny Arcade coin counters and what customers should do now.
TD Bank Ditches Coin-Counting Machines That Ripped off Customers
TD Bank’s coin-counting machines have seen their last cent. The company announced that it will be removing the Penny Arcade coin-counting machines from its branches following widespread allegations that the bank short-changes customers. After multiple complaints and news investigations, TD Bank determined it was too difficult to ensure consistent accuracy with the machines in operation, so the financial institution decided to discontinue the service entirely.
The History of Penny Arcade at TD Bank
The Penny Arcade coin-counting service was once a flagship offering that helped TD Bank attract new customers and differentiate itself from competitors. Starting in 1999, TD Bank began installing these self-service coin kiosks in branches across the country. The machines were designed to count coins quickly and accurately while offering an entertaining experience, particularly for children.
The service became incredibly popular among both customers and non-customers alike. In 2011 alone, TD Bank opened 85,212 new accounts by converting non-customers into bank members following a Penny Arcade experience. At its peak, the Penny Arcade machines processed 31 billion coins annually for TD Bank, with 49 percent of those coins being pennies. The machines could count an impressive 3,500 coins per minute, making them one of the most efficient coin-counting solutions available in the banking industry.
Marion Colombo, TD Bank’s senior vice president of retail banking, praised the machines in interviews, calling them very popular and describing them as an extension of the bank’s mission to be America’s Most Convenient Bank. The interactive experience of having children guess the total value of coins, with TD-branded prizes awarded for guesses within a certain range of accuracy, created a memorable banking experience that built customer loyalty.
The Accuracy Crisis That Changed Everything
Despite their initial success, the Penny Arcade machines began facing serious scrutiny regarding their accuracy. In February 2016, news investigations began reporting concerns that the coin-counting machines were providing inaccurate counts. Customers who manually counted their coins before inserting them into the machines discovered that the devices were consistently recognizing significantly less money than they actually had.
These shortchanging allegations became widespread, with multiple news outlets conducting independent tests of TD Bank’s coin-counting machines. The results were damaging, revealing that the machines were frequently miscounting coins and effectively cheating customers out of their money. Following these multiple reports questioning the machines’ accuracy, TD Bank moved quickly to address the crisis.
In May 2016, TD Bank announced that it would be removing all Penny Arcade machines from its branches. The company acknowledged that it was too difficult to ensure a consistently great customer experience with the machines operating, and decided that discontinuing the service was the most responsible course of action. A TD Bank spokesperson released a statement indicating that the bank had launched an enhanced testing program and intended to evaluate and retest all coin-counting machines before potentially bringing them back into service.
Timeline of Service Changes
The decline of the Penny Arcade service didn’t happen overnight. In November 2015, TD Bank made a significant decision to start charging non-customers to use the coin-counting machines, implementing a 6 percent fee for non-members while keeping the service free for account holders. This move was controversial, as the coin-counting service had previously drawn over 6 million non-customers annually to TD Bank branches.
TD Bank justified this change by citing complaints from customers and employees who felt that non-customers using the machines were negatively impacting the service quality. However, the fee structure only lasted a few months before the accuracy issues forced the bank to take more drastic action. By May 2016, less than six months after implementing the fee, TD Bank had decided to remove the machines entirely from all locations.
How TD Bank Customers Can Deposit Coins Today
With the Penny Arcade machines gone, TD Bank customers who need to deposit coins must use an alternative method. The bank now provides free coin wrappers to customers at any branch location. Like most traditional banks, TD Bank expects customers to wrap their coins at home before bringing them to deposit at a teller window.
This represents a return to the traditional coin-depositing method that was standard in banking before the Penny Arcade machines became available. While less convenient than the automated machines, coin wrappers are free and widely available. Most banks offer coin wrappers at no charge to their customers, making this the standard procedure across the banking industry.
Alternative Coin-Counting Solutions
While TD Bank no longer offers coin-counting machines, customers still have options for converting loose change into usable currency. Several alternatives exist, each with different fees and features.
Other Banks and Credit Unions
Some other financial institutions continue to offer coin-counting machines to their customers. Digital Federal Credit Union, the largest credit union in certain states, maintains coin-counting machines at multiple locations. However, access varies by institution, and non-customers typically must pay fees to use these machines if they’re available at all. Some banks, like Bank of America and Citizens Bank, do not offer coin-counting machines, though Bank of America tellers will accept rolled change from account holders.
Coinstar Machines
Coinstar represents the most widely available third-party coin-counting solution. The company operates kiosks at numerous supermarkets and retail locations, making coin counting accessible without needing a bank account. However, Coinstar charges a fee when coins are converted into cash, with rates typically around 10.9 percent to 11.9 percent, depending on the location.
Coinstar Retail Locations
Coinstar machines are installed at supermarkets and retail stores nationwide, including:
Walmart, Winn-Dixie, Food 4 Less, Vons, Ralphs, ShopRite, The Food Emporium, Safeway, Acme, Kroger, and Jewel. The widespread availability of these machines makes them a convenient option for people who want to count coins without visiting a bank branch.
Fee-Free Coinstar Alternatives
One significant advantage of Coinstar machines is that while the cash conversion fee is expensive, customers can avoid the fee entirely by choosing alternative redemption options. Coinstar allows users to exchange coins for e-gift cards or make charitable donations without any fee. This makes Coinstar an attractive option for customers who are willing to receive gift cards or donate their coins to charity.
| Coin Exchange Option | Fee | How It Works |
|---|---|---|
| Cash Voucher | 10.9% – 11.9% | Turn in the cash voucher to a store cashier |
| eGift Card | No Fee | Gift code is printed on the receipt immediately |
| Charitable Donation | No Fee | Donation is automatically processed with a receipt for tax purposes |
TD Canada Trust’s Continued Investment in Coin Counters
Interestingly, while TD Bank in the United States discontinued its Penny Arcade machines, TD Canada Trust took a different approach. In 2013, the Canadian subsidiary announced plans to install more than 300 automatic coin counter machines in branches across Canada, creating the largest coin counter network among any financial institution in the country. The machines were available to personal banking customers at no fee, with business customers and the general public able to access them for a competitive rate.
These TD Canada Trust machines sort change automatically and print a receipt that can either be cashed immediately or deposited into a TD Canada Trust account at the teller window. The Canadian initiative demonstrated that coin-counting machines could still be valuable tools when properly maintained and calibrated for accuracy.
Tips for Using Coin Counting Services Safely
For customers who do use coin-counting machines or services, following best practices can help ensure accurate counts and avoid potential issues:
– Make sure your change is completely free of lint, dust, and other debris before inserting it into the machine, as foreign materials can interfere with accurate counting
– Remember that most machines will count standard U.S. coins but may not accept special collector coins like Eisenhower dollars or silver dollars
– Add coins consistently into the counter after you begin the transaction; if there’s a significant lapse in time, the counter may complete the transaction prematurely
– Keep your receipt and verify the count before leaving; if you believe you’ve been shorted, contact the bank or Coinstar representative immediately
– For customers using Coinstar machines, be aware of the fee structure and consider gift card or charitable donation options if available
Lessons from TD Bank’s Coin-Counting Machine Experience
The rise and fall of TD Bank’s Penny Arcade machines offers important lessons for financial institutions. While innovative customer service features can attract new business and build loyalty, they must also maintain the highest standards of accuracy and reliability. When a service begins to disappoint customers through inaccuracy, the damage to brand reputation can be significant.
TD Bank’s decision to remove the machines rather than attempt ongoing repairs demonstrated the company prioritizing customer trust over maintaining a distinctive service offering. This approach, while disappointing to loyal users, helped preserve the bank’s reputation for reliability and customer service.
Frequently Asked Questions
Q: Does TD Bank still offer coin-counting machines?
A: No, TD Bank discontinued its Penny Arcade coin-counting machines in May 2016 due to widespread accuracy issues. Customers must now use coin wrappers to deposit coins.
Q: What happened to the Penny Arcade machines?
A: After multiple news investigations revealed that the machines were shortchanging customers by miscounting coins, TD Bank removed all Penny Arcade machines from its branches. The company determined it was too difficult to ensure consistent accuracy with the machines.
Q: Where can I count coins if TD Bank no longer offers the service?
A: You can use Coinstar machines at grocery stores and retailers nationwide (with a fee), visit other banks that offer coin-counting services, or use coin wrappers provided by most banks to manually wrap coins for deposit.
Q: How much does Coinstar charge to count coins?
A: Coinstar charges approximately 10.9% to 11.9% when coins are converted to cash. However, there is no fee if you choose to exchange coins for e-gift cards or make charitable donations.
Q: Can I still get free coin wrappers from TD Bank?
A: Yes, TD Bank provides free coin wrappers to customers who visit any branch. Customers can wrap their coins at home and deposit them with a teller.
Q: Why did TD Bank charge non-customers to use Penny Arcade machines?
A: In November 2015, TD Bank began charging non-customers a 6% fee to use the machines because the bank felt that non-customers using the service was negatively impacting the experience for account holders.
Q: Does TD Canada Trust still have coin-counting machines?
A: Yes, TD Canada Trust operates coin-counting machines at hundreds of branches across Canada. These machines are free for personal banking customers and available to others at a competitive rate.
References
- TD Bank Ditches Coin-Counting Machines That Ripped off Customers — Money Magazine. 2016-05-20. https://money.com/td-bank-coin-counting-machines/
- Does TD Bank Offer Free Coin Counting Machines? — MyBankTracker. https://www.mybanktracker.com/news/td-bank-free-coin-counting-machines
- Banks Use Coin Counting Machines To Attract Customers — CBS Boston. 2013. https://www.cbsnews.com/boston/news/banks-use-coin-counting-machines-to-attract-customers/
- Shortchanged? The Accuracy of Coin Counting Kiosks in Question — 6ABC News. 2016. https://6abc.com/post/the-accuracy-of-coin-counting-kiosks-in-question/1225094/
- It’s 300 times more convenient to cash your coin stash — TD Stories. 2013-03-26. https://stories.td.com/ca/en/news/2013-03-26-it-27s-300-times-more-convenient-to-cash-your-coin-stash-with
- The Rise and Fall of Bank Coin-Counting Machines — American Banker. https://www.americanbanker.com/slideshow/the-rise-and-fall-of-bank-coin-counting-machines
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