Abstract: The CoinCard System described in this patent application is designed to replace coins associated with retail cash transactions as well as stand-alone vending machines. The System is comprised of software and hardware components that function together as a system. CoinCards used in the System are issued by the appropriate federal agency with both visual and encoded information to assure authenticity and have an initial value of one dollar (in the U.S.). CoinCards would be distributed to banks and then to retailers and vending machine operators for use with equipment supported by the System. A computer program is included to demonstrate the processing involved in various usage scenarios. Benefits include reduced costs to the federal government, banks and retailers.