Crypto Kiosk or Cash ATM? What Alabama's New Law Means for Store Owners

If you run a convenience store or gas station in Alabama, you've probably been pitched a crypto kiosk. Maybe you already have one by the door.

Starting October 1, 2026, those machines play by new rules.

Alabama's Cryptocurrency Kiosk Fraud Prevention Act puts limits on how much people can put into crypto kiosks, requires fraud warnings on the screen, and forces refunds in some fraud cases. The law was written because a lot of Alabamians, many of them older, were losing money to scams that ran through these machines.

Here's what the law says, what it means for your store, and how a cash ATM is different.

This article is general information, not legal advice. If you have questions about how the law applies to you, talk to a lawyer or your kiosk operator.

Why did Alabama pass a crypto kiosk law?

Because the losses were big, and they were landing on people close to home.

The Alabama Securities Commission (ASC) reviewed six crypto kiosk companies and contacted 1,185 people who used the machines in 2024. Of those it heard from, 64% said they had been victims of fraud. More than half of the victims were 60 or older. In the transactions the ASC reviewed, victims lost $6.5 million, about half of the $12.5 million put into the machines.

The scams follow a pattern. Someone gets a call, text, or message from a stranger pretending to be a bank, the police, a government office, or a new romantic interest. The stranger creates an emergency and tells the victim to take cash to a crypto kiosk and send it to a digital wallet. Once it's sent, it's usually gone for good.

In Hoover alone, police said residents lost more than $800,000 to scammers who sent them to crypto kiosks over five years.

Governor Kay Ivey signed the bill into law in 2026. It takes effect October 1, 2026.

What does Alabama's crypto kiosk law require?

The law is Section 8-7A-28 of the Code of Alabama, passed as House Bill 303. Its rules apply to kiosk operators, meaning the companies that own and run the machines. Here are the main parts.

Transaction limits. For a new customer, an operator can't accept more than $1,000 in one calendar day or $10,000 in a calendar month from the same person, even across multiple kiosks in the state. A "new customer" is someone making a first transaction, or anyone within 30 days of their first one. Existing customers are limited to $10,500 in one calendar day.

Fraud warnings on the screen. Every transaction must start with two warnings. One lists common scams, like a stranger asking for money, fake bank or police calls, and "frozen account" claims. The other warns that crypto transactions can't be reversed. The customer has to accept both before going on.

Clear fees and receipts. Operators must show all fees in dollars and the exchange rate before the transaction. They must give a detailed receipt afterward.

Fraud screening. Operators must use software that checks wallet addresses and blocks transactions tied to fraud or crime.

Refunds for fraud victims. If a new customer is tricked into a transaction, the operator must refund the full amount plus fees. If an existing customer is tricked, the operator must refund half. To qualify, the customer has to contact the operator, law enforcement, and the Alabama Securities Commission within 60 days and file a report.

Real customer service. Operators based in the U.S. must offer live, U.S.-based, toll-free customer service at all times, and show the number on the kiosk.

Extra care for older customers. Operators must provide added protections for customers 60 and older. The ASC will write the specific rules.

What does this mean for your store?

The law's rules are written for kiosk operators, not for the store that hosts the machine. But what happens at that machine still happens in your store, in front of your staff and your customers.

A few practical things to think about:

Ask your operator how they'll comply. They should be able to explain the new limits, warnings, receipts, and refund process in plain words. If they can't, that's a sign.

Expect some changes at the machine. New customers will hit lower limits. Transactions may take longer because of warnings and ID checks. Some customers will be frustrated.

Help your staff spot a scam in progress. Signs include a customer on the phone being told what to do, a customer who seems rushed or scared, or someone feeding in large amounts of cash. Police in Hoover have reminded the public that law enforcement will never ask anyone to pay a fine with cryptocurrency. A sign near the kiosk saying that can stop a scam before it starts.

Think about how the machine fits your store. Some owners like the rent a kiosk brings in. Others don't want their store connected to scams, even when the store did nothing wrong. That's your call to make. Just make it with the facts in front of you.

How is a cash ATM different from a crypto kiosk?

People often mix these up because they look alike. They do very different jobs.

A cash ATM does the simple thing most of your customers actually need: it puts cash in their hand so they can spend it in your store.

Should your store have a cash ATM?

If your customers use cash, a working ATM keeps them in your store instead of sending them somewhere else to find it. Convenience stores and gas stations are some of the best spots for an ATM because customers come in often and buy in small amounts.

With our free placement program, we supply the machine, the cash, the wireless connection, and the repairs. You provide the space and an outlet. Your share of every surcharge is deposited at the start of each month. Our machines run at 98% uptime, documented in our remote monitoring system.

You can host a cash ATM whether or not you keep a crypto kiosk. Learn more about ATMs for convenience stores and gas stations, or read how free ATM placement works.

The bottom line

Alabama's new law is meant to protect people, especially older customers, from scams that run through crypto kiosks. Starting October 1, 2026, those machines will have lower limits for new users, clear warnings, and refund rules for fraud victims.

If you host a kiosk, talk to your operator and prepare your staff. If you're deciding what belongs by your front door, remember what most of your customers want: cash, from a machine that works every time.