The Future of Deposit Return Systems Across the U.S.
Deposit Return Schemes (DRS) are gaining ground across North America as more states look for ways to strengthen the circular economy. Under a DRS system, consumers pay a small additional fee, known as a deposit, when purchasing certain single-use containers. When they return the empty container to a designated collection point, that deposit is refunded.
The concept has existed for decades, with some countries achieving impressive recovery rates. When effectively targeted, countries such as Denmark have managed to recover up to 93% of drinks bottles.
The principle is simple, but the infrastructure behind these schemes has not always kept pace with how people live today. From inconvenient drop-off sites to outdated collection methods, accessibility remains one of the biggest barriers to participation.
Modern DRS programs are proving that convenience is the key to success. In many parts of California, hundreds of traditional redemption centers have closed in recent years, leaving residents with few practical options. Grocery stores, legally obliged to redeem bottles or face fines, have struggled with queues, space constraints and staffing costs, making participation inconvenient for both businesses and consumers.
To address this, new pilot projects such as California’s BottleBank and British Columbia’s Express & GO have redesigned the system around accessibility. BottleBank, launched in San Francisco, allows residents to collect recyclables in pre-tagged bags and drop them at mobile stations located at partner retail sites. Refunds are issued digitally via an app, removing queues and reducing pressure on stores.
Similarly, Encorp Pacific’s Express & GO network offers 24-hour contactless recycling through modular kiosks placed in car parks and public areas, where users can deposit tagged bags of containers and receive automatic credits. Both models demonstrate a step forward in terms of convenience and accessibility, allowing drop-offs to become part of a user’s existing routine and utilizing efficient design and digital access.
While accessibility is improving, maintaining integrity remains a challenge. Deposit fraud has been a persistent issue in several states. For example, the long-running DRS model in Connecticut, introduced decades ago, struggled to keep up with modern waste patterns and enforcement. When the deposit was doubled from five to ten cents in January 2024, return rates climbed sharply, from under half of eligible containers to around 75%.
Unfortunately, the higher payout created an unwanted consequence. Large volumes of out-of-state containers began entering Connecticut from neighboring states where deposit values were lower or non-existent. Trucks loaded with empty bottles and cans were transported across borders to claim refunds, costing local distributors and bottlers significant sums.
Deposit Return Schemes can also bring unintended social and environmental problems, particularly in dense urban areas where poverty and homelessness are widespread. The promise of a cash refund has led to an increase in rummaging through public bins and residential recycling units, leaving waste scattered across streets and doorways. Cities including Dublin, Melbourne and Portland have reported a rise in litter, damage to containers and even conflict between individuals or groups competing to collect deposit-eligible bottles and cans. These situations create safety risks and place additional strain on local services already responsible for managing litter and street cleaning. While deposit systems can provide a modest income for vulnerable people, they can also expose them to unsafe environments and reinforce economic insecurity.
In response, lawmakers are tightening the rules to restore confidence in the system. Proposed measures in Connecticut include requiring anyone redeeming more than 1,200 containers a day to register their name, vehicle details and number of returns, along with improved signage at redemption points and closer oversight by the Department of Revenue Services.
In future, integrating this kind of data capture within a secure digital access platform could help streamline verification and reduce administrative burden. Utilizing technology such as metroSTOR’s metroKEY system, means that app-based access and data capture can provide real-time accountability, track usage and give users meaningful feedback on their recycling activity.
Retailers and beverage companies are also calling for technology-based verification, such as barcode systems that identify where containers were purchased, automatically rejecting non-eligible items. These practical and relatively low-cost steps show how modest technology can reinforce accountability without overcomplicating the user experience.
Effective design helps shape positive habits. Deposit systems that make it easy for users to make good choices and provide visible feedback tend to perform better over time. Showing participants how much material has been collected, or the equivalent carbon savings, helps build a sense of shared progress. For local authorities and community partners, visible, well-maintained infrastructure also signals reliability and builds trust in the system.
When properly managed, deposit return systems generate cleaner, higher-quality recyclable materials, reducing contamination and supporting local reprocessing. Combining physical accessibility, digital traceability and community incentives can help the U.S. achieve the kind of return rates already seen in parts of Europe and Canada. The challenge now is to design infrastructure that works as well for residents as it does for recyclers.
