An enhanced validator cooperates with a host device using a modified Multi-Drop Bus Protocol. The enhanced validator includes a banknote recycler to allow banknotes to be temporarily stored from banknotes provided to the validator and provided as change necessary to complete future transactions. The defining of the combination of a banknote validator, banknote recycling cassette and a banknote storage cassette as an enhanced validator simplifies the changes necessary to the Multi-Drop Bus Protocol. This arrangement and definition allows the enhanced validator to function as a conventional validator without recycler in the event the communication protocol of the lost device has not been updated. A preferred arrangement for the components of the enhanced banknote validator is also disclosed.