A document recycler combines the function of a last-in/first-out (LIFO) recycler, a payout device, and a cashbox in one unit and facilitates manual replenishing of banknotes. Storage and extraction of the documents are controlled by coordinated motions between a drive roller, a diverter, and flaps. LIFO recycling allows the device to return the same documents as inserted in case of a transaction cancellation which eliminates the need for an intermediate escrow area.