The present invention is a reverse vending machine which accepts non-metallic and metallic beverage containers for processing. The beverage containers are inserted by the user into an intake chute, where they are then compacted, sorted, and deposited in storage bins contained in the machine. A number of additional functions are provided by the reverse vending machine, including a self cleaning system, a video screen for displaying information to users, a bar code scanner for scanning bar codes, a user ID reader, and a coupon printer for issuing coupons to users. All transaction information is processed by a computer and stored electronically. The invention automatically returns non-empty containers and containers with unacceptable or unreadable bar codes to the user. The user is also provided warning messages when the storage bins are nearly full, or when a container is jammed in the machine.