diff --git a/apps/machine/electron/hal-service.ts b/apps/machine/electron/hal-service.ts
index 27508b0..72f3480 100644
--- a/apps/machine/electron/hal-service.ts
+++ b/apps/machine/electron/hal-service.ts
@@ -36,6 +36,11 @@ export interface HalConfig {
 export interface ValidatorCallbacks {
   shouldAcceptBill: (denomination: number) => boolean | 'hold'
   onBillRead?: (denomination: number) => void
+  /**
+   * Fires on the validator's stacked-confirmation (`billsValid`) — the
+   * bill physically reached the stacker. This is the CREDIT event; it is
+   * NOT emitted at stack-command time (a stack can still fail/return).
+   */
   onBillInserted: (denomination: number) => void
   onBillRejected: (reason: string) => void
   onError: (error: string) => void
@@ -142,6 +147,14 @@ export async function initializeHal(config: HalConfig): Promise<HalInstance> {
       count: c.count ?? 0,
     }))
 
+  // Escrow / in-flight bookkeeping (legacy brain.js `billsRead` interlock):
+  // `escrowDenomination` = bill held in escrow awaiting a stack/reject
+  // decision; `inFlightDenomination` = stack commanded, awaiting the
+  // validator's `billsValid` stacked-confirmation. onBillInserted (the
+  // credit event) fires only on that confirmation.
+  let escrowDenomination: number | null = null
+  let inFlightDenomination: number | null = null
+
   return {
     connectValidator: (callbacks: ValidatorCallbacks) => {
       if (!validator) {
@@ -153,10 +166,11 @@ export async function initializeHal(config: HalConfig): Promise<HalInstance> {
           const decision = callbacks.shouldAcceptBill(data.denomination)
           if (decision === 'hold') {
             console.log('[HAL] Bill in escrow:', data.denomination)
+            escrowDenomination = data.denomination
             callbacks.onBillRead?.(data.denomination)
           } else if (decision) {
+            inFlightDenomination = data.denomination
             validator.stack()
-            callbacks.onBillInserted(data.denomination)
           } else {
             console.log('[HAL] Bill rejected: insufficient balance for', data.denomination)
             validator.reject()
@@ -168,7 +182,23 @@ export async function initializeHal(config: HalConfig): Promise<HalInstance> {
         }
       })
 
+      // Stacked-confirmation → the credit event.
+      validator.on('billsValid', () => {
+        if (inFlightDenomination === null) {
+          console.warn('[HAL] billsValid with no bill in flight — ignoring')
+          return
+        }
+        const denomination = inFlightDenomination
+        inFlightDenomination = null
+        console.log('[HAL] Bill stacked (confirmed):', denomination)
+        callbacks.onBillInserted(denomination)
+      })
+
       validator.on('billsRejected', (data?: { reason: string; code: number | null }) => {
+        // Covers both an escrow refusal and a failed/returned stack —
+        // either way nothing was credited and nothing is in flight.
+        escrowDenomination = null
+        inFlightDenomination = null
         callbacks.onBillRejected(data?.reason ?? 'unknown')
       })
 
@@ -195,8 +225,19 @@ export async function initializeHal(config: HalConfig): Promise<HalInstance> {
       validator?.lightOff()
     },
 
-    stackBill: () => validator?.stack(),
-    rejectBill: () => validator?.reject(),
+    stackBill: () => {
+      if (escrowDenomination === null) {
+        console.warn('[HAL] stackBill with no bill in escrow — ignoring')
+        return
+      }
+      inFlightDenomination = escrowDenomination
+      escrowDenomination = null
+      validator?.stack()
+    },
+    rejectBill: () => {
+      escrowDenomination = null
+      validator?.reject()
+    },
 
     dispenseCash: async (amounts): Promise<DispenseResult> => {
       console.log('[HAL] Dispensing:', amounts)
diff --git a/apps/machine/electron/main.ts b/apps/machine/electron/main.ts
index 9107951..fc48d87 100644
--- a/apps/machine/electron/main.ts
+++ b/apps/machine/electron/main.ts
@@ -585,10 +585,12 @@ ipcMain.handle('hal:stack-bill', () => {
     console.warn('[Electron] hal:stack-bill called with no bill in escrow — ignoring')
     return
   }
-  const denomination = pendingBillDenomination
   pendingBillDenomination = null
+  // Credit is NOT sent here. hal-service fires onBillInserted (forwarded
+  // as 'hal:bill-inserted') only on the validator's `billsValid`
+  // stacked-confirmation — a stack command can still fail or return the
+  // bill (aiolabs/bitspire#58).
   halInstance.stackBill()
-  mainWindow?.webContents.send('hal:bill-inserted', denomination)
 })
 
 ipcMain.handle('hal:reject-bill', () => {
diff --git a/apps/machine/src/services/hal.ts b/apps/machine/src/services/hal.ts
index 1e20cc3..f48fda8 100644
--- a/apps/machine/src/services/hal.ts
+++ b/apps/machine/src/services/hal.ts
@@ -109,6 +109,12 @@ export async function initializeHalServices(config: HalConfig): Promise<HalServi
   })
   console.log('[HAL] Validator started')
 
+  // Escrow / in-flight bookkeeping: credit (onBillInserted) fires only on
+  // the validator's `billsValid` stacked-confirmation, never at
+  // stack-command time (mirrors electron/hal-service.ts).
+  let escrowDenomination: number | null = null
+  let inFlightDenomination: number | null = null
+
   // Track inventory (decremented on dispense)
   const inventory: Record<number, number> = {}
   for (const cassette of dispConfig.cassettes) {
@@ -206,10 +212,13 @@ export async function initializeHalServices(config: HalConfig): Promise<HalServi
           if (decision === 'hold') {
             // Hold in escrow — caller will call stackBill() or rejectBill()
             console.log('[HAL] Bill in escrow:', data.denomination)
+            escrowDenomination = data.denomination
             callbacks.onBillRead?.(data.denomination)
           } else if (decision) {
+            // Credit waits for the validator's stacked-confirmation
+            // (`billsValid`) — see the handler below.
+            inFlightDenomination = data.denomination
             validator.stack()
-            callbacks.onBillInserted(data.denomination)
           } else {
             console.log('[HAL] Bill rejected: insufficient ATM balance for', data.denomination)
             validator.reject()
@@ -221,7 +230,21 @@ export async function initializeHalServices(config: HalConfig): Promise<HalServi
         }
       })
 
+      // Stacked-confirmation → the credit event.
+      validator.on('billsValid', () => {
+        if (inFlightDenomination === null) {
+          console.warn('[HAL] billsValid with no bill in flight — ignoring')
+          return
+        }
+        const denomination = inFlightDenomination
+        inFlightDenomination = null
+        console.log('[HAL] Bill stacked (confirmed):', denomination)
+        callbacks.onBillInserted(denomination)
+      })
+
       validator.on('billsRejected', (data?: { reason: string; code: number | null }) => {
+        escrowDenomination = null
+        inFlightDenomination = null
         callbacks.onBillRejected(data?.reason ?? 'unknown')
       })
 
@@ -248,8 +271,19 @@ export async function initializeHalServices(config: HalConfig): Promise<HalServi
       validator.lightOff()
     },
 
-    stackBill: () => validator.stack(),
-    rejectBill: () => validator.reject(),
+    stackBill: () => {
+      if (escrowDenomination === null) {
+        console.warn('[HAL] stackBill with no bill in escrow — ignoring')
+        return
+      }
+      inFlightDenomination = escrowDenomination
+      escrowDenomination = null
+      validator.stack()
+    },
+    rejectBill: () => {
+      escrowDenomination = null
+      validator.reject()
+    },
 
     cleanup: async () => {
       return new Promise<void>((resolve) => {
diff --git a/apps/machine/src/stores/atm.ts b/apps/machine/src/stores/atm.ts
index 2bfaeea..a770dae 100644
--- a/apps/machine/src/stores/atm.ts
+++ b/apps/machine/src/stores/atm.ts
@@ -949,11 +949,20 @@ export const useAtmStore = defineStore('atm', () => {
       // Wire validator events to state machine
       hal.connectValidator({
         shouldAcceptBill: (denomination) => {
-          // Check if accepting this bill would exceed available balance
           const ctx = context.value
-          if (!ctx || ctx.exchangeRate === 0) {
-            console.warn('[ATM] Cannot check balance: no exchange rate')
-            return true // Allow if we don't have rate yet (shouldn't happen)
+
+          // Fail closed: no rate/balance, or not in the accepting state →
+          // return the bill (legacy _billsRead parity).
+          if (
+            nestedState.value !== 'insertingBills' ||
+            !ctx ||
+            ctx.exchangeRate <= 0 ||
+            ctx.availableBalance <= 0
+          ) {
+            console.log(
+              `[ATM] Rejecting $${denomination} bill: not accepting (state/rate/balance unknown)`
+            )
+            return false
           }
 
           // Calculate what the new sats amount would be
@@ -971,6 +980,9 @@ export const useAtmStore = defineStore('atm', () => {
             return false
           }
 
+          // Accepting: mark the bill in flight. The HAL service issues the
+          // stack command; BILL_INSERTED follows on stacked-confirmation.
+          send({ type: 'BILL_PENDING', denomination })
           return true
         },
         onBillInserted: (denomination) => {
@@ -1249,11 +1261,22 @@ export const useAtmStore = defineStore('atm', () => {
       // Wire validator events from main process via IPC
       api.onHalBillRead((denomination) => {
         console.log('[ATM] Bill in escrow:', denomination)
-        // Check if we should accept this bill
         const ctx = context.value
-        if (!ctx || ctx.exchangeRate === 0) {
-          // No rate yet, accept anyway
-          api.halStackBill()
+
+        // Fail closed (legacy _billsRead parity): only stack while the
+        // machine is accepting bills AND rate + balance are known.
+        // Anything else returns the bill to the customer — stacking here
+        // would swallow cash the machine can't (or won't) credit.
+        if (
+          nestedState.value !== 'insertingBills' ||
+          !ctx ||
+          ctx.exchangeRate <= 0 ||
+          ctx.availableBalance <= 0
+        ) {
+          console.log(
+            `[ATM] Rejecting $${denomination} bill: not accepting (state=${nestedState.value}, rate=${ctx?.exchangeRate ?? 'n/a'}, balance=${ctx?.availableBalance ?? 'n/a'})`
+          )
+          api.halRejectBill()
           return
         }
 
@@ -1272,7 +1295,10 @@ export const useAtmStore = defineStore('atm', () => {
           return
         }
 
-        // Accept the bill
+        // Accept the bill: mark it in flight, then command the stack.
+        // Credit (BILL_INSERTED) arrives via onHalBillInserted once the
+        // validator confirms the bill reached the stacker.
+        send({ type: 'BILL_PENDING', denomination })
         api.halStackBill()
       })
 
@@ -1366,6 +1392,11 @@ export const useAtmStore = defineStore('atm', () => {
   }
 
   function insertBill(denomination: number) {
+    // Dev simulator: a real validator goes escrow → stack command →
+    // stacked-confirmation. Emit both halves so the simulated bill runs
+    // the same guarded path (BILL_PENDING is balance-gated; a refused
+    // pending drops the credit too).
+    send({ type: 'BILL_PENDING', denomination })
     send({ type: 'BILL_INSERTED', denomination })
   }
 
diff --git a/apps/machine/src/views/CashInView.vue b/apps/machine/src/views/CashInView.vue
index 16ee6be..5210c86 100644
--- a/apps/machine/src/views/CashInView.vue
+++ b/apps/machine/src/views/CashInView.vue
@@ -242,7 +242,10 @@ const isProcessing = computed(() => atmStore.isPayingInvoice)
             </p>
 
             <!-- Status -->
-            <p v-if="balanceLimitReached" class="text-sm lg:text-xl text-muted-foreground">
+            <p v-if="context?.billPending" class="text-sm lg:text-xl text-muted-foreground">
+              ⏳ Processing bill…
+            </p>
+            <p v-else-if="balanceLimitReached" class="text-sm lg:text-xl text-muted-foreground">
               Maximum amount reached — press Done to continue
             </p>
             <p v-else class="text-sm lg:text-xl text-muted-foreground">
@@ -269,11 +272,14 @@ const isProcessing = computed(() => atmStore.isPayingInvoice)
               </AlertDescription>
             </Alert>
 
-            <!-- Done button -->
+            <!-- Done button — also blocked while a bill is between the
+                 stack command and the validator's stacked-confirmation
+                 (the machine guard drops FINISH_INSERTING regardless;
+                 this keeps the UI honest about it) -->
             <Button
               class="w-full bg-gradient-to-r from-orange-500 to-yellow-400 text-black hover:from-orange-600 hover:to-yellow-500"
               size="kiosk-lg"
-              :disabled="!context || context.billsInserted.length === 0"
+              :disabled="!context || context.billsInserted.length === 0 || context.billPending !== null"
               @click="finishInserting"
             >
               Done Inserting
diff --git a/packages/state-machine/src/__tests__/machine.test.ts b/packages/state-machine/src/__tests__/machine.test.ts
index 00d742a..9b9bf91 100644
--- a/packages/state-machine/src/__tests__/machine.test.ts
+++ b/packages/state-machine/src/__tests__/machine.test.ts
@@ -130,12 +130,17 @@ describe('ATM State Machine', () => {
       // Wait for rate fetch
       await new Promise((resolve) => setTimeout(resolve, 50))
 
+      // Real hardware flow: escrow accepted (stack commanded) →
+      // stacked-confirmation credits the bill.
+      actor.send({ type: 'BILL_PENDING', denomination: 20 })
       actor.send({ type: 'BILL_INSERTED', denomination: 20 })
+      actor.send({ type: 'BILL_PENDING', denomination: 10 })
       actor.send({ type: 'BILL_INSERTED', denomination: 10 })
 
       const context = actor.getSnapshot().context
       expect(context.billsInserted).toEqual([20, 10])
       expect(context.fiatCents).toBe(3000) // $30 in cents
+      expect(context.billPending).toBeNull()
     })
 
     it('should return to idle on CANCEL', async () => {
@@ -152,6 +157,112 @@ describe('ATM State Machine', () => {
     })
   })
 
+  describe('cash-in escrow credit interlock (aiolabs/bitspire#58)', () => {
+    // Legacy brain.js parity: a bill is credited only on the validator's
+    // stacked-confirmation, and the insert phase cannot finish while a
+    // bill is between the stack command and that confirmation.
+
+    async function startInserting() {
+      const machine = createATMMachine(mockServices)
+      const actor = createActor(machine)
+      actor.start()
+      actor.send({ type: 'SELECT_CASH_IN' })
+      await new Promise((resolve) => setTimeout(resolve, 50))
+      expect(actor.getSnapshot().value).toEqual({ cashIn: 'insertingBills' })
+      return actor
+    }
+
+    it('blocks FINISH_INSERTING while a bill is in flight', async () => {
+      const actor = await startInserting()
+
+      actor.send({ type: 'BILL_PENDING', denomination: 20 })
+      actor.send({ type: 'BILL_INSERTED', denomination: 20 })
+      // Second bill enters flight; user mashes "done" before it settles.
+      actor.send({ type: 'BILL_PENDING', denomination: 1 })
+      actor.send({ type: 'FINISH_INSERTING' })
+
+      // Still inserting — the in-flight bill holds the door.
+      const snap = actor.getSnapshot()
+      expect(snap.value).toEqual({ cashIn: 'insertingBills' })
+      expect(snap.context.billPending).toBe(1)
+      // Nothing was credited for the in-flight bill.
+      expect(snap.context.fiatCents).toBe(2000)
+    })
+
+    it('allows FINISH_INSERTING once the in-flight bill is confirmed', async () => {
+      const actor = await startInserting()
+
+      actor.send({ type: 'BILL_PENDING', denomination: 1 })
+      actor.send({ type: 'FINISH_INSERTING' }) // blocked
+      actor.send({ type: 'BILL_INSERTED', denomination: 1 }) // confirmation lands
+      actor.send({ type: 'FINISH_INSERTING' })
+      await new Promise((resolve) => setTimeout(resolve, 50))
+
+      const snap = actor.getSnapshot()
+      expect(snap.value).not.toEqual({ cashIn: 'insertingBills' })
+      expect(snap.context.fiatCents).toBe(100)
+      expect(snap.context.billPending).toBeNull()
+    })
+
+    it('BILL_REJECTED clears the in-flight bill without crediting', async () => {
+      const actor = await startInserting()
+
+      actor.send({ type: 'BILL_PENDING', denomination: 20 })
+      actor.send({ type: 'BILL_INSERTED', denomination: 20 })
+      actor.send({ type: 'BILL_PENDING', denomination: 10 })
+      // Stack failed — validator returned the bill.
+      actor.send({ type: 'BILL_REJECTED', reason: 'returned' })
+
+      const snap = actor.getSnapshot()
+      expect(snap.context.billPending).toBeNull()
+      expect(snap.context.fiatCents).toBe(2000) // only the confirmed bill
+      expect(snap.context.billsInserted).toEqual([20])
+
+      // And the door is open again.
+      actor.send({ type: 'FINISH_INSERTING' })
+      await new Promise((resolve) => setTimeout(resolve, 50))
+      expect(actor.getSnapshot().value).not.toEqual({ cashIn: 'insertingBills' })
+    })
+
+    it('does not credit a BILL_INSERTED with no matching pending bill', async () => {
+      const actor = await startInserting()
+
+      // Stray stacked-confirmation (no stack was commanded).
+      actor.send({ type: 'BILL_INSERTED', denomination: 20 })
+
+      const snap = actor.getSnapshot()
+      expect(snap.context.fiatCents).toBe(0)
+      expect(snap.context.billsInserted).toEqual([])
+    })
+
+    it('drops the credit too when BILL_PENDING was refused (over balance)', async () => {
+      const actor = await startInserting()
+
+      // Mock balance is 1M sats @ 2500 sats/USD → $400 ceiling. $500 bill
+      // exceeds it: pending is guard-refused, so its confirmation (which a
+      // correctly-driven validator would never send) is not credited either.
+      actor.send({ type: 'BILL_PENDING', denomination: 500 })
+      actor.send({ type: 'BILL_INSERTED', denomination: 500 })
+
+      const snap = actor.getSnapshot()
+      expect(snap.context.billPending).toBeNull()
+      expect(snap.context.fiatCents).toBe(0)
+    })
+
+    it('CANCEL with a bill in flight lands in confirmAbandon with pending cleared', async () => {
+      const actor = await startInserting()
+
+      actor.send({ type: 'BILL_PENDING', denomination: 20 })
+      actor.send({ type: 'BILL_INSERTED', denomination: 20 })
+      actor.send({ type: 'BILL_PENDING', denomination: 10 })
+      actor.send({ type: 'CANCEL' })
+
+      const snap = actor.getSnapshot()
+      expect(snap.value).toEqual({ cashIn: 'confirmAbandon' })
+      expect(snap.context.billPending).toBeNull()
+    })
+  })
+
   describe('cash-out flow (ATM-driven amount selection)', () => {
     it('should transition to cashOut on SELECT_CASH_OUT', async () => {
       const machine = createATMMachine(mockServices)
diff --git a/packages/state-machine/src/machine.ts b/packages/state-machine/src/machine.ts
index de0cb90..c889127 100644
--- a/packages/state-machine/src/machine.ts
+++ b/packages/state-machine/src/machine.ts
@@ -181,6 +181,15 @@ export function createATMMachine(
       setCashOutFee: assign({
         feeFraction: ({ context }) => context.cashOutFeeFraction,
       }),
+      setBillPending: assign({
+        billPending: ({ context, event }) => {
+          if (event.type !== 'BILL_PENDING') return context.billPending
+          return event.denomination
+        },
+      }),
+      clearBillPending: assign({
+        billPending: null,
+      }),
       addBill: assign({
         billsInserted: ({ context, event }) => {
           if (event.type !== 'BILL_INSERTED') return context.billsInserted
@@ -190,6 +199,7 @@ export function createATMMachine(
           if (event.type !== 'BILL_INSERTED') return context.fiatCents
           return context.fiatCents + event.denomination * 100
         },
+        billPending: null,
       }),
       calculateSats: assign({
         satsAmount: ({ context }) => {
@@ -367,13 +377,26 @@ export function createATMMachine(
     },
     guards: {
       hasInsertedBills: ({ context }) => context.billsInserted.length > 0,
+      // Legacy brain.js parity: "send coins" is a no-op while a bill is
+      // between the stack command and the validator's stacked-confirmation.
+      canFinishInserting: ({ context }) =>
+        context.billsInserted.length > 0 && context.billPending === null,
+      // A credit event must correspond to the bill we commanded to stack —
+      // a stray stacked-confirmation with no pending bill is not credited.
+      billMatchesPending: ({ context, event }) => {
+        if (event.type !== 'BILL_INSERTED') return false
+        return context.billPending === event.denomination
+      },
       hasSufficientAmount: ({ context }) => context.fiatCents >= 100, // $1 minimum
       hasExchangeRate: ({ context }) => context.exchangeRate > 0,
       canRetry: ({ context }) => context.retryCount < 3,
       hasUserNpub: ({ context }) => context.userNpub !== null,
       hasOfferRequest: ({ context }) => context.pendingOfferRequest !== null,
+      // Gate at the PENDING (pre-stack) decision, matching legacy
+      // _billsRead: balance/rate checks happen before the bill is
+      // physically committed. Once stacked, credit is unconditional.
       billWithinBalance: ({ context, event }) => {
-        if (event.type !== 'BILL_INSERTED') return false
+        if (event.type !== 'BILL_PENDING') return false
         // Reject bills if balance or rate is unknown — don't risk accepting
         // cash we can't cover with sats
         if (context.availableBalance <= 0 || context.exchangeRate === 0) return false
@@ -476,15 +499,25 @@ export function createATMMachine(
               ],
             },
             on: {
-              BILL_INSERTED: {
+              // Escrow accepted → stack commanded. Marks the bill in
+              // flight; credit waits for the stacked-confirmation.
+              BILL_PENDING: {
                 guard: 'billWithinBalance',
+                actions: 'setBillPending',
+              },
+              // Validator confirmed the bill reached the stacker. The
+              // cash is physically in the box — credit unconditionally.
+              BILL_INSERTED: {
+                guard: 'billMatchesPending',
                 actions: ['addBill', 'calculateSats'],
               },
               BILL_REJECTED: {
-                // Stay in state, maybe show message
+                // Bill returned to customer (stack failed or refused) —
+                // it was never credited; just clear the in-flight marker.
+                actions: 'clearBillPending',
               },
               FINISH_INSERTING: {
-                guard: 'hasInsertedBills',
+                guard: 'canFinishInserting',
                 target: 'generatingNdebit',
               },
               CANCEL: [
@@ -549,6 +582,9 @@ export function createATMMachine(
           confirmAbandon: {
             // Warning: cash is in the machine, abandoning forfeits it.
             // Auto-clear after 60s so the machine self-recovers if customer walked away.
+            // A bill still in flight when the user bails is forfeited
+            // like the rest — clear the marker so nothing blocks on it.
+            entry: 'clearBillPending',
             after: {
               60000: '#atm.idle',
             },
diff --git a/packages/state-machine/src/types.ts b/packages/state-machine/src/types.ts
index 6be35af..3a2810e 100644
--- a/packages/state-machine/src/types.ts
+++ b/packages/state-machine/src/types.ts
@@ -91,6 +91,13 @@ export interface ATMContext {
   // Hardware state
   /** Bills inserted during cash-in */
   billsInserted: number[]
+  /**
+   * Bill in flight: stack commanded, awaiting the validator's
+   * stacked-confirmation. Credit (BILL_INSERTED) only lands once the
+   * bill physically reached the stacker; FINISH_INSERTING is blocked
+   * while a bill is in flight (legacy brain.js 'billsRead' interlock).
+   */
+  billPending: number | null
   /** Whether cash has been dispensed */
   cashDispensed: boolean
   /** Dispense amounts for cash-out */
@@ -140,6 +147,7 @@ export type ATMEvent =
   | { type: 'CLEAR_SELECTION' }
   | { type: 'CONFIRM_AMOUNT' }
   // Hardware events
+  | { type: 'BILL_PENDING'; denomination: number }
   | { type: 'BILL_INSERTED'; denomination: number }
   | { type: 'BILL_REJECTED'; reason: string }
   | { type: 'CASH_DISPENSED' }
@@ -187,6 +195,7 @@ export const initialContext: ATMContext = {
   paymentMethod: null,
   pendingOfferRequest: null,
   billsInserted: [],
+  billPending: null,
   cashDispensed: false,
   dispenseAmounts: [],
   cashOutSelection: [],