The present invention relates to a system for dispensing bags, particularly plastic bags, one at a time, particularly for use in stores and shopping areas. The system has an actuator for actuating a bag dispenser to dispense a single bag at a time. The actuator is coupled to a controller, which may be the controller of an electronic cash register or a store controller, for two-way communication, permitting control of the total number of bags dispensed to each customer. If desired, the rate at which the bags are dispensed can also be set and controlled. According to one embodiment, the system can also hold advertising material or other informational or aesthetic displays, and may include a media player for displaying advertising material aimed at the specific customer.