On my v63, that switch de energizes the solenoids in the coin mech. You can't add $$ until product is removed and switch is open.
That was it! I put my newly aquired coin mechanism in last night and that's exactly what that switch does! So for now i just left the two wires shorted. All that means is that you can put more money in after the initial "credit" is given, but before you remove the bottle. (not a big deal for home use).
On a side note, the "use correct change" circuit apparently goes through there too. With those wires not shorted together, the correct change lamp wont light with no nickles in the coin tubes.