ATM Machine Business

How ATM Machines Work - Operating an ATM Business

Having been in the ATM machinebusiness for nearly two decades I've been able to unlock the mystery behind how ATM Machines Work as a Business. The ATM Business is straight forward. You have a piece of hardware (The ATM Machine).

You need to fill the ATM with Cash (yourself, the location manger or an armored car company).

You need a reputable ATM Company (they have contracts with an ATM processor, sponsoring bank, move your money between banks, provide statements and online reporting)
They should also provide technical support, but some don't.

You need your own bank account, where funds are deposited if you load cash.

The income comes from the surcharge (fee customers pay to use the ATM) a portion of the interchange (the fee banks have to pay the network and processor) and then they deduct some network fees. ATM companies that claim to sell you locations, or find you ATM spots and get you to invest in them are most likely scams.

Just like real estate, it's all about location, location, location.

If you select the wrong ATM Company to help you navigate the waters the costs can mount up effecting your ROI.

The ATM Machine. An experienced ATM company can help you answer all these questions and more to help you determine if the location could have good potential.

Who loads cash: The ATM owner and the cash loader typically share the lions portion of the ATM revenue. Armored car service is only a viable option if the ATM does really well (over 500 transactions monthly). Armored car service is expensive and typically cost prohibitive for retail ATM machines.

A good ATM company should also provide 24/7 toll-free technical support. We see many ATM companies that don't offer this. How do you make Money with ATM Machines?

Your ATM charges the card holder a fee (referred to as a surcharge or convenience fee) you, the ATM owner, set this fee. Banks pay a small fee to the ATM networks for connecting the cardholder to the bank, this is the interchange.

An honest ATM Company should give you 100% of the surcharge and depending on the number of transactions your ATM does or the size of your ATM portfolio (if you have several machines), they will give you up to $0.15 of the interchange.

To manage your ATM's you should make sure the ATM company offers 365 day toll-free tech support 24/7. Other benefits of a reputable ATM company include no monthly minimums, no monthly fees, and no statement fees. Small, inexperienced ATM companies that can't offer economies of scale may charge for services whereas others do not.

There are some misconceptions about having an ATM machine, however. ATM machines actually only take about 5 minutes a day to manage and there are many benefits to having an ATM, including increased revenue.

Merchants, retail business owners, and almost every type of business can benefit by having an ATM machine. Once an ATM machine is installed, the owner makes money by an increase in customer traffic and spending, reduced credit card processing fees, and surcharge revenue.

An ATM is much more convenient and accommodating. Retail locations with privately owned ATMs conduct almost 80% of all bank transactions.

Because more customers will be proliferating to your business by having an ATM, they are more likely to spend some of the cash that was taken out of the ATM machine inside your business. On average, ATM users spend 25% more than non-ATM users.

By having an ATM in your business, customers are more likely to use cash instead of credit cards. This reduces your credit card processing fees, which saves you money. Every time your ATM machine is used you earn a surcharge or transaction fee. An ATM will keep current customers coming back and will also attract more new customers to your business.

There are about 1.2 million ATM machines installed all over the world. This overwhelming increase in automated banking is due in part to the convenience and security an ATM machine provides. However, how does a business owner determine which ATM is suitable for their business?

Many businesses include free shipping and installation. There are many benefits that come from owning an ATM machine. Just by having the ATM at your business you are likely to attract more customers. Businesses can greatly profit from owning an ATM machine. Not only do you get the surcharge revenue from each transaction, but ATM customers also spend between 20 to 25% more than non-ATM customers. If your business recruits more than 200 customers per day and people are asking for a nearby ATM, you should definitely consider owning an ATM machine.