If you don't take credit cards now, start with your bank or talk to other ATM site owners and call other processing companies. What happens when the machine breaks down or runs out of cash? What happens if the machine breaks down and gives away money or doesn't give out the money? Why should you offer the convenience of in-store banking to your customers? Think of an ATM as free advertising. It will increase footfalls and increase new business for your store. No bounced checks, fees, or further action is required if more patrons are using cash for their purchases. Cash machines are also available in different sizes, so they can fit into any store's layout and size. You could even get a machine that prints out coupons for products available in your store and entices customers to put the cash they just withdrew back into your business. There's no reason not to invest in a cash machine for your store Savvy business owners know that buying a cash machine for their store is a great way to boost sales and profits.
Having been in the ATM machine business for nearly two decades I've been able to unlock the mystery behind how ATM Machines Work as a Business. It's very similar to a vending business, the main differences are this vending machine dispenses cash and deals with the banking regulations. 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. Many ATM companies try to make it seem complicated but if you've done it long enough it should be a simplified process. ATM companies that claim to sell you locations, or find you ATM spots and get you to invest in them are most likely scams.
Personally if I found a good location to put an ATM into why would I offer it to someone else if I could put my own ATM in there and make a profit. If you select the wrong ATM Company to help you navigate the waters the costs can mount up effecting your ROI.
The ATM Machine. Obviously a key component to your business. 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.
There are many variations and deals similar to credit card processing. 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. They should also provide you monthly statements and access to monitor your ATM machine online at no charge. 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.
0 Comments:
Post a Comment