"I just couldn't believe I could go on Craigslist and buy an ATM machine. Before jumping into purchasing an ATM machine be sure to do your home work. Once you purchase one you still need an ATM company to process the transactions (similar to credit card processing). This article will discuss how to pick an ATM company to best service your ATM processing needs and how to make sure you select the right ATM machine.
ATM machines have come way down in price since first being introduced to the retail segment in the early 90's. If you see any ATM machines for sale that are less than $1,000 used be very wary. Once you purchase an ATM Machine you still need ATM processing.
A reputable ATM company should offer ATM's with or without processing. They would also offer ATM processing only if you already have an ATM Machine. If you have a working ATM Machine and know all the passwords and have all the keys a good company should be able to simply re-program your ATM Machine onto their ATM processing platform. To find out if an ATM machine you're considering purchasing is compliant we recommended calling some ATM processing Companies.
ATM Agreements protect you since these companies are moving your funds when one of your customers withdraws cash from your ATM. They move the funds from that ATM customers bank account into your bank account. ATM processing rebates range from 85% of the surcharge plus $0.20 - $0.25 cents (bank-end revenue) up to 100% of the surcharge plus $0.20 cents depending on your ATM machine usage volume. Some ATM companies offer a Tiered rebate which is tied to ATM performance.
Some ATM companies also offer ATM equipment at drastically reduced prices to get you to sign a long term processing agreement. If the ATM Machine you found is cheaper than everyone else, make sure you read the term of the processing agreement. Most ATM Companies that offer crazy deals on the ATM Machine will make you sign a very long term agreement for ATM processing.
If an ATM company is selling ATMs too cheap or offers a rebate that's too high, then something has to suffer. They can't give ATM machines away and give you a high rebate and give you proper service or stay in business. Look for an ATM company with 24 hour 7 day support with a toll free number. When shopping for an ATM Machine expect to pay $1800 - $3000 for a reliable one.
Try not to sign an ATM processing agreement longer than 2 - 3 years.
Ask for references of other ATM customers and CALL them.
Check the ATM company tech support claims, is it really 24/7 service
Ask how ATM discrepancies "chargebacks" are handled (a good ATM processor will handle them for you).
Read the ATM processing agreement and make sure withdrawn funds are deposited daily (business days).
The presence of an Automated Teller Machine (ATM) in a business can be extremely beneficial in retail businesses that require or prefer that their customers pay with cash. Unlike vending machines or toy machines where a proprietor benefits solely from the rental of the space or from the direct profits of the machine, ATM's provide a host of other benefits to the proprietor. Increased Sales. Studies show that an ATM can increase a business' sales as much as 8%.
Cash Retention. 25% of the cash withdrawn from an ATM is spent on the premises. By having an ATM there is less risk of robbery and employee theft.
Reduced Costs. By directing your customer to the ATM, you can greatly reduce the credit card fees you are currently paying. Credit card transactions cost between 2% and 3% of a purchase. An ATM can save customer embarrassment and your employees' time. An ATM also deposits funds directly into your bank account, which saves time and work.
An ATM only adds to the overall value to your store.
Increase Customers. With surcharge fees, you can earn more then enough to cover the cost of the ATM. ATM customers spend an average of 20% to 25% more than non-ATM customers
40% of ATM users go to the ATM machine an average of 10 times per month
Placement of an ATM machine is the second most requested service for retail stores
ATM users are "habit"-driven, using the same ATM repeatedly
ATM customers prefer the convenience of a retail store to a bank
The most profitable choice for the business owner, this entails owning the equipment by purchasing the ATM outright and owning the equipment. Cash replenishment is the proprietor's responsibility. Most ATM vendors require that you sign a processing agreement. Leasing
This carries all the same responsibilities and profit benefits as buying an ATM. For the business owner that wants no involvement with the ATM, ATM vendors will sometimes offer to place an ATM in a business for free and operate it entirely. In the long run, however, this can be a mistake, as the number one service problem is that the ATM will run out of cash. Often independent operators are subcontractors who are part-time investors with a network of ATM's.
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