5 Key Points to Make on an ATM Business Flyer

One of the first steps for setting up an ATM business is choosing a location. This can be tricky to do if you are in an area where there is already an abundance of ATM machines in operation. However, if you are able to find a business or location where an ATM machine could be lucrative, you then run into the challenge of convincing the location owner to work with you by reminding them of the benefits of an atm machine. A simple way to do this is to make an ATM business flyer.

There are a few compelling reasons you can use to seal the deal. When negotiating a partnership, be sure to mention all of the benefits of an ATM machine.

Benefits of an ATM machine include:

  1. Saving money on credit card fees
  2. Keeping customers in the store that need cash
  3. Increasing opportunities for cash sales
  4. Encouraging future business by offering coupons on your ATM screen and/or ATM receipts

If you already have a machine or two in operation, don’t hesitate to discuss testimonials from other businesses you have worked with. This is a great way to settle any doubts the location owner might have about working with you.

Use these 5 points (your testimonials included) to help negotiate your way into a partnership and lock down the perfect location for your next ATM machine. We also recommend creating an ATM business flyer listing these 5 points. You can leave it with the location owners you speak with if they want time to think it over. Or maybe they’ll change their minds if they initially decline.

Point #1: Reduce Credit Card Fees

The first point to make on your ATM business flyer is that an in-store ATM machine reduces credit card fees. This is a major benefit of having an ATM machine in a business. Businesses are charged between 1.3% and 3.5% in credit card processing fees for each transaction made. An ATM offers customers the opportunity to pay with cash rather than card. So the chances of avoiding those processing fees increases.

Credit card processing fees can also be offset by the ATM surcharge. If the location owner gets a share of the ATM surcharge revenue, it can cover the credit card processing fees and the remainder kept as profit!

After installing an ATM, some locations even opt to get rid of credit card processors altogether. This would be a great selling point for small businesses rather than convenience stores where customers expect the option of paying with a card. But a small, local business could save a lot of money on credit card processing fees by encouraging cash-only transactions and offering ATM service.

Point #2: Keep Customers Who Need Cash

An ATM machine draws in customers who need to withdraw cash. This puts businesses with ATMs at an advantage over competing businesses without an ATM. 

The main selling point of your ATM machine is convenience. Convenience is another major benefit of an ATM machine. If customers can access their accounts from the places they’re already shopping, your ATM machine will do well. And, the location owner can count on repeat business from these customers.

Be sure to mention on your ATM business flyer that an ATM machine retains customers who need cash. It’s an added convenience that can give your prospective location an edge against their competition.

Point #3: Provide More Cash for Spending

Convenience stores, for one, experience 23% more in sales from ATM users. This means that businesses could expect to see about a 20% increase in sales just by having an ATM machine on the premises. What is the point of withdrawing cash if not to spend it?

Offering customers the convenience of withdrawing cash in-store in turn benefits the store owner by increasing impulse purchases. Customers now have the cash to do so. And passers by who only intend to use the ATM machine are visiting a business they might not have otherwise.

Therefore, providing ATM service to patrons and non-patrons alike gets more people in the door and creates more opportunities for sales. Not to mention just promoting the business itself. Setting up an ATM machine is an easy, no-cost way for location owners to draw in new customers. 

Point #4: Offer Valuable Coupons

Another way to promote future business and increase sales is to offer coupons. Coupons can be printed on ATM receipts or shown on the screen of your ATM. They not only incentivize customers to use your ATM machine, but they also create repeat customers for the location owner. 

And they don’t have to be used indefinitely. You can offer coupons while your ATM machine is new to create awareness of the added service. Then, once you’ve established a customer base, you can offer coupons only promotionally if you and the location owner would like to.

Coupons give customers a reason to return to that location and a reason to shop there specifically. Using the ATM as an advertising method is also a benefit of an ATM machine. Increased visits equals increased sales and potentially increased ATM transactions.

Point #5: Testimonials

Finally, include testimonials on your ATM business flyer. If you have worked with location owners who have saved and/or made money from one of your ATM machines, get a statement and share it with prospective location owners. 

If you are pitching your ATM machine as a stranger, it can help to have some proven success to back you up. Location owners want to hear from people like them about why they should be open to partnering with an ATM owner and how it can benefit them.

If you don’t already have successful machines in other locations, you can borrow testimony. This might be a statement from any business owner who has benefitted from an ATM machine, even if it wasn’t yours. 

You can also cite the successes of your ATM provider. Knowing that you work with a company whose name is well-known and that has a proven track record can help ease you into a partnership as well.

Benefits of an ATM Machine for Location Owners

If you want to run your ATM machine out of someone else’s store or business, you will have to convince him or her to share the space with you. The best way to do that is to outline all of the benefits of an ATM machine. 

What it really comes down to is extra revenue. Surcharge fees reduce or at least cover credit card fees. ATM machines draw more customers to stores and businesses. And once users are inside, the opportunities for impulse purchases and future business increase. 

ATM machines are money-makers, especially for location owners since you, the ATM owner, handle all of the start-up costs. But it can still be daunting for location owners to enter into a partnership with a stranger. That’s why we recommend including testimonials on your ATM business flyer as well. 

Convince your prospect that installing an ATM machine is simple, lucrative, and safe. List these 5 key points on your ATM business flyer to leave with prospective location owners and expect to be met with interest.

Then, once you have a location secured, contact ATMDepot.com to order your equipment!

Benefits to an ATM Machine and other Key Points and  to Make on an ATM Business Flyer via ATMDepot.com

How to Start an ATM Business in 5 Steps

If you’d like to make a little extra money on the side or want to transition out of your 9-5 job, you might want to know how to start an ATM business. In just 5 steps, you can own and operate an ATM machine that brings in passive income almost immediately.

You don’t need a business license or any specific entrepreneurial training or experience to start an ATM business. Just complete the required documentation, select your ATM machine type, find a location, set a surcharge, and start making a profit. Here, we’ll tell you how to start an ATM business today!

Step 1: Get Compliant with Paperwork

When starting an ATM business, you have to complete the required documentation. The following forms and documentation are necessary in order to even get your machine. This proves that you are qualified to operate an ATM machine and helps set you up for success. This process is designed to make purchasing and operating an ATM machine seamless.

Required Documentation

Your ATM processor will require an equipment order form. This is where you choose the equipment you want and indicate whether you or someone else will handle installation. You will also need to document what your surcharge will be (see below) and what denominations your ATM will dispense.

Next is the ACH form so that your revenue can be deposited into your bank account! Your driver’s license is required to prove your identity and pass a background check. You cannot run an ATM business if you have been found guilty of a felony or financial crime.

A voided business check verifies the legitimacy of your linked bank account. For the purposes of running an ATM business, the account must be a checking account, not a savings account.

The ATM Operator Agreement and application tells banking partners who they are working with and ensures all federal regulations are met. You will need to complete and submit a W-9 form as well. Since you will be making money from your ATM machine, you’ll need to document your earnings for tax purposes.

Finally is the ATM processing agreement. This document lists your rights and obligations as the ATM owner as well as the rights and obligations of the ATM processor. It’s the legal contract between you and the ATM processor that runs your ATM machine program. This agreement also ensures you receive your payment as agreed upon.

Other Applicable Documentation

You may or may not need to complete these forms. They don’t apply in all situations. For example, a business license and permit might only be necessary if your local government requires it. Otherwise, you can register as a sole proprietor under a “doing business as” business name.

A placement agreement, or site location agreement (SLA), would only be necessary if you are planning to install your ATM machine in a location that was owned by someone else. This document serves as a contract between you and that third party and outlines each party’s responsibilities and share of the revenue.

Like all insurance, ATM insurance is completely optional. You can opt to purchase it and account for the cost when calculating your potential profit after operation costs. Or you can test your luck without it. Kind of a gamble here, but if you work with an insurance company that is associated with the ATM Industry Association (ATMIA), they can guide you toward a policy that meets your specific needs.

Last is the wireless agreement. This allows the ATM processor to send you a wireless modem which converts your signal from Internet to cellular and speeds up your connection. Again, this is optional and can be done on your own timeline.

Step 2: Select ATM Type

When choosing ATM equipment, there are three necessary decisions you have to make: ATM type, manufacturer and model, and new or refurbished. 

ATM Type

You have a lot of options when it comes to choosing ATM equipment. First you must decide the ATM type. There are free-standing, through-the-wall (TTW), and wall mount ATM machines.

Free-standing ATMs offer the most flexibility when it comes to placement. They can be installed anywhere there is a power source. They have a small footprint which is helpful when planning around available floor space in a store.

TTW ATMs are bulkier but more secure because the interface, the back of the machine, is secured within the wall extending into the next room. This can make accessing the machine to replace currency a little safer.

Wall mount ATMs can be mounted to a wall, table, or countertop. This can be convenient if your location doesn’t have a lot of extra space available. This is also a more practical choice for small businesses and low-traffic locations.

Manufacturers and Equipment Options

Two of the most popular ATM manufacturers are Hyosung and Genmega. Both produce high-quality, reliable equipment. ATM Depot also offers the full lines of Triton and Hantle (Tranax) machines.

Each of these market-leading manufacturers produces sturdy ATM equipment that lasts upwards of ten years. Just remember that pricing will vary based on the manufacturing company, machine type, and features. You can get more information about manufacturer and equipment options in our ATM Buyers Guide.

New vs. Refurbished

You also have the option of purchasing your ATM machine new or refurbished. New machines are recommended for first-time independent ATM deployers (IADs) who are just starting an ATM business. The new technology informed by feedback from IADs and users makes new ATM machines easier to use.

However, purchasing a refurbished machine could save you some money and therefore speed up your ROI and increase your profit. It’s also better for the environment to reuse electronic equipment rather than having it sent to the landfill.

Step 3: Find a Location

Choosing the right location is very important when it comes to making a profit from your ATM business. You have to find a location where there’s a great need for an ATM machine. Where do people go where they need cash to pay for goods and services? Where is there a large gap between one ATM machine and the next? What are the areas of your city with the most foot traffic? And who might you have to partner with in order to place your machine in a strategic spot?

Who Will Own the Space?

Before you should even think about ordering an ATM machine, you need to know where you’re going to put it. Choosing the perfect ATM location is a very strategic process. You have to consider factors such as visibility, ease of access, and competition. 

The first decision you have to make when choosing a location is whether you want to rent your own space, supply a space you already own, or coordinate with a site location owner. If you rent or purchase your own space, you have to factor that into your operating costs and adjust your business model accordingly to still make enough of a profit for it to be worth it.

The same is true of partnering with a site location owner. Depending on the agreement you set up, you could end up splitting your profits with the owner of the location where you choose to install your ATM. Keep this in mind when calculating your potential profit.

What Are the Best ATM Locations?

When it comes to choosing the right location for your ATM machine, you really have to consider what’s best for you and your business specifically. And you have to work with the locations available to you. Generally speaking, the best ATM locations typically share the same characteristics: cash only, high traffic, good reviews, liquor license, distance from other machines, and convenience for you.

Locations that are cash only or that encourage cash transactions create the demand that your ATM supplies. If people need cash, they need an ATM. This is good for business. So is high traffic. 

The more people who pass by and see your ATM on a regular basis, the more business you’re likely to get. High traffic areas also provide a certain level of security and comfort among users. Isolated machines away from security cameras or the public eye present an increased risk of vandalism and theft.

If you partner with a store owner, you want your ATM to be placed in a store or business that has good reviews. The more customers that store gets, the more business your ATM is likely to get. 

Locations with liquor licenses are good options, too. They are open late, so that extends the hours of operation of your ATM machine and offers more opportunities for transactions. Plus, it’s reasonable to have an increased surcharge at these locations, too (more on surcharge later).Finally, you have to consider the proximity of your machine to you as well as to other machines. The closer your ATM is to other machines, the more competition you have to get customers. But you also want the machine to be convenient for you to access. The more time and money you spend getting to your machine for maintenance and surveillance, the less profit you make.

What Are the Most Profitable ATM Locations?

There are some specific business types that tend to be more profitable due to increased surcharges, high demand, and large volume of patrons. These include casinos, gentlemen’s clubs, hotels, nightclubs and bars, convenience stores and gas stations, restaurants, barbershops and salons, microbreweries, and parking lots.

Keep in mind that profits will vary based on each individual business’s success. When looking for an optimal location for your ATM, choose a business that is busy, regularly brings in customers, and has good potential for staying in business for a while.

Step 4: Set Your Surcharge

The surcharge is the fee customers or users pay for the service your ATM machine offers. For each transaction made on your ATM machine, you make the surcharge amount in return. Setting your surcharge is a very strategic process. You want to offer a competitive surcharge while also setting yourself up to make as much profit as possible. 

The average ATM surcharge fee is about $2.50. Depending on the competition in your area, you can raise or lower that fee amount. And you can change it at any time. 

You might want to start with a low surcharge to encourage people to use your machine as you are just getting started. Or, alternatively, you might want to set a higher surcharge to meet your ROI quicker and start profiting sooner. The choice is up to you.

You also want to consider whether or not you’ll be sharing any portion of the revenue with a third party like a site location owner. If you are, you might opt to set a higher surcharge so that you make more after the site location owner’s share.

Step 5: Start Making Money

It is possible to make a good amount of money from an ATM business. When you’re just starting out, you will want to undergo a modicum of trial and error to get your business model just right. But with an ATM business, you have a low overhead and many opportunities for growth.

As long as people use your machine, you will make money. Getting people to use your machine is the hard work that you have to do once everything is set up. But once you do, you should expect to be making at least $450 monthly gross revenue. That’s 180 transactions a month at $2.50 each.

You can expect 40%-70% annual ROI from any location that warrants 80-100 transactions monthly. To make $1,500-$2,000 monthly in profit, you would need to own and operate 5-10 ATM machines. This is certainly possible if you can establish an efficient routine with your first machine and find optimal locations for subsequent machines. 

How to Start an ATM Business

If you want to know how to start an ATM business, it’s actually very easy. In just a few steps you can start making money. It will require a little bit of work to develop a routine with your machine and test different surcharge amounts and marketing strategies. But there are very few steps involved between completing the required paperwork and beginning to make money.

The best part about running an ATM business is that most of the factors that determine your success are in your control. You decide how much to invest in equipment, where you want your machine, who to work with, and how much you’d like to make per transaction. If you still have questions regarding how to start an ATM business, you can speak with an ATM Depot representative. Contact us today!

How to Start an ATM Business