ATM Machines, A Buyer’s Guide

ATM Machine Buyer’s Guide (Part 1) 

Our hope is that this ATM Machine Buyer’s Guide helps you navigate some of the known pitfalls in the business. This will be a three part series. Be sure to click the next part in the series at the bottom of each post when you’re ready to proceed.

All kinds of businesses now maintain automatic teller machines, including supermarkets and  restaurants. That’s because ATM’s offer several benefits to business owners.

When you set up an ATM inside your establishment, you may see a spike in the number of your customers. And, with that source of money at hand, some of your customers may be inclined to spend more money. In addition, you might also find that you start receiving fewer checks which means less risk at the point of sale. Of course, you’ll also end up paying fewer processing fees for credit cards as well. But what things should you know before you go out and purchase one or more of these machines?

First, do some research and a few calculations before you contact an ATM vendor. Figure out, roughly, how many people come into your business on an average day. If that number is fewer than 150, and certainly if it’s fewer than 100, getting an ATM may not have an attractive ROI, however the other benefits may be what you’re looking for.  Just because you have minimal traffic in your location doesn’t mean your ATM won’t be worth the investment.

We’ve been in the ATM business for over 2 decades now and we’ve seen over the past few years that the general rule of thumb for the number of monthly transactions that your ATM will perform is relative to the the number of people that come into your establishment plus or minus a factor of 10% – 15% depending on the location, type of establishment and several other factors.

If for example you have a high end restaurant with table cloths and a bar, your ATM machine will perform much lower than these averages since this type of clientele typically pays with a credit card. If however you have a quick service restaurant, a bar and grill, local tavern, a nightclub or even a commercial building or parking lot we have seen these types of locations do very well, especially if the business does not accept credit cards. We have also seen customers convert from credit and debit cards to ATM usage with the implementation of coupons or other incentives for use.

One of the best ways to tell if buying an ATM for your location is right for you is to speak to your customers. Ask them if they’d be interested in using an ATM if you had one at your place, or if you often get requests or if customers ask where the nearest ATM machines is, that is a good indication that it would be a wise investment.  Obviously, if you get some positive feedback from your clients, you can advance to the next step: figuring out what kind of automatic teller machine to purchase.

The most common kind of ATM is the kind that stands up on its own, also known as a “free standing ATM”.  These free standing ATM machines require approx 3 sq ft in front of them for ADA compliance (about 36″ for a wheel chair). The machines themselves have a very small foot print and run anywhere from 14″ x 14″ up to 20″ x 20″ still relatively very little floor space for the return on investment.  Even with the diminutive size of the newest free standing ATM machines, if you don’t think you have enough room, you might opt for some of the newest tabletop or counter top models.
Alternatively, you may even consider purchasing an ATM that’s inserted into a wall (also known as a Thru-the-Wall “TTW” model), although this is often a great option for a place of business to plan for during tenant improvements, it is still fairly easy to cut a hole in a wall and retrofit it for a TTW ATM. While these thru-the-wall ATM machines costs a little more than the free standing machines, they are perfect for exterior installations such as sidewalk facing locations or locations facing a parking lot or a busy downtown location.

These machines typically have much higher usage since they are exposed to walk by traffic 24 hours a day. If you are considering a TTW ATM, you’ll still need to consider space for the inside part of the ATM which is typically less than a free standing ATM since the ADA portion of the ATM is outside and usually unobstructed. While it is more expensive to install a TTW unit due to the additional construction costs you’ll also need to consider the timing of the install to minimize the noise and descriptiveness of the construction which can typically be completed in a weekend.

Another choice is the outdoor ATM. (These ATM’s may also be inserted into a wall.) Outdoor ATM’s can be used 24 hours a day, and therefore they let you collect ATM fees 24 hours a day! This option, obviously, will save you interior space, too. A downside to an outdoor ATM however, is that depending on the location, your outdoor ATM may require proper lighting so people will feel safe using the ATM; and, depending on the area, you may consider some sort of surveillance cameras. Most outdoor ATM machines are weather protected but if you want the highest possible usage, you’d be smart to consider some kind of protection from the weather for the ATM users, again depending on the type of deployment and the weather in the area. While outdoor ATM’s can be more expensive to keep up, they typically have much higher usage and therefor justify the expense.

Keeping your motivation in mind, this ATM Machine Buyer’s guide is meant to help you not only decide if an ATM is right for you as a business, but is it right for the location where you’re going to put it, and, will your customers use it. If you’re main motivation is to offset credit card fees, almost certainly a free standing ATM will help with that. If you’re motivation is to make more money just from the ATM usage, a thru-the-wall  machine available 24 hours will product much more profit in the right installation.

Your ATM decision-making process doesn’t stop there. A list of other questions you need to answer would include: See ATM Machines, A Buyer’s Guide part 2.