How to Start an ATM Machine Business: Requirements and Process

In this article, we’ll tell you how to start an ATM machine business. However, this time we will focus on the requirements and process. So at this stage, you should already know what to expect from an ATM business. You’re sure that it is something you want to do. You might even already have equipment and a location.

If that’s the case, you are ready to officially get started. So what’s the first step? 

Starting an ATM machine business does not necessarily require a set of steps to be completed in an exact order. Not every independent ATM deployer goes about starting an ATM business in the same way. And some “steps” can be completed concurrently.

However, when it’s all said and done, there are some things aside from purchasing an ATM machine you’ll need to do to get up and running. Here’s what that looks like: 

Find a Processing Company

To start an ATM business as an independent ATM deployer (IAD), you need an ATM machine. Now, there are a lot of ways to get your hands on one. However, you can’t just purchase an ATM machine from anywhere and set yourself up in business. Your machine won’t work unless you find a processing company to connect your ATM machine to the card networks.

Can you purchase an ATM machine from anywhere? Essentially, yes. But you then need to find a processing company. Fortunately, many ATM vendors also offer processing. So you don’t have to look very far.

The processing company will help make sure your ATM machine is registered, legal, and compliant. This will require some paperwork. You need to know how to start an ATM machine business the right way so that you remain compliant with the law.

Complete Paperwork

Legal Compliance

First, you will need to provide your driver’s license to prove your identity and pass a background check. This will guarantee that you are legally allowed to run an ATM business. The banking network does not allow anyone convicted of a felony or financial crime to run an ATM business. However, you can get around this by working with a trusted friend or family member and putting the business in his or her name instead.

Your ATM provider should help ensure that you meet all federal government requirements to legally operate an ATM business. With the right ATM provider, the process should be quick and easy.

ATM Processing Agreements

Once it is certain that you meet all compliance requirements, you need to complete your equipment order form. This will indicate what equipment you want to purchase. However, if you’ve already purchased equipment from somewhere else, you will still need to indicate the cash denomination(s) you want to dispense and the surcharge fee you want to charge. This allows your machine to be programmed properly and the appropriate funds to be deposited to your bank account. 

Other documentation your ATM provider will need before you get started includes an ACH form, W-9, ATM operator agreement application, ATM processing agreement, and a voided business check.

An ACH form documents your account information. You will need to provide account and routing numbers and give permission to have funds electronically transferred to your account. And since you will be earning revenue from your ATM machine, you will need to complete a W-9 form to report residuals for tax purposes.

Your ATM application is also known as the ATM Operator Agreement. This form tells banking partners who they are working with and makes sure all federal regulations are met. The ATM processing agreement, on the other hand, lists your rights and obligations as the ATM owner as well as the rights and obligations of the ATM processor. This will be the legal contract between you and the ATM processor that runs your ATM machine program. This contract also ensures your payment as agreed upon.

Finally, a voided business check verifies the legitimacy of your linked account. Your linked account must be a checking account, not a savings account. 

Get an ATM Business Bank Account

You cannot use your personal bank account for vault cash or to deposit your surcharge revenue. You need a specific, dedicated bank account for your ATM business. For more detailed information about the nuanced process of opening an ATM business bank account, check out our article “The Best Banks for ATM Business”. 

One of the most common questions people ask is how to start an ATM machine business without an LLC. While you can operate your ATM machine as an LLC or corporation, the most common route is to register as a sole proprietor under a “doing business as” (DBA) business name. Then, you can open your bank account under that.

Some ATM processors will license you the rights to use their name as part of your company name. This will of course require additional paperwork and a fee for usage rights. However, the nominal fee is often worth the instant credibility. You gain trust by associating your business with one that’s more established and well-known.

You can start inquiring with your local banks about their experience managing ATM business bank accounts before you complete your official ATM paperwork. This way you already have an idea of where to take your business. But you will want to have the above contracts and agreements finalized before sitting down with your banker. That way, you show that you are serious and ready to do business. You will need to be prepared with copies of your contracts when opening the account.

Secure a Location

The same is true of securing a location. You can scout for a location at any point in the process of starting an ATM business. You might want to be sure you will have a place to put the machine once you order it. But again, waiting until you have all of your contracts and agreements in place before meeting with a location owner with your proposal will increase your chances of getting someone to work with you. 

In “Choosing an ATM Location: 9 Best Locations for ATM Machines,” we describe in depth the process of choosing the right location for your ATM machine. Then, when you are ready to close the deal with a location owner, you will want to have a site location agreement (SLA) drawn up and signed. 

Also known as an ATM business contract or placement agreement, the SLA is a documented agreement between you—the ATM owner—and the proprietor or merchant where the ATM will be placed. When you use someone else’s business or space to house your ATM machine, you will need more than a verbal agreement. 

The SLA details the ins and outs of the ATM placement and operation. This protects you if you ever have any issues working with the third party. It might include clauses that cover the responsibilities of each party, revenue split/share, length of effectiveness of the agreement, etc.

You can work with a lawyer to create a personalized contract or agreement, write your own from scratch, or use one of our templates at ATMDepot.com if you become a member. You can also find scripts there for pitching and selling your idea to business owners you’d like to work with to get them on board!

Install and Program

When all of the above is in place, you are ready to install and program your machine for use! Again, there is not just one way to do this. For example, you might have your ATM equipment delivered to your house and then move it to the location yourself. Or, you might have your ATM vendor ship the equipment straight to the location. It depends on the order you complete the process. 

Furthermore, your machine might come pre-programmed from the manufacturer or vendor, or you might end up doing it yourself. You might install the machine yourself as well, or you might hire this out. 

Regardless of what this part looks like for you, just know that it is possible to program and install the machine yourself if necessary. These “7 ATM Installation Tips” can help. It will cost extra to have someone do either or both for you, but it might be worth it for peace of mind. 

This is the final step. Once your machine is bolted in place and programmed to dispense your chosen denomination for the surcharge fee you set, you are ready to do business!

How to Start an ATM Machine Business

To summarize, there are a few things you need to have in place to officially begin making money from your ATM business. You need to get compliant with paperwork and set up an ATM business bank account. You need to determine surcharge fee, cash denomination, and revenue share (how much goes into which accounts). And you need to make sure you are protected with an SLA.

If you want to know everything there is to know about how to start an ATM machine business all in one place, check out the ATM Business Road Map. Because there is not one way to start an ATM business, you do not have to wait until you complete the course to get started. Just refer to the information as you go! Learning from an ATM business mentor is the best way to get from A to Z as quickly as possible and with minimal mistakes. Try it risk free and get started today!