How to Start an ATM Business: A Guide for ATM Beginners

by

How to Start an ATM Business

Contents

  1. How it Works
  2. Paperwork and Documentation
  3. Choosing Equipment
  4. Determining Surcharge Fee
  5. Cash Needs and Vaulting
  6. Programming and Installation
  7. Setting Up a Business Bank Account
  8. Finding and Negotiating a Location
  9. Ownership and Responsibilities
  10. Revenue and Costs
  11. Other Opportunities in the ATM Business
  12. How to Start an ATM Business Startup Checklist
  13. Glossary

1. How it Works

Benefits of Becoming an IAD

An independent ATM deployer (IAD) is someone who owns and operates at least one ATM machine. If you want to start an ATM business, IAD is the most lucrative position. In the simplest terms, as an IAD, you purchase an ATM machine, install it in a busy location, keep it functioning, and earn passive income from surcharge fees.

There are many benefits if you want to start an ATM business. First of all, you are your own boss. That means that you can set your own hours, control your own income, and outsource any parts of the business you don’t want to handle. 

Additionally, an ATM business has a relatively simple business model. It requires a comparably low initial investment, you make passive income, and you can easily scale the business by placing more machines. 

As an IAD, you make money every time someone uses your machine. Your return on investment (ROI) can happen in as quick as a few months depending on the location. You can monitor all activity remotely. And, there is an increasing need for ATM services. 

Making Money

As an IAD, you can expect to make an annualized return of 35% – 70% or more. Remember, you make money every time someone uses your machine to withdraw cash from their checking, savings, or other accounts. At, say, $3 per transaction, a location that sees 5 transactions a day can expect to make about $450 a month. 

And that’s just from one machine. Once you get familiar with the process, you can scale your business and add more machines to your route. A few machines create good supplemental income; 12 – 24 machines would be considered a full-time ATM business that only requires 10 or so hours of your time a week.

In just a few steps, you can learn how to start an ATM business. Before you can operate an ATM machine, you need to find a processor, ISO, or sub-ISO; a location, a bank, and a machine. In the upcoming sections, we’ll explain everything.  

2. Paperwork and Documentation

If you want to start an ATM business, you need to find an ATM processor. You can purchase an ATM machine from anywhere; but without a processing company, your machine won’t be able to communicate to the card networks and therefore will not work. You can find an ATM processor that also sells machines, or you can purchase a machine elsewhere and then find a processor to work with.

This processing company will help make sure your ATM machine is registered, legal, and compliant. This will require some paperwork. Here, we’ll tell you what to expect so that you’re prepared. This will alleviate some stress and make sure your business gets set up quickly and smoothly.

Verify Your Identity

The process for setting up an ATM business is similar to opening a bank account in the sense that you have to verify your identity. You will have to provide the ATM processor with a copy of your driver’s license, and you’ll have to pass a background check. 

The background check is mostly to make sure you haven’t been convicted of a felony or a financial crime. If so, you won’t be able to legally operate an ATM business. However, keep in mind that you can still register the business under a friend, family member, or business partner.

Equipment Order Form

You will also need to complete an equipment order. Often it’s a form on an online purchase.

Bank Account

You will need an ATM business bank account for cash that goes into the ATM and for the ATM processor to put the money back into. 

It can be tricky to find a bank, but we explain this at length in another article. If you want to learn about the best banks for the ATM business, read here. 

Once you have an ATM business bank account established, you can complete the ACH form and submit a voided check for your ATM processing so you can set up the ATM you purchased.

Other Forms

There is an ATM application form known as an ATM Operator Agreement. If you plan to operate ATMs in 3rd party retail locations, you’ll need to complete the IAD Operator Agreement .The agreements are the legal contracts between you and the ATM processor that list the rights and obligations of you as the IAD and ATM owner and those of the ATM processor.

The ATM processor is responsible for enabling transactions, moving funds, and providing you with remote online access to your ATM machine and its activity. This contract also confirms the details of your payment schedule.

And, as with any other income source, you will need to complete a W-9 form to report residuals for tax purposes.

A placement agreement, or site location agreement (SLA), is the contract between you and the merchant or owner of the location where you will place your ATM machine. It typically outlines the responsibilities of each party and the revenue split if applicable. You can work with a lawyer to draft this contract or use our customizable template in our member area.

3. Choosing Equipment

There are three types (smallest to largest) of ATM machines you want to check out: wall mount, free standing, and through-the-wall (TTW). The type you want will more than likely depend on how much space you have available to place the machine and how busy the location is. For example, since a wall mount ATM is smaller than a free standing ATM, it will hold less cash. 

ATM Manufacturers and Recommendations

Free standing machines can be installed anywhere there is a power supply which makes placement a little more convenient than TTW. The bulky part (the interface) of a TTW ATM extends from the front of the ATM (the chassis) which fits into or through the wall protruding into the next room. This can require some construction, but it is highly secure and can facilitate 24-hour access when facing outdoors.

The most well-known and trusted ATM manufacturers are Hyosung, Genmega, and Triton. Triton is the only ATM made in the USA.

If you have limited floor space, the Genmega Onyx-W is a space-saving option that can be mounted to a counter-top or vertical surface. Additionally, the free standing Hyosung Halo II (Hyosung Halo 2) is a very popular model that has a proven track record for longevity and few problems

The through-the-wall Genmega GT3000 is compact and weather-resistant. It’s a great option for outdoor space or where space is limited. The G2500 is comparable to the Halo II and is the latest option for a brand-new Genmega ATM machine. A little bit lower in cost, it’s our second most popular machine after the Halo II.

New vs. Refurbished

It doesn’t really matter whether you buy a new or refurbished ATM machine. The five main differences are lifespan, technology, usability, compliance, and total cost of ownership (TCO). You will need to find the right balance between these factors to choose the ATM that’s right for you.

For a first time ATM buyer, we recommend a new machine. Each new model becomes more user-friendly which can be helpful for someone just learning the mechanics of an ATM machine. Plus, new ATMs can be shipped pre-programmed, meaning they are ready to use upon arrival.

But there is nothing wrong with purchasing a refurbished machine. It can, however, limit your options as not all models will be available. So weigh your feature “wishlist” against your budget, and see what models and deals your ATM processing company can offer.

Most importantly, make sure that any used or refurbished machine you purchase is certified refurbished. A certified refurbishment should include specific standards checks, detailing, and upgrades, replaced decals, the newest software, and updated security. Otherwise, you risk spending any money you saved up front on repairs and maintenance costs down the line.

Also be careful not to purchase a discontinued model. Some heavily discounted machines can be so outdated that they no longer meet legal requirements or process transactions.

4. Determining Surcharge Fee and Additional Percentage Charges

The surcharge fee is the cornerstone of how to start an ATM business. It’s the fee that users pay for the convenience of accessing their accounts from your machine and serves as the primary source of your revenue. Surcharge fees can range from $1-$8, with a standard fee hovering around $3.

However, there’s another avenue for maximizing your revenue: charging an additional percentage on top of the surcharge fee. This allows you to charge more for higher cash withdrawals made by the customer. Popular percentage options range from 1.5% to 2%, with 1.75% being the industry average.

By implementing this strategy, you can raise the maximum amount that can be charged to at least $200-$300 or higher. Keep in mind that this approach may require more capital to ensure sufficient cash availability in the machine.

Balancing Competitiveness and Profit
When determining the surcharge fee and additional percentage, it’s crucial to strike a balance between competitiveness and profitability. You want your surcharge to be high enough to achieve a quick return on investment (ROI) but not so high that you deter potential customers.

Location-Specific Considerations
The right surcharge fee and additional percentage will depend heavily on the location. ATMs situated in event spaces, casinos, bars, and other high-traffic areas can command a higher surcharge and percentage. Conversely, ATMs in low-income areas should have a lower surcharge and percentage to better serve the local demographic.

Revenue Share with Location Owner
Another important consideration is your revenue-sharing agreement with the location owner. Your Service Level Agreement (SLA) should specify how much of the surcharge fee—and potentially the additional percentage—goes to the location owner. This is crucial for calculating how long it will take to reach your ROI.

Collaborate with Merchants
The location owner may also have insights into what would be a fair, competitive surcharge and percentage to charge their patrons. Collaborating with the merchant can help you set a fee structure that benefits both parties.

5. Cash Needs and Vaulting

Cassette Types

The amount of cash your machine will hold depends on the cassette you select. One cassette can hold from 700 notes to 2,000 notes, and the number of cassettes a machine can accommodate will vary. There are fixed cassettes and removable cassettes. 

Fixed cassettes must be refilled in place. Removable cassettes can be refilled in an alternate, secure location. Additionally, a multi-cassette dispenser gives you the option for more than one denomination.

Don’t worry about this too much when you are getting started. You can just use the cassette your machine comes with.

Denomination Options

The standard denomination for an ATM machine is 20s. It’s common, easy to obtain, and facilitates most withdrawal amounts (the national average being $80). However, if your ATM machine is located in a low-income neighborhood or by a laundromat or carwash, 5s or 10s might be more convenient for your customers’ particular needs.

Vault Cash

You can’t start an ATM business without vault cash. Load your machine with about $2,000-$3,000 in cash at first. Then monitor the activity to see if you need more or less to facilitate withdrawals in between vaulting. You can use your own money to vault the machine. (You can use less than $2,000 if that’s all you have and just refill the machine more frequently.) 

Factor this into your startup costs, and your ATM processing company will add the total withdrawal amount back to your account via ACH. When the machine runs low on cash, withdraw it from your ATM business bank account and load it again.

Alternatively, you can delegate vaulting to the location owner who could use funds from the store’s business account. This extra responsibility for the merchant might cost you a bigger share of the ATM revenue, though.

You can also hire a third party vaulting company to handle your cash needs. This is the most expensive option but can help you avoid vaulting hassles.

Vaulting frequency depends on how much cash you load and how much activity your ATM sees. Use real-time online ATM monitoring to identify trends such as withdrawal amounts and high-usage days (paydays, weekends, holidays…). Then you will be better able to predict how much cash to load and when. 

Although you’ll eventually be able to single out the best days to load cash, if you do the vaulting yourself, try to keep an irregular schedule. You don’t want someone to be able to predict when you and the cash will be vulnerable.

6. Programming and Installation

If you want to know how to start an ATM business, you need to know how an ATM works to some extent. However, there are many resources available to help.

Programming

Some ISOs, sub-ISOs and ATM resellers offer to have the ATM pre-programmed at the factory for a nominal fee. This makes it especially easy to just bolt it down, plug it in and use it when it arrives. 

You can opt to do the programming yourself using videos and instruction manuals and help from your ATM provider. You can also see if your ATM processing company offers call-in assistance where you can work with someone over the phone if you have questions during the process. Or, of course, you can hire a professional technician to handle the process for you.

If you opt for the latter, make sure you are present and take notes or ask if you can record the process. That way you can do it yourself a little easier the next time if you want to. 

Programming the machine involves setting up the home screen and distinguishing the denomination(s) to be dispensed. (If you ever want to change the denomination, you need to let your ATM company know.) 

The machine can be programmed after it arrives at the location. Or, you can pay to have it pre-programmed before the ATM company ships it. Many ATM providers require the ATM programming and master keys to be completed by a professional field technician. Otherwise, you can inquire about call-in or scheduled programming.

Installation

You can also install the ATM machine yourself or hire a professional. First, you need to make sure the space is ADA compliant. This means that people with disabilities should have equal access to the public service of your ATM machine. This is not just your responsibility but also the responsibility of the merchant. 

For example, the reachable buttons on a mounted machine cannot be higher than 48” from the ground so anyone can reach all controls. And to ensure wheelchair access, the minimum clear floor or ground space required is 30 x 48 inches (10 sq. ft.). So it is the responsibility of the merchant to ensure that this space remains clear rather than obscured by inventory or other furniture.

You will also need a power supply. Look for 110/115v 15a outlets that aren’t dedicated to other major appliances. Try to avoid glass doors and windows, too, to minimize break-in and theft temptations.

When installing the machine to the floor, it’s best to bolt it down on a flat, level surface to prevent damage and theft. You will need some equipment such as a center punch, hammer drill, concrete bit, and red head anchors. Wall mount ATM machines should come with all necessary mounting equipment.

Finally, you’ll want to connect your ATM machine to a wireless communication device. Having control of your own wireless communication device ensures that you never have to worry about dealing with the location’s ISP. This gives you more control and reliable service.

7. Setting Up a Business Bank Account

To start an ATM business, like any other business, you will need a business bank account. This can be tricky for an ATM business, unfortunately, because the cash-heavy nature poses certain money laundering risks for financial institutions. However, there are some best practices you can utilize to help find a bank to work with you.

Be a Profitable Customer

First, prove to the bank that you are worth their time. Banks make money off of customers’ account balances. This is the money that banks invest in loans and other opportunities that earn them interest payments; very little of customers’ account balances are actually held at the bank as cash. 

As you know, your ATM business bank account will frequently have a low balance because you will regularly withdraw it to vault your machine. So, to make up for this, offer to move or purchase other products. For example, start a line of credit, move loans, and/or open other accounts. This is the type of customer that banks profit from; this is the kind of customer you want to be.

Be Honest

Second, be open and honest with the bank. Start where you already have strong relationships, whether it’s at a tier 1 financial institution or a local, regional, or community bank. Both have their pros and cons. 

Tier 1 financial institutions are subject to more scrutiny and audits on ATM business accounts, so if you aren’t able to make yourself worth their time, they might turn you down. Smaller banks, on the other hand, might not be able to accommodate your cash or staffing needs. The only way to know whether a bank can or will work with you is if you let them know exactly what your banking needs are up front. 

Be Respectful

Finally, be respectful, polite, patient, and understanding. Banks are not obligated to take you on as a customer. Each account is a strategic business decision for them. If you are denied, the bank has its reasons. It’s not personal. It might just depend on the experiences they’ve had with ATM business bank accounts in the past. So respectfully move on.

Once you do find a bank to open your ATM business bank account, be sure to show your appreciation. ATM business accounts require a lot of work. Treat the bankers kindly, bring gifts, build relationships. Be a customer they want to keep around. 

There will be lots of documentation the bank will request to open your ATM business bank account. Be organized, prompt, and patient. Jump through whatever hoops you need to with a smile on your face. After all, the bank is doing you a favor.

8. Finding and Negotiating a Location

Finding a location to place an ATM machine can be a daunting task for some people learning how to start an ATM business because it requires some degree of negotiation. Unless you know someone with a business or starting a business where they will want an ATM on site, you will have to find potentially lucrative locations and convince the merchant to work with you. 

Some ATM vendors also offer locations via their website inquiry system, like ATMDepot.com. We receive requests for placements and work with our nationwide IAD network to fulfill the requests. Some vendors sell locations, some partner with their IADs, and some vendors offer location finder services. 

The cheapest way to get locations is with good old pounding the pavement. Go out, meet people, talk to them, tell them you’re giving out free ATMs, and strike up a conversation. There are many strategies you can employ to simplify this process.

The Best Locations

It’s a good idea to start where you are already a regular customer. You already know the business well and maybe even some of the employees. You can use this existing relationship to help you negotiate a placement. However, your ATM machine will only be profitable for you and the location if people use it. So more than looking at familiar places, you’ll want to find gaps in the market.

The best ATM locations are places where people need access to cash. Cash-only businesses (especially cannabis dispensaries); nail salons, barbershops, tattoo shops, and similar services where tipping is expected; new businesses not already approached; and locations that have liquor licenses are good places to start. 

Think of places in your city that experience high foot traffic. Then, scope out the area and see if you can find gaps in ATM access. This doesn’t necessarily mean places where there aren’t already ATM machines. Places where ATMs are old, worn, or out-of-order are good opportunities as well. 

If you see an ATM in one of these conditions, inquire with the location about their satisfaction with their ATM. Maybe they own it and are tired of the required upkeep. Or maybe their current IAD is unreliable and they’d be interested in changing partners. You can always add the prospect of a shiny, new ATM on the premises as a selling point. 

Negotiation Tips

Your number one goal when approaching locations for ATM placement is to get in touch with a decision maker, whether that’s a manager or the owner. You want to speak to or meet with someone who has the authority to approve ATM placement at that location. With these tips, you should have no problem starting an ATM business.

Make an Appointment

Whether you cold call or arrive in person for the first contact, make sure you end up with an appointment with or contact information for the person in charge. Then, the negotiating can begin. Although cold calling is a tried and true method of contacting leads with your offer, appearing in person can be more successful for a couple of reasons. 

Do Your Research

If you check out the location in person, you can get a better idea of the layout of the store and what business looks like at that location. This will be valuable information for you to refer to in your negotiations. For example, you can identify prime locations for an ATM machine and point out opportunities for the location to bring in more foot traffic and sales.

Leave Something Behind

Second, you can leave information behind. Whether it’s an ATM business card or an ATM business flier, leaving behind something tangible can help make sure that your offer doesn’t get overlooked. It also gives the decision-maker some information before calling you back; that way neither their time or yours is wasted. 

Offer Value

When you get a meeting, emphasize the benefits the location will experience from having an ATM on the premises. For example, it offers a convenient service for customers, can bring in new customers, and encourages cash transactions which save money on credit card transaction fees at the counter.

Offer value, listen to the objections your prospect might have, address them, and give them time to think. Leave information behind along with your contact information. If nothing else, maybe he or she knows someone interested in your offer.

Borrow Authority

It can be especially difficult to get your first placement without a portfolio under your belt. Just align yourself with your ATM provider using their name and credibility to back you up. Explain that you work with a reputable ATM company and therefore are serious and committed to providing reliable service.

Emphasize that as it is your first placement, you are particularly committed to creating a positive experience. After all, all future placements will rely heavily on your performance at this first location. You can also add that without other machines to manage, you are able to devote more time and attention to this initial placement.

If approaching location owners still makes you nervous, you can use scripts to help you know exactly what to say. As an ATMDepot.com member, you can use ours!

9. Ownership and Responsibilities

Once you secure a location, you are ready to start an ATM business. You now have a place to deliver, program, and install your machine for use. All that’s left is documenting the final details: ownership and responsibilities.

Site Location Agreement (SLA)

If you place your ATM machine in a location owned by someone else, you will need a site location agreement (SLA). This is the legal and binding documentation of the location owner’s approval to place your ATM in his or her store. This is also the contract that documents each party’s responsibilities.

For example, you will want a clause that clearly outlines ADA requirements, one that clarifies who is responsible for vaulting the machine, and one that defines the revenue share. The location owner might want a share of the surcharge revenue as a condition of allowing your ATM placement. This could be a percentage, a set amount, or even only after you make your ROI. 

Ownership and Responsibilities

Other processes and responsibilities include making sure the machine is clean and operable. You don’t make money if your machine isn’t working. And you don’t want to develop a reputation for being unreliable if your machine is frequently out of order. 

So someone needs to handle any error codes. These could result from jams, low cash, low receipt paper, or other maintenance issues. You also want to make sure the ATM and the area around it remain clean so that customers feel comfortable using it. 

You retain ownership of the ATM machine, even if you place it in someone else’s store, and even if you split the revenue. Your name is associated with the ATM machine and your ATM business. Any responsibilities you wish to delegate will be indicated on the associated contracts that detail the agreements.

Whatever terms you and the location owner agree upon regarding ATM operation should be documented in the SLA. You can work with a lawyer to create a personalized contract or agreement, or you can use one of our templates on ATMDepot.com if you are a member.

10. Revenue and Costs

Revenue is the money that your ATM machine brings in the form of transaction fees and advertising. Profit is what is left over after you earn back your initial investment and subtract any costs associated with operating your ATM business.

The point of learning how to start an ATM business is to make money. So how much can you make?

Surcharge Fees

The surcharge fee is the convenience fee ATM users pay for access to their bank accounts and cash. This is your number one source of revenue. You want to make your ROI as quickly as possible so that you can start to profit as soon as possible. So you might want to work backwards.

For instance, if your initial investment is $5,000 (ATM equipment + vault cash + other costs), it would take about 4-5 $3 transactions a day to make that back in a year (assuming the location is open 7 days a week). So determine a goal and work from that. 

Keep in mind that the money you put in the ATM is not really invested. Those funds are either in the ATM, in the bank, or on their way back to the bank. While that money is tied up, you can liquidate it or use it if needed in an emergency. So, only use your hard costs to calculate your ROI for each location.

Monitor the activity the first few months, too, and adjust as necessary. Because 6-7 transactions at $2.50 earns you more than 4-5 transactions at $3. So if you can increase your ATM traffic by setting a lower surcharge fee, that might work out in your favor in the long run. Then, you can always increase the surcharge fee after you make your ROI.

So if you want to make thousands of dollars, you will need more than one machine. One machine is plenty to start with to learn the ins and outs of the business. One machine can generate some extra passive income to help supplement your regular salary or fund a savings account or large purchase. But if you want to rely on ATM business income, plan to scale your business.

Ad Space

If the merchant is in agreement (you will want to cover this in your SLA), you can sell ad space to local businesses to display on your ATM screen. Your ATM can be programmed to display carousel (or rotating) ads on the welcome screen or transaction screen, whether it’s for your own ATM business, the location itself, or other local, small businesses. This can be a great extra source of revenue.

Costs

When you start an ATM business, there are some costs you’ll need to consider. So how much will you be subtracting from your revenue in the form of business costs? First, consider your initial investment, then look at regular costs you will need to factor into your income.

One-Time Costs

ATM equipment will be your biggest cost. ATM machines can range between $1,300 and $8,000 depending on size and age. However, you should realistically expect to pay about $2,200-$3,000 for the machine itself. 

Some costs you can avoid by putting in the work yourself. It just depends on your budget, time, and savvy. For example, ATM programming, installation, and custom screens can be done by you or a professional for a price.

You might want to factor in vault cash or not; that’s up to you. This is still your money at the end of the day, but it’s money that’s tied up in your ATM business operation that you won’t be able to use for anything else. 

Many new IADs start by purchasing an ATM on a credit card that offers 12 – 18 months interest free financing. This is a great way to reduce the one-time out of pocket costs and spread them out over time paying them from the surcharge revenue.

Additional Costs

You can get an ATM machine as it comes, or you can pay for extra features and upgrades like a topper, removable or multiple cassettes, eLock, etc. You also want to purchase a wireless device and service so that you don’t have to rely on the location’s ISP. 

Except for the wireless device, these are “nice-to-haves” that can be purchased later after you start making money. A wireless device is practically a necessity. If you use the merchant’s ISP and have even one communication issue that puts you out of business for a few days, you lose more than what having a wireless device costs.

You might also want to look into an ATM business insurance policy. It isn’t legally required, but it can provide you with some peace of mind knowing that you are covered in the case of an accident. You can purchase insurance at any time, and you can always adjust your policy. As you start making more money, you might spring for more coverage.

General liability is enough to start. General liability insurance is designed to protect your assets. It’s the most common and most important policy business owners purchase. It typically covers bodily injury, property damage, medical payments, and legal defense. You can expect to spend about $400-$700 a year for $1 million in general liability coverage.

General liability insurance, however, won’t cover your machine or the cash inside. So if you want more than general liability coverage, you will need to look for a more specialized insurance policy. Typically a policy to cover ATMs has a minimum of $2,500 per year, so it wouldn’t be worthwhile until you have a few ATMs to cover.

Regular Costs

Insurance premium and wireless service will be regular costs if you opt for them. But there are some costs that you can’t avoid. 

When looking for potential placement locations, consider transportation costs. If a location is farther than you normally travel or is out of the way of where you live or work, then transportation to and from the machine will technically cost your ATM business.

You will also have to regularly purchase receipt paper for your machine and any cleaning supplies necessary for keeping your ATM approachable and workable.

It’s a good idea to set a little money aside each month for maintenance costs. Hopefully you won’t regularly have to pay to handle maintenance or technical issues, but these things are unpredictable. So having some money set aside for this can put your mind at ease and make sure you are able to get back in business as soon as possible!

Finally, you might have placement costs. If your location does not require a share of the surcharge revenue, then it’s all yours! But you might need to factor in revenue share as a regular cost of your business. Or, you might have found a space to lease to place your machine. Factor in this rent cost when determining how much you need to charge to make a decent profit.

11. Other Opportunities in the ATM Business

Just because you want to start an ATM business does not mean you have to be an IAD. There are lots of other ways to make money in the ATM business.

For example, you can be an ATM site locator. This is someone who negotiates with location owners on behalf of ATM owners. So someone who wants to own and operate an ATM machine but doesn’t want to put in the effort of finding a location can hire a site locator.

A site locator typically does not own any machines but matches locations and ATM owners. In exchange, an ATM site locator can request a flat rate or negotiate for a share of the surcharge from the ATM owner. Keep in mind, you could potentially be a site locator as well as an IAD if you wanted to make extra money without managing more machines.

You could be an ATM vendor, or salesperson. There are business owners who want an ATM machine on site and want to operate it themselves rather than working with an IAD. You would explain ATM options and add your commission rate to the cost of the equipment.

You can also be an ATM vaulter. If you have access to cash you can partner with ATM providers to offer cash vaulting services. You travel to each ATM and make sure it’s stocked with cash. You could charge a flat rate or create a fee schedule based on distance and travel time.

12. How to Start an ATM Business Startup Checklist

To summarize, these are the steps involved in how to start an ATM business and the things you need.

1. Find

  • ATM processing company
  • Bank
  • Location
  • Equipment

2. Complete

  • Background Check
  • Documentation and Paperwork
  • SLA and Other Contracts

3. Do

  • Programming
  • Installation
  • Vaulting

4. Start Making Money

5. Scale Your Business

While we won’t say that owning an ATM business is easy, we will say that it is relatively simple. There is a set number of steps involved in getting started, minimal startup costs, and lots of industry professionals with years of experience you can draw upon.

Each ATM business looks different. It’s completely customizable. Do what works for you. Your business will be the most successful if you are happy with it, partner with the right people, and put in the work. After that, let your business work for you.

If you still have questions, contact us at ATMDepot.com today! Want more info or ready to start your ATM Business side hustle? Download our free quick start guide now.

13. Glossary

Americans with Disabilities Act (ADA) – A 1990 civil rights law that gives people with disabilities equal access to public services by mandating certain accommodations.

ATM Owner – The individual, group of individuals, or company that purchases an ATM machine, operates it, and receives the majority of the profits made through the machine.

Cassette – The box in an ATM machine that holds a specific denomination of cash.

Certified Refurbished – Used machines that have been cleaned, fixed, retrofitted with the newest software upgrades, and furnished with replacement decals, making it nicer than just a machine categorized as “used,” before being sold.

Cold Call – An unsolicited call to a lead you’ve never had contact with before in order to convince him or her to buy into a product or service.

E-lock – An electronic lock operated by an electric current.

Independent ATM Deployer (IAD) – An individual, group of individuals, or company that invests money in an ATM to generate income.

ISO – Independent Sales Organization; a third-party company that sells credit card processing services independently from a bank or financial firm to a business that wants to accept credit card payments.

Master Keys – Sets of binary numbers used by the ATM owner to access and program the ATM machine.

Placement – Arrangement where an ATM company or IAD places an ATM in a location and owns and operates all aspects of the ATM machine. The location owner receives a small percentage of the revenue generated from the ATM in return for letting the IAD place the ATM at the location.

Processing – Communication between an ATM machine and a processing network that communicates with the user’s bank in order to approve financial transactions.

Processor – ATM vendor—or company—that sells and provides support for ATM machines.

Profit – The net income collected after investment costs.

Real-Time Online ATM Monitoring – A system that provides updates regarding ATM functions and alerts such as low cash balance.

Return on Investment (ROI) – The ratio between net income and investment. A performance measure used to evaluate the efficiency of an investment.

Revenue – The gross income collected on an investment.

Revenue Share/Revenue Split – Compensation paid to a store owner in exchange for the space for the ATM machine.

Route – The locations where you own and/or operate ATM machines that you routinely and systematically travel to and from.

Site Location Agreement (SLA) – Also known as placement agreement, is the contract between you and the merchant or owner of the location where you will place your ATM machine that outlines the responsibilities of each party.

Site Locator – A person who finds locations interested in an ATM in or at their location.

Surcharge – The fee that you set for each cash withdrawal transaction made on your ATM.

Topper – A feature added to ATM machines to display ads and other graphics.

Vaulter – The person who loads the ATM with cash.

Vaulting – The process of loading the ATM with cash.

Vendor – Company that sells and provides support for ATM machines.

Wireless Communication Device – Also known as a wireless router, it provides 4G data connection from cellular networks, and will use 5G in the future, with major carriers such as AT&T, Sprint, Verizon, and T-Mobile.

Cannabis Dispensary ATM: A Safe and Convenient Way to Buy Cannabis

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A cannabis dispensary ATM is a safe and convenient way for customers to buy cannabis. Cashless ATMs used to be a viable workaround to the banking system. But since some of the largest payment processing networks have been cracking down on cashless ATMs for cannabis payments, cash remains king for the cannabis industry. 

If you are thinking about adding an ATM machine to your cannabis dispensary, look no further for a reliable and reputable ATM provider. Having a dispensary ATM makes it much easier for customers to pay with cash and offers many other benefits. 

If you are an independent ATM deployer (IAD) or ATM vendor, look into cannabis dispensaries for placement opportunities as long as your ATM processor is accepting them. There is a growing market for the dispensary ATM as the cannabis industry continues to battle the traditional banking system. 

The End of the Cashless Dispensary ATM

Cannabis is still illegal at the federal level. Regardless of individual state legislations, dispensaries have, for the most part, been unable to accept debit and credit transactions for cannabis-related goods and services. 

Since banks are federal institutions, they are bound by certain regulations when it comes to providing services to businesses in the cannabis industry. Credit card companies won’t allow these transactions to take place over their networks, either. 

Cashless ATMs used to be a viable solution. Customers could make cannabis payments with debit or credit cards because these transactions were reported as ATM withdrawals processed through a point of sales (POS) system. 

However, Visa and Mastercard raised concerns that this process of “disguising” cannabis transactions as ATM withdrawals violated the credit card companies’ terms and conditions. Other ATM transaction processing companies have since followed suit. Now, cashless ATM transactions are one of the most controversial and dangerous cannabis payment options.

As a dispensary owner, offering cashless ATM payments for cannabis can put you at a high risk of noncompliance. Your business could even be shut down as a result. Therefore, you should consider alternative payment options.

Benefits of Cannabis Dispensary ATM

While cash does come with its own risks, a cannabis dispensary ATM offers many benefits for customers and therefore for the dispensary itself. An on-site ATM increases customer loyalty. It puts customers at ease using an ATM inside your store. And, three quarters of customers are more likely to impulse buy when an ATM is available.

Having an on-site ATM machine offers customers a convenient way to make cannabis purchases and a safe way for the dispensary to accept cannabis payments on top of experiencing increased sales and revenue.

Cannabis dispensaries benefit from on-site ATM machines the same way any other business does. They experience an improved customer experience, increased sales, and an extra revenue stream. 

Improves the Customer Experience

Having an on-site ATM machine, in a cannabis dispensary or otherwise, provides customers with quick, easy access to their accounts. Customers can use a dispensary ATM to withdraw the cash they need to make cannabis purchases. 

Quickly-evolving ATM technology can also add a level of professionalism to your dispensary. With extra security features like biometric authentication and AES encryption and steganography that ensure secure data transfer for ATM transactions, customers can feel safe and secure using your dispensary ATM rather than a competitor’s. 

Some ATM machines can also be configured with bitcoin capabilities. If you want to accept cryptocurrency as a form of payment, this can offer your customers another option that competitors don’t. Drawing in crypto-curious customers could even increase traffic to your dispensary and expand your customer base.

Cameras add another layer of security. Genmega ATMs, for example, include the Gencam which documents the ATM user, practically eliminating any discrepancies or chargebacks. The camera can show the user’s face on the screen so the user can see their own image. The camera takes two pictures of the user during the transaction. The first picture is taken while entering the pin number and the second while the cash is dispensing. Both images are stored on the journal for easy access.

And of course, having an on-site ATM prevents your customers from having to make more than one stop. This is more convenient for them and creates a more positive experience.

Increases Sales

By offering the convenience of ATM services at your dispensary, you will bring in more traffic, turn away less customers, and therefore increase the opportunities to make sales. You might also find that customers end up spending more than they planned once they already have the cash in hand. 

Keeping customers in your store rather than sending them to the nearest bank or convenience store increases the chances that the money they withdraw gets spent at your location. And, you don’t pay any extra fees for cash transactions. So the more cash transactions you accept, the more you save on credit card processing fees. 

Adds Extra Revenue Stream 

If you want to own and operate your own dispensary ATM, you will need to establish yourself as an ATM business owner under an LLC or business entity that isn’t associated with your cannabis dispensary. Sometimes, it is easier to have a friend or relative whose name isn’t associated with the dispensary do this.

If you have an alternate business and bank account set up, you can operate the ATM yourself. This would allow you to collect the whole surcharge fee. This is an additional revenue stream. The fee per customer ATM cash withdrawal can add up fast!

More commonly, cannabis dispensaries will work with third party ATM operators like an IAD. If you don’t know anyone in the ATM business, you can send in an ATM placement services. Just indicate your needs and preferences, and a third party will place an ATM in your dispensary. The ATM operator can handle some or all of the maintenance.

How Does an ATM Placement Program Work?

An ATM placement program pairs your business with a third party ATM operator such as an IAD. When you send in your ATM placement request, a well-established, certified, locally vetted hands-on ATM business operator will be tasked with placing an ATM in your dispensary.

This operator will assist you with any ATM services and responsibilities of ATM ownership you’d like covered. This could include ownership of the ATM, cash vaulting, or servicing. ATM operators typically make sure the ATM is stocked with cash, clean, up-to-date on software, and free of any error codes.

You just need to indicate whether you are interested in full ATM placement or partial. Full placement would include all three aspects of operation provided by an experienced ATM business operator. With partial placement, you would work with an IAD to develop a successful ATM program. In this arrangement, you would split the surcharge revenue.

And, there are no monthly fees, statement fees, or monthly minimums when processing with ATMDepot. This means that you reap all of the benefits of having an on-site dispensary ATM without the compliance, ownership, and operation hassles of an ATM for dispensary sales.

How Does ATM Vaulting Work?

The cash in ATMs must meet congressional Bank Secrecy Act/Anti-Money Laundering rules. Essentially, ATMs must be loaded with clean cash. Vaulting an ATM with recycled cash straight from the cash register is considered money laundering. The vault cash must be deposited into a bank and then withdrawn from the account to load the machine.

Of course, you can outsource the cash vaulting. Funds withdrawn from the ATM are referred to as “vault cash” or “vault funds” and are sent back (settled) to the vaulter’s designated bank account accordingly. Then, these funds are withdrawn to load the ATM again, so on and so forth. 

Banks are becoming increasingly responsible for monitoring and reporting any suspicious financial activity to the Financial Crimes Enforcement Network (FinCEN). The activities of non-bank ATMs in cannabis dispensary locations are particularly scrutinized. FinCEN considers them to be especially susceptible to money laundering and fraud. Failure to remain compliant could get your on-site ATM machine shut down, whether you own it or not, leaving you with dissatisfied customers.

Cash is King in the Cannabis Industry

Not only will an on-site dispensary ATM offer customers a convenient, hassle-free way to make cannabis purchases, but your dispensary can also benefit from increased sales and revenue. With the dangers and risks involved with cashless ATMs, it’s time to start thinking about alternative payment accommodations for your customers, whether it be a traditional ATM or a bitcoin ATM.

As a cannabis dispensary business owner, you can opt for an ATM placement program. This alleviates a majority of the responsibility of maintaining the ATM machine. Instead, an IAD owns and manages the machine for you. Although you might forfeit some or all of the surcharge revenue, you still benefit from the improved customer experience and professionalism an on-site dispensary ATM provides.

IADs, check out your local dispensaries and surrounding businesses to see if there are opportunities for ATM placements. Since cash is still king in the cannabis industry, this is where your market is!

Interested in getting an ATM machine in your business? Get your ATM startup kit today, or send in an ATM placement services. Either way, make sure you offer your customers a safe and convenient way to buy cannabis with a cannabis dispensary ATM.

The Best Banks for ATM Business

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The best banks for ATM business can be hard to find. Not only are a lot of banks hesitant to take on an ATM business bank account, but bank relationships are also very subjective. So you might find that opening an ATM business bank account on the recommendation of others isn’t a foolproof plan.

That includes recommendations from ATM industry experts. ISOs that work with hundreds of IADs and help them set up their ATM businesses can really only collect data from their collective experiences. And many have found that there is no one-size-fits-all answer for finding ATM business friendly banks.

However, while it can be difficult to find banks that allow ATM business accounts, we do know why banks are hesitant. And we therefore know ways you can increase your chances of finding banks that support ATM business in your case. So keep reading to find out what you need to do to open an ATM business bank account.

Why is it Hard to Find ATM Business Friendly Banks?

Many IADs mistakenly believe that banks want them as customers no matter what type of account they need to open. They believe that banks should be begging for and bending over backward to earn and retain their ATM business bank account.

In reality, however, an ATM business bank account requires a lot of work and does not make a lot of money. So, many banks are hesitant to take on these high risk, low reward accounts. Banks with ATM business bank accounts are typically subject to more audits to ensure compliance with anti-money laundering laws because of the cash-heavy nature of ATM businesses.

Then there are the added tasks of counting all of the cash and even keeping enough on hand for your vaulting needs to begin with. And as your business grows, that volume will grow too. 

Banks make money off of their customers’ account balances. That is the money that the bank invests into loans and other products that earn them interest payments. Little of customers’ deposits are actually held as cash at the bank. And ATM business bank accounts typically maintain low account balances.

So not only do banks see an ATM business bank account as more trouble than it’s worth to open, but banks can also close accounts that cost more to maintain than they make. It can be difficult to convince a bank to work with you and your business, but it also takes some effort on your part to prove that your ATM business bank account is worth keeping open.

The Best Banks for ATM Business

Banks undergo audits to ensure they comply with anti-money laundering laws. Because of their size, larger, tier 1 banks are under more scrutiny than local regional banks, community banks, and credit unions. However, while this can make tier 1 banks less likely to accept ATM business bank accounts, it doesn’t mean it’s unheard of.

Smaller banks, on the other hand, are less likely to be able to support a cash volume over $5,000. That’s a lot of 20s, and some might end up being bad bills. You will need to inquire with the bank when you go to open an account to see whether they have enough cash for your needs and if they don’t, whether they are open to getting more to be able to service your account. 

Speak to the person who orders cash from the armored service for the branch as they usually deliver weekly. They can ask when they can place a cash order to be included with the bank’s cash order so they can be sure they have enough 20s for you.

Tier 1 financial institutions with the worst reputations for denying ATM business bank accounts and closing others are Wells Fargo, Bank of America, and JP Morgan Chase. But there are still plenty of IADs who have ATM business bank accounts at these institutions.

In our experience, the best banks for ATM business accounts are the ones where you already have other accounts and good relationships. 

How to Improve Your Chances of Opening an ATM Business Bank Account

Offer to Purchase Multiple Products

An ATM business bank account typically maintains a low balance and does not make the bank much money. But other accounts do: savings accounts, CDs, lines of credit, loans…. 

So if you are looking for banks that accept ATM business accounts, your chances of finding one are better if you can offer to purchase these other products or to move your existing accounts to the new bank. These multiple accounts make you a money-making customer. You will then be especially enticing to smaller banks who are more eager for your business. 

Start with Existing Relationships

We also recommend starting with a bank you already have a relationship with. Set up a meeting with your current bank manager to discuss your ATM business banking needs. If they turn you down, look elsewhere and consider moving your accounts to the new bank to encourage them to take you on.

Bank with More than One Institution

It can be a good idea to have accounts at more than one institution. Accounts that cost more money to maintain than they make can be closed. Normally, a bank gives at least 10 days notice before closing an account unless they suspect unethical or illegal activity. 

If this happens to you, your ATM business will be put on pause unexpectedly until you can get set up at another bank. This is wasted time that you’re not able to generate income. So it can be a good idea to have a backup account at another institution.

Sometimes, the bank will help you by referring you to another institution. This is another reason why it’s important to maintain a friendly relationship with your banker. 

Be Open and Honest

Regardless of where you start, make sure you are open and honest about your ATM business banking needs. This facilitates a healthy relationship between you and the bank and is a better way to make sure your account doesn’t get closed out of the blue. 

It also helps to make sure that the bank can even handle the volume of cash you will need. You will also want to make sure they are open to working with you as your business and cash volume increase over time. 

Tell them how much cash you will need, how frequently, what denominations, and how much will be in your account regularly. This will give them a good idea of what to expect so that they are prepared to handle your account if they agree to open it. The bank can then advise you to order the cash you need to be added to their armored delivery.

Being up-front also lets you know whether or not the bank has experience with ATM bank accounts. Banks that haven’t had many ATM bank accounts might be eager for the business and then find out later that the account is too much for them to manage. 

It’s best to find a bank that knows ATM businesses and their needs. Banks that offer ATM business banking will usually have a questionnaire and a procedure. This helps them with their yearly audits where they will need to know where the IAD ATMs are, the names and addresses of the locations, and the average monthly usage in dollars withdrawn.

Be Respectful

As you have these conversations with these financial institutions, be polite and understanding. Remember, your ATM business bank account is going to require a lot of work on the part of the bank employees—and they don’t have to accept you as a customer. 

If the bank expresses hesitation or declines your account, understand that ATM business bank accounts are risky for them to take on. You won’t accomplish anything by being rude or angry. It will just confirm their decision to not want to do business with you. 

You can always ask for a referral to another bank. Many bankers have worked at other financial institutions and know other bankers. Being nice and even giving some token of appreciation can go a long way. 

Be Prepared

There is some documentation that banks can request in order to open an account for your ATM business. This can include a copy of your IAD processing agreement, copies of your SLA agreements with your merchants, and your business paperwork showing your a licensed or registered business with the city or county. Just ask your ATM vendor ahead of time to help you access these documents.

The bank might even ask for transaction statements that show a history for the last 12 months for all of your ATMs if it applies. Jump through as many hoops as the bank asks you to. Get all documentation to them promptly. Show them that you are serious and organized.

Show Gratitude

If you are successful, be appreciative. Be friendly and patient with the bankers. Surprise them with cards or gifts or snacks. If you become a friendly face that the bank employees are happy to have around, they will be sad to lose you as a customer. This can help protect your account from spontaneous closure.

Third-Party Alternative Vaulters

If you are still having trouble finding banks that accept ATM business or your bank is unable to handle the volume of your cash needs, you should ask your ATM vendor if they offer armored carrier service or have 3rd party vaulting options. Ask if they have delivery and pickup services to avoid the cash volume issue altogether.

You will have to pay for this service, of course. But working with third party alternative vaulters is safe, hassle-free, and they take care of the cash loading for you. 

ATMDepot has a trusted network of third-party vaulters that currently work with us and our IADs. We work with third party vaulters in the following cities and have armored service in many others on an as-needed basis:

  • Los Angeles, CA
  • San Diego, CA
  • Fort Myers, FL
  • Chicago, IL
  • Las Vegas, NV
  • Newark, NJ
  • New York, NY
  • Columbus, OH
  • Lancaster, PA
  • Nashville, TN
  • El Paso, TX
  • Houston, TX

This is a good option for those who want to operate an ATM business but don’t have a bank yet or the funds to load their own ATMs in these cities.

ATM Friendly Banks by State

While we can’t guarantee any bank will accept your ATM business, here is a list of some ATM business friendly banks we’ve garnered from various feedback and sources. 

ATMDepot.com and its parent company Intelligent e-Commerce, Inc. make no guarantees that financial institutions listed below will offer ATM business bank accounts. Each financial institution and branch has its own acceptance policy. 

This is not a comprehensive list and should not be the definitive guide. There are many more banks than what we show here. Just because we list one or two banks in a state does not mean they are the only ones that accept ATM businesses. It just means we know an IAD who may use that particular bank. 

It’s very difficult to say a particular bank does not work with IADs when in some cases they do. We work with a tier 1 bank, US Bank, but have been with them for over a decade and have more than just an ATM account. 

Bank managers can often decide on a case-by-case basis if they want to work with a particular IAD. When you open your account, be sure to maintain the relationship and use other banking services like credit cards, loans, and more. That can help you better than just going by this list.

Choose a state to view the banks list

How to Find the Best Banks for ATM Business

Bank relationships are very subjective. You might find that one person’s experience with the best banks for ATM business differs from the next. You might encounter people with the same tier 1 banks that support ATM business that you are having trouble with. Each state is different, too. 

If you want to know what banks accept ATM business accounts and what banks don’t, your best bet is to get out there and find out. Remember, the best banks for ATM business accounts are those where you have good relationships. Not only will banks appreciate you having multiple accounts and products, but they will also be less likely to close your ATM business bank account, leaving you out of business.

Start with your current bank. Inquire with small local, regional credit unions and community banks. Research known ATM business friendly banks in your state. And if cash volume is an issue, look into a third party vaulting service.

If you still have questions or need any help, contact us today!

Easter Money: 9 Ways to Use Cash During Easter

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Easter money is an American necessity with the average household projected to spend $200 for a record collective high of $24 billion. Easter is coming up, and with it candy, food, gifts, clothing, and decorations. 

There are a variety of payment methods that can be used to purchase items in these top 5 categories of planned purchases. But cash definitely has its place at Easter time. 

Many kids and young people will be expecting goodies, gifts, and treats. Why? In this article, we will explore the history of this holiday, its traditions, and how you can benefit from using cash for Easter money this year.

The Origins of Easter Money

Easter is a Christian holiday that celebrates Jesus’s resurrection from the dead. However, many Easter traditions are not found in the Bible and likely have pagan origins. While historians only speculate about what Easter eggs, Easter baskets, and the Easter bunny represent, the theme of new life remains constant.

Easter Eggs, Easter Baskets, and the Easter Bunny

Easter, a Spring Equinox holiday, is a time to celebrate new life. Eostre was the Germanic goddess of fertility who blessed harvests. Carrying baskets of offerings to her ensured that harvests were successful. This is one potential explanation for the iconic Easter basket. 

Eostre’s animal symbol is a rabbit. This “Easter bunny” would be responsible for secretly bringing gifts and treats to children on the evening before Easter.

According to some sources, German immigrants to America brought with them the lore of “Osterhase” or “Oschter Haws,” an egg-laying hare. Children would construct nests (later to be replaced by decorated baskets) for the hare to lay its eggs. Rabbits are notoriously known to be prolific breeders—a sign of new life and fertility—which is another possible explanation for the rabbit as a symbol of Easter. 

Eggs can represent fertility, new life, and even Jesus’s emergence from the tomb. But some sources say that eggs were a forbidden food during the Lenten season. Decorating them was a way to mark the end of the fasting period. Then, they would be eaten in celebration.

Easter Coins and Easter Money

So, that explains the Easter basket, the Easter bunny, and Easter eggs. But what about Easter money?

You might remember opening eggs on Easter and finding coins inside, whether gold foil-wrapped chocolate coins or quarters and nickels. This tradition likely has its origin in 13th century England when royalty would give food, clothes, and coins to the poor on the Thursday before Easter Sunday. They would also wash the feet of the poor.

Feet washing, clothing, and food were replaced in the 18th century by a set allowance. Still known as Royal Maundy today, the tradition has evolved to include coins minted specifically for the occasion, known as Maundy Money. Recipients include elderly men and women chosen for the Christian service they have given to their Church and community.

Now, in the U.S., we fill our kids’ Easter eggs and baskets with chocolate coins, real coins, and even cash….  

Easter Money: 9 Ways to Use Cash During Easter

In short, Easter is a time for Christians to celebrate the resurrection of Christ and a time for everyone to get together for a special meal and other family traditions. Most families are projected to spend around $200 this year on Easter goodies. But there are some Easter traditions that just work better with cash.

1. Easter Eggs

Putting coins and small amounts of cash in Easter eggs is a nice alternative to sweets and candies. According to 90% of consumers, candy is the top planned Easter purchase this coming year. Why not replace some of that with physical money? Children are excited to comb through and play with shiny coins found in their eggs after their Easter egg hunts. It is also a great way to introduce currency to children at a young age.

2. Piggy Bank

Coins and cash for kids make fun additions to piggy banks. This can help teach kids about saving money. Then, plan with them what the money will be used for when it’s full!

3. Pez Dispensers

For older kids, cash inside of a pez dispenser could be a fun way to gift to the young ones in your life. Just fold it neatly, slide the dispenser up, and put the cash inside. What a nice surprise when they go to insert their candy!

4. Easter Baskets

You can also put cash gifts inside of children’s Easter baskets. There are many creative ways to even decorate baskets with cash and coins! As kids get older, Easter money could serve as a yearly allowance, a tradition for them to look forward to for years to come. College students can benefit from baskets with household supplies, food, treats, and even cash to help them with their expenses.

5. Easter Money-Holder or Card

Just as you might do for a birthday, you can always just give cash in a card rather than in eggs or baskets. This could be a nice addition to an Easter egg hunt for younger children or as an alternative for older kids. It’s also a good way to make sure everyone gets a fair amount instead of their Easter “payout” depending on the number of eggs they find.

6. Easter Bunny Money

Believe it or not, there is actual, official US currency with the Easter bunny on it. You can order $1 or $2 bills that are official, bankable, and spendable. Each USD bank note is a genuine authentic United States currency legal tender featuring a bunny portrait seal placed over the front of the bill covering the portrait of the president and creating an Easter Bunny Dollar Bill. 

You can also print your own, non-legal tender Easter bunny bills. This could be a good alternative as a toy for younger kids or to even help teach them about money and budgeting. Either way, Easter bunny money makes cute Easter egg, basket, or card fillers. 

7. Easter Money Origami

If you’d rather not spend extra money on Easter bunny money, you can make your own creative Easter bunnies by folding average bills into origami. You can make a full bunny or just a face and ears to add googly eyes to. Then put them inside eggs or toss them individually into a basket!

8. Easter Money Bouquet

If you are feeling really creative, you can make an Easter money bouquet for friends or loved ones. You can purchase them already made, or you can make your own! These can also make good donations for causes you’d like to support around the Easter holiday.

9. Church Collection

Last but not least, you can use cash at Easter time to offer a financial contribution to your local ministry. Easter is one of the most highly attended church days (along with Christmas Eve and Mother’s Day). 

According to Thom S. Rainer, this spike is likely due to high numbers of active and inactive patrons appearing at the same time on the same day. Those who do not attend church regularly will typically at least try to attend once a year at Easter. This is a good opportunity for local churches and other ministries to raise money through a collection, bake sale, or other donation-driven cause.

Allowing children to contribute cash to church collections and other donation areas helps teach them not only about the value of a dollar but also about charity, giving back, and sharing. 

Easter Money and Cash are King

We hope you noticed that each Easter money example above would not be the same if replaced by plastic. Cash is still very much a part of our history, our traditions, and our children’s lives. It is great for gifts, charity, and even teaching purposes. 

This Easter, try to get creative with cash! Can you think of other ideas not listed here? Since cash is so versatile, we’d be surprised if you couldn’t think of more ways to use cash for Easter money this year. Interested in making cash work for you? If you’d like to make passive income from owning your own ATM machine, check us out today!

5 Opportunities for a Portable ATM

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A portable ATM is a good way to generate passive income, especially if you live in or near a major city. This is because a portable ATM machine is quite versatile. If there’s a power source, you can operate a portable ATM at any indoor or outdoor event! 

Benefits of a Portable ATM

Benefits of a Portable ATM for an ATM Owner

If you are thinking about getting into the ATM business or have already started, it’s probably because you desire the flexibility. ATMs allow you to make passive income. That means that your machine makes money for you while you take care of other business or enjoy your freedom! And a portable ATM is even more flexible than a stationary one.

This flexibility means that you have more options and more control with a portable ATM. You can operate it at multiple events in a year, in a month, or even in a week. And new events arise all of the time! This ability to travel increases your exposure and reaches more and more potential customers.  Stationary ATMs, on the other hand, are only trafficked by the same locals, and only on an as-needed basis.

Another benefit of a portable ATM is that you can find opportunities that are particularly traffic heavy and cash-based. This increases your transaction potential because you are offering a necessary service at a temporary location. The alternative is placing your machine and hoping customers use it.

Competition can also be minimized by operating ATMs at events. Attendees are not likely to leave the event to hit their bank or a convenience store ATM. 

Benefits of an ATM for an Event Host

While a portable ATM machine can bring ATM owners passive income, it can also result in more success for the event hosts. There are event attendees who want to minimize the amount of cash they carry on themselves, especially at events with large crowds. This is typically a safety precaution. 

Instead, they might plan to visit an ATM for incremental cash as the need arises. Without this convenience, attendees are likely to spend less, either because they don’t have the cash necessary for purchases or because they have to go off-site to get cash. Leaving the event might produce opportunities for attendees to spend their money elsewhere along the way, which is business that the event loses out on.

Event hosts also want their vendors to do well. This keeps them coming back and ensuring that attendees have an enjoyable amount of options for food, beverage, goods, and entertainment.

5 Opportunities for a Portable ATM

Any multi-day event is a great opportunity for a portable ATM. Multi-day events bring in large crowds of people who need cash for food, drinks, and other vendors. The following 5 opportunities are particularly good ideas especially as the seasons change and outdoor activities return!

Farmers Market

Farmers markets are great locations for portable ATM machines. This is because most vendors accept cash only. There are some that now use Square or money transfer apps like CashApp to accept payments, but small business owners benefit more from cash payments.

Each digital card transaction costs small businesses 3% of the transaction. So even though you might pay full sticker price, and you might even tip, for every $1,000 in sales paid by card, that vendor loses $30 of their revenue to financial institutions!

Pop-Up Markets

Pop-up shops are forms of “flash retailing”. And they’re a relatively new trend. And you know that “trend” is synonymous with “popular”. There is some underlying novelty to a shop or product that is available to you only for a limited time! 

Pop-up markets are popular because they generate interest, create a sense of urgency, and get people to come pay various businesses a visit for a fun, limited time event. Visitors are compelled to make some sort of purchase even whether they visit intentionally or come across it by accident because of this “limited time” element. Ever heard of FOMO? The fear of missing out…?

Pop-up shops are particularly refreshing lately because of the overwhelming amount of online marketing consumers are constantly faced with. Pop-up markets put faces to small businesses and add a personal connection that is hard to duplicate online. Therefore, if you want to place your portable ATM where consumers are, pop-up markets are the place to be!

Fairs, Carnivals, and Festivals

Fairs, carnivals, and festivals are obviously great locations for portable ATM machines because of the size of the crowds they draw. However, if you want to break into an event that has a long history in your town or town adjacent, you will probably find that they already have an ATM hook-up. 

But don’t worry. You can always try to contact an event planner or manager to see if he or she is happy with the current provider. If not, you might be able to convince them to partner with you instead if you can solve a certain pain point they are experiencing. This applies as well if they operate their own ATMs. Maybe they are tired of the extra work and would be relieved to have someone in the industry take over the task!

Fairs, carnivals, and festivals are also great opportunities because these typically only operate for about a week to a month before they move on. That allows you to explore and participate in other events throughout the season or year so that you aren’t reliant upon one particular event or audience for your success. 

Furthermore, these types of events are less likely to experience “slow” days. Farmers markets and pop-up markets, on the other hand, might lose business on days when the weather is less than ideal.

Concerts

Concerts are also great opportunities for portable ATMs, especially concerts that are held outdoors. These types of concerts can vary in location depending on the occasion. 

For example, a bar or restaurant might host a concert or live music to celebrate an anniversary. Or a neighborhood might organize a summer event or series of events for their community. 

These are the best types of concert opportunities because they typically aren’t planned so far in advance that ATM services are pre-arranged. They also might not be traditional, meaning the planning committee might not already have an ATM operator who has approached them in anticipation of an annual event. However, if you are able to get your foot in the door, you might be able to become a trusted part of recurring events and secure your business for years to come!

Parades and Holidays

Parades, on the other hand, might be more difficult to break into because they typically are quite traditional. So arrangements for ATM machines might already be made. However, any upcoming holiday is a great opportunity to look into events where visitors will have a need for cash. Just try to plan ahead by making your inquiries off-season to beat any potential competition.

How to Place a Portable ATM

Most portable ATMs can transmit transaction information wirelessly, so you don’t need a phone line to operate one. They are usually self-contained units, so you don’t necessarily need to house one in a building or enclosure, though canopies can help encourage usage, especially on wet days. 

When placing your machine(s) at an event, there are a few things to keep in mind to ensure that they see maximum traffic. First, you’ll want your machine to be visible and obvious. Near the entrance(s) is a prime spot because everyone in attendance will pass by. Other good spots include food and beverage vendors, shops, and anywhere tipping is expected.

However, for security purposes, you also want to make sure that your machine is safe from damage, vandalism, and theft. So it should be well lit at all times and within view of security cameras or event staff. You might also consider bolting it down if the location accommodates it. These precautions also make users feel more comfortable using your machine knowing that they are visible to witnesses.

Conclusion

Whether you are already a seasoned ATM owner looking for more opportunities or if you are just starting out, a portable ATM machine can be a great source of extra income. If you live in or near a large city, obviously, your opportunities will increase, but a portable ATM can do well in small towns too, especially if you already have good connections.

If you want to know how to get started in the ATM business, ATM Depot can help! We have guides and resources available for both ATM entrepreneurs and for pre-existing business owners, including event hosts and planners! Have questions? Feel free to contact us today!