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!

7 Reasons Why Cash is Better Than Card

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Do you know why cash is better than card? If you are in the ATM business, then you probably have your reasons, the number one reason being revenue…. But with the advancements in electronic payment technology, money transfer apps, and cryptocurrency, some might start to wonder whether cash will become obsolete.

We’re here to tell you that cash is here to stay. Not only are there a number of situations and scenarios where cash is the only possible form of payment, there are also clear benefits of using cash instead of a debit or credit card.

Trust us. Cash is king. Here are 7 reasons why cash is better than card.

1. Minimize Debt

As you probably already know, credit is a quick way to accumulate debt. It’s the very nature of credit: buy now, pay later. Charging more than what you have or what you make results in debt. And it’s a very easy habit to develop. When you pay with cash, however, you own rather than owe. 

Paying with cash has also been proven to help with budgeting. Budgeting, in turn, prevents debt. Budgeting ensures that you only spend what is available. Therefore, budgeting is made easier with cash payments. You see and feel the money leave your pocket. When it’s gone, it’s gone. 

A budget is much harder to maintain when the debit or charge is so far removed. Ever heard the phrase, “Out of sight, out of mind”? Unfortunately, for many people that’s what happens when they pay with their cards. And this is what makes budgeting so much more difficult.

2. Avoid Interest

Then, as though charging more than what you have or can afford wasn’t enough to burst your budget, you accrue interest on your card payments. In this way, you end up paying more for your purchases when you pay with a card than if you had paid with cash. 

Of course, you don’t accrue interest if you pay the balance each month. But many people occasionally miss payments. Not only do you end up paying more in interest and late fees, but your credit score could be at risk, too. With more cash payments, these problems become less of a concern.

3. Avoid Overdraft Fees

While it might seem clear or even obvious why cash is better than card when it comes to credit, it does have its place above debit as well. First of all, the same “Out of sight, out of mind” maxim applies. It is much harder to stick to a budget when you don’t actually see or feel the funds leave your wallet. 

Second, your debit payments don’t accrue interest, but have you ever miscalculated your balance and been charged an overdraft fee? There’s $20 you’ll never see again…. Alternatively, depending on your bank, you can only get cash if your available balance will support it. 

Once you have the cash, you can spend it until it’s gone without suffering overdraft penalties! You always know how much you have at any given time without the confusion of “pending” transactions, “available” balance, or delayed processing.

Unless you want to keep a register, like we did when checks were more commonplace (Does anyone miss checkbooks?), it might be best to use cash as much as possible rather than rely on debit transactions. Especially if you are trying to maintain a strict budget and decrease your debt.

4. Avoid Transaction Fees

Did you know that it costs money to process card transactions? Yes, there are network fees charged by your card company to process, or allow, your transactions. 

Many businesses adjust the cost of their goods and services to account for the amount these fees will cost them to process card payments. But there are some businesses (typically small businesses, pop-up shops, freelancers, etc.) that pass this fee on to the consumer. And some restaurants pass this cost onto their servers and deduct card transaction fees from their tips!

Maybe a 3% payment transaction fee doesn’t discourage you from the convenience of making an electronic payment rather than a cash payment. But think of it this way:

You use a card to pay for a $50 restaurant tab. That $50 is now worth only $48.50 when you subtract the transaction fee. Whereas if you pay for your meal with a $50 bill, that $50 bill retains its value whether it’s used for groceries, a haircut, or a movie by the next person.

So after, say, thirty card transactions, that $50 will end up being only $5. The other $45 becomes property of the bank after all of the digital transaction fees are paid….  Is that where you want your money to go? 

5. Spend Less

Psychologically, we spend less when we use cash instead of card. It doesn’t “hurt” as much when we spend without our means if we don’t immediately experience the effects. In other words, the option and/or ability to postpone the consequences of our spending money we don’t currently have results in overspending. 

For this same reason, you are more likely to encounter deals when you are able to pay in cash. Individuals, small businesses, and, well, basically anyone, prefer cash payments to electronic payments. 

First of all, they don’t have to worry about missed payments. Sometimes it’s more important to a seller that they get full payment immediately than have to deal with defaulted or delayed payments. 

Secondly, when someone receives a cash payment, again, they benefit from the entire value of the banknote. The alternative is either having to deduct a percent of a card payment or risk missed payments. Therefore, since most people would rather have the security of full payment up front, they are more likely to offer you a sale for less than the ticket price if you have cash.

Often the “ticket price” accounts for the cost of waiting for a fulfilled payment and any associated fees. So when you pay with cash, you not only avoid paying interest, but you might also benefit from paying less up front due to the convenience afforded to the seller. 

6. Decrease Risk of Identity Theft

Have you ever received an email saying your information was compromised in a data breach? When you swipe your card, credit or debit, you put yourself at risk of being robbed. 

When you swipe your card or use it online, your card data can become compromised if there is a lapse in security. This risk applies to money transfer apps tied to your accounts as well. 

On the other hand, there is no paper trail with cash. So when you make cash payments, your personal information remains secure no matter what.

7. Pay for Almost Anything

Finally, cash is universal. You tip your server, bartender, barber, or manicurist in cash. You give a dollar or two to the beggar on the corner. Your kids get their allowance in cash. You pay your young neighbor in cash to babysit. The local farmer’s market or pop-up exchanges goods for cash. 

Most cannabis dispensaries are cash only still, too. And with the recent change in money transfer app taxable income reporting, you might start to find even more freelancers, independent contractors, and other self-employed individuals encouraging cash payments. 

Cash is almost always accepted. You will find more “Cash Only” signs than you will “Card Only” signs. Since cash retains its value while the bank shares in electronic transactions, some businesses just don’t want to pay those transaction fees. And what happens when “the system is down”? You pay with good old fashioned cash!

Most importantly, everyone has access to cash. Minors, low-income, and other unbanked individuals would find it quite difficult to fit into a cashless society. Cash is non-discriminatory and is absolutely necessary in today’s world.

Why Cash is Better Than Card

Now, we know that alternative payment methods definitely have their place. But we also know that because of the benefits cash offers, it won’t become obsolete anytime soon. 

Cash is traditional and familiar. It’s reliable. It’s universal. And it’s better than plastic.

Now that you know why cash is better than card, are you convinced that an ATM business is a solid investment? Contact us to get started today!