Scripts That Work: How to Close Deals with Location Owners When Starting an ATM Machine Business

by

We’ve heard you! Several of our new ATM business entrepreneurs say that one of the most difficult parts of starting an ATM machine business is finding locations and closing deals with location owners (proprietors). If you want to avoid spending hundreds of dollars a month renting space for your ATM, you’ll want to find business owners who can benefit from having an ATM on-site. This creates a win-win-win scenario for you, the location owner, and the customers!

Once you locate a gap in the market—areas that might be in need of ATM service—you will need to find and then approach the owner of that location. This is the person you’ll need to strike a deal with. Here’s how to find and close deals with location owners (merchant proprietors) when starting an ATM business.

Finding Location Owners

There are many factors to consider when it comes to finding successful locations for ATM service. So after you have a list of leads—say, businesses with cash needs that are not too close to competing ATMs and are close enough to your home or work—you’ll need to get in touch with the owner or another “decision-maker.”

Whether you call ahead or stop by in person, speaking with an employee or even, sometimes, a manager isn’t enough. They can, however, help get you in contact with the owner/proprietor or decision-maker. This is the only person who really has the final say regarding adding an ATM to the location. So don’t waste your time pitching to anyone else, and don’t stop until you’ve spoken to the person in charge.

But how do you reach him or her, and what do you say when you do? ATMDepot sees so much value in cold calling as a strategy to close ATM placement deals with business owners that we’ve created a five-step process. Use these steps to guide you from researching your prospects to making the calls.

Our “ATM Cold Calling PDF Guide: How to Close Deals with Cold Calls in 5 Steps” in the Member’s Area of ATMDepot.com explains each step in detail, providing tips and advice along the way. It also includes complete scripts you can swipe so that you know exactly what to say on your calls and how to answer typical responses. 

These scripts also strategically help you transition to further correspondence and eventually seal the deal. We want you to be successful in starting an ATM business. To give you an idea, here are some lines to get you started:

Scripts To Start

Introductory Pitch (Cold Approach)

This script is useful when you’re approaching a business owner for the first time when starting an ATM machine business.

Script:

“Hi [Owner’s Name], my name is [Your Name], and I run an ATM placement business. I noticed that your business has a lot of foot traffic. I wanted to offer you a way to increase revenue and customer satisfaction with no upfront costs or responsibilities. Would you be open to discussing how placing an ATM in your location could benefit your business?”

Follow-Up (If Interested):

“Great! Our ATMs can help increase foot traffic by giving customers easy access to cash, which typically encourages them to spend more money in your store. We handle everything—installation, maintenance, cash loading, and security. Plus, you can earn a portion of the fee from every transaction, so it’s an additional income stream for your business without any hassle.”

Benefits-Focused Script

Here, you emphasize how the ATM will directly benefit the business owner.

Script:

“Did you know that businesses with ATMs often see a 10–20% increase in sales? Customers with easy access to cash are more likely to spend it on high-margin items like snacks, drinks, and impulse buys. Plus, with an ATM, you’re offering an additional service that can set your business apart from competitors. We’ll take care of everything—installation, maintenance, and cash management—so you can focus on running your business. You will also experience a 10-20% decrease in credit card transaction fees since customers that prefer to pay in cash don’t like going into debt by paying with credit cards.”

Overcoming Objections

If the business owner hesitates or brings up common objections, here’s how you can respond.

Objection 1: “I don’t think I have the space for an ATM.”

“I completely understand. ATMs don’t take up much room, and we have different models that are compact and can fit into small spaces like a corner or next to the entrance. We even have wall-mounted units that don’t take up any floor space. I’d be happy to visit your store to assess the best placement so it doesn’t interfere with your current layout.”

Objection 2: “I’m concerned about security.”

“Security is our top priority. Our ATMs are equipped with advanced security features like tamper-proof locks, cameras, and alarms. Additionally, we monitor the machine remotely 24/7 and handle all cash replenishment and servicing, so there’s minimal risk to you.”

Objection 3: “What’s in it for me?”

“Great question. First, you’ll notice a reduction in credit card fees. If you’re getting $40 or $50 thousand in monthly credit card payments and paying 2 or 3 percent, you can potentially save a few hundred dollars a month. And, depending on the ATM usage, you can receive a portion of the surcharge fee from every transaction. An ATM can also increase foot traffic as customers become used to getting cash in a nearby secure environment versus an outdoor ATM.  Customers with cash typically spend more, too, which means more revenue for your business. It’s a win-win situation.”

Closing Script (When the Owner Is Interested but Hesitant)

If they seem interested but aren’t ready to commit, you can use this script to close the deal.

Script:

“I understand you may want to take your time, but I’d like to reassure you that we make this process as easy and risk-free as possible. We don’t charge any installation fees, and you’ll save money on credit card fees and experience more cash sales as soon as the ATM is up and running. There’s no long-term commitment—if you ever feel it’s not working out, we can always remove the machine. Why not give it a try for a few months and see how it benefits your business?”

Revenue-Focused Script

If the owner is focused on financials, highlight how the ATM can create a passive revenue stream.

Script:

“With each ATM transaction, you can earn a portion of the surcharge. Even with moderate foot traffic, that income can really add up over time. For example, if just 5 people use the ATM a day, that’s 150 potential cash paying customers a month, and I’ll share a portion of the fee they pay with you. Over a year, that can add up to some nice additional income without any work on your part. Studies show that customers who withdraw cash often spend 25% of it on-site, so that’s more sales and less credit card transaction fees you’re paying.”

Trial Period Offer

If the business owner is reluctant to make a long-term commitment, offer a trial period.

Script:

“I totally understand if you’re hesitant to commit long-term without knowing the impact. How about we do a trial run for a few months? We’ll handle the setup, maintenance, and servicing, and you can see firsthand how having an ATM impacts your business. If you feel it’s not the right fit, we can always part ways with no strings attached.”

Offering to Solve Pain Points

Some businesses may have had bad experiences with ATMs or may feel that it’s unnecessary or may have had one in the past.

Script:

“I understand you may have concerns about ATMs (or you had a bad experience with your vendor), but I assure you, I pride myself on being the local ATM operator in our area and want to earn your business as well as others’. We provide top-of-the-line machines with low maintenance and handle all the management aspects like cash replenishment and security. If you’ve had issues with unreliable ATMs in the past, I guarantee I’m local, available, and won’t let you down.”

Urgency Close

If they’re interested but need a push to act quickly, create a sense of urgency.

Script:

“We currently have a few machines available that can be installed quickly. If you’re interested, I’d recommend acting soon since spots in high-traffic areas are limited. I’d hate for you to miss out on the opportunity to start earning extra revenue and benefiting from increased customer spending.”

Now, it’s important to tailor these scripts to your specific situation. For example, don’t offer to remove the machine at any time for any reason and then include a breach of contract clause in your site location agreement. Keep in mind that if you have to suddenly move your machine, you will be out of business until you find and negotiate a new location. Don’t offer it in your script if you aren’t equipped or prepared to do that! On the other hand, if you are open to it, it could make a great negotiation point.

Furthermore, you need to know precisely what ATM features and security measures you have in place. Then, refine your script to give an accurate picture of how you are prepared to handle security.

And you don’t even have to offer a share of the surcharge upfront if you don’t want to. Sometimes, the benefits of increased foot traffic, more sales, and reduced credit card fees are enough incentives.

Essentially, when starting your ATM business, you can effectively build trust and close deals with location owners by using a friendly, consultative, problem-solving approach. 

Other Tips and Strategies for Starting an ATM Machine Business

A good script is great for combating any nervousness you might feel about approaching location owners. But you want to make sure you are prepared for however that conversation goes. There are a few things you can do. 

First, it’s important to practice active listening when negotiating a deal. Location owners won’t want to work with you if you seem pushy or give them the impression that you’re not listening to their rejection or concerns. Don’t stick so much to a script that you fail to respond meaningfully to the lead.

Second, it’s a good idea to have business cards or fliers ready to leave behind with owners who are hesitant or want more time to think. This can help remind them of your offer so that when they are ready, they know how to contact you. A business flier or pamphlet can also contain an overview of your offer, the process, and the benefits to supplement what you deliver in your script. This way, the owner has both heard and read what you have to say.

Finally, ask for referrals! This is a simple way to turn a “no” into a “yes.” There’s another benefit to leaving something like a business card or flier behind: tell the owner to refer you to anyone who might be looking for ATM service. This can alleviate some of the pressure, too, and give the owner another way to help you out if they aren’t personally interested at the time.

Use Scripts When Starting an ATM Machine Business

If you are starting an ATM machine business and are dreading the negotiation of a location, take our advice:

Use scripts that are proven to work. You can find ATMDepot’s “ATM Cold Calling PDF Guide: How to Close Deals with Cold Calls in 5 Steps” in the Member’s Area of ATMDepot.com. This guide lets you know what to do and how to do it. Don’t let nervousness or not knowing what to say stop you from starting an ATM machine business right now.

5 Benefits of a Custom Web Page for Your Local ATM Business

by

Have you thought about creating a custom web page for your local ATM business? If not, you are missing out on a golden opportunity to revolutionize your business. Today, having a solid online presence is non-negotiable for any thriving business. Whether you place ATM machines, offer cash vending services, or sell equipment, leads can’t come to you if they don’t know you exist. 

Save yourself time and energy spent on cold calling, door-to-door soliciting, and distributing flyers. Create a custom web page so that you can quickly be matched with someone looking for the exact service you offer.

Already know you want a custom web page but don’t know where to start? We’ve got the answer to that, too. Find out how a custom web page can benefit your local ATM business and how to get started. 

What Is a Custom Web Page and How Does It Work?

A custom web page is where you advertise your business (name, logo, mission statement, etc.), contact information, pictures, testimonials, reviews, and more. Your web page might appear in the results list if someone searches for your name or the name of your business.

Chances are, though, that your info won’t appear in a general search for ATM services. Why? Because you are a small, local business with little credibility and low search engine optimization (SEO). 

It’s a catch-22: bigger brands with more traffic will have better SEO and rank higher than you. But you can’t improve your SEO unless you get more traffic. However, featuring your custom web page on an already high-ranking website in, say, an “ATM providers near me” web directory, can help you be seen and get that traffic you need. 

Businesses that create custom web pages on high-ranking directories or websites can see substantial improvements in visibility, credibility, and lead generation. This translates into increased revenue and long-term growth. These benefits come from both the SEO boost and the trust that consumers place in reputable directories.

Benefits of Local Directory Optimization

Online directories are like modern-day phone books. They are databases that categorize and list businesses and websites based on industry or location. They allow consumers to find services specific to their needs and conveniently located. By enhancing your online presence and appearing in an “ATM Providers Near Me” targeted directory listings, you significantly increase the likelihood of being discovered by local businesses actively seeking your services. 

Appearing in a local directory provides you with the following benefits:

  • Improved search engine rankings
  • Trust and credibility
  • Enhanced online reputation
  • Targeted marketing

Take control of your online presence and stand out in the digital landscape.

5 Benefits of a Custom Web Page for Your ATM Business

Having a custom web page on a high-ranking website or within a reputable web directory can benefit businesses in several ways. Here are 5 general benefits of having a custom web page for your ATM business:

Stand Out from the Competition

One of the biggest benefits a custom web page provides is your ability to be sought out over the competition. Standing out can be manifested in a few ways.

First of all, with a custom web page, you are able to associate yourself with a unique, personal brand. A custom web design presents individuality. With custom graphics and a design that no other individual or business has, your brand stands out from the crowd and makes you more memorable.

Secondly, SEO optimization helps you stand out by making it easier for clients in your area to seek you out. Take, for example, a local taxi company in a highly competitive market. In a location with a population of 200,000, 60 million tourists, and 2 international airports in a 30-mile radius, they had decent organic rankings in location-based searches.

However, they still did not appear in the local pack for actual city searches. With certain applied local SEO strategies, they were able to increase their visibility locally. 

In short, SEO matters. And without the traffic, you just won’t get leads organically.

Enhance Your Reputation

Displaying a custom web page on an already high-ranking website also allows you to borrow authority and automatically enhance your reputation. Being hosted by a popular, recognizable brand provides you with the credibility you might never be able to establish on your own as a small, local—maybe even new—business. 

Reviews play a big part in this. According to BrightLocal, 50% of consumers trust reviews as much as personal recommendations from friends and family. 

And, according to Helen Rosner, staff writer at the New Yorker, you have more control over a web page than you do any old review page. In critique of Yelp’s early website model, she says, “There’s this platform where, if somebody were to search the name of your [business], the first thing that comes up is something that you have no control over. Where a lot of people are weighing in with opinions about what they’ve experienced, that might be factually wrong, or that is totally right but you don’t have an avenue to correct it.”

Instead, host a custom web page where you can feature positive testimonials that speak to your performance and professionalism. Additionally, borrow the success and testimonials of an already established, branded, high-ranking website. 

Develop Specific Functionality

With a custom web page, you can create a functionality that is specific to your unique business needs and customers. Avoid worthless functionality and streamline your process. You can also ensure a seamless user experience across all devices, from desktops to mobile phones.

“User behaviour has shifted so much in the last few years. Consumers can now access information anywhere and on anything. It’s important to ensure your business is ready to show up when a user searches. This includes the huge increase in mobile activity, something essential for local intent based searches,” says Kyle Goodchild from Walmart Canada.

Provide Quality User Experience

Website design is the first impression for a user. Visual graphics, navigation, color scheme, overall personality and layout of the website therefore have a significant effect on the user experience. Specific, streamlined functionality adds to the speed and ease of the customer experience as well. 

A custom web page also allows you to offer enhanced customer support. You can provide valuable information and resources through FAQs and other support tools, helping your customers find answers and contact you quickly and efficiently. 

Additionally, a custom web page offers 24/7 access to information about your business, products, and services. And by adding a personalized branded custom short URL to your business cards and flyers, you can easily redirect visitors to your custom ATM Providers Near Me web page. 

Finally, boost customer interaction with interactive features like video, contact forms, and CTAs. Personalized content and strategic calls to action will turn visitors into leads and, ultimately, signed SLAs for placements.

Increase Conversions and Profits

Most importantly, the reason why we invest money into our businesses in the first place, is to increase conversions and profits. With a custom web page, you can incorporate the content that best represents your business, ensuring it resonates with your target audience. 

Local directory optimization offers you the potential for increased website traffic and a steady stream of potential customers. Your custom web page provides accurate links, up-to-date business info, and engaging graphics and functions. This encourages users to explore your service offerings and potentially convert into clients.

According to Andrew Cock-Starkey from Optimisey, “Google is the dominant search engine in most markets I work in. For local businesses, being visible when a customer searches for [that thing you sell] in [that city you sell it in] is vital to their success. And in a lot of cases, visible = Google.”

A custom web page on ATMDepot.com will elevate your visibility in the local market, making you stand out from the competition. Harness the visibility and power of the traffic and visitors that find ATMDepot.com when they land on your own local ATM business branded page.

How to Get a Custom Web Page for Your ATM Business

Now, you can get your own custom independent ATM deployer web page on ATMDepot.com. This allows you to gain instant credibility in your local market and have local store owners contact you!

The ATMDepot team of professional web designers will create an affordable web design for your local ATM business and add you to the ATM Providers Near Me Directory. With a custom IAD sales landing page on ATMDepot.com, you can benefit from

  • SEO optimization
  • Tailored content
  • Instant brand identity
  • Enhanced customer support
  • Increased engagement, leads, and placements
  • Accessibility and convenience

Our team will create an eye-catching design combined with compelling content. Your local landing page will leave a lasting impression on potential clients, encouraging them to choose you as their preferred ATM provider. 

Your custom ATM web page will be optimized to attract your target audience in your exclusive area. Rather than spend time and resources on generic marketing tactics that yield uncertain results, experience a significant boost in your conversion rates from persuasive language, compelling CTAs, and strategic lead capture forms. Increase revenue and expand your business.

Stay ahead of the curve. Get your custom ATM web page now!

Cost to Start ATM Business: Is It Worth It?

by

How much does it cost to start ATM business? Well, it depends on your goals. You might be looking for the ultimate side hustle that helps you generate a little extra spending cash or supplement your regular job. Or, you might be looking for a semi-passive income stream to replace your 9-5 grind. 

Regardless of your goals, ATM business startup costs will fall into three categories: equipment, vault cash, and various operational costs. All of these costs vary from owner to owner. 

Are the startup costs worth it? Can you generate enough revenue to turn a profit? Well, yes. Otherwise no one would do it! Owning ATM machines won’t get you rich. But an ATM business requires relatively little overhead compared to other small business models. And it’s difficult to lose money with an ATM business. It isn’t a matter of if you will make money, it’s a matter of when.

The sooner you reach your return on investment (ROI), the sooner you can start to turn a profit, making all of your time and effort worth it. This article will give you an idea of how much to budget to start an ATM business and the return you can expect.

Cost to Start ATM Business

Equipment

The main cost to start ATM business is the machine itself. ATM machines can range in cost from $1,000 to $8,000. But realistically, $2,000-$3,000 is the range for the most common free standing ATM machines. 

There are various factors that can affect the cost of an ATM machine. For example, you can purchase new or certified refurbished equipment (this is really the only kind of used equipment we recommend). There are different sizes of machines, too. Smaller, wall-mount machines will be chapter than the bulky through-the-wall (TTW) machines. 

But free standing is the most common. It holds more bills than a wall- or counter-mount which saves you time on vaulting and therefore makes more money because it can service more customers and accommodate higher withdrawal amounts. TTW machines are great for garnering 24/7 access to your ATM machine, but creating a space for this type requires construction.

Then you want to consider features. There are different brands of ATM machines and different models. Some offer features that others don’t. So which ones are the most important to you and fit in your budget? 

For example, lighted keypads draw customers in at night. Signs can be added to the top of your machine to help catch the eye of passers-by. And cameras can add an extra layer of security to your business.

You’ll have to weigh the decisions of your ATM equipment purchase. Do you want to spend a little bit more for a brand new ATM machine that comes fully loaded or is it a bargain to purchase a used or refurbished machine that might need upgrades or supplemental features to draw customers?

Vault Cash

Vault cash is about $2,000 of your own money that is tied up in your business. This is the money that you withdraw from your bank and fill the machine with. This is the money that is dispensed to your customers, the ATM users.

Don’t worry: your processing company will settle these funds back to your account. But you can’t use this money for anything else because you’re out of business if you don’t have cash for your customers!

You can also hire an independent vaulter or vaulting service to take care of this for you. If you don’t have the $2,000 startup cash to vault the machine yourself, you can consider hiring this out, but over time you will end up paying more than $2,000 for this service, and it’s going to cut into your profit.

Operational Costs

What is the ongoing, operational cost to start ATM business? Again, this depends on what you decide is the most important to operating your ATM. For example, you don’t have to get insurance, but it’s a good idea to! You can typically get $1 million in general liability coverage for $400-$700 a year. 

Then there’s internet service. Your ATM machine will need to connect to the internet in order to communicate with the networks and, essentially, function. The location or business where you install your machine will probably have an internet service provider (ISP) already. But what happens if they forget to pay the bill or service goes out? You’re out of business, and time is money. It is better for you to invest in your own wireless device so that you have complete control over your machine’s operation and you don’t have to wait on anyone else to solve the problem.

You will want to purchase some simple cleaning supplies to make sure your machine is always presentable and attractive to customers. And some IADs lease a space to operate their ATM from, but it typically makes more financial sense to negotiate a split of the revenue between you and the location owner so that everyone wins and is motivated to drum up business.

Mileage and gas are also considerations when it comes to regular travel to and from your machine. So you’ll want to assess the opportunities for ATM service in your area to determine whether or not it’s worth it to start an ATM business. The point of an ATM business is to generate semi-passive income. Therefore, you want your business to be as convenient and easy as possible.

Is It Worth the Cost to Start ATM Business?

One of the beautiful things about starting an ATM business is being your own boss. An ATM business is flexible, customizable, and little work (you can be making money while you sleep). For a lot of people, that’s enough motivation right there. 

But it also makes it difficult to put an exact number on startup costs. We can say, though, that you’re looking at a lot less overhead than most other businesses. And if you don’t make a lot of money with your machine, you can move it to a better location! If you find a great spot where there is a demand for cash and little competition, you will make money. But how much?

Well, let’s do some more math:

Formula #1

Approximately 2-3% of people that actually see an ATM machine in an establishment will likely use the ATM. So say, for example, that your location has an average of 200 customers visiting each day. You could estimate that approximately 5 of those 200 people would use that ATM daily.

You can then take that number of people and multiply it by the amount of your surcharge ($3-$4). If you take that number and multiply it by how many days the location is open during the year, you’ll be able to estimate how much money your machine might make in a year. You can also get a monthly revenue estimate. 

(5 x Surcharge Amount) x Days Open Per Year = ATM Revenue Per Year

Use the calculator here to help do the math more quickly.

Formula #2

Or, you can operate under the assumption that the number of adult patrons an establishment has in a given day—plus or minus 10%—will use the ATM on a monthly basis.

This rule of thumb is more commonly followed if the establishment accepts credit cards or gives cash back at the point of sale (POS). However, alternate payment methods will affect ATM usage but will also convert some users to cash. This also helps lower credit card fees the establishment pays. Usage could be affected by as much as 20%-40%.

# of Adult Patrons Per Day +/- 10% = # of ATM Uses Per Month

Use the calculator here to help do the math more quickly.

Basically, once you purchase an ATM machine and set it up with processing, it could pay for itself in less than a year if it’s in a good location. It could pay for itself in as little as a few months in a great location. After that, you begin to profit!

Is the Cost to Start ATM Business Worth It to You?

So what do you think? Does the profit potential outweigh your startup costs? Most importantly, have you spotted a gap in the market where a machine could perform really well? If so, jump on it before someone else does! There is still plenty of money to be made from an ATM business because people are still using cash. It just might depend on where you’re located and the opportunities in your area. 

If you’re interested in learning more about how to start an ATM business, check out the ATM business road map which will walk you through the entire process from start to finish. Simply have questions? Contact us today to see if an ATM business might be right for you!

Is an ATM Business Profitable: How Much ATM Business Owners Make

by

Is an ATM business profitable? Well, yes. Otherwise they wouldn’t exist! Not all ATM machines are owned and operated by financial institutions. Many ATM machines are owned and operated by independent ATM deployers (IADs). 

An IAD’s main source of revenue comes from the surcharge fee imposed on transactions. However, there is more than one way to own (and profit from) an ATM business. When simplified, ATM business profit comes down to a few factors: location, transaction volume, surcharge fee, and operating costs.

For any business, the goal is to maximize revenue and minimize costs. The difference equals profit. In this article, we’ll provide you with a few formulas you can use to calculate ATM business profit. But we’ll also provide you with a look at other ways to make money in the ATM business. Keep reading to learn how to make your ATM business profitable.

How to Calculate Your ATM Business Profit

There are a couple of rules of thumb you can use to gauge how much money your ATM might generate. However, remember that there are many factors that can affect the success and profitability of a location (more on that later). So no location is a guarantee. These formulas simply help to give you an idea of whether or not a location is a good fit and what you can expect in terms of revenue. 

Rule of Thumb #1

The first rule of thumb says that approximately 2-3% of people that actually see an ATM machine in an establishment will likely use the ATM. Say, for example, that your location has an average of 200 customers visiting each day. One would expect or speculate that approximately 5 of those 200 people would use that ATM daily.

You can then take that number of people and multiply it by the amount of your surcharge. If you take that number and multiply it by how many days the location is open during the year, you’ll be able to estimate how much money your machine might make in a year. You can also get a monthly revenue estimate. 

(5 x Surcharge Amount) x Days Open Per Year = ATM Revenue Per Year

Use the calculator here to help do the math more quickly.

Rule of Thumb #2

The second rule of thumb suggests that the number of adult patrons an establishment has in a given day—plus or minus 10%—will use the ATM on a monthly basis.

This rule of thumb is more commonly followed if the establishment accepts credit cards or gives cash back at the point of sale (POS). However, alternate payment methods will affect ATM usage but will also convert some users to cash. This also helps lower credit card fees the establishment pays. Usage could be affected by as much as 20%-40%.

# of Adult Patrons Per Day +/- 10% = # of ATM Uses Per Month

Use the calculator here to help do the math more quickly.

Basically, once you purchase an ATM machine and set it up with processing, it could pay for itself in less than a year if it’s in a good location. It could pay for itself in as little as a few months in a great location. After that, you begin to profit!

The Location Factor

A high-quality location makes an ATM business profitable. While it is actually very difficult to lose money with an ATM business, the sooner your machine pays for itself, the sooner you can begin to make a profit. 

An ATM can be installed anywhere. But for it to be successful, there has to be a need for the service. That means that the more people who both have access to the machine and need cash, the more profitable your ATM business will be. 

So, when selecting a location for your ATM, look for places that see a lot of business or foot traffic, aren’t near direct competition, and offer opportunities to spend money. Cash-only locations are even better and can automatically increase your profit estimates. 

Once you are in business, you will make money every time the machine is used. But you have to make sure that you get enough transactions in a month to cover operational costs.

Operational Costs

Fortunately, there aren’t a ton of operational costs to consider each month. Essentially, you’re looking at travel costs to and from the location, receipt paper and cleaning supplies, and maybe wireless service and general liability insurance. 

If you make more revenue from your machine than what it costs you to operate your business each month, you will profit. 

Don’t forget to factor in revenue share when estimating your profit. If the location receives a portion of the machine’s surcharge revenue, add that to your operational costs if you calculate your profit based on the flat surcharge fee. Or, you can adjust the surcharge in your calculation based on the share that you receive.

Remember, too, that you will have a couple of thousands of dollars tied up in vault cash. This is the cash that you load into the machine to be dispensed each transaction. It’s a good idea to add that amount to your startup costs when determining your ROI goals.

Revenue Streams That Make an ATM Business Profitable

Surcharge

IADs make the bulk of their revenue from the surcharge fee imposed on ATM transactions. The average surcharge fee is about $3-$3.50. Ultimately, this decision is yours. Although, some location owners will want a say in how much to charge their customers for ATM service. So you will work together to find a number that works for everyone. You want a rate that is competitive but that also pays the bills….

Scale

To really make an ATM business profitable, place more than one machine. On average, if you want to earn $1,500 per month from your ATM business, you’ll need 5-7 ATMs in average locations. 

Not all locations perform equally. Obviously, 2 or 3 great locations will make your ATM business profitable faster. But every IAD has a few good ATM locations, a few slow ATM locations, and a few great ATM locations. If your machines have a topper, a wrap, or custom screen graphics, you might also be able to increase your revenue by selling ad space. Then you’ll really be in business!

Other Opportunities in the ATM Business

There are other ways to make money with an ATM business besides owning and operating your own machines. You can really assume responsibility for any one part of the process and hire yourself out to others in the industry.

For example, you can be an ATM site locator. This is someone who negotiates with location owners on behalf of ATM owners. 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. 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 also 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 to make your profit.

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

An ATM Business Is Profitable

If you’re considering an ATM machine or want to get into the ATM business as a side hustle to earn some extra cash or as a passive income, you need at least 3-4 people per day to use your ATM (if it’s available 7 days a week) to pay for the machine and make a few bucks. If you’re looking to make salary-level income, consider scaling your business and placing 5-7 machines.

It is difficult to provide an exact number or even range for how much ATM business owners make. But we can provide you with some guidelines to help you predict your own earning potential based on your location and opportunities available to you. An ATM business is very customizable and therefore very difficult to generalize. But if you follow industry trends, there is really no way you can lose.

Despite certain challenges to an ATM business like location negotiation, competition, and technological advancements in payment platforms, where there is a need for cash there is an opportunity for you to make money. So if you’re a motivated entrepreneur who doesn’t quit too soon, then the ATM business is for you. 

Most people fail because they quit too soon. If your first locations are slow, don’t get discouraged. You can always move them to better locations!

For detailed guidance at every stage of the ATM business process from an ATM business mentor and ATMDepot.com CEO himself, check out the ATM Business Road Map. You can try it risk-free for 30 days. And you don’t have to complete the course to get started right away!

How to Start an ATM Machine Business: Requirements and Process

by

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

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

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

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

Find a Processing Company

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

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

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

Complete Paperwork

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

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

ATM Processing Agreements

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

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

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

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

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

Get an ATM Business Bank Account

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

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

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

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

Secure a Location

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

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

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

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

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

Install and Program

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

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

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

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

How to Start an ATM Machine Business

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

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