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

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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

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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!

How to Start an ATM Business with No Money

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If we said we could tell you how to start an ATM business with no money, would you believe us? It’s no secret that an ATM business has low startup costs compared to other business models. That’s one reason why it’s the ultimate side hustle.

Of course, starting an ATM business will require some startup money. But what if you could find other ways to come up with the money? What if you could start an ATM business today without thousands of dollars already saved up? Here, we’ll share some tips that can allow you to get creative with funding your business. Then, you’ll be left with absolutely no excuses keeping you from getting started.

How to Purchase Equipment

The biggest startup cost will be the ATM machine or equipment itself. You can expect this to cost around $2,000-$3,000 for just one machine. That is considerably low compared to what it costs to start a brick and mortar or other business. But not everybody has that kind of money available. So, if you want to know how to start an ATM business with no money, you have a few options.

Use a Credit Card

If you have a credit card or can open one, you can purchase an ATM machine on credit. The cost of a machine is usually within the range of credit limits. Plus, you can find a good deal where you are offered little or no interest for a certain period of time. This allows you to start generating revenue before interest accrues. This can speed up your return on investment (ROI). You even have the chance to pay off the balance with your ATM revenue before the interest kicks in!

Lease

Another option is ATM leasing, but it is much less common these days. The price of ATM equipment is not as high as it used to be. So, it often makes more sense to purchase a machine on credit than to lease. Unless you’re considering purchasing several ATM machines, it might be more profitable to borrow instead of lease due to the rates on bank financing.

If you have great credit and only want to lease the actual ATM equipment, you can get a lease for as low as $55/mo. Benefits of leasing include a fixed payment, tax deduction, and recuperation of your monthly payment by your business revenue. 

However, an out-right purchase has an ROI of between 3 and 18 months depending on the situation. The national average of all our ATM operators have an ROI of 8.5 months based on a $2 surcharge. Thereby, you avoid the necessity of a long-term ATM machine lease.

Apply for a Loan

You might not have friends and family willing and able to lend you some money to start your ATM business. But you may be able to get a line of credit (LOC) from your bank or other commercial lender. Since $5,000 is a very small loan (microloan), you could consider increasing the line to help cover other expenses if you choose to go this route. 

It’s a bit of a hassle to get a loan. So it might not be worth it to get a loan for less than $25,000 when you could purchase the equipment with a credit card. But some banks will open an LOC for $5,000-$15,000 if you have a good track record with them and decent credit. 

To apply for an LOC, simply visit your bank or other institution where you have money in an account. Interest on a regular loan starts immediately. But on an LOC it only starts once you take the cash, and you only pay interest on the outstanding balance. So prepare yourself before you start using it. Keep in mind, too, that most traditional business start-up loans will require a decent credit score.

Qualify for a Financing Program

Third party business funding is a great way to get cash if you have locations waiting for ATMs and simply need to find the money to purchase the equipment. You can see if you qualify to get financing to start your ATM business. There is no charge to check, and no inquiry will go on your credit report.

All you do is fill out the quick pre-qualification application. Then, a financing representative will give you a call to collect the rest of your information. A soft inquiry will follow. Lastly, the financing rep will let you know what you’ve been approved for in your area based on your credit.

You will know within minutes whether or not you have been approved. If you proceed with the loan, the third party loan provider will work on your behalf to secure multiple revolving credit cards (up to ten) with varying amounts of credit. The total available line of credit could be between $25,000 and $100,000 based on your creditworthiness. So this is really only an option if you are looking to purchase multiple machines. 

The third party will work to secure all of your credit cards to include up to 18 months of no interest. You complete the online form. They qualify you for free and do all of the work to secure your loans without inquiries on your credit report. There is no upfront fee; you don’t pay anything out of pocket. 

However, upon approval and when you receive your first revolving line of credit, a flat fee of $2,997 charges to the first credit card you receive. This way, you’re not out of pocket and have up to 18 months to pay the fee and any other charges you incur on the cards received.

How to Provide Vault Cash

Another ATM business expense is the vault cash. This is the money you will load into the machine for your customers to withdraw. Now, at the end of the day this money is yours, but it will be tied up in your business. And you need it immediately. So how can you easily get $2,000 cash to stock your ATM machine?

Other People’s Money

One option is what we like to call other people’s money, or OPM. Technically, OPM is a slang term used in finance to refer to financial leverage in the form of borrowed capital that is used to increase the potential returns as well as the risks of an investment. However, in the case of an ATM business, it simply means you can fund your venture with help from family, friends, or a business partner in return for an agreed upon share of your business revenue.

Financing

If you decide to finance your business, you might be able to cover your cash needs from this same source. However, keep in mind that normally the credit cards aren’t used for obtaining vault cash. But, if you speak with the loan provider, you may be able to pay an additional small fee to pull cash off the cards.

Location Funding

This is probably the most common option for cash vaulting when an ATM operator is short on funds. You can make this service part of the agreement with the location owner. When you negotiate the placement of your ATM machine in someone else’s business, you will need to discuss the need for the location to provide the vault cash as part of the agreement. 

Obviously, this is only an option if the location owner agrees to this arrangement. In this scenario, you will need to be willing to offer a larger share of your surcharge revenue. This will compensate the location owner for the extra work and responsibility. You will also end up reliant upon him or her for the seamless operation of your business. 

For example, if something happens where the location owner fails to restock the machine, you are out of business until you have cash to offer customers. If you are able to handle the vaulting yourself, on the other hand, you have more control over your business and assume less risk of down time.

What Can Wait

Finally, when planning how to start an ATM business with no money, you want to make sure you stick to the bare necessities to start. Purchase just enough to get going. Then, as you begin to generate revenue with your machine, you can budget for other add-ons and services to enhance your business as you go. 

You will have a lot of options to choose from when it comes to purchasing equipment. You will have to consider screen size, lighting, cassettes, locks, cameras, etc. But many of these upgrades can be added later; they aren’t completely necessary to get started.

Be strategic as you weigh “need to have” against “nice to have”. Bells and whistles can always be added. But you also want to make your ROI as soon as possible. You can only do that with a competitive machine. So if you need help making these decisions, talk to someone with experience in the industry or a trusted ATM vendor. 

How to Start an ATM Business with No Money

The cost to start an ATM business is so low that you technically now know how to start an ATM business with no money. Keep your initial budget limited to equipment that is need to have versus nice to have. Borrow from friends and family when you can, or enter into a business partnership. Seek financing when it makes sense for your business model. Work with a reputable financier who will offer you a fair deal based on the revenue you anticipate and the rate at which you will reasonably be able to make your ROI.

If you still have questions about how to start an ATM business with no money, don’t hesitate to contact us today! You can also check out our comprehensive list of FAQs about how to get into the ATM business. These answers provide more information about what you can expect when getting started.

13 FAQs About How to Get Into the ATM Business

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If you want to know how to get into the ATM business, there are a lot of factors to consider. First, you might want to be sure that getting into the ATM business is something you really want to do. Therefore, you will want to be able to weigh the rewards against the costs before you get invested.

Then, once you are sure you want to start an ATM business, you will likely have a lot of questions about what to expect and how to handle certain situations. We’ve found that many new independent ATM deployers (IADs) have some of the same curiosities and concerns when it comes to getting started. 

Our hope is that by answering these frequently asked questions all in one place, IADs will understand how to get into the ATM business and become confident about getting started. 

What Is an ATM Business?

Before understanding the ins and outs of how to get into the ATM business, you should know what “ATM business” means. Did you know that not all ATM machines are owned and operated by financial institutions? That means that there are other companies and individuals who purchase ATM machine equipment, place it in locations where there is a lot of foot traffic and demand, and make money from each transaction. 

Individuals who purchase, place, and operate ATM machines are known as independent ATM deployers, or IADs. However, there are a lot of other ways to get involved and make money in the ATM industry. There are ATM vendors who sell ATM equipment to businesses who want to operate their own machines. There are vaulters who work with ATM operators to handle the cash stocking. And there are site locators who match businesses and operators so that both parties benefit from the placement.

Regardless of your role, the following FAQs and answers can help you better understand how to get into the ATM business and start making money. 

1. How much does it cost to start an ATM business?

Of course, the question that is on the forefront of everyone’s mind is financial investment versus reward. One reason an ATM business is the ultimate side hustle is because it has a low overhead compared to many other businesses. The biggest cost is the ATM machine itself. This can be about $2,000-$3,000. The next cost is the cash you use to stock the machine if you will vault your machine yourself. This is still your money at the end of the day, but it will be tied up in your business as an investment.

There are other costs that vary from operator to operator. For example, you might pay for installation and programming, equipment upgrades and add-ons, and/or advertising. These are all optional.

So while it’s hard to provide an exact number, you can expect to start an ATM business with just a few thousand dollars. The vault cash is the only expense you need in full up front. You can handle installation yourself if you are comfortable, purchase ATM equipment on credit and pay over time, and you can add custom graphics, cameras, and other features over time and as needed once you start making money.

2. What are the ongoing costs of operating an ATM?

Now, those are the costs to consider when it comes to getting up and running. Ongoing costs will include internet service, insurance, maintenance, and travel.

Purchasing your own wireless device to provide your ATM machine with an internet connection separate from the location’s ISP is essential to maintaining consistent service. If anything happens to the location’s internet and your machine loses connection, you will lose more business than it would have cost to provide your own connection. 

Insurance is optional, but the location may require you to obtain at least general liability insurance as a condition of your placement agreement. General liability insurance typically covers bodily injury, property damage, medical payments, and legal defense. 

Maintenance costs will include cleaning supplies, receipt paper, and any technician calls. These costs can be unpredictable, so it’s a good idea to set aside some money or budget for these things.

Finally, you might want to consider the travel to and from your machine. This is why it is important to try to place your machine close to where you live or work or already go regularly. The farther out of the way your machine is, the more you will spend on travel costs.

3. How do I make money from an ATM?

There are a lot of different ways to make money from an ATM. As an ATM site locator who negotiates with location owners on behalf of ATM owners, you can request a flat rate or negotiate for a share of the surcharge. As an ATM vendor, you can mark up the price of ATM equipment to earn an upfront commission and/or keep a share of the surcharge for servicing the machine.

But most commonly, individuals will purchase and operate their own machines, generating revenue from surcharge fees imposed on transactions. Surcharge fees can range anywhere from $1-$10 depending on the location. Setting the right surcharge fee depends on the location. How much demand is there for cash in the area? How much competition is there? What is the average withdrawal amount? 

When setting a fair surcharge fee, you want it to be high enough to make your return on investment as soon as possible but not too high that customers opt for service elsewhere. Typically, the best surcharge fee is the one that brings in the most users. But you will monitor your data when you start and make adjustments as necessary.

4. What is the typical profit margin for an ATM business?

As an IAD, you can expect to make an annualized return of 35%-70% or more. With just one machine, you can make a few hundred dollars a month. One machine can generate some extra passive income to help supplement your regular salary or fund a savings account or large purchase. But if you want to rely on your ATM business for your salary and make thousands of dollars, plan to scale your business.

To calculate your ATM business profit, multiply your surcharge by the number of transactions you expect to see in a day or month. Then subtract any business costs, and that will be your profit for any given month or year. There are some formulas and calculators you can use to help set the right surcharge fee and estimate your revenue.

Remember that you can always adjust your surcharge fee or even move your machine to a more successful location if you don’t see the numbers you want. And of course, the more machines you operate, the more revenue you will generate.

5. How do I choose a location for my ATM?

Choosing a location for your ATM requires you to consider a number of factors. First, you either need to find a business that wants to offer ATM service to its customers or a gap in the market. Areas that experience high foot traffic and also provide opportunities to spend cash are the best locations for ATM machines.

Remember that you make money from each transaction made on your machine. So you want to see as many transactions as possible. This should really influence where you place your ATM. Will a lot of people pass by your machine? Will those people need cash? Are there clear benefits of an on-site ATM machine for the location owner? 

It is best to start looking near where you live, work, or already travel to frequently. The more you have to travel to and from your machine, the less profit you will make because more of your revenue will be spent on travel costs. 

We’ve created a list of the best ATM locations and how many transactions each typically sees. But each IAD’s situation is unique, so the right location will really depend on the need in your area.

6. Do I need any special license or permits?

You do not need a specific license to operate an ATM business, but you will need some sort of business name to complete the agreement with the ATM processor as your ATM vendor and to open a business bank account. There are a few options.

You can establish a limited liability company (LLC) to separate your personal assets from your business liabilities. This can be a good idea depending on the scale of your operations, your risk tolerance, and your specific business goals. 

The simplest and most common route among new IADs is to create a sole proprietorship and operate under a fictitious business name, or a DBA—doing business as. There are also partnerships and corporations that can be created depending on your business model and goals.

7. What kind of insurance do I need?

You don’t necessarily need any kind of insurance. However, the owner of your location might require that you at least purchase a general liability policy. General liability insurance covers bodily injury, property damage, medical payments, and legal defense. You can expect to spend about $400-$700 a year for $1 million in general liability coverage.

ATM insurance is an inexpensive way to protect yourself against expensive accidents. Since your ATM machine is not owned by a bank, you are not subject to FDIC protection. While you can get ATM business-specific insurance, you don’t have to. A general liability policy might be enough, depending on your needs.

8. How do I choose an ATM provider?

There are a few qualities to look for in an ATM provider or processing company. First, it’s a good idea to look for a company that also sells ATM machines. This way, you can get equipment and service all in one place. And you know the machines you get from your ATM processor can process using their service.

You might also want to look for flexibility in payment options. Automated payments make your income even more passive and your paydays quicker. You might also want the option to split payments between multiple people or accounts. 

Of course, you want to work with a company that offers free processing. The least amount of hidden and unclear fees, the better. Make sure your ATM provider is transparent about any fees and processes.

Maybe most importantly, choose an ATM provider that offers reliable support. Especially when you are just learning how to get into the ATM business, you want to be confident that you will succeed. The best ATM providers will view your success as their success, offer resources, and be available when you need them.

9. How do I manage cash for my ATMs?

There are a few ways to handle cash vaulting. The most profitable way is to do it yourself. You will need a bank account with a balance that you will withdraw regularly for the sole purpose of stocking your machine. You might need $2,000 or so depending on how busy your machine is and how often you will stock it. Withdrawal amounts from your machine get redeposited to that account by your ATM provider. 

Another option is to have the location owner or other location employee handle the vaulting. This is sometimes a good option for IADs who don’t have enough cash available to tie up in the machine; businesses usually do. However, this extra task might cost you more in a revenue share, meaning you might have to pay a portion of the surcharge revenue to the location owner for taking care of this work.

And of course there are independent vaulters and vaulting companies. Your ATM provider might also offer this service. This is the most expensive option, but it alleviates the burden for you.

10. What kind of maintenance do ATMs require?

Fortunately, ATM maintenance is very simple. Just make sure it is clean, attractive, and functional. Keep it stocked with cash and receipt paper, address any errors immediately, and wipe the machine down regularly. If any decals start to peel, replace them. If someone vandalizes it, clean and repair it. 

Most maintenance you can easily conduct yourself. For more complex problems, simply contact your ATM provider or other ATM technician for help. Consult the manual for your machine when necessary, and check YouTube for how-to videos to save yourself time and money working with someone else. 

Know your machine well by monitoring the activity. That way you can identify errors and anomalies more quickly. The faster you resolve an issue, the less time you spend out of business, and the more money you make.

11. How do I handle security concerns?

There are a number of ways criminals can tamper with an ATM machine to try to access cash or customer account details. However, the simplest barriers can easily deter this activity. The most important thing you can do is be vigilant.

It is a good idea to keep your machine under surveillance. Whether it is always in eyeshot of a location employee or in the line of security cameras, advertising this kind of monitoring can deter criminals as well as reassure customers of their safety. 

Make sure the machine is bolted firmly and evenly to the ground to prevent the machine being moved. Test your machine’s security by trying to nudge or shift it. If it doesn’t give, you are good to go! The more time it will take someone to get access to the machine, the less likely they are to pursue it.

Therefore, you want to try to barricade the machine as well. Keep a straight path to it open, of course, but blocking the sides with furniture or displays can make getting to the machine more difficult. 

And again, know your machine well. You don’t want someone to install a pinhole camera or fake front to your machine that would compromise customer account data. Regularly inspect your machine to ensure that it hasn’t been tampered with. 

12. How do I attract business to my ATM?

There are a lot of free and inexpensive ways to bring more traffic to your ATM machine. A little bit of promotion can go a long way; you need to let people know your ATM exists! 

You can purchase an ATM sign and coordinate with the location owner about displaying it, but if you want to save some money at the start, just consider strategic placement. Put your machine close to a payment counter or somewhere else where all or most customers will pass by and see it.

You can also coordinate with the location owner to offer coupons printed on receipts and even advertise deals and discounts for cash payments. Cash payments save businesses on credit card processing fees, so discounts for cash payments is a win-win-win scenario that can encourage more ATM transactions. 

And take advantage of your ATM screen. Create custom graphics that appeal to users and also brand yourself at the same time. You can do this yourself or hire out for it, but some ATM providers will add custom screens as a perk!

13. What is the best ATM equipment?

You have a lot of options when it comes to choosing ATM equipment. To keep it simple, the leading brands are Hyosung and Genmega. But this doesn’t mean you have to purchase one of these brands. What you do want to look for is reliability and ease of use. 

Be wary of used machines. They might come with complicated issues, be noncompliant, or simply no longer work with ATM networks. Purchase new or certified refurbished. This ensures that the machine will function properly. Newer machines also tend to be more user-friendly because any issues with older models are typically improved with newer ones.

You also have a lot of options when it comes to features. The screens, cassettes, locks, etc. will vary from model to model. So shop around and make a list of features that are “nice to have” and features that are “need to have”. This will help you narrow down your options based on your budget. 

How to Get Into the ATM Business

There is a lot of information for you to consider when starting an ATM business. However, we hope that this list of frequently asked questions helps to simplify some of that information and put you at ease knowing what to expect at every stage of the process. 

Working with a knowledgeable, supportive ATM provider can make or break your business. ATMDepot.com specializes in helping people go from zero to ATM business owner. If you want to get into the ATM business as soon as possible, request an ATM Start-up Kit or check out the ATM Business Road Map risk-free to get a detailed guide for starting an ATM business from the ground up. 

An ATM business is the ultimate side hustle. It is simple, inexpensive, and rewarding. With decades of experience and a wealth of resources available to you, we can show you how to get into the ATM business today!

The Truth About Owning ATMs as a Business “Gurus” Aren’t Telling You

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Owning ATMs as a business can be a reality for anyone. With the right information, resources, and support, you could be making semi-passive income with ATM machines if that’s something you are interested in. But just because anyone can do it doesn’t mean that everyone should.

ATM business gurus often provide valuable insights and strategies. But they can sometimes overlook or downplay certain harsh realities of the ATM business world. There are some truths they might not emphasize but that you should be aware of before getting started. Making sure you properly manage your expectations and know exactly what’s ahead is your first step to success owning ATMs as a business.

There Is No Guaranteed Formula

You will often see ATM business gurus touting the wealth and success they’ve experienced owning ATMs as a business. They want you to know exactly what worked for them so that you can follow in their footsteps. 

But what this strategy fails to consider is the fact that each person has different business goals, obstacles, strengths, and weaknesses. What works for one person might not work for the next. And what each person wants out of an ATM business will vary as well. 

There are many ways to make money in the ATM industry. And there are many ways to run an ATM business. No two business models look exactly the same. So to be successful, don’t force yourself into someone else’s formula if it isn’t working for you, regardless of the promises.

Failures Are To Be Expected

Everyone makes mistakes. Successful entrepreneurs often have multiple failures behind them. The path to success is rarely linear and is often paved with setbacks. Fortunately, by following the guidance of gurus and ATM industry experts, you can avoid a lot of major failures and setbacks by learning from the mistakes of others. 

But if you are new to owning ATMs as a business, you will have to learn from your own mistakes as you go. Simply adjust and move forward with your new knowledge. There is really no mistake you can make that can’t be remedied. And the closer you adhere to ATM industry best practices, the fewer and smaller your mistakes will be.

One of the biggest misconceptions many gurus will promote is that owning ATMs as a business will be easy. Compared to other businesses, an ATM business is quite simple. But at the end of the day, it will still require effort to get up and running smoothly. If you can’t power through the challenges, you can’t expect success.

Do Not Expect to Get Rich Quick

Really, don’t expect to get rich at all. Owning ATMs as a business is a great, low-stakes way to generate some extra semi-passive income and maybe even replace your 9-5. But don’t expect to become a millionaire….

Don’t pressure yourself to grow quickly. Prioritize sustainability over rapid growth. Rapid growth is frequently glorified, but sustainable, steady growth is often more beneficial and less risky in the long run. Take your time, study your metrics, and adjust accordingly. If you focus on the business as a whole rather than simply generating more and more revenue, your service will be better and your business will succeed in turn.

Beware of Market Saturation and Competition

Entering a saturated market or facing intense competition can make it exceedingly difficult to gain traction. Not all cities have the same need for ATM service. So success owning ATMs as a business might be dependent on where you are located and the opportunities available. 

However, just because a location has an ATM in place already does not mean that it’s off the table. If the equipment is old, run-down, or frequently out-of-order, that could be an opportunity for you to offer a shiny new ATM. If a business owns its own ATM machine but is tired of maintaining it, that could be an opportunity. Or maybe you find a business that is unhappy with their current service and is eager to work with someone new.

High traffic, high demand locations, like casinos and clubs, are difficult to break into. This is where networking comes in handy. If you already know someone who is a decision-maker at a profitable location, then your chances of operating an ATM machine there improve.

Whatever the situation, it is your job to identify a gap in the market. If you see opportunities for ATM placement in your area, you can be successful owning ATMs as a business.

Be Open to Continuous Learning and Adaptation

Owning ATMs as a business will require a certain degree of flexibility. The business environment is constantly changing. Continuous learning, adaptability, and willingness to pivot are crucial for long-term success. 

Don’t expect to learn everything. Because as soon as you do, something will change. And if you don’t keep up with the changes and dedicate yourself to learning and improving, your business will suffer.

Learning the business is not something you do once. It is an ongoing part of being a business owner and entrepreneur. Don’t neglect this work in your business.

Influencers vs. Gurus vs. Mentors vs. Experts

ATM industry gurus are not all wrong or bad. However, be warned that if it’s too good to be true, it probably is. Beware of influencers, gurus, and mentors online who are just after clout, views, and likes without really explaining how ATM business works. If you really want to know how a successful ATM business works from start to finish, take it from an expert whose success is tied to yours. 

How to Get Started Owning ATMs as a Business

Now, owning ATMs as a business is the ultimate side hustle because of its comparative simplicity, low overhead, and semi-passive revenue. But, like any business, it will come with its fair share of challenges. To be successful, you have to know your strengths and weaknesses and be able to move on from mistakes.

If you want to learn the ins and outs of owning ATMs as a business from someone who’s been in the industry for over thirty years, check out the ATM Business Road Map. What sets this training system apart from others is that it is risk-free and you don’t have to complete it before getting started!

You can use the ATM Business Road Map modules as reference material as you progress through your business journey. You have lifetime access to all training materials, so you can refer back to them any time you have a question about a particular situation.

If you are unhappy with the course or discover that owning ATMs as a business is not for you, just email us within 30 days of purchase or before you start Module 4.2 for a full refund.

Additionally, you can purchase equipment and receive processing from ATMDepot.com—everything all in one place. With this kind of information and support from experts dedicated to your success, you can confidently take the next step in owning ATMs as a business.

Get started today!

Still have questions? Contact us here.