Meeting User Needs: User Requirements for ATM Machines

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It’s important to understand the user requirements for ATM machines because you want to make sure your equipment meets the needs of your customers. User requirements can be broken down into two categories: functional and non-functional. 

Functional and non-functional requirements, or functional specifications, are not terms specific to ATM machines. You can find these terms used within any business that develops software or systems. User requirements are often accompanied by business requirements and system requirements.

User requirements refer to user needs. For example, what the user actually does with the system (in this case ATM machines) and what activities the user should be able to perform. The customers and their needs inform manufacturer decisions about upgrades and model adjustments.

Now, there are both functional and non-functional user requirements. Functional requirements are mandatory. These are the requirements that users expect each time they visit an ATM machine. 

Non-functional requirements are not essential. These requirements are what can make or break the cost of a machine. Non-functional requirements can be left out to save on cost. As long as doing so does not negatively affect the user experience, of course. You might think of functional requirements as needs and non-functional requirements as wants.

For the purpose of this article, we will discuss what functional and non-functional user requirements look like when it comes to your ATM machine. Each has its place, but it’s important that you know what your machine offers your customers.

Functional Requirements for ATM Machines

Functional requirements refer to what the ATM machine should do. This includes ATM behaviors and how the ATM should react when certain conditions are met. For example, the ATM receives input, reacts, and delivers the appropriate output.

The advantage of functional requirements is that they help define service and behavior expectations. If something is missing or if there are errors, it is obvious and can be adjusted. And functional errors are typically relatively cheap to fix. 

Functional requirements support user goals, tasks, and activities. Let’s take a look at some examples of functional user requirements for ATM machines. 

Examples of Functional User Requirements for ATM Machines

Functional requirements are the mandatory actions the ATM should perform upon user request. We can automatically list those pretty easily: withdraw, deposit, transfer, pay bill, account balance, print receipt, exit. Now let’s look at some of those in terms of input and output. When a user

  • inputs the selection to withdraw funds, the ATM should dispense the selected amount
  • inputs the selection to receive an account balance, the ATM should display the available amount
  • indicates that all transactions have ended, the ATM should return the card and return to its idle state

Above we said that functional requirements refer to how the ATM should behave when certain conditions are met. For instance, when a user inputs the selection to withdraw funds, the ATM should dispense the selected amount from any suitable account linked to the card and upon approval from the bank. 

These functional requirements are not unconditional. The ATM can only respond accordingly under the appropriate conditions. Functional requirements include descriptions of

  • data entered into the ATM (card, PIN)
  • operations performed by each screen (withdraw, deposit, transfer)
  • workflows performed by the ATM (transferring funds, accepting envelopes, reporting deposits)
  • ATM reports or other outputs (dispensing cash, printing receipt)
  • who can enter the data into the system
  • how the ATM meets applicable regulatory requirements

When thinking of functional requirements, think of what the customer needs in order to perform his or her transaction. And of course there are many many more user requirements that fall under this category. 

But hopefully you get the idea. When the customer does X, the machine does Y. Functional requirements are the observable tasks or processes that must be performed by the ATM machine. So everything else is non-functional.

Non-Functional User Requirements for ATM Machines 

The qualities or standards the ATM must have or comply with are non-functional requirements. You might hear them referred to as supplemental requirements or quality of service requirements. They define how the ATM works and describe limits on functionality. So in other words, they specify criteria that judge the operation of the ATM rather than the specific behaviors of the ATM. 

While functional requirements answer “what” and “who,” non-functional requirements answer “how” and “to what extent.” And if non-functional requirements are not met, the ATM will still work. Functionality is not dependent upon non-functional requirements.

However, non-functional requirements do help make the ATM easy to use and enhance the ATM performance. They are properties, not features, and focus on user expectations rather than user requirements or needs.

Examples of Non-Functional User Requirements for ATM Machines

Some elements that come to mind when describing non-functional user requirements for ATM machines are accessibility, compliance, performance, security, and usability. 

Functional requirements refer to the ATM output itself. And non-functional requirements refer to how quickly the output is received, how easy it is to get the output, and how safely the output is obtained.

So non-functional requirements include safety functions like the key-operated power switch and operator panel. And security protocols like retaining the card after too many unsuccessful PIN attempts. Or performance indicators like speed of transactions.

A Side-by-Side Glance at Functional and Non-Functional Requirements

Again, functional requirements refer to the ATM behavior. Non-functional requirements define the ATM behavior per certain standards. Take a look at the following examples:

FunctionalNon-Functional
PINCorrect PIN allows transactionsMust be entered correctly within a certain number of attempts
Cash DispenserDispenses cashCan be opened and refilled with cash
PrinterReceipt printed upon demandCan be opened and refilled with paper
ATM StateDefaults to idle upon completion of transactionsCan be shut down and restarted
Functional vs. Non-Functional Requirements

Functional requirements refer to what the system should do. Non-functional requirements refer to how the system should fulfill those functional requirements. So functional requirements relate to components while non-functional requirements relate to the system as a whole.

The customer doesn’t care how cash is refilled, just that it dispenses cash when prompted. Nor does the customer care how the ATM is powered on and off, just that it’s on when he or she needs to use it. Make sense?

Why it is Important to Understand Functional and Non-Functional Requirements

You can think of these requirements from two perspectives. First, you can think in terms of your customers and users. For example, do the machines you provide offer them the options they both want and need? Are they happy to pay associated fees for these abilities? 

Second, you can think of yourself as the customer. What do you need and want from an ATM machine? Does the manufacturer meet those needs for a fair price? If the price is too high, what non-functional or supplemental requirements can you sacrifice to lower the scope or cost of the machine? 

And your answers to these questions might be based on your customers’ answers to the same questions. The purpose of functional and non-functional requirements is to make sure customers get a high quality product exactly as they expect it.

Keep this in mind as you shop for ATM machines from different manufacturers. Which model best meets your and your customers’ needs for the best price? Consider non-functional requirements as you weigh your options. ATMDepot.com provides detailed information for each machine listed on the website as well as owner manuals. Take a look and rest assured that you know exactly what you get before you purchase. Still have questions? Contact us today to speak with a representative!

The 7 Basics of Starting an ATM Business

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The 7 Basics of Starting an ATM Business

Did you know that there are over 451,500 ATMs in the US as of 2023, and fewer than half of them are owned by banks? The majority are owned by people like you and me.

ATMs are very profitable businesses because there are only a few overhead expenses. The barrier to entering the ATM business is low since you don’t need employees, a storefront, or rental space, and there is a low startup investment.

The best part is you can manage your ATM business from home on your own schedule. Are you ready to get started?

Follow these 7 basic steps to set the foundation for starting an ATM business to ensure maximum potential for success:

1. Learn as much as possible before starting your ATM Business:

One of the biggest mistakes people often make when learning how to start an ATM business is just jumping right in and buying an ATM machine off some website without knowing how the business works.

» Instead of watching a bunch of random YouTube videos or getting advice from random Facebook groups about starting an ATM Business, consider buying a book that outlines how to start an ATM business so you understand all the principles. That’s the least expensive and fastest way to learn.

» If you’re more of a hands-on learner, at least a book about the ATM Business will give you the principles and an overview.

» Suppose you prefer to watch videos to jump-start your ATM Business and avoid costly mistakes. In that case, we offer a Professional ATM Membership with a complete ATM Business training program with 60+ videos, resources, and many other perks, including Noah Wieder’s audiobook.

2. Choose the Best Locations for Your ATMs:

Location is one of the most important factors in the success of your ATM business. Consider your own experience to narrow down potential locations.

» Have you ever needed an ATM and couldn’t find one nearby? Where were you? The obvious prime locations are busy shopping and high-traffic locations that prefer cash, but it’s also good to think outside the box.

» Consider your local fairgrounds, street fairs, events, parks where food trucks frequent, or sports venues. Think of places where people don’t tend to accept credit cards, like farmers’ markets, pumpkin patches, Christmas tree farms, or even craft shows for great temporary ATM locations. ATM Trailers and mobile ATMs are great for these.

» Normal retail locations are also good but think about stores that prefer cash tips, like tattoo shops, barbershops, nail salons, etc. We’ve even installed ATMs in large manufacturing plants and factories or warehouses with hundreds of employees, especially if there is a cafeteria or other local restaurants nearby that prefer cash.

3. Research and Negotiate with Venue Owners:

Before picking out the ideal location, do your research. Spend a little time in the area checking out the foot traffic. If you want to ensure the street is busy, look online at traffic data.

» After you’ve picked out a spot, it’s time to talk to the store or venue owners. Sometimes, it’s as simple as asking a store owner if they want a Free ATM machine. The convenience of an ATM benefits you, the store owner, and the shopper. Who wouldn’t want one nearby?

4. Develop a Solid Business Plan:

Every successful business starts with a business plan. This plan includes the location of your machine and how you will be investing in your venture.

» For instance, how much are you looking to invest in a machine? The ATM machine itself can cost between $2,000 and $5,000. If that is more than you were looking to invest in your ATM Business to start, there’s no need to worry. Many new ATM business operators use a zero-interest promotional credit card to pay for their first ATM. You can get 12 – 18 months of no interest so you have time to ramp up the transactions and use the surcharge fees you collect to make the payments.

» Once you are familiar with the different ATMs, you can check local classifieds and Facebook groups for used or preferably refurbished machines with a warranty.

» A business plan needs to consider these and several other factors, including the cost of start-up, maintenance, time invested, return on investment, and so on. Our Professional ATM Business Training covers all this.

5. Choose the Right ATM Processor, ISO, or Sub-ISO to Help You:

Your ATM machine is a transaction machine. So, who will process these ATM transactions? You can use an ATM Processor, ISO, or Sub-ISO. Let’s examine the differences:

» An ATM Processor like CDS, FIS, Core, Switch, and many others are large ATM and other financial transaction processing companies that typically work with a large ISO.

» Sub-ISO is also an independent sales organization but is often contracted with an ISO or several ISOs to manage IADs (Independent ATM Deployers) that own and operate a local ATM route.

» IAD stands for Independent ATM Deployer. As a new ATM Business, you would work with an ISO or Sub-ISO and contract as a new IAD to process your transactions.

» ISO, Sub-IOS, and IADs can all contract with local merchants to help them with their ATM needs. A local merchant can also own and operate their ATM instead of having a free placement. However, these days, many merchants prefer to outsource the ATM Business.

» We recommend you review organizations before making your pick. Each one will have different transaction fees or monthly fees, as well as reporting, statements, bank sponsorship, service, and support, so you will want to choose the one that best fits your business plan.

» Be prepared to sign an agreement to become an official ATM Business and have a contract to show your banker. If you are talking to an ATM Company that wants a lengthy contract you aren’t ready to commit to, simply move on to another company until you find one you are comfortable with.

» ATMDepot.com has specialized in helping brand-new ATM Business operators for more than two decades and offers very favorable terms because we know what it’s like to start an ATM Business.

6. Consider Safety and Convenience When Stocking Your ATMs:

There are two factors to consider when deciding who will stock (aka Vault) your ATM machine: safety and convenience.

» Considering safety, depending on the neighborhood where your ATMs are located and how many you have and load, you may want to work with an ATM company that can coordinate and manage third-party private vaulter or armored car cash services should you ever need them.

» You may not need to take the same precautions for small locations or events, especially if you only plan to operate a few ATMs.

» Convenience should also be considered when it comes to stocking your machine. Consider the other responsibilities you have to tend to on a given day. Does your schedule allow time for restocking? If it does, you can save money by restocking your ATM. If you need more time, simply hire a reliable company to do it for you. Also, remember that stocking your machine with your cash is the most profitable way to manage your ATM business, but it’s not the only way.

7. Should you get ATM Insurance?

When you’ve got a machine full of money, you may want to consider getting ATM insurance. But it depends on how secure the location is and what other security options might be cheaper.

» There are only two reputable companies that offer ATM insurance, but most new ATM Operators prefer to self-insure since insurance costs often exceed the cost of replacement. ATM theft happens, but it’s rare.

» A standard business liability policy is a wiser choice. If you decide on an ATM insurance policy, it should protect your equipment and cash, but few options are available.

» Be sure to check with the proprietor where your ATM is located. They may have insurance requirements for you to follow. If you do want to look into insurance check with Marshal & Sterling.

» If the location is open 24 hours or has an alarm and security cameras, insurance may be a waste of money.

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As with any new business venture, it’s important to learn as much as possible before starting. ATMs are great investments that have some unique responsibilities that come with them. It is a real, tangible business that takes time and commitment.

Get to know the ATM business before you dive in. Follow the steps you need to take to make it successful, and you will have a thriving ATM business that you can grow as big as you wish.

Want to jump-start your ATM Business? Check out the ATMDepot ATM Business Member Area.

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