ATM Networks: The Magic that Makes it Happen

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ATM Networks: The Magic that Makes it all Happen

ATM Networks

In a regular bank setting, we would walk up to the teller, request our cash, and then it would be counted by the teller and handed to us. We walk away assured that the teller debited our account for the correct amount.

A typical ATM transaction allows the cardholder at the ATM machine to withdraw funds from an account or deposit funds to an account. As a user, if withdrawing funds, we take our cash and walk away from the machine, never giving a thought as to what went into making the transaction happen. Little does the user know there is a network communicating all of the transaction information behind the scenes.

How Does an ATM Network Work?

ATMs operate through a network; most are commonly connected to an interbank network. These networks make it possible for a person to perform a transaction at an ATM that does not belong to their bank, and in some cases, out of the country where their bank is located. There are many types of interbank networks, including Cirrus, PLUS, NYCE, STAR, PULSE, BancNet, AFFN, among others.

Once a transaction is performed at a machine, the network communicates the information to the proper bank, where the information is recorded to the user’s account. The communication with the network happens much like our home computer would with an internet connection. Most ATMs connect to a host, or sometimes known as an ATM Controller, through an asymmetric digital subscriber line (ADSL) or through a dial-up modem, which would be run through a phone line. If using the dial-up modem method, this is usually a specifically designated or leased line, rather than sharing a telephone service line. The method that an ATM owner chooses to use should be based on the amount the machine is being used. If the machine is being continuously used throughout the day, a dial-up modem might be slower and not the most efficient way to get the user’s the quick cash they are looking for. After all, you want the customer to keep coming back and using your machine.

As technology advances, many new ATM owners are now using connections through virtual private networks (VPN), or commonly known as a high speed internet connection and new ATM wireless devices such as cellular networks using dedicated wireless devices hidden in top of the ATM. There are still older methods of communicating to a bank that are still in use; some of these include Async, which is short for asynchronous communications, where transactions are communicated intermittently to the bank versus the immediate moment the transaction is completed; and Systems Network Architecture (SNA), which to date itself, was created by IBM in 1974, and is a method that interconnects the ATM with the bank.

All of this may be irrelevant for someone in a hurry, running in to the local convenient store to get the $40 they need for the night; but nonetheless, it is the network communications of the ATM and the bank that are making the transaction possible for this rushed money grabber.

If you plan to own and operate ATM Machines as a business or in your business, the cheapest way to access the ATM Networks via your ATM processor these days is to simply add the ATM to your high speed internet connection. A slow connection or high noise on the line may cause errors so consult your ATM company or your computer people prior to determining the best communication method. We are seeing most new ATMs deployed these days are using the latest ATM wireless communication systems which are available for lease for less than the cost of a phone line. Ask your ATM company about the wireless communication options available for your ATM.

[VIDEO] Father and Son Find an ATM while Hunting in the Great Outdoors

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Definitely not the best place to put an ATM.  We seriously doubt someone actually tried to install an ATM machine in the woods; no real reason you’d need cash while trying to Bag a Deer.  The father and son hunting team from Pennsylvania were surprised to spot a “blue smurf” aka older Triton ATM machine when they ventured out to go deer hunting.

According to sources, this was Aden Reich’s (11 years old) first hunting trip. Aden’s keen eye site (great for hunters) spotted the unknown odd device in the middle of a field while hunting with his dad, John Reich.  At first he told his dad he though there was a giant tomb stone in the field but upon further inspection they recognized it was an ATM.

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Obviously this ATM was stolen and disposed of in the woods.  If you’re in the ATM business or curious about the ATM Business and want to know the secrets of how to protect your investments the right way. Check out our latest book The Amazing Money Machine on Amazon.com

These people are all lined up at the ATM. We did not expect this to happen!

People Lined up at an ATM

Proper ATM Disposal after EMV upgrade

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ATM Disposal or EMV UpgradeIf your ATM is not in compliance with ADA, the new EMV card reader, or you are considering upgrading your ATM you’ll need to dispose of your old one.  Why dumping your ATM in the landfill is not a good idea. Trash disposal has tripled since the 1960’s. In the US alone, we are throwing away over 250,000,000 tons of trash a year and it looks like your local ATM may be adding to the load.

While American banking systems and merchants are required to begin transferring over to a system known as EMV or Europay/MasterCard/Visa, ATM’s can and will contribute to landfills and it doesn’t have to be that way.

EMV is a system that is used all over the developed world, and America is finally getting on board. EMV makes transactions and accessing your money easier and more secure. EMV will do away with the magnetic stripe on the back of your card and will instead use a chip system, which makes it much more difficult to steal your information and create fraudulent cards at the ATM.

Sounds great right? Well, it is great but unfortunately, like all great things, there is a price. Most ATM’s in America are not EMV compliant and as as many as 200,000 may end up in a landfill near you by 2017. Between leaking batteries, non biodegradable plastics and other potentially toxic materials that make up the ATM, this is not an ideal situation and doesn’t make the industry look very good. Also, it is estimated that the EMV conversion is going to cost around $8 billion. That is quite a chunk of change. However, there are a few ways to cut costs, reduce waste and even make use of other materials that would otherwise be headed for the landfill as well.

  • The Trade Off –

Some ATM’s are too old to be upgraded. The good news is, they can sometimes be traded in for a new one, which would cut costs. They might also be able to be traded in for an older but upgraded model or a model with upgrade capabilities. This does not only cut cost but reduces the amount of waste, one less toxic ATM off to the landfill.

  • The Upgrade –

Many older ATM’s do not have the capabilities to be upgraded. There are some manufacturers who have closed their doors and others who refuse to convert to EMV. Unfortunately, we can’t do anything about that. Fortunately, there are still some options that can save time and money. Trading in an ATM that is not capable of EMV conversion, for an upgraded machine can sometimes be cost effective. Getting an upgrade kit for ATM’s that are capable of upgrades is a tremendous money saver and, once again, it keeps those extra ATM’s out of the landfill. Granted, many older ATM’s still in service will need a lot of upgrades including EMV, ADA voice upgrades, PCI compiant keyboards, upgraded security and software updates, etc. Depending on the ATM Model, it’s unlikely that older ATMs in need of a lot of upgrades will be cost effective to get field upgrade kits. In certain instances, some ATM’s will just need to be replaced. Proper disposal of older ATMs should include recycling everything possible to reduce the landfill load.

Unloading the Warehouse

There is another way to cut cost, reduce waste and make use of otherwise useless materials. Most ISO’s or Independent Sales Organization, have warehouses full of old parts. In some cases, your ATM may be able to be salvaged for their parts which can be used to repair some other ATM’s which are EMV capable since many ATMs use similar parts from the same manufacturer. This is a fantastic way to make the most of the materials that the ISO’s already have, cut conversion costs and reduce waste. This not only keeps older ATM’s out of the dump but keeps older, potentially useful parts out of the dump as well

Again, unfortunately, no matter what we do, some of these ATM’s are going to end up in a landfill, but separating out the recycling materials is better. At the end of the day, some ATM’s are just to old to convert or upgrade to EMV no matter what kits are available. That doesn’t mean that we can’t make a pretty big impact both financially and reducing waste. The last thing any ISO or IAD wants is to add tons of toxic trash to landfills across the country.

Maintaining the machines that make it so easy for us to get our hands on our money, any hour, day or night has costs associated. This article gives you an idea of why independent ATM Deployers (IAD’s) charge a fee at the ATM. Hopefully, the next time you get money out of a free standing ATM at 2 o’clock in the morning, you will remember why you are being charged that extra fee and may be helping to keep toxic waste out of our landfills.  If you are interested in becoming an IAD, please contact us anytime.

Getting More than Just Cash from an ATM

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Getting More than Just Cash from an ATM

Are ATMs Going to Become Obsolete?

ATM machines will never grow out of popularity. Cash is always going to be in demand, but the other services an ATM provides might not be necessary any longer. Most banks accept checks through your smart phone now so you do not have to go to an ATM to deposit money into your account. Instead of going to an ATM to withdraw money to pay a friend you can transfer money into their account online. So what are the things an ATM can do that you did not know about? You’d be surprised at what you may find.

  • You can collect gold from an ATM in certain places now. There are already gold dispensing ATMs in places such as Europe. Now gold dispensing ATMs are popping up all over the world. Whenever you decide that you want to invest into gold then you can go to an ATM and withdraw this metal. The machine will literally display an up to date exchange rate so that you can make a wise investment.
  •  Learn about financial opportunities when you visit an ATM. The screens have become highly advanced and now let people look at advertisements. ATM screens now show people ads that target that individual. For instance, if you have recently married, the bank might show you an ad about great home loan rates offered. This type of advertising has helped a lot of people learn about financial opportunities they did not know were present.
  • Did you know you could play the lottery on certain ATMs? As long as the state lottery commission approves it you can purchase a lottery ticket through the machine. A ticket is printed right there on the spot. You can also have your numbers sent to your phone so that you can verify whether or not you are a winner as soon as the numbers are released. Money is taken directly out of your account for the number of tickets you purchase.
  • Pay your taxes at an ATM. You will need to bring some important documents to the machine, but it is possible to pay taxes on certain ATMs. This can take a small amount of time so it is not recommended if there is a line behind you. Once your taxes are filed you can choose to pay any debt right there on the spot. Paperwork is printed and an e-receipt is given to you as proof of paying your taxes.
  • Withdraw money and reload your mobile device if you are on a pre-paid plan. Certain ATMs allow you to add more minutes or data straight from the machine. Every transaction you complete will take money directly out of your account. When you go withdraw cash you may want to add more minutes or additional data to your phone after you have seen your account balance.
  • Limit your spending by setting a limit on yourself. Some banks now allow people to set a budget to follow each week and month. The ATM will notify you of your remaining budget balance on your printed statement balance after every transaction you complete. You are not obligated to follow the budget you set. The purpose of setting a budget is to try and manage your money better so that you do not overspend. This is a good tool to use if you are trying to save money and want to closely monitor your spending habits.

The ATM has evolved to allow people to complete dozens of tasks beyond taking money. One machine that is far from being obsolete is the ATM. ATMs are continuing to expand the range of tasks you may complete at the machines. You can now even apply for loans or make a donation straight from an ATM. Businesses should take note and invest into machines that allow people a range of options to conduct at an ATM to improve the amount of potential customers.

How To Ensure You Profit From Your ATM

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Ensure You Profit From Your ATM

So you have an ATM, but do you even know if you’re making any real profit? Some ATM operators consider the additional money spent in their location as profit but you may want to know the actual profit from the machine.

Do not become a business owner that buys an ATM and never calculates whether or not profits are being made. That’s no way to run a business. It’s a good idea to figure out how much you make a month and year so that you know the value of your investment.

When you don’t feel like you’re making as much profit as possible then you may want to consider ways to get more people to withdraw cash from your ATM. There are a few things you can do to encourage more customers to use your ATM.

How Much was the ATM?

Using the cost of the machine and how much profit you make from it monthly you can quickly see your ROI (your return on investment). Most business owners simply pay cash or use a credit card to finance the ATM (they aren’t that expensive anymore) so calculating ROI is fairly straight forward. While you can take advantage of depreciation and amortization as a piece of business equipment, you should also calculate how long it actually takes to recoup your investment.  We’ve seen busy ATM’s have an ROI of less than 1 month, while slower machines can take 6 – 12 months, which is still a fantastic ROI.

When you figure out how long it is going to take to pay off what you paid for the machine (your ROI) you’ll get a better understanding of when you will make a real profit. It should not take longer than a year to pay off what you invested to get the machine. Most business owners are able to pay off or recoup the investment in the ATM within a year.

Big factors include how much business you generate and the location of your machine. Make sure that your ATM is in a place people can easily find it. Consider putting your machine near the front of your store so people will be more likely to come in and use it if they need quick cash and don’t forget to load the ATM everyday.

How Much Does It Cost to Operate an ATM?

The factors that add to the operational cost of an ATM include communication (phone, internet or an ATM wireless device), a little electricity, and paper for the receipts.  All this added together is probably less than $0.85 per day.

Are you Keeping Track of the Money Going In and Out of Your ATM?

Most retail business ATM operators load cash daily similar to a cash register. So you should balance daily if you can. Otherwise, you can use the trial cassette close functions and online balance functions to track or count the money in the machine daily if possible. Whenever you or someone else loads the machine make your you have procedures in place to keep track of the funds. If you trust someone to load the ATM for you, be sure they keep a ledger or journal and make sure funds balance. This helps keep track of the money to ensure that you are not losing or missing any cash. Some people are tempted to think you’ll never miss a $20 bill here or there, so the last thing you want to realize is that someone you trust has been stealing a $20 here or there for a few months. Twenty dollars here and there might go unnoticed but it could add up.

You should be able to trust your employees but caution is always good to practice. Use the printer balance functions and put the receipts in envelopes and balance to the online system whenever you load or do your closeouts.

Are You Advertising that You Have an ATM?

A few signs, one for inside the store and a couple to put outside can make a big difference. Make your ATM very easy to find once people get inside. Post a big sign outside that reads “ATM Inside” so that people will know if they need cash all they have to do is walk into your store. Place another sign in close proximity to your store that notifies people there is an ATM within walking distance. A small investment into signs can go a long way and help you generate a lot of more profits on a weekly basis.

Another way to generate more ATM usage is to offer specials or coupons on the ATM receipt.  Most of the late model ATM machines make it easy to offer your customers extra value for using the ATM. If you have coupons in other publications, advertise those. You can also make deals with neighboring stores to advertise their store on your ATM if they advertise your store. You can also offer a coupon good for a special during their next visit.  There are lots of other ways to make your ATM more profitable. Want more tips on how to profit from your ATM, give us a call.