Getting Started in the
ATM Machine Business
Here is a list of our most used resources when learning about how much it is to start an ATM Business. Learning as much as you can about owning your own ATM machine business is your very first step.
The knowledge you have over another ATM Owner may be key. It could be the reason a Business Owner chooses you over the other ATM Business guy.
JOIN OUR MEMBERS AREA
If you’re really serious about starting an ATM Machine Business, our Members Area is for you.
Get access to sales scripts, videos, and an editable sample ATM Business Contract in ATMDepot’s Members Area.
- 1. Download a Free PDF About the ATM Machine Business
How to Profit from the ATM Machine Business – This FREE 17-page ATM Machine Business Start-Up PDF is an excellent, informative document for the person currently entering the ATM Machine industry.
Get Your Free PDF Guide
- 2. Read How to Start and Grow an ATM Business: The Ultimate Side Hustle
How to Start and Grow an ATM Business: The Ultimate Side Hustle – Noah’s latest updated version his original best-selling ATM Business book on Amazon (The Amazing Money Machine) is a more intricately detailed and descriptive version of how to profit from the ATM Business.
Written by ATMDepot.com CEO, Noah Wieder, the book is a GREAT read for anyone interested in the business. Plus, it’s less than $15 to acquire all the knowledge and information about how to start an ATM Business.
If you have a Kindle, you can read How to Start and Grow an ATM Business for free if you subscribe, or you can buy the Kindle version for less than $8.
- 3. Join ATMDepot’s Member’s Area
ATMDepot.com Member’s Area – The online Member’s Area features time-saving documents, informative audio, and helpful how-to, and other videos that teach, support, and help you grow your ATM Business.
There’s information on how the business works, what to do when your first ATM arrives, and time-saving tips on how to speak with merchants and acquire locations. The ATMDepot Member’s area also includes many more resources to assist you.
Great News! We just launched the “Members Area Pro” which features a comprehensive 9-step training system to help you get started on your ATM Business journey.
- 4. Join the ATM Business Entrepreneurs Facebook Group
On Facebook, like the rest of the world? Ha, ATMDepot.com is, too. We’ve also got a Facebook Group for ATM Business Entrepreneurs. In the group, we post educational content and tips about the ATM Business. Free inside information, free camaraderie, free networking, and free to join!*
Do you own more than 10 ATMs? You may want to send a request to join our Veteran ATM Entrepreneurs Mastermind. There is not too much learning about the ATM business there. In the veteran group, it’s more about networking and talking about hot ATM Business topics. Join us, and feel free to invite your colleagues.
*You only have to answer three questions to join the group. The faster you answer them, the faster the group admin will reach out regarding your request.
Common ATM Machine Business Terms You Should Know
Firstly, it’s ATM Business, not ATM Machine Business. The reason? ATM means Automated Teller Machine and saying ATM Machine is quite redundant. However, this page is all about learning so we’ve used both terms interchangeably, so you get it.
When discussing paperwork and learning the ATM business some of the terms may feel foreign to you. We’d like you to be able to keep up! Here are a few of the most common ATM Business terms you should know.
The ATM Owner decides who shares in the revenue. (the location, a referrer, or a partner). The ATM Owner completes a payee form for ATM Depot so we know who you want us to pay (yes, we do that for you).
ATM Depot’s processing center distributes the surcharge revenue share. Distributions occur according to the ATM owner’s instructions. Your payees will receive an ATM transaction statement with each payment. Each payee will also receive a 1099 at the end of the year (if over the IRS limit) so you don’t have to do that either.
Occasionally we refer to the ATM Owner as the ATM Operator. Sometimes, it’s just one individual. However, a group of individuals or a company can own the actual ATM and someone else can operate the ATM.
The ATM Operator is typically the person who is responsible for loading it with cash (also known as the ATM Vaulter). He/she is also responsible for handling any service issues (albeit rare), balancing funds, and maintaining the relationship with the location.
The ATM vaulter is typically the person who is responsible for loading the ATM with cash. This can be either an individual or a company. Usually, the ATM Operator takes this role. However, sometimes the location and/or a third party can fill the machine if the ATM Owner decides to outsource that part of the business.
Your surcharge/income account is the bank account where your surcharge (aka residuals or commissions) will be electronically deposited by the ATM Processor. You will complete an ATMDepot ACH form upon starting your ATM Business. You will also need to provide a Voided Check for confirmation.
Your vault cash account is the bank account you have set for “vault cash” and/or settlement funds. The “vault cash” refers to any funds you add to your ATM. When dispensed, settlement funds are ‘settled’ back to your Vault Cash Account. Sometimes this is the same as your surcharge income account mentioned above.
ATM Machine Business Startup FAQs
To sum up, here are a few of the most common questions that potential IADs (Independent ATM Deployers) ask. If you’re just starting out in the ATM Biz and are wondering about the answers to some of these questions, we’ve created this collection of questions and answers for you.
In what order should I start my ATM Machine Business? Do I find a location first? Paperwork first? What’s the best way?
Answer: If you’ve already read the PDF and the book, the next step is to become an IAD.
Do this by getting your paperwork in order and filed with your processor so you can be all set up. Don’t worry if you don’t have a location yet. You can submit your site location paperwork with your first deal.
Next, figure out what your startup costs are for your first piece of equipment and processing. That way when you are securing a location you are already set up as an IAD and are ready to make money.
If you want to jumpstart your ATM Biz, order an ATM in advance. We can send it to your place of business or residence within a few weeks. We can send you all of the programming materials and you can familiarize yourself with your new ATM machine. After that, you can be more comfortable during your sales pitch.
Request Your ATM Processing Paperwork
Do I need an LLC, a corporation, or can I run my ATM Business as a sole proprietor?
Answer: Most IADs that don’t already have a business identity often start out as a sole proprietor or just as an individuals.
As an individual, all you need is your IAD paperwork in your own name. Once your ATM business is generating enough income to warrant a company or if you would like more tax advantages. Then, talk to your accountant or tax advisor about the best way to structure your business.
You do not need an official Sole Proprietor, LLC, or a Company to run an ATM Business. However, if you are new to the ATM business we recommend you start or use an existing LLC at minimum. Being a legitimate business owner with your license or permit from your city will help you secure a bank account for your vault and settlement funds.
Plus, having your business entity already set up is helpful once you start making more money.
Above all, be sure to check with your local city whether a business license or business registration is a requirement to conduct business.
If you do start out as a sole proprietor, just let us know when you get an official Company name set up. We can do a change of ownership for you. This will move everything into your business name.
Check with your own town, city, or county offices to find out how to get started as a sole proprietor or a business. You might only need to file for a DBA (doing business as name, aka fictitious business name) to get a bank account
Answer: Start Up ATM business costs don’t vary much so these are some of the fixed costs.
Some of the initial ATM Business Start-up expenses include:
- Cost of setting up your official ATM Business (LLC, S-corp, or sole prop) and name. We recommend NOT using the word ATM in your official business name to make it easier to get a bank account. Use something with the words Vending, amusement, group, or even consulting in the name so you can tell the bank you’re not just in the ATM business.
- ATM Business Cards
- ATM Business Website (free or paid website)
- Brochures or leave-behinds (optional)
- Cost of your first ATM Machine
- ATM Installation and Setup (optional)
- ATM Wireless Device
- Start-up funds for Cash loading
All total most of our IADs start up an ATM Biz for under $5000 and many use a credit card to get started. As soon as you install your first ATM, you will start earning surcharge income monthly to make the payments.
Answer: Your surcharge (aka residuals or commissions) payment is sent via ACH deposit directly to the bank account you provide on your ACH Form and Voided Check. These funds are deposited between the 8th and 12th of every month depending upon business banking hours and the Federal Reserve settlement times. You can also elect to get paid by check or have surcharge funds deposited daily with settlement funds. However, we do not recommend daily surcharge deposits as it makes your accounting more tedious. You should also receive a monthly statement for each location around the same time.
Follow-Up Question: What about the cash people take out of the ATM? How do I get that cash back?
Answer: Any funds taken out of the ATM are called “Settlement Funds”. Settlement funds are sent (settled) back to your designated bank account (as noted on your ACH Form) the next banking business day.
Do I need a separate bank for my ATM Business? What kind of bank account?
Answers: Yes, a separate checking account for your ATM Business is highly recommended. If you are starting out as an individual and don’t have an official business, it may be more difficult to get a bank to work with you.
It is also a good idea to have a close relationship with your bank because some banks do not like the ATM business due to cash requirements and bank audits. Banking customers that use a lot of cash are expensive for banks so if they don’t make a lot of money from your account they may not want you as a customer. When talking to banks keep in mind that they want you to use as many of their services as possible. This includes not just a regular checking or savings account, but debit cards, credit cards, loans, lines of credit, mortgages, etc. The more services you use at a bank, the better you are as a customer.
When talking to banks mention that you are in the vending and ATM business and that you will need a certain amount of cash every week to see what their policy is on getting cash. When they ask about deposits, let them know that it is only one deposit per day per ATM machine so you can keep fees down.
Is there an interface available I can go on to see my transactions in real time?
Answer: Yes. ATMDepot provides online access to your terminals. You can log in from a desktop or your mobile device to check on your ATM(s) transactions in real-time, print statements, view deposit reports, and a host of other functions. We can also set up low balance alerts via text to let you know when one of your ATMs is running low on cash so you can better manage cash replenishment.
Answer: This is a VERY hot topic in the ATM industry. There are a few ways ATMDepot suggests finding locations. Start with the businesses you frequent. Look around, do they already have an ATM machine? If they do, how does it look? Is it updated, is it taken care of, is it dirty? Ask the manager if they are happy with their current ATM service provider. If they give you any indication that they are not, or if you notice any problems with the machine or error codes open a discussion. If they don’t have a machine, ask them if they have ever had one or if customers ask where the nearest ATM is located. It’s a good idea to start near where you work, live, and/or commute. When talking to merchants about the ATM business, make sure you emphasize a few key features and benefits of having an ATM such as:
- More cash in your customers’ hands so they spend more money
- Lower credit card usage so you save on processing
- Eliminate the need to send customers across the street or next door to use an ATM so they stay in your store and get cash to spend now
What do I have to pay ATMDepot for processing? What’s my monthly fee?
Answer: There are no monthly fees, statement fees, or monthly minimums when processing with ATMDepot. Basically, you don’t pay us anything. Processing is free. We give you the full surcharge and depending upon your total transaction volume you may be able to get a little more. The only fee you might encounter is for a wireless communication device. If you are connecting your ATM using a wireless device, the corresponding monthly fee will be charged by way of the payment option you selected.
Follow-Up Question: So how does ATMDepot get paid? Is there a catch?
Answer: No catch. We get paid by the networks via our processing center for helping you manage your business, getting your paperwork in order, handling your ATM services, and providing full-service support. That way you can concentrate on sales while we handle everything on the backend.
If I have a machine, can I still process with ATMDepot?
Answer: Yes, of course. We have to make sure it’s a late-model ATM or it has been properly upgraded and is compliant with network regulations. Simply email us your ATM make and model and we can let you know how to get it up and running.
JOIN OUR MEMBERS AREA
If you’re really serious about starting an ATM Machine Business, our Members Area is for you.
Get access to sales scripts, videos, and an editable sample ATM Business Contract in ATMDepot’s Members Area.