The ATM industry remains robust, with billions in cash transactions annually across the U.S. According to recent reports, Americans made approximately 5 billion ATM transactions in 2023, and demand remains high in cash-heavy locations like convenience stores, bars, and entertainment venues. ATMs can be profitable, but it’s essential to start with a well-planned approach to avoid common pitfalls.
1. Expecting Instant Profits
Many new ATM owners think money will start flowing immediately. However, success comes from choosing the right locations and understanding transaction volume. Research areas with high foot traffic like convenience stores and bars, and take time to study your potential customers.
2. Cutting Costs by Buying Used ATMs
While used ATMs might save money upfront, older models can have hidden issues, like outdated software or frequent breakdowns. Plus, old machines may not meet today’s security standards, like EMV chip readers and PCI-compliant keypads, which protect against card fraud. Investing in a newer, compliant machine can save you future headaches and costs.
Best ATM Models to Consider:
Genmega: Known for easy maintenance, user-friendly design, and a built in camera "GenCam"
Nautilus Hyosung: High-tech, compliant models with built-in security features.
Keeping your ATM stocked with cash is essential. Each machine’s cash needs vary depending on traffic and transaction frequency, but running out of cash too often means lost business. Plan based on location, refill schedule, and holidays or events that might increase traffic. If you have multiple machines, monitoring and managing cash refills can prevent costly, unnecessary trips.
4. Skipping Required Upgrades
Compliance is crucial in the ATM business. Your machine must meet PCI standards for data security and support EMV chip cards for fraud prevention. Failing to comply can lead to fines and loss of customer trust. Newer machines are typically compliant but always check with the manufacturer.
5. Skipping Dedicated Banking Relationships
Working with a bank that understands the ATM business is essential. Many banks hesitate to work with ATM owners, but a dedicated bank account is vital for managing cash flow and establishing trust. Look into local banks or credit unions and explain your business plan to ease concerns and build credibility.
6. Setting Too Low or Too High a Surcharge
Some operators set their fees low to attract users, but this can limit profitability. Review what competitors charge in similar locations, and set a fee that provides value without cutting into your profits. Slightly higher fees are usually accepted in areas where convenience is a priority, like bars or tourist spots.
7. Choosing Low-Traffic or Inaccessible Locations
Location is everything. High-traffic areas like convenience stores, gas stations, and entertainment venues tend to yield higher transaction volume. However, low-traffic spots can be costly without foot traffic. When selecting a location, consider its visibility, competition, and whether it’s easily accessible at all times.
Steps for Finding the Right Location:
Research High-Traffic Spots: Look for convenience stores, bars, and areas with steady foot traffic.
Talk to Local Business Owners: Offer a portion of surcharge revenue as an incentive.
Check Nearby ATM Competition: Ensure your location is convenient without too many competing ATMs
Components That Boost ATM Reliability
Reliable equipment is crucial in the ATM business. High-quality machines from trusted manufacturers offer dependable performance and include necessary components like cash dispensers, secure card readers, and fast connectivity.
Cash Dispenser: Prevents jams and ensures quick transactions. Secure Keypad & Card Reader: Protects user information. Dependable Connectivity: Ensures fast, reliable transactions every time. Check ATMDepot’s Equipment Guide for compliant machines and helpful insights.
Ready to Start Your ATM Business?
With a solid plan, you can avoid these common mistakes and build a profitable ATM business. Start by investing in dependable equipment, picking high-traffic locations, and maintaining compliance for customer safety. For more resources, check out ATMDepot.com for equipment, placement tips, and guidance on setting up your ATM business.
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Are you equipped to handle your own ATM business start up? An ATM business is the ultimate side hustle because of its simplicity. But that doesn’t mean you have to go it alone. In fact, we highly recommend that you don’t. Why not learn from and rely on others with years of experience to get up and running as quickly as possible and with minimal mistakes?
If you are interested in an ATM business start up but don’t know where to begin, there are resources for that. If you don’t know how to fund an ATM business start up, there are resources for that. And if you don’t know how to maximize your profits once you’re in business—you guessed it—there are resources for that, too!
One of the best things about an ATM business start up is that it is so accessible. You don’t have to have any particular education, training, or experience to be successful! All you need to be is resourceful.
Starting an ATM business can be a profitable venture for anyone. Here are some valuable resources and tools that can provide you with the knowledge you need to get off the ground.
1. ATM Industry Resources
The ATM Industry Association (ATMIA) was created in 1997. It is a global nonprofit trade association established to service the ATM industry. It offers resources like guides on starting ATM businesses, compliance, and best practices. They also offer educational webinars and conferences.
The National ATM Council (NAC) is another nonprofit trade association that provides resources, support, and industry updates for ATM operators in the U.S. This council has dedicated itself to ethically and effectively representing the business interests of ATM owners, operators, and suppliers in their efforts to provide safe, secure and convenient delivery of cash to consumers.
However, for more personal, localized support, seek resources from other organizations and mentors, too.
2. ATM Equipment Suppliers
You can get information on ATM equipment from the major manufacturers themselves: Nautilus Hyosung, Genmega, and Hantle. Reaching out to these suppliers can provide you with information on machine costs, features, and other equipment or technical support.
ATM distributors like ATMDepot can provide you with these resources as well. ATMDepot offers a complete array of ATM equipment (new, used, and certified refurbished). This includes the full line of Hyosung, Genmega, and Triton machines as well as BITCoin sidecars, and Crypto Kiosks.
ATMDepot can quote you on any ATM machine even if it isn’t listed on the website. Simply inquire if you have a specific ATM model in mind. An ATM Machine purchase is not required for our ATM processing services.
Many distributors offer bundled services like machine equipment, transaction processing, installation, maintenance, and more. In addition to receiving equipment support, for example, ATMDepot offers free ATM processing even if you’ve already purchased equipment from somewhere else. Another benefit of purchasing equipment from an ATM distributor rather than from the manufacturer is that you can typically get a discounted price!
3. Training and Educational Resources
Websites like Udemy or Coursera may have online courses on ATM business start up basics including compliance, customer service, and technical maintenance. But to ensure you are getting the best information for your time and money, you want to seek out mentors you know you can trust.
This might be someone you know personally who has experience in the industry. Or it might be someone with an established reputation for expertise and success. Join networking groups or seek out mentors with experience in the ATM business who can provide guidance and insider tips.
Be wary of anyone promising to make you rich, though. Those ATM business “gurus” have established entire fleets of ATM machines in order to generate the thousands of dollars they advertise. That kind of profit isn’t the norm for the average ATM business operator.
Instead, seek out an ATM business mentor who can really walk you through the process from start to finish of owning and operating your first ATM machine. Then, once you start generating revenue, you can look into scaling your business.
ATMDepot.com’s own founder and CEO, Noah Weider, created the ATM Business Road Map specifically for this purpose. With decades of experience behind him, Weider is motivated by the growing need for successful local ATM business owners and a desire to help them generate residual income.
4. Support and Community Resources
You can also find support online and in your own community. Reddit has an ATM business subreddit where you can connect with other operators for advice, support, and troubleshooting. There are a number of ATM business Facebook groups like ATMDepot’s ATM Business Entrepreneurs. Even general entrepreneurial groups can be helpful.
5. Financial and Accounting Resources
ATM Business Start Up Funding Resources
You might be wondering where you’re going to get the money for your ATM business start up. Well you might not have to look very far. There are a number of ways you can start an ATM business with no money saved up. Your resources might include major credit cards; loans from friends, family, and/or a potential business partner; a line of credit with your bank; ATM leasing; or even an ATM business equipment financing program.
ATM Business Start Up Bank Account Resources
You will also need to open an ATM business bank account. Unfortunately, not all banks accommodate this. Your number one resource here is your own, current bank. Let them know what you need and find out what they can do for you. It’s a good idea to start where you already have a good, established relationship (and multiple accounts). This is imperative to a healthy ATM business banking relationship.
If your bank does not accommodate ATM business bank accounts, maybe they know of one that does. If all else fails, check out these best banks for ATM business. You can even search for the most accommodating branches in your state!
Accounting and Bookkeeping Resources
Once you start generating revenue, you’ll need to keep track of your finances. This is how you will measure your return on investment (ROI) and in turn your profit. Accounting software tools like QuickBooks, Wave, or Xero can help manage your business’s finances, track profits, and keep tabs on expenses.
But your number one resource will be your remote monitoring dashboard. This is set up by your ATM processor and keeps a digital record of all ATM activity. Use this to monitor your machine’s activity frequently so that you can make the most informed decisions about cash vaulting, address anomalies, and keep track of what goes into and what comes out of your machine and when.
6. Location Resources
You can visit your local chamber of commerce for help identifying locations that might be in need of ATM service. These could be areas that frequently experience heavy foot traffic during select events, businesses that are cash only, or new businesses that might not have been approached or sought out ATM service yet.
Google Maps is another popular resource for scoping out locations. Google Maps allows you to see where ATM service is already offered and where you might be able to fill a gap in the market. You can also use Google Maps to get street views and read reviews of businesses you might be considering approaching.
You want your ATM to get a lot of business, so locations that are popular are going to be the best ATM locations. Google, Yelp, and other reviews can let you know whether a business is one you are interested in working with. A location’s reputation could affect your own business.
Some of your best results, though, are going to come from local networking. Connect with local business owners and managers who may need an ATM in their establishment. Bars, restaurants, gas stations, and convenience stores are common ATM locations, especially ones that you frequent and have already built relationships with!
7. Marketing Resources
Once you have your equipment and you’ve found a location in which to install it, you want to draw attention to it and maybe even consider placing more machines! You can use some of the revenue generated by your first machine to do some light marketing.
It’s a good idea to have business cards and flyers printed out and ready, even before you get your first placement. ATM business cards are useful if you find yourself in an unexpected conversation. Who knows? Offer a business card, and maybe you’ll get a lead! Referrals are much easier when you have business cards at the ready.
ATM business flyers are better for leaving information behind when you are unable to speak with the location owner in person or when the location owner is hesitant. Flyers provide more information than business cards which allows location owners to think about your service and offer without the pressure of making a decision on the spot.
Services like Vistaprint or Canva allow you to create business cards, brochures, and other marketing materials to attract potential clients (businesses that may want your ATM installed). For the environmentally conscious, dot. is a new business card technology that allows you to share your details digitally from smartphone to smartphone!
And, of course, you can build your brand through any number of social media platforms. Add a link to your very own custom independent ATM deployer web page. ATMDepot’s team of professional web designers can create an affordable web design for your local ATM business and add you to the ATM Providers Near Me Directory, giving your ATM business instant credibility.
Your ATM Business Start Up Is Ready!
If uncertainty and lack of information was holding you back from getting your ATM business start up off the ground, now you have a host of resources that say otherwise. There is no shortage of information, advice, and resources available to you.
There are no secrets when it comes to starting an ATM business. At the end of the day, all you really need is a clear goal and tenacity. Thousands of people have been where you are and are eager to share their knowledge and advice. Contact ATMDepot with any questions you might have, and get started today!
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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
Legal Compliance
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!
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If you want to start a profitable business in 2024, you might want to consider looking into an ATM business. But how do you define “profitable” and how much profit do you want to make? An ATM business won’t get you rich, but it is a safe investment that can generate revenue immediately and turn a profit quickly.
With the increase in digital forms of payment, you might be concerned that cash will soon become obsolete and therefore ATM machines. Although Americans are using cash less, we are still very far from getting rid of it altogether.
So yes. An ATM business is still a profitable business in 2024. Here, we’ll tell you what that looks like.
What Does It Mean to Be a Profitable Business?
A profitable business makes more than it spends. The money that a business generates is its revenue. What’s left over after startup and operational costs are covered is profit.
There is typically a relatively high degree of risk when starting a business because of the high startup and operational costs. The business has to see enough customers, retain enough clients, make enough sales, etc. to justify those costs. Otherwise, the business costs more to operate than it makes, it doesn’t generate profit, and it fails.
Because of its low startup and operational costs, an ATM business is a lot less risky. It’s actually very difficult to lose money with an ATM machine.
How Is an ATM Business a Profitable Business?
How an ATM Business Generates Revenue
An ATM business generates most of its revenue from the surcharge fee imposed on transactions made on the machine. Most of the ATM machines you see on a daily basis charge about $3.00 per cash withdrawal.
The most basic way to calculate your profit is to multiply your surcharge fee by the number of transactions you expect to see in a day. For example, $3.00 times 5 customers equals $15. Multiply that by the number of days your machine is available to the public to estimate weekly, monthly, and even yearly totals.
Now, if you consider that an ATM machine plus the vault cash is around $3,000-$4,000, you’ll have that paid off plus more in the first year with the above numbers. So yes, an ATM business is a profitable business. It is very easy to make your return on investment (ROI) very quickly and therefore begin to profit.
Other Ways to Profit from an ATM Business
While you won’t get rich with an ATM business, there are other benefits an ATM business offers over other businesses. First, an ATM machine generates income while you sleep (or just do other things).
When you think of the time and energy involved with running an average business, you might find that the profit doesn’t compensate you enough for the non-monetary resources you invest. An ATM business, on the other hand, doesn’t require your physical presence all of the time.
This allows you to spend your time doing other things, whether it’s enjoying your free time, working another gig, traveling, or spending time with friends and family. These can be considered profits, too, which many other businesses don’t offer.
Second, there are many headaches you don’t have to handle with an ATM business. You don’t have to manage employees, rent an office or lease or purchase property, or even wake up early! You can monitor and manage your ATM business all by yourself if you want to, with an app on your phone, from the comfort of your home.
And, you can scale if you want to. Want to see more profit than you’re getting from one machine? Place another! With 10-12 machines, you could make the ATM business your full-time job, physically spending only part-time hours away from home. Say goodbye to job interviews, job security stress, bosses, coworkers, dress codes, and the rest!
Better Investment Than a Savings Account
Like we said before, it’s hard to lose money with an ATM business. You probably already have $3,000-$4,000 in a savings account at the bank. As of January 2024, the national average yield for savings accounts is 0.58 percent APY.
That money, sitting there doing nothing will earn maybe $20 in a year in interest. Do you think you could get at least 7 ATM transactions in a year? We think you can! Investing in an ATM business will yield you more than the money you have sitting in your savings account at the bank right now.
Will Cash Soon Become Obsolete?
This might all sound great, but how long will it last? Take it from us: cash will not become obsolete in our lifetime. There are still way too many industries, businesses, and individuals that depend on it. Just because we are seeing less cash payments does not mean cash is irrelevant. It just means there are more payment options today for consumers.
It makes sense that there are less cash payments today than there were in the ’50s and ’60s when credit and debit cards just hit the market. Today, in addition to cash and plastic, money transfer apps and an entirely new form of currency—cryptocurrency—have been added to the arena. But that doesn’t mean that we don’t still need cash.
According to the Pew Research Center, over half of Americans try to keep at least some cash on them at all times. And cash is still the most common form of payment for unbanked and low-income individuals.
In short, although cash is used less today than ever before, it is still relevant. And as long as there is a need for cash in our society, there will be a need for ATMs. Which means that an ATM business is still a profitable business in 2024!
Reasons Why an ATM Business is Still a Profitable Business in 2024
An ATM business is still a profitable business in 2024 because people still need cash. Where there is a market, there is an opportunity. All you have to do is find a gap in that market, offer a needed service, and reap the rewards.
It only takes a few thousand dollars to get started, significantly less than other businesses. And your ATM makes you passive income—you can be making money while you sleep! If you already have the money sitting idly in a savings account, you might as well put it to work for you!
Will an ATM business buy you a Lamborghini? No. But it could help you fund a vacation, spend more time with friends and family, or replace your 9-5 if you want it to.
If you’re ready to get started in the ATM industry, get your ATM start-up kit today! If you still have more questions about how to own and operate your own ATM machine, check out ATMDepot Academy, your ATM business road map to generating a steady flow of passive income.
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Becoming an independent ATM deployer (IAD) is a great way to generate passive income. It can also become your main source of income depending on your individual goals. But while becoming an IAD is quite simple, it isn’t necessarily easy.
There are some industry ins and outs you will need to become familiar with before you really get going. So you will have to put a little work into getting started. Fortunately, there are a ton of resources and experienced IADs available to help you every step of the way (and there really aren’t that many steps).
To help get you past any pre-business jitters you might be experiencing or any other obstacles that might be standing in your way, we’ve compiled a list of the most frequently asked questions from new IADs. Our hope is to remove as many hurdles as possible so that you feel confident going into business for yourself as an IAD.
What is an Independent ATM Deployer?
An IAD is an individual (or a company) who owns and operates ATMs without being affiliated with any specific financial institution. A common misconception is that all ATMs are owned by banks. But ATMs can be deployed in various locations such as retail stores, gas stations, salons, and other public places. Just like bank-owned ATMs, independent ATMs offer cash withdrawal and sometimes additional services like balance inquiries and transfers.
An IAD works with an independent sales organization (ISO) that provides processing. This is how an independent ATM machine is able to communicate with users’ financial institutions to provide account information and approve or deny withdrawal requests. It is an IAD’s job to purchase ATM equipment, place it in a location that provides customers with convenient access to their accounts, and maintain the machine to keep it functional.
How Can I Become an Independent ATM Deployer?
You can become an IAD in just a few simple steps. First, there is some documentation you need to prepare. You will need to prove your identity, pass a background check, and complete any agreement forms required by your ATM processing company. This documentation might include your ATM business bank account information so that the processing company knows where to send your settlement funds and surcharge income (more on this later).
You also need to find a bank that will work with your ATM business. This can be tricky, so keep reading for more information on finding a bank to work with. Next, you want to purchase your ATM equipment. This can include the machine and any upgrades or ad-ons you’d like. At the very minimum, you will need a machine. The rest can come later depending on your budget (cost estimates coming up next!).
Once you have the ATM machine, you can begin to learn the functions (most new ATM machines come preprogrammed). Review the manual, test it out, and practice operating it. The only thing that’s left to do is to find a location to place it.
When you find a location that can benefit from having an ATM onsite, and the location owner agrees to work with you, you can plug the machine in, connect it to the internet, load it with cash, and start making money! And THAT is how you become an independent ATM deployer.
How Much Does It Cost to Start an ATM Business?
There are some startup costs associated with starting an ATM business, just like there are with any business. However, compared to most other businesses, ATM business startup costs are fairly low. The biggest expenses will be the purchase of the machine itself and the cash you use to vault the machine.
ATM Equipment
We recommend that new IADs start with a new ATM machine. They are user-friendly, compliant, programmed, and typically experience fewer technical problems. New machines run from around $2,000-$3,000 depending on the size and manufacturer. Of course, you can find used and refurbished machines for a little less, but they also come with a modicum of risk.
Once you feel a little more comfortable and confident with ATM equipment, you can look into used and refurbished machines for future placements. But you will want to make sure that all faulty parts have been replaced or repaired, software has been updated, and that it is compliant.
Vault Cash
The other major startup cost is the vault cash. This is the cash that you load into the machine to be dispensed to your ATM users. Plan to start with about $2,000.
At the end of each business day, your ATM processing company will deposit the sum of all cash withdrawn from your machine back to your settlement account, or your ATM business bank account. Then, you can withdraw the funds back from this account when you are ready to restock the machine, so on and so forth. Vault cash is yours at the end of the day, but it is tied up in your machine, so try not to think of it as cash you are able to use.
Other Costs
Other costs associated with operating an ATM business include receipt paper, any cleaning supplies you need to maintain your machine, travel to and from the machine, insurance if you have the budget to purchase it right away, and a wireless device.
It’s a good idea to just invest in your own internet connection from the start. That way you don’t have to rely on the location’s internet service. If their internet goes down, you will be at their mercy and that of their service provider to get back up and running. And the time that your machine isn’t operational is time that you aren’t making money.
How Can I Make Money as an Independent ATM Deployer?
You make money as an IAD from the surcharge fee. This is the fee that you set for each transaction made on your machine. It’s the price your customers pay for convenient access to their accounts. A standard surcharge fee is about $3 but can be as high as $8 and even more in some locations. It depends on the type of location, average withdrawal amount, and convenience of the ATM.
Before you can start to make a profit, you need to make back as much as you put into the business. Your surcharge fee and revenue split with the location owner will determine how quickly you make your ROI and can begin to profit.
You can expect to make a few hundred dollars a month, a few thousand a year, with one machine. But remember that this is passive income. Your machine makes money while you work your day job, travel, sleep…. Once you get the hang of the business, you can start adding more machines to your portfolio. Soon, that few thousand a year can turn into tens of thousands a year so that you are making full-time income.
How Do I Get a Bank Account for an ATM Business?
It can be tricky to get a bank to work with your ATM business. Because of the cash-heavy nature of the business, banks can be held liable for your business practices. Therefore, banks that handle ATM business accounts are subject to costly audits to help monitor and prevent money laundering.
Our number one tip when it comes to finding a bank is to start where you already have a good relationship. If you already know your bank manager or tellers well or have had accounts with them for years, make an appointment to speak with someone about opening an account for your ATM business.
Some banks will flat out say no; some banks don’t handle these types of accounts at all. Others might use their discretion on a case-by-case basis. So if you are turned down from one financial institution, be polite, patient, and understanding, and move on.
To make yourself a more appealing customer, offer to open multiple accounts. The more products and services you purchase, the more lucrative you will be as a customer and the less likely the bank will be to close your ATM business account. Your settlement account will often have a low balance as you withdraw the funds to vault your machine, and it will take extra time and money for the bank employees to order and count enough cash for your business needs. So prove to them that you’re worth their time.
Some IADs have success at banks that others don’t and vice versa. Our list of ATM business-friendly banks is a good place to start, but don’t rule out local, regional, community banks. Sometimes, they are under less scrutiny than tier 1 financial institutions and might be more likely to take on your business.
How Do I Find a Location for an ATM Deployment?
There are a few tips to keep in mind when it comes to looking for a location to place your ATM machine.
The first, again, is to start where you have good relationships. What are some businesses that you frequent and even know some of the employees? This could be a good way to get your foot in the door or even get a referral.
Look for gaps in service. Where do you see a need for an ATM where there currently isn’t one? Find out who owns the location or property and see if they wouldn’t mind a free ATM placement.
And obviously, look for places that experience a lot of foot traffic like shopping centers, event areas, or other attractions. Statistically, the more people who pass by your machine, the more transactions you are likely to see. Cash-only locations are great spots as well as new businesses that haven’t been approached yet for ATM service.
Even if a location already has a machine, find out if they are happy with it. It doesn’t hurt to ask, and you could end up replacing someone else’s machine that’s been neglected.
What Are the Advantages of Becoming an Independent ATM Deployer?
There are many advantages to becoming an independent ATM deployer. First and foremost is being your own boss. Each ATM business looks different. There are a lot of decisions you get to make based on your own specific situation, needs, and goals. Your ATM business is yours to curate.
That includes curated responsibilities. As an IAD, you can outsource any aspects of the business you can’t or don’t want to handle, whether it be vaulting or cleaning or maintenance.
Which brings us to the most appealing advantage of becoming an independent ATM deployer: generating passive income. Your ATM machine works with very little onsite effort from you. Aside from loading the machine and regular cleaning and maintenance (all of which you can hire out if you want), you can go about your regular life and watch those revenue deposits hit your account.
Finally, the ATM business is scalable. Want to make a little more passive income? Place a second machine. Want to replace your 9-5 income? Invest in 10 or more machines. You’re in control. And you don’t even need any official business or entrepreneur education, training, certification, or experience to get started.
What Are the Challenges and Risks Associated with Being an Independent ATM Deployer?
Like any other business venture, there are some challenges and risks associated with being an IAD. But there are also ways to mitigate and handle them.
Challenges
The first challenge might be the initial funding. However, since good ATM machines are about $2,000-$3,000, you can sometimes find credit companies that offer little to no interest for 12-18 months. That gives you time to get your business up and running so that you can start to pay off your machine as soon as you start to generate income rather than purchasing the machine outright.
Another big challenge for IADs is finding and negotiating locations. But there are a couple of things to remember here:
First, you don’t have to limit your search to locations without an ATM machine. You could be looking for machines that are old, unkempt, or frequently out of order. This could be a great opportunity to approach a location that clearly wants ATM service but can’t keep up with it on their own or is dissatisfied with their current provider.
Second, it helps instill confidence in new IADs to remember that they aren’t selling anything. As an IAD, you are offering a service—for free—that benefits the location and its customers.
There are a number of objections you might encounter when approaching location owners to negotiate a placement. But with preparation, practice, and active listening skills, you can become better at addressing these.
An obstacle that isn’t unique to the ATM business is imposter syndrome. It can be particularly daunting to try to negotiate a deal when you don’t have any experience under your belt. But you can also spin this in your favor by emphasizing your dedication to just ONE machine and your motivation to provide service that’s good enough for a referral or recommendation in the future.
Risks
As with any business, again, you risk not making money. But unlike other businesses, your ATM investment probably won’t bankrupt you, and you can always move your machine to a better-performing location.
Actually, let us take that back. It’s really hard to lose money with an ATM business. As long as it’s up and running, if someone uses it, it will make money. However, it might not bring in enough quickly enough, and that is a potential risk that can be solved by relocating the machine or adjusting your signage, advertising, surcharge rate, and/or incentives.
Safety and security can be a risk as well. When it comes to the safety of your business, just make sure you protect yourself with contracts. There are templates you can use and industry experts you can borrow from without having to get a lawyer involved.
When it comes to the safety and security of your machine, there are lots of things you can do to protect your assets. You can also prevent potential risks and unnecessary challenges by avoiding some of the most common small business mistakes.
How Can I Ensure the Safety and Security of My ATMs?
The first thing you can do is to purchase general liability insurance. There are other, more comprehensive policies you can invest in, too, but general liability is pretty standard. While insurance isn’t preventative, it can provide you with peace of mind and protect you in the long run.
Second, use common knowledge. Make sure that the machine is within eyesight of employees and/or security cameras (some machines come with a camera which is a great way to deter crime). Don’t place the machine in an area that is easy to breach like near doors or windows. If you want to, you can invest in your own surveillance system (cheap cameras can be purchased on Amazon, for example) or GPS tracker for your cash. And bolt down the machine. Don’t let a location owner talk you out of it.
Most of the time, a simple sign that announces that the machine is under constant surveillance is enough to deter criminals. But try to predict weaknesses or potential points of ingress and reinforce them. Blocking the machine against a wall or other furniture can prevent both external attacks and internal attacks like software hacking.
Maintaining current software updates can help protect your customer data as well. And keeping up with compliance changes can help protect you and your customers.
Finally, keep an irregular vaulting schedule. Don’t make it easy for someone to predict and plan when you and the machine will be vulnerable. It’s also a good idea to vault the machine outside of the location’s hours of operation so that there is less foot traffic during vaulting.
Is An ATM Business Worth It?
Only you can answer this question. We will say that an ATM business is worth it for thousands of IADs in the United States. If it works for them, it could work for you. You don’t need any official education, training, certification, or experience to get started in the ATM business. And once you get past those few initial steps, you can start making money immediately with little to no marketing efforts.
Your success as an independent ATM deployer is completely up to you. The process is simple, but don’t expect it to be easy. It will require some effort. You will need to plan, be organized, and make well-informed decisions. Fortunately, you don’t have to do any of it alone.
If you work with an ATM processing company like ATMDepot.com, they will walk you through each step. Do your research, ask lots of questions, and start making passive income! How much is up to you. Ready to get started? Get your free ATM start-up kit today!
https://i0.wp.com/atmdepot.com/wp-content/uploads/2023/07/IMG_5103.jpg?fit=1080%2C1080&ssl=110801080Amber Ivenhttps://atmdepot.com/wp-content/uploads/2022/12/ATM-Depot-Logo.pngAmber Iven2023-07-26 06:14:412024-10-25 14:53:48Becoming an Independent ATM Deployer: FAQs
