Tag Archive for: atm business owners

How Do You Pay Yourself as a Business Owner?

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If you are thinking about starting an ATM business, or any business for that matter, you might be wondering how do you pay yourself as a business owner. When you start your own business, it’s easy to focus on customers, products, and growth and forget one big question: how do you actually pay yourself?

Whether you’re running a one-person freelance operation or managing a small company with employees, paying yourself the right way is crucial for both your finances and your business’s long-term health. Especially in the ATM industry, how do you keep your revenue separate from your business expenses? And how do you calculate your profit? 

In this article, we’ll break down your options and how to do it correctly.

How Do You Pay Yourself as a Business Owner: By Business Structure

How you pay yourself depends first and foremost on how your business is legally set up. The IRS treats each structure differently when it comes to income, taxes, and distributions. 

Sole Proprietorship

If you’re a sole proprietor, your business and personal finances are legally the same. You don’t get a “paycheck”. Instead, you simply draw money from your profits. This is called an owner’s draw and is the most common route for independent ATM deployers (IADs).

With this structure, you’ll pay self-employment taxes (Social Security and Medicare) on your net income so it’s smart to set aside about 25–30% of your profits for taxes.

Partnership

Partners usually take owner’s draws as well based on their share of the partnership’s profits. Therefore, you’ll also pay self-employment taxes on your share. If you are entering into a partnership, make sure your partnership agreement clearly outlines how and when draws are made.

Limited Liability Company (LLC)

How you pay yourself as an LLC depends on whether you’re a single-member or multi-member LLC and whether you elect to be taxed as an S corporation.

In a single-member LLC, you take an owner’s draw, similar to a sole proprietor. In a multi-member LLC, each member takes draws according to ownership percentage.

LLCs can also be taxed as an S corporation. In this scenario, you can pay yourself a reasonable salary through payroll and take dividends/distributions from profits often with potential tax savings.

Corporation (C Corp or S Corp)

If you’ve incorporated, you’re both an owner and an employee. In a C Corporation, you receive a salary as an employee; dividends may be taxed separately. In an S Corporation, you must pay yourself a “reasonable salary” and can also take dividends.

When determining which structure to use when you legally set up your business, consider these distinctions and IRS guidelines. For more information about how to structure an ATM business, check out our article Do You Need an LLC for ATM Business?

Salary vs. Owner’s Draw

There are two terms for business owners paying themselves: salary and owner’s draw. If you’re taking a salary (S Corps, C Corps, LLCs taxed as S Corps), you’ll set up payroll and withhold taxes just like you would for an employee. An owner’s draw is when you take money out of your company’s account for personal use. 

As an IAD (sole proprietors, partners, LLCs), you will probably take a draw—it’s a simple way to pay yourself. However, the funds are considered taxable income and are therefore subject to self-employment taxes. So, it’s more flexible than a salary, but it requires discipline to budget for taxes and business expenses. 

How Much Should You Pay Yourself as a Business Owner?

There is no set number, percentage, formula or one-size-fits all answer to the question of how much you should pay yourself as a business owner. However, there are some guidelines you can use to help you gauge this:

First, make sure your personal needs are covered. Consider your minimum monthly take-home number for rent, bills, and other essentials. 

Then, reinvest in your business. Avoid draining your profits early on. Leave enough cash to fund operations, market, or set aside for emergencies or upgrades.

It’s also a good idea to base your pay on business performance. If profits fluctuate, consider a lower base pay and quarterly bonuses when income is strong. (For S Corp owners, the IRS requires that your salary be “reasonable”—in line with what someone doing your job would earn.)

Since many IADs at least start their ATM businesses as side hustles, these guidelines may not necessarily apply. A regular or full-time job may be covering rent and regular bills. In that case, your profit from your ATM business simply goes into your pocket less the amount you want to reinvest in your business.

How Do You Pay Yourself as a Business Owner: Best Practices

Even if you’re the only person in your business, it’s important to separate your finances to keep things organized, clean, and compliant. Therefore, you should open a dedicated business bank account, use accounting software, automate transfers, and save for taxes.

A dedicated business bank account helps ensure that you don’t use business funds to pay for personal expenses and vice versa. As an IAD, you’ll want two business bank accounts: one from which to withdraw and settle the vault cash for the ATM and a second one into which surcharge revenue is deposited. 

Accounting software like QuickBooks or Wave can help you to track payments and expenses. Don’t forget to allocate a percentage each quarter to taxes, maybe in a separate tax account.

These best practices simplify bookkeeping and make your business more professional.

How to Pay Yourself as an ATM Business Owner (IADs)

If you operate an ATM business—especially as an IAD—the same principles of paying yourself apply, but the cash flow and accounting setup look a little different.

Your income doesn’t come from invoices or client checks; it comes from surcharge fees. Because of that, how you pay yourself depends on how your business is structured and how you manage those cash flows.

Here is what paying yourself might look like as an IAD:

Separate Business and Personal Cash

Keeping business and personal cash separate is especially critical in an ATM business where literal cash is constantly moving. Maintain a dedicated business bank account for surcharge deposits and vault cash management. 

Never take cash directly from the ATM for personal use because it complicates tracking and may raise red flags with processors or regulators. Instead, transfer your profits electronically into your personal account as your “pay.”

Determine What “Profit” Really Means

In the ATM world, “gross surcharge revenue” isn’t the same as profit. Before paying yourself, you must account for a few deductions. These might include processing/network fees, vault cash replenishment, split commissions with location owners, maintenance costs, insurance, internet/telecommunications, repairs, etc. 

What’s left is your true net business income, and that’s where your pay comes from. Check out our article “Is an ATM Business Profitable: How Much ATM Business Owners Make” for more information about how to calculate ATM business profit.

Build a Predictable Payout System

ATM income can fluctuate with transaction volume, so consistency is key.

You can transfer a fixed amount to yourself each month as base pay, then add quarterly bonuses if profits exceed expectations. Use accounting software to track each ATM’s performance and your total net cash flow. And always leave enough in the business account to replenish vault cash and cover service costs.

Keep Tax and Regulatory Compliance in Mind

Because ATM businesses deal with cash and financial networks, your business draws more scrutiny from banks and regulators. To protect yourself, keep accurate digital records of every transaction and payout. You can do this through remote online monitoring of your machine activity. This service should be offered by the processing company you work with. 

Pay self-employment or payroll taxes on your compensation depending on your structure. If your business has partners or investors, clearly document how profits and distributions are divided. If necessary, consult an accountant experienced with ATM operators. They’ll understand the nuances of reporting surcharge revenue and managing cash float.

How Do You Pay Yourself as a Business Owner: The Bottom Line

Treat your paycheck like any other business expense. The more intentional you are about how and when you pay yourself, the stronger and more sustainable your business will be.

For ATM owners, your business might run on quick access to cash, but your pay shouldn’t. Treat your ATM income like any other small business revenue—run it through your books, pay yourself strategically, and always keep tax and vault funds separate. The result is smoother operations, cleaner records, and sustainable profit for the long run.

Still have questions about how do you pay yourself as a business owner in the ATM industry? Don’t hesitate to contact us at ATMDepot before starting your own ATM business. There’s money to be made—we can help!

Bookkeeping and Taxes for ATM Entrepreneurs: Why Zoho Books Is the Smart Start

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Disclaimer: This is not tax advice. I’m not a CPA. Always check with a qualified tax professional before making financial decisions. What follows is based on real-world experience in the ATM business, plus what works for many independent ATM deployers (IADs) just getting started.

Why Bookkeeping Matters in the ATM Business

When you’re new to the ATM business, it’s easy to think:

  • “I’ll track deposits in my bank account.”
  • “I’ll remember what I spent on paper and modems.”
  • “Taxes? I’ll deal with them when April rolls around.”

That approach works for about three months… until:

  • You forget which deposits are surcharge revenue vs. vault cash cycling back.
  • You scramble to find receipts for ATM supplies.
  • You miss deductions that could have saved you thousands.

Good bookkeeping isn’t busywork. It’s the foundation of:

  • Clear financial reporting
  • Stress-free tax preparation
  • Understanding which ATMs make money and which need to be relocated

And here’s the truth: your ATM business may be small at first, but the IRS doesn’t care. If you earn $1 or $1 million, they expect clean, accurate reporting.

How the ATM Business Works with Bookkeeping

Before diving into software, let’s clear up what you actually need to track:

  • Surcharge Income: This is your revenue. Every transaction generates a fee, and your processor pays it out to you.
  • Vault Cash: This refers to your money circulating in and out of the machine. It’s not income, but you need to track it so you know how much is tied up in ATMs.
  • Expenses: Wireless modems, receipt paper, ATM parts, travel costs, insurance, marketing, etc.
  • ATM Assets: The machines themselves. You’ll depreciate these for tax purposes (typically 5 years under MACRS).

If you try to track all this with just a bank statement, good luck. You’ll constantly mix up deposits, and when tax time comes, you’ll wish you had started earlier.

Why Zoho Books Free Plan Is a Great Starting Point

Here’s the deal:

  • Zoho Books is 100% free if your annual revenue is under $50,000.
  • When you’re starting, $50k revenue is usually half a dozen ATMs doing around $700–$800 each per month.
  • It could take 6 months to a year to hit that, unless you’re an absolute hustler placing machines nonstop.

That means you can run your books professionally, at no cost, during your startup phase. By the time you outgrow the free plan, your business should be making enough to cover paid software.

Pros and Cons of Zoho Books

Pros:

  • Free under $50k revenue
  • Cloud-based (log in anywhere)
  • Easy to use—much friendlier than spreadsheets
  • Automates recurring entries (like surcharge payouts)
  • Can connect to bank accounts for automatic imports
  • Generates basic tax-ready reports

Cons:

  • Not as widely recognized as QuickBooks (some CPAs prefer QuickBooks files)
  • Limited integrations compared to larger tools
  • If you outgrow the free plan, pricing jumps (though still cheaper than QuickBooks)
  • Payroll features are limited in the U.S.

For most new IADs, the pros heavily outweigh the cons.

Zoho Books vs QuickBooks vs Spreadsheets

Here’s the side-by-side:

FeatureZoho Books FreeQuickBooks OnlineSpreadsheets
CostFree under $50k$30–$90/monthFree (time cost)
Ease of UseBeginner-friendlySteeper learning curveDepends on your skills
ATM Specific SetupEasy to customize categoriesDoable, more complexManual formulas
ReportsGood basics (P&L, balance sheet)Excellent, advancedOnly what you build
ScalabilityUpgrade when you growScales easilyDoesn’t scale well
CPA FriendlySome CPAs less familiarIndustry standardCPAs hate it
AutomationBank feeds, recurring entriesBest-in-class automationZero

Verdict:

  • Spreadsheets are fine if you like pain, broken formulas, and staying up until 2 AM in April.
  • QuickBooks is powerful, but it can be pricey for beginners.
  • Zoho Books free plan is the sweet spot for new IADs.

Setting Up Zoho Books

Here’s how to get started. I’m not going to show actual screenshots of my setup and blur things, so show you with a simulated screenshot.

Step 1: Create Your Account

Welcome to Zoho Books
[Get Started for Free]
Track income, expenses, invoices and more—all in one place.
  • Go to Zoho Books and sign up for the free plan.
  • Use your business email (not personal Gmail) to keep things professional.

Step 2: Add Your Bank Account

 Banking  
[Link Bank Account]
No accounts linked yet
  • Click Link Bank Account.
  • Connect the account where your processor deposits surcharge or where you receive any other revenue (this is NOT your vault account).
  • This will let you automatically import transactions.

Step 3: Set Up Categories

ATM Revenue

 Record Income
Amount: $1,000 
Category: [ +Add New Category ] 

Notes: Processor payouts or Surcharge Income
  • Add new category: ATM Surcharge Revenue
  • Use this every time your processor deposits your surcharge share.

Vault Cash

Transfer Funds  
From: Business Bank Account
To: Vault Cash Clearing 
Amount: $5,000 
  • Create a category called Vault Cash Clearing.
  • This helps you track how much of your money is sitting inside ATMs.
  • Set aside a fixed amount that you will use for vault cash. You will always balance back to this amount, as vault cash funds are either in the ATM, in the vault cash account, or in transit after being withdrawn. This will be set up in a vault cash account at your bank (other than your income account).

Step 4: Generate Reports

Reports
Profit & Loss 
Balance Sheet
Cash Flow Statement
Expense by Category
  • Profit & Loss shows surcharge revenue minus expenses.
  • The Balance Sheet shows ATM machines as assets, and vault cash as clearing.
  • Expense by Category shows where your money goes.

Pro tip: Run these monthly. Don’t wait until tax season.

Basic Tax Strategies for ATM IADs (Not Tax Advice)

Here are the basics you’ll want to remember (and run by a CPA):

  • Separate accounts: Never mix personal and business.
  • Track mileage: Every trip to load or service an ATM can be deducted.
  • Depreciate machines: ATMs are 5-year assets. Depreciation saves you money.
  • Keep receipts: For supplies, wireless, repairs, and insurance.
  • Know your 1099-Ks: Your processor may issue them, but confirm income matches your books.
  • Quarterly taxes: If you’re profitable, set aside money and pay quarterly to avoid penalties.

Will you Outgrow Zoho Books?

The question is really whether you’ll want to upgrade or change when:

  • Your revenue is consistently over $50k (the Zoho Free version is limited to $50K)
  • You add employees or need payroll
  • You want more integrations with other apps
  • Your CPA insists on QuickBooks or other software for easier collaboration if you hire one

Options:

  • Upgrade Zoho to a paid plan (still cheaper than QuickBooks)
  • Switch to QuickBooks or Xero and import data
  • Export from Zoho before hitting limits

Final Thoughts

If you’re just starting your ATM business:

  • Don’t waste time with messy spreadsheets.
  • Don’t pay for QuickBooks before you need it.
  • Use Zoho Books Free Plan to track revenue, vault cash, and expenses.

You’ll learn good bookkeeping habits without spending a dime. And when you reach $50k revenue, congratulations — you’ll have other opportunities, such as deciding how to scale, rather than whether you can afford accounting software.

Web Page Benefits: 7 Reasons to Design a Custom ATM Web Page

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Web page benefits are numerous when it comes to scaling your ATM business. If you’ve been wishing that leads would just come to you, we’ve got the solution: a custom-designed web page. 

In today’s digital marketplace, even cash-focused industries like ATM operations can’t afford to overlook the power of an online presence. You as an ATM business owner rely heavily on visibility, trust, and accessibility to attract new partners and retain customers. A custom-built website offers ATM businesses more than just a digital storefront. It serves as a tool to showcase services, build credibility, and connect with merchants and customers in real time. 

From highlighting machine locations to offering partnership opportunities, a tailored web page can turn an ATM company into a professional, trustworthy brand that stands out in a competitive market. Keep reading to see how a custom web page can benefit you and how to get access to a done-for-you custom ATM business web page.

7 Web Page Benefits

1. Professional Branding and Credibility

A custom web page allows you to fully align the design with your brand identity. This might include colors, logos, tone, style, etc. specific to who you are and what your business represents. These brand indicators can be applied to other marketing tools, too, like social media pages, business cards, machine wraps, or even your clothing. Branding allows your specific business to be recognized on sight—you become who people think of when they need ATM service.

Strong branding also builds trust. It creates an image of professionalism and dedication. Especially when it comes to a web page, customers often view businesses with their own site as more legitimate than those relying only on social media or third-party platforms.

2. Full Control and Flexibility

Unlike template-based sites, you’re not limited in layout or functionality with a custom web page. You can add features tailored to your business. For example, consider adding one or more of the following:

  • ATM Locator Map (integrated with Google Maps)
  • Service Offerings (installation, operation, cash loading, monitoring, maintenance)
  • Partnership Opportunities (for retailers who want to host an ATM)
  • Testimonials and Case Studies (to build credibility with merchants)
  • Support/Contact Page (quick help for machine issues or merchant questions)

A custom web page also offers integration opportunities. Analytics can track which locations customers search for most. Interested retailers can use lead capture forms to request a machine. And customer support tools like live chat and FAQs can improve the customer experience.

3. Better User Experience (UX)

A custom web page can be designed around your customers’ needs, making navigation intuitive and improving engagement. You can streamline the journey so visitors quickly find what they’re looking for whether it’s services, products, or contact info. 

Publishing information like location finders and surcharge rates can make your ATMs more convenient than your competitors’. You also have the opportunity for mobile optimization. Many ATM customers are on-the-go, so a mobile-friendly design ensures users can quickly find ATM locations or services.

4. Search Engine Optimization (SEO)

A custom web page can be optimized from the ground up for search engines, giving you a better chance of ranking higher on Google. More organic traffic means less reliance on paid ads. 

SEO and visibility are the biggest web page benefits. It helps your business web page show up when people search “ATM near me” or “ATM services”. Featuring your custom web page on an already high-ranking website, like an “ATM providers near me” web directory, helps you be seen and get the traffic you need. 

Businesses that create custom web pages on high-ranking directories or websites improve visibility, credibility, and lead generation. This increases revenue and offers long-term growth. These benefits come from both the SEO boost and the trust that consumers place in reputable directories.

Enhancing your online presence and appearing in an “ATM providers near me” targeted directory listings significantly increases the likelihood of being discovered by local businesses actively seeking your services. It allows you to stand out in the digital landscape.

5. Scalability and Long-Term Savings

As your business grows, a custom web page can grow with you. New features, sections, or tools can be added without rebuilding from scratch.

When considering the upfront cost, remember that a custom web page can save money over time compared to paying for multiple plugins, subscriptions, or redesigns. And the value a custom web page provides in increased visibility and lead generation for merchant partnerships more than justifies the cost.

6. Improved Security

Custom web pages can be built with stronger security measures than other, ready-made platforms, reducing risks of hacking or data breaches. ATM businesses handle financial transactions, so websites need to reflect security and professionalism. On a custom web page, you can highlight SSL certificates, compliance messaging, and trust signals.

7. Competitive Advantage

A unique, well-designed web page sets you apart from competitors who may be using the same cookie-cutter templates. In this way, you communicate what makes your business distinct. Not to mention the advantage this visibility gives you over competitors with no online presence.

How to Reap Your Web Page Benefits

Lack the technical know-how, time, and resources to sit down and design your own web page? Skip the DIY. ATMDepot.com now offers a done-for-you custom ATM business web page service. Unlock the full potential of your ATM business with Pro+ Membership and a custom-designed web page. 

A custom web page isn’t just “nice to have”. It’s a business growth tool. If you are just starting out in the ATM business, it’s a good idea to make your ROI and start making consistent profit before budgeting for marketing. But once you get more established and start to figure out what your brand is and the direction you want to take your business, a custom web page is a MUST when it comes to scaling.

Our done-for-you web page isn’t just a listing—it’s your local digital storefront built for search engines, trust, and lead generation. Designed exclusively for Pro+ Members, this page turns you into the go-to ATM provider to build your business and become known as the “ATM Provider Near Me” so you can get exclusive online leads! Gain instant online credibility to become the local ATM expert and the go-to guy/gal in your area.

Build local authority. Attract leads. Boost your ATM business. Invest in your digital presence and visit ATMDepot.com today to reap those web page benefits and own your local market!

Who’s Starting a Side Hustle and Why?

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A side hustle is a way to generate extra money in addition to a regular salary. Whether you have a part-time job, a series of gigs, or a full-time job, a side hustle is something you can do to bring in a little more income. 

It might seem surprising, though, that so many people are looking to a side hustle even when working full-time. Shouldn’t full-time income be enough? For most people, it seems, a side hustle offers a financial boost. It’s something that can be used for those “nice-to-have” budgets while the full-time income covers the “need-to-have”. 

However, the right side hustle isn’t a grind. It shouldn’t be something that drains your battery, that you dread, or that you cut corners on. For many people, a side hustle means making money doing something they genuinely enjoy.

This article draws upon Bankrate’s recent Side Hustle Survey. The results show how some professionals are finding personal and professional gain from their side hustle, not just financial gain. And the beauty of a side hustle is that, if done right, you get to choose how you spend that time, just like other professionals have. Could an ATM business be that side hustle for you?

Why Start a Side Hustle?

The number one reason to start a side hustle is to make extra money. But what is that money for? According to Bankrate’s Side Hustle Survey, 41% of side hustlers use their extra income for discretionary purchases, 35% for regular living expenses, 28% for savings, and 20% for paying down debt.

But the rewards of a side hustle aren’t just financial. One nurse, for example, works as a school nurse in between her regular shifts to get a wider range of patient experience. She gets personal fulfillment from her side hustle. “I work with older adults who are critically sick, so seeing little kids be joyous and jovial and happy all the time is better for my mental health,” Vivian Ezugwu says.

Loan underwriter Martin de Anda started flyer distribution as a side hustle to afford the luxury of going out in his free time. He enjoys the socialization he gets from his side hustle which his desk job doesn’t offer. But after developing a strong client-base, he was able to take this flexible side hustle full time. “I have the flexibility of actually choosing when I want to take a break and just not work because I want to go to the beach or the movies,” he says.

According to Bankrate’s survey, average side hustler monthly income is $885 in 2025. While that might not sound like a lot, a side hustle can also be a way to broaden experiences, give back to your community, or monetize your hobbies. And for some people, when they realize that they can turn their side hustle into a full-time gig, the flexibility often is the biggest incentive. 

Who’s Starting a Side Hustle?

Bankrate’s survey found that younger generations are more likely to have a side job. However, no age group is excluded. Of all side hustlers, 34% are GenZ (18-28), 31% are millennials (29-44), 23% are GenX (45-60), and 22% are boomers (61-79). 

Young professionals in their 20s and 30s, like Ezugwu and de Anda, might seek extra income to pay off student loans, save for travel, or supplement entry-level wages. Mid-career workers in their 30s, 40s, and 50s might be seeking more financial security, exploring a career change, or testing a business idea before leaving their main job. 

Stay-at-home parents seek flexible income that fits around childcare schedules. Retirees use their skills and hobbies to bring in supplemental income or stay active. Creative professionals and hobbyists can turn passions like art, photography, writing, etc. into small revenue streams.

So no matter who you are, a side hustle is not out of reach. 

Why an ATM Business Is the Ultimate Side Hustle

An ATM business can also make a good side hustle for any generation. While GenZers can start an ATM business if they have the capital, Bankrate reports that 34% of GenZers don’t even have an emergency savings fund. But, with savings or financing access, an ATM business can generate income while working full time. The extra income can accelerate debt payoff or savings without adding a second demanding job.

The 30- to 50-year-old mid-career workers, on the other hand, are more likely to have the capital necessary ($2,000-$4,000) to start an ATM business. An ATM business is semi-passive once machines are installed and filled, so it can run alongside a full-time job. An ATM business creates a stable second income stream for long-term wealth building or debt payoff.

Stay-at-home parents can benefit from an ATM business because it can be managed during off-peak hours. Once machines are set up, the workload is predictable and not 9–5 dependent. It offers steady, recurring income that doesn’t require constant active selling or being tied to a desk.

An ATM business can be good for retirees due to its light physical demands (mostly cash loading and machine checks) and flexible scheduling. It can be scaled to match their desired activity level and provides supplemental retirement income without requiring daily high-effort work.

An ATM machine business is low effort at first. Most new ATM business owners start with just one or two machine placements. But it is completely possible to scale to 10 or more machines making ATM operation a full-time, flexible, low-effort gig! Just like de Anda, if you find that you enjoy the flexibility of an ATM side hustle, make it your goal to replace your regular 9-5 desk job.

Benefits of an ATM Business

It’s getting harder and harder for many people to make ends meet for many people. Let alone are they able to save money or travel. For those reasons, side hustles are projected to increase. If you’ve been looking for a way to make some extra money without the demands of a second in-person job that takes you away from your family and fills all of your free time, consider operating an ATM. 

An ATM machine generates semi-passive income. That means that once it’s all set up, it will make money while you’re away. Simply keep it loaded and operational, and you’re in business. To find out exactly how much you can make with just one machine, check out our article on how much ATM business owners make.

Ready to get started? Get your free ATM start-up kit today!

First Steps to Creating a Business—ATM-Style

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A quick Google search or AI prompt will provide you with a list of some general first steps to creating a business. These steps might vary slightly based on the type of business you want to start. However, you’ll find that even an ATM business fits the mold when it comes to basic business startup.

In this article, we’ll introduce some of the most basic, general first steps to creating a business and adapt them for the ATM industry. That way, you can see how similar starting an ATM business is to any other business. Then, we’ll cover some specifics that are unique to an ATM business. When it’s all said and done, you’ll know the first steps to take to get into business in the ATM industry.

First Steps to Creating a Business—Adapted for ATMs

Creating a business involves several critical steps to move from an idea to a functioning operation. Here’s a practical breakdown of the first steps for most businesses:

1. Define Your Idea

What’s your product or service? Clearly describe what you’re offering and the problem it solves. 

As an independent ATM deployer (IAD), you’re buying or leasing ATMs, placing them in high-traffic locations, and earning revenue from surcharges users pay per transaction. You offer customers access to their bank accounts. For stores and businesses, you enhance their customer service, increase foot traffic and impulse purchases, save them money on credit card processing fees, and possibly offer an extra revenue stream.

Who is your target customer? Identify your ideal market or audience. 

As an IAD, you’re looking for locations that have a need for ATM service. Small businesses, convenience stores, bars, salons, gas stations, or events without existing ATMs are good places to start.

What is your revenue model? 

As the owner and operator of an ATM machine, your revenue comes from the surcharge fee. This is the transaction fee for using your machine and is typically $2.50–$3.50 per use. You might also possibly profit-share with business owners hosting the machine

2. Conduct Market Research

Who are your competitors? Look at businesses doing similar work and see how yours can stand out. 

For an ATM business, you want to find gaps in the market. Installing an ATM machine in a location that already has convenient access nearby is going to affect your earning potential. If there are other ATMs nearby, you want to offer a competitive surcharge rate to pull more customers from other machines with higher fees. 

When searching for a location to operate your ATM from, you might find that a store or business is already working with an ATM service provider. This can be a good opportunity to discover whether or not they are happy with the service they are receiving. If they aren’t, explain how you can solve that pain point. 

Is there demand?

Find out the potential of a location by scoping out locations in person, having conversations with location owners, and conducting online research. Visiting locations can give you a sense of how busy a location is—the busier the better. Conversations with location owners can reveal their motivations or objections which can tell you a lot about a location’s potential. And online research can provide you with a map of potential competing locations and customer reviews. 

3. Create a Business Plan

A basic business plan should include a summary of what your business is and what it will do. It might also include market analysis, a marketing and sales strategy, organization and management structure, and financial projections like basic budget and expected revenue/costs. 

A simple business plan for an ATM business might look something like this:

  • Start-up costs (ATM purchase/lease, cash to stock the machine, installation, etc.)
  • Monthly operating expenses (maintenance, communication line, armored cash refill if outsourced)
  • Expected transactions per month and projected income
  • Growth strategy (e.g., 3 machines in Year 1, 5+ in Year 2)

4. Choose a Business Structure

There are three common types of business structures: sole proprietorship, limited liability company (LLC), and corporation (C-Corp or S-Corp). All can work for an ATM business, but the most common route is sole proprietorship. 

While a sole proprietorship is simple, there is no legal separation from you and your business. An LLC, on the other hand, protects personal assets. Choose LLC for liability protection, tax flexibility, and to separate your personal and business finances. Finally, corporations are more complex and are more appropriate for large businesses or raising capital.

5. Register Your Business

Choose a business name after checking its availability in your state. Register it with your state government. Apply for an Employer Identification Number (EIN) with the IRS for tax and payroll purposes. 

With a sole proprietorship, you can operate under your own name or a fictitious business name, a DBA—doing business as. You may not need an EIN under a sole proprietorship, but you will if you establish an LLC. Check out Forbes’s side-by-side comparison of the best LLC filing services.

Get required licenses or permits (varies by industry and location). Set up a business bank account. Consider business insurance (especially liability or workers’ comp if hiring). 

For an ATM business, you will need a business bank account. This is where ATM surcharge profits will be deposited and where your vault cash will be settled for you to withdraw to refill the machine. You may have two business bank accounts: one for your surcharge revenue and one for vault cash.

You will also need an ATM processor agreement. This is documentation of your partnership with an ATM processing company that will handle the communication between networks and transactions.

Insurance is optional unless the location owner requires it as part of the placement deal. However, it is a good idea to invest in general liability insurance to protect your equipment and liability.

7. Set Up Operations

Location: Decide whether you’ll operate online, from home, or at a physical location.

Website: Create a basic site or landing page.

Systems: Pick tools for accounting, invoicing, communication, etc. 

With an ATM, you will probably operate out of someone else’s store, business, or other location. However, you can also rent a space in a shopping center or similar area. 

There are many ways to establish an online presence as an ATM business owner. This can be a good way to get location owners coming to you to set up placements which saves you the time spent approaching them. You can create a website if you want, but sometimes a simple social media page can be effective. 

You can also get a custom web page designed and featured on an already high-ranking website in, say, an “ATM providers near me” web directory. Borrow their search engine optimization to increase your own visibility, credibility, and lead generation.

And tools and resources you can use to help manage your finances, track profits, and record expenses include accounting software tools like QuickBooks, Wave, or Xero. You will also have access to remote online monitoring that offers reporting tools you can use to monitor transaction reports for performance insights.

Unique First Steps to Creating a Business in the ATM Industry

There are some general first steps to creating a business. These apply to almost any business, ATMs not excluded. We’ve adapted them for your convenience so that you know exactly how to apply each step to starting an ATM business. Now, it’s time to get into some specifics those basic first steps to creating a business didn’t cover:

1. Purchase Your ATM(s)

To operate an ATM business, you need to purchase the equipment. You can buy new or refurbished machines (costs range $2,000–$4,000 each). Make sure you choose EMV-compliant and ADA-compliant models that support remote monitoring and cash alerts.

2. Secure Locations and Contracts

Most IADs secure locations and contracts with existing businesses. Approach business owners and offer free machine installation and maintenance for a monthly rent (flat fee) or revenue-sharing (e.g., 30% of fees). Be sure to draft, agree on, and sign a placement agreement with each location that outlines the responsibilities of each party.

3. Stock and Monitor Your Machines

You can load cash yourself to save on armored truck service. While this adds another $2,000 or so to your startup budget, it is typically more cost effective in the long run. Install remote monitoring software to track cash levels, errors, and transactions. That way, you can manage your business off-site.

3. Market and Scale

Create a simple web page to establish credibility, generate leads, and open lines of communication. Create business cards and/or flyers to leave with  more locations and leads. Consider adding more ATMs to your route as your revenue grows.

Now You Know the First Steps to Creating a Business ATM-Style

Now that you know the first steps to creating a business in the ATM industry, you can decide for yourself whether or not it’s really for you. If you’re still on the fence, remember that an ATM business offers benefits most other businesses do not: low overhead, little to no real estate costs, no employees, flexibility, and simplicity. What other job can you think of that makes you money while you’re doing something else altogether?

If you have questions or want to know more about the first steps to creating a business in the ATM industry, contact us today! With decades of experience, ATMDepot has worked with thousands of IADs just like you. It’s our mission to help anyone earn semi-passive income from operating ATM machines.