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3 Major Benefits of ATM Machines in Your Businesses

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If you own a store or other business, you might wonder what benefits of ATM machines you could reap. If you haven’t wondered about this, you should. In this article, we cover 3 major benefits of ATM machines to store owners. However, you will find that each major benefit breaks down into so many different opportunities!

Not only do ATMs generate revenue, they are also convenient for your employees and customers. So an asset that serves all three parties is definitely something to consider! Keep reading to see if an ATM machine is a good idea for your business.

Increase Revenues

ATM machines increase revenue. Think of an ATM machine as a mini-business. There are thousands of independent ATM deployers (IADs) nationwide whose entire business is ATM machines. They wouldn’t do it if ATMs didn’t generate income! 

Of course, it’s not necessarily a mini-business to them because they might have upwards of 10 machines to operate. But for you to add just one ATM machine to your existing business is a small way to make big revenue.

Surcharge Revenue

How do IADs make a profit? The entire business model for an IAD is to charge a convenience fee—for ATM machines this is known as a surcharge—for users to have quick, convenient access to their cash without having to get to a bank. 

This surcharge is an IAD’s sole source of revenue, and whatever is left after making the return on investment (ROI) and subtracting small maintenance costs (receipt paper, transportation costs, cleaning supplies, etc.) is profit!

Now, most IAD’s have to find location owners who are willing to host the ATM machine. Otherwise, they’d have nowhere to put their machines! To make the deal worthwhile for the owner of the location, the IAD typically offers to share part of the surcharge revenue.

If this is an arrangement you’re interested in, you can be matched with an IAD who will take care of servicing the machine (and potentially share some of the surcharge revenue) while you reap some of the other benefits of having an ATM machine in your store. 

All you have to do is send in an ATM placement services, and ATMDepot.com will set you up with someone who will place and operate an ATM in your store at no cost to you!

Alternatively, you can purchase, own, and operate your own machine. You would be responsible, then, for loading cash, refilling receipt paper, cleaning the machine, addressing errors, etc. However, you would also get to keep the entire surcharge fee, rather than just a portion, to compensate you for your time. If you are interested in this route, check out our ATM startup kit!

Whether you operate your own ATM machine or work with an IAD, there are still plenty of other opportunities to increase your revenue.

Increase Average Spent

If you own a store, maybe a convenience store, gas station, boutique, etc., you want to increase the amount each visitor spends. An ATM is a great way to do this. Why? Cash. When people have cash in their hands, it’s convenient, it’s available, it’s quick, it’s ready. 

Having an ATM machine available to your visitors and existing customers increases the chances of them purchasing more items, especially those impulse purchases like snacks, gadgets, souvenirs, reusable totes…. All of this adds up in the course of a month to drive up your sales (and the surcharge revenue is the cherry on top!).

Increase Traffic

When you add an ATM machine to your store or business, you draw new customers who might only stop by specifically because of that ATM machine. Put a sign up to advertise that you offer ATM services, and you appeal to a whole new range of customers aside from those who might want and need the services of your actual store.

The more services you offer, the wider range of customers you appeal to, and the more business you create for yourself simply by bringing people into your business. Some of these people might not have ever stopped by otherwise, and others still might see something they never knew they needed from your store or business! Therefore, an ATM machine can be quite the lead magnet….

Increase Customer Loyalty

In addition to bringing new traffic to your store or business, an ATM also promotes repeat customers. Almost every consumer (82%) is happy that ATMs are available to suit their needs. This means that a majority of consumers have convenient access to ATMs. Yours could be one of them.

Once users know the ATM exists, they know where they can always quickly and easily access their money. In this way, you bring in more customers regularly.

You can also look for an ATM machine with the ability to print coupons on ATM transaction receipts. Offering coupons to ATM users provides an incentive for passersby to choose your ATM (as opposed to, say, the one across the street) and also encourages purchases of goods and services from your regular business!

Advertise

Another upgrade you can make to an ATM machine to increase revenue is a graphics screen. With a large screen that has the ability to display graphics, you can promote your business with your logo, sales, promotions, etc. Or, you can add another revenue stream by selling ad space on your ATM to nearby businesses!

Save Money on Credit Card Fees

Not only can you make extra money with an ATM machine in your store by increasing revenue, but you can also save money. If you don’t (already) run a cash-only establishment, you likely have to pay a fee every time you process a customer’s credit card. And these fees add up.

If you offer access to cash in your store, you encourage more cash payments. More cash payments mean less credit card transactions, less fees, and more money in your pockets. Then, if it works for your business, you might be able to become a cash-only establishment and never pay another credit card transaction fee again!

Another option you have is Bitcoin. As cryptocurrency becomes more and more popular, you might find that you want to start accepting crypto payments. Depending on where your business is located and the needs of the consumers in the area, you might find that converting your ATM machine to a Bitcoin ATM machine (BTM) brings in customers who may have trouble finding this service. You might even decide to have both!

Improve Safety

Why will passersby use your ATM machine as opposed to the one across the street? People who need to use an ATM machine want to feel safe and comfortable doing so. Most ATM users feel safer using a machine that is located in or near a trusted store or business that has surveillance, lighting, and a good reputation. 

Even if your business is lacking one or more of these, just having an ATM inside your store or business will make users more comfortable than using one out in the open on the street. To ensure you place your ATM machine strategically in your store to enhance comfort and safety, check out our article about ATM security tips.

An ATM machine might also benefit your employees. Do your employees really want to make another stop before or after work to access their money? Probably not. Additionally, they should feel more comfortable using a machine in an environment they are familiar with. So the ability to bank where you work is a plus for your employees, too!

As far as you and the money generated by your store or business, an ATM machine keeps you safe as well. Using store money to load the ATM machine keeps those funds safe and secure. In this way, an ATM machine functions as an on-site safe as well as a money-maker. 

Is Your Business Right for an ATM?

While there are many benefits of ATM machines for store and business owners, it might not be a good fit for everyone. There are some costs associated with operating an ATM machine, including the cost of the machine itself, so you want to be sure you will make enough revenue in surcharge fees to justify the purchase of the machine.

So how do you know how well an ATM will do before you purchase the equipment? Here are a few factors to consider:

Traffic

There are two rules of thumb you can use to predict the success of an ATM machine:

First, calculate 2-3% of the average number of customers your business sees in a day, then multiply that number by the surcharge amount (about $3). Multiply that by the number of days you are open in a year to get a rough estimate of your yearly ATM revenue.

Alternatively, you can take the number of adult patrons your business sees every day and multiply that number by the surcharge amount to get a rough estimate of your monthly ATM revenue. To create a range, take the number of daily adult patrons and add 10% to get a higher monthly estimate and subtract 10% to get a lower monthly estimate. Then look somewhere in the middle of those two numbers for a closer estimate of monthly revenue.

If your business doesn’t see enough daily traffic, these numbers might not be worth the effort of maintaining an ATM machine. So when evaluating the need for an ATM machine, you’re really looking at the demand for the service. Do enough people visit or pass by your store to make an ATM machine worthwhile?

Proximity of Nearest ATM

Furthermore, you want to consider whether or not the market for an ATM has already been cornered. If the store next to you, down the block, or across the street already offers this service, you might have to share customers. This can impact your ATM revenue. However, you can always offer a competitive surcharge fee and coupons to draw that business away from nearby ATMs. 

Number of Employees

If you own an office building as opposed to a retail store, you might want to add an ATM machine to the premises to benefit your employees more than customers or clients. In this case, you want to make sure there are at least 200 people in the building every day and that there is a need for the service. 

If there is a coffee shop, gift shop, cafeteria, or other nearby place for employees to spend money, then an ATM might be beneficial. You might also see an increase in transactions on Fridays before employees go out for the weekend and payday. This might also be extremely convenient for them. So just make sure you properly gauge the need for an ATM machine before committing.

Special Events

Mobile ATM machines are great for use at outdoor events. If you own a bar, restaurant, food truck, or any other business where events take place like carnivals, live music, fundraisers, pop-up markets, etc., then an ATM machine could be a great benefit to patrons.

Essentially, any place where patrons have the opportunity to make donations or purchase merchandise, food, and beverages is the perfect place for an ATM machine. 

Start Reaping the Benefits of ATM!

There are many benefits of ATM machines in retail stores and other businesses. It all comes down to demand. An ATM is a great opportunity for you to make some extra cash as well as satisfy the needs of your customers and employees.

To own and operate your own ATM machine and keep every cent of the ATM profit, request an ATM start-up kit, and we’ll get you started! If you’d rather partner with an IAD and simply reap the benefits of increased traffic and sales, just send in an ATM placement services! Once you evaluate the need for an ATM machine in your store or business, contact us to get started! Click here for more information about special offers for business owners.

How to Complete Your ATM Business Basic Checklist

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This ATM business basic checklist is for you to use as you go through the process of operating an ATM machine. If you’re looking for more of a step-by-step guide, check out our article How to Start an ATM Business in 5 Steps. 

However, if you are looking for a list of what needs to be done, this is it. Once you have completed each item in this ATM business basic checklist, you will officially be in business. You can’t neglect any of these items if you want to start operating your own ATM machines!

1. How to Find a Processor

What is ATM Processing?

You need to work with an ATM processing company so that your ATM machine can communicate with your customers’ banks. An ATM processor identifies the network of each card inserted into your ATM machine, routes the information to the user’s bank, verifies the funds, then receives approval from the bank to dispense the withdrawal amount up to what’s available in the account. Check out our video here for more information.

Factors to Consider

Although ATM processing is pretty basic, there are a number of factors to consider when choosing an ATM processing company. It is in your best interest to research a variety of companies to find the one that is going to best suit your business needs and transaction volume.

Now, if you’re just getting started, you might not know your transaction volume yet. But your processor might. Find an experienced company that will be able to assist you throughout your entire career as an ATM owner. 

Experience

An experienced company will be able to give you advice regarding the location you choose (keep reading this ATM business basic checklist for more information on choosing a location) as well as how much you can expect to make from that location or from alternative locations.

Support

You also want to work with an ATM processing company that wants you to make money. A company that acts as a business partner will offer you support throughout your entire career, not just during the initial setup. The company should offer training, ongoing support, and dependable support (meaning they answer the phone when you call…).

Other Services

Finally, you want to know what additional services the company provides. Not all ATM machines work with all processing companies, so if you choose a processor before your equipment, you might want to know if they also sell equipment. Because they will only sell machines that they can support.

If you purchase your equipment before choosing a processing company, you will have to make sure the company can support it. (More on deciding machine type next.) And you can switch processors after you are already in operation. Your needs might change, or you might not get the service you expect from your current processing company. In these cases, you will need to switch to a company that can support the machines you already have. 

Other services you might want to consider are vaulting, remote monitoring, and automated payments. This business is all about building passive income. So you want to minimize your workload as much as possible.

You can load your ATM machine (vaulting) yourself to make as much profit as you can. But if this isn’t convenient for you, your ATM processing company might offer this service. 

Remote monitoring allows you to track your machine’s activity and cash availability which makes it easier for you to keep it stocked and minimize downtime. And automated payments prevent you from having to spend time making transfers yourself and constantly online banking. The less time you spend managing your ATM, the more passive income you make.

When looking for an ATM processor, look for a business partner. Find out more about how to choose an ATM processor here.

2. How to Decide on Your Machine Type

You have lots of options when it comes to choosing ATM equipment. If you’ve already chosen an ATM processing company to work with, you will have to narrow your search to machines the company can support. If the company sells machines, this might be the simplest item on this ATM business basic checklist!

Machine Type

First, you need to decide if you want a freestanding machine, a through-the-wall (TTW) machine, or a wall mount machine. The three most important factors to consider when it comes to machine type are cost, space, and security.

TTW machines are the largest of the three types and therefore cost a little more. However, they are more secure because the vault extends into another room that can be secured during regular operation and vaulting. Unfortunately, they require a lot of space and some construction work to allow the machine to fit into the wall if the space doesn’t already exist.

Freestanding machines are smaller than TTW and are therefore a little cheaper. You also have more flexibility with the placement of a freestanding machine. Likely, a majority of the ATM machines you see day to day are freestanding.

Wall mount machines are the smallest of the three types. They are also the cheapest, but they don’t hold as much cash. Wall mount machines are a good option for slower locations. Despite the name, this type can be mounted to a countertop as well which makes them easy and convenient to place; they don’t take up a lot of space.

Manufacturers

Some of the biggest names in ATM equipment are Hyosung, Genmega, Hantle, and Triton. All are reputable companies that have been in the business for a long time and are known for producing quality equipment. 

Check out our ATM Buyers Guide for more guidance on choosing the ATM equipment that’s best for your business. We also compare Hyosung and Genmega, the two top of the line ATM manufacturers.

New vs. Refurbished

Finally, you have to weigh the pros and cons of a new vs. refurbished machine. It really comes down to your budget, your experience, and machine availability. 

We recommend starting with a new ATM machine at least for your first one. Newer models come with improved features and advanced technology making them easier to operate.

However, refurbished ATMs are also good options. It just depends on what is available and the quality of the refurbishment. If you have your heart set on a specific manufacturer or model, you might not be able to easily find what you’re looking for; you will more likely have to choose from what’s available. 

Most importantly, make sure you purchase certified refurbished if you choose to go this route. This guarantees that the machine has had standards checks, detailing, and upgrades applied.

3. How to Place Your ATM

If you own your own store, you can go ahead and mark this off of your ATM business basic checklist! If you plan to place your machine in someone else’s business or store, consider these factors:

  • Foot traffic
  • Proximity to other ATMs
  • Proximity to you
  • Liquor license

The busier the location is, the better the location’s reviews are, the more people that pass by it every day, the better your ATM is going to perform. People can’t use your machine if they don’t pass by it or see it, so you want to get as many eyes on your machine as possible.

You also want to corner the market. You will get more users the farther away your machine is from other machines. This way, you aren’t sharing customers; yours is the most convenient!

Remember that the goal is to build passive income. So the less time you spend managing your machine, the more you make! This is why it’s important to choose a location that’s convenient for you, too. If it’s close to the route you take often, either to and from home or work, you make more with less time and work (and gas!).

Finally, keep in mind that locations that have a liquor license are able to charge more for transactions. In our article 9 Best Locations for ATM Machines we share our experiences with ATMs in various locations. If you need help approaching location owners, check out our tips for cold calling or join ATM Depot’s Members Area for access to scripts you can use to negotiate a deal.

4. How to Decide Your Surcharge

Setting your surcharge is all about strategy. You want to strike a balance between a transaction fee that’s convenient for your users and profitable for you. If you’re just getting started, you need to make your return on investment (ROI) before you can start making a profit, so you want to do this quickly. There are two ways you can do this:

First, you can set a surcharge that is lower than the competition to increase the number of transactions your machine receives. Second, you can match the competition or set a higher surcharge to try to make more per transaction. 

However, it isn’t as simple as that. It all depends on your location, the amount of foot traffic, the demand for your service, and your proximity to other machines.

Fortunately, we have a comprehensive guide for How to Set Your ATM Surcharge. Furthermore, you can always adjust your surcharge, so don’t stress out about it too much. Trial and error will play a big role in making sure you get it just right!

Completing Your ATM Business Basic Checklist

You know what you need to do, but how do you do it? This ATM business basic checklist is just the start. That’s why choosing the right ATM processing company is so important. Because you want support from beginning to end. Whether it’s asking questions, strategizing, or filling your pockets, your ATM processor should be there every step of the way making sure that you are successful. If you have questions about choosing a processor, purchasing ATM equipment, placing your ATM, or setting your surcharge, contact us today!

ATM Business Basic Checklist via ATMDepot.com
Want to start your own ATM Business? Make sure you check off all of the items on this checklist before you get started so that you’re prepared.

7 Tips for Maximizing ATM Revenue in 2022

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We’ve talked about maximizing ATM revenue before, but we think it bears repeating. Plus, some things have changed in the economy and the industry in recent years. So, here is a modified, modernized, fresh list of things you can do to maximize your ATM revenue this year.

What is ATM Revenue?

Your ATM revenue is the money your machine brings in. So, how many people use your ATM in a day? A month? A year? The number of transactions made multiplied by your surcharge equals your revenue. The more revenue you make, the more profit you make because that means there is more left over after you cover business expenses. Maximum revenue is good for your business, and it’s good for you!

How to Make ATM Revenue Projections

There are a couple of ways you can predict your revenue and set revenue goals. First, if your ATM machine is in a store, restaurant, or other business, you might expect an average of 200 customers to visit the establishment every day. Now, the ATM industry estimates that about 1-5% of people who see an ATM actually use it, so you can count on about 6 or so people using your machine each day.

Another way to figure revenue projections is to determine how many adult patrons the establishment sees in a day. This should equal (plus or minus 10%) the same number of ATM transactions your machine will have in a month. This number might be a little lower if the establishment accepts credit cards or offers cash back at the point of sale (POS). 

For estimation’s sake, then, say the establishment where your machine is located sees 200 patrons a day. At the higher end of the spectrum, you could expect 200 ATM transactions in a month. At the lower end of the spectrum, you might expect 20-40% less (120-160). Multiplied by an average surcharge of about $3.00, you’re looking at a range of about $360-$480 in revenue each month.

Now, these figures won’t be exact. As you can see from the following list, there are a number of factors to take into consideration when it comes to maximizing your ATM revenue. So if you are experiencing numbers lower than the projections you get from the formulas, try implementing one or more of these 7 tips.

How to Maximize ATM Revenue

1. Adjust Surcharge

One of the most obvious ways to bring in more money is to adjust the surcharge. This is, after all, where your revenue comes from. However, while raising your surcharge could bring in more revenue, it could also deter customers if it’s too high.

If you already have a relatively high surcharge (the average is about $3.00), lowering it might bring in more users. Eight transactions at $2.50 is more than 6 transactions at $3.00. So you’ll want to experiment to find the sweet spot. 

Your surcharge fee will also depend on your competition. Consider the rates of nearby ATM machines. If you can offer a lower surcharge, you might be able to corner the market. If you don’t have any competition, you might be able to increase your surcharge without compromising the number of transactions you see.

And don’t forget, if your ATM is located in an establishment with a liquor license, your surcharge could be upwards of $4.00. So the establishment where your machine is located is a factor as well.

2. Diversify Denominations

Believe it or not, not all denominations perform the same in every location. In areas where there are more high dollar withdrawal amounts, higher denominations like 20s are standard and convenient for users. However, ATMs in areas where people prefer to withdraw smaller amounts of cash at a time perform better with smaller denominations like 5s or 10s.

To change the denomination(s) your machine dispenses, speak with your ATM processor. They will need to set you up with the right cassette and programming to make it happen.

3. Advertise

People cannot use your machine if they don’t know it exists. Therefore, advertising is key. There are a number of simple things you can do that won’t cost you a thing.

First of all, make passersby aware that your ATM is nearby even before they enter the establishment. Consider putting up a sign in the window for some cheap, easy advertising. Make your own sign for free, or purchase one depending on your needs and the preference of the location owner.

Second, advertise your ATM on the establishment’s website or on Google Maps. Make sure that people who are researching the establishment online or are looking specifically for an ATM machine know that there is one at that location.

Third, make sure the machine can be seen by patrons of the establishment. Is it in plain sight with no shelves or corners hiding it? Are there zero obstructions, making it easy to get to? Is the area well-lit? These are all factors to consider when it comes to drawing in more users, and the best part is that they can easily be adjusted without spending any extra money.

Now, if you do find that you need to do a little more, you might want to put some money into your advertising. You can purchase a topper for your ATM machine that helps make it more visible. You can even get one that can display messages and graphics to add to its appeal. Use LED signs and lights with bright colors to catch customers’ attention.

4. Offer Incentives

Your ATM might have the ability to print coupons on the ATM receipt paper. This is a great way to encourage repeat business. Gas discount coupons work well for gas stations. Car wash coupons, BOGO offers, and free drink with purchase are other good ideas. Customers are more likely to use an ATM if they get a bonus or extra benefit.

5. Update and Upgrade

Customers might not feel comfortable using your machine if it looks old, run-down, and out-of-order or likely to malfunction. If you are looking for ways to maximize your ATM revenue, we’re sure this isn’t the state of your machine. But customers might not know that just by looking at it. 

Make sure the area around the machine is clean, the machine itself is clean, the decals are new and not peeling, and your machine is fully stocked and functioning during all hours of operation. The less downtime your machine experiences, the more opportunities you open to transactions.

Your machine might look great! But certain upgrades can make your machine stand out from the competition. Earlier we mentioned using LED lights, topper, and graphics to help advertise your machine, but these features can also make your machine look more inviting if it’s already in a conspicuous area.

As long as you ensure your software is updated, then you minimize the downtime of your ATM and speed up transactions. This keeps users coming back. Upgrades are a nice touch if you find that you need them. 

6. Change Locations

You might want to experiment with the placement of your machine as well. Place the machine near the door where patrons have two opportunities to pass by it (coming and going). Or near the cash register where almost every patron is sure to stop and probably need cash. You might also consider placing it near a particularly popular aisle where more people are likely to spot it. Be strategic.

If your machine can be hooked up outside, you might want to consider this as well. This opens business up to passersby who never intended to enter the establishment in the first place. It’s also quite obviously visible this way, and if the establishment isn’t open 24/7, you open your machine up to more transaction opportunities by extending its hours of operation.

Finally, if all else fails and you aren’t seeing the numbers you want to, it might be a matter of slow business or foot traffic to the location. If you aren’t seeing at least 200 patrons in a day/transactions in a month, you might consider looking for a busier, more profitable location.

7. Scale Your Business

Now, if your machine is doing as well as you could hope, but you still want to bring in more revenue, it might be time to scale. This could mean adding another ATM machine or two (or ten!) to your route, or it could mean branching out into the Bitcoin ATM business. 

Cryptocurrency is rising in popularity. If you live in an area with a heavy population of crypto users, it might be worth it to give it a shot. Bitcoin ATMs (BTMs) allow users to purchase bitcoin with cash or debit card, and they can sell bitcoin for cash as well. Adding a BTM to your route would provide an additional source of revenue.

Maximize ATM Revenue in 2022

There is no shortage of opportunities when it comes to the ATM business. If one strategy doesn’t work, it doesn’t take much effort to try another! That’s the beauty of passive income. 

Unfortunately, we don’t have the perfect recipe for your success. It will require some trial and error. That’s because no two ATM businesses look the same. There are so many factors to consider, but that also means that there are many possibilities to explore. Find what works for you and your personal revenue goals this year.

The Future of Cash: Is the ATM Business Dying?

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Is the ATM business dying? The short answer: No. As long as there is cash, there will be ATM machines. 

Not only is cash not going away anytime soon, cash is the most widely accessible payment form. ATMs are needed to keep it that way. Digital payment systems have their place, but so does cash. People love to have options. And they don’t react positively when their choices are taken away.

Cash has been around for about 3,000 years. It won’t disappear overnight. There is actually more currency in circulation now than ever before because of the uncertainty caused by Covid-19 the past year.

Although cash payments may be declining, ATM machines can adapt (and already have been) to an increasingly digital society. So as the needs of the consumer evolve, so too will ATM machines. And you’ll want to be there when they do. 

Digital Payment Systems

There are many alternatives to cash payments. Obviously there is the option to pay with a debit or credit card. You have Automatic Clearing House (ACH) payments directly from a bank account. Your employer likely pays you via direct deposit. 

There are services like PayPal that allow you to make purchases online without even having to enter your payment information each time. Many apps like CashApp, Venmo, and Zelle have been developed to transfer small amounts of money between friends and family when cash isn’t readily accessible. And of course you’ve surely heard the buzz about cryptocurrency.

With all of these payment options, where does cash fit in? It’s enough to make you wonder, Is the ATM business dying?

But cash, like digital payment systems, has its benefits and disadvantages. That’s why we need them both: to keep our options open. 

Drawbacks of Digital Payment Systems

Digital payment systems definitely have their place. They’re efficient and flexible. It’s the only way ecommerce works. You can pay for goods and services with the click of a button. However, there are some drawbacks.

First, it’s risky. Card numbers can be compromised, crypto wallets can be hacked. Digital transactions aren’t tangible, so it’s not easy to keep track of. However, your digital transactions aren’t untraceable.

There is proof of your purchases on receipts, in your email, on your bank statement. Your bank accounts and crypto wallets have your name on them and other personal information attached. This increases the risk of identity theft.

Second, cryptocurrency is extremely volatile right now. There is a lot to learn, and although it isn’t going anywhere, no one is sure what its future looks like. Furthermore, most cryptocurrencies aren’t federally backed, which adds to its risk.

Third, digital payment systems contribute to the digital divide. The digital divide refers to the inaccessibility of the Internet for a certain portion of the population. Not everyone has access to reliable Internet, and not everyone who does have access has the literacy necessary to manage finances digitally. This is a huge disadvantage for those in rural areas, low-income households, and the elderly.

Additionally, mobile payments require the use of a smartphone. Only 85% of Americans own a smartphone. While that may seem like a lot, and it is, 15% is also a lot when you think about the thousands of people for whom mobile payments, online banking apps, and constant access to the Internet aren’t an option. 

So while there are some benefits to digital payment systems, they aren’t perfect, and they exclude certain demographics.

Benefits of Cash

It’s anonymous, it’s stable, and it’s accepted pretty much anywhere (and by anyone).

Quick

There are many obvious benefits to cash. First of all, it’s immediate. When you pay with cash, the recipient doesn’t have to wait for a transaction to process, they don’t have to bother with insufficient funds, and you don’t have to worry about overdrawing your account or accruing interest on a credit card transaction. The money is paid. That’s it. It’s done.

Physical

Second, cash is physical. It hurts just a little bit more when you pay for something with cash because you can see and feel the money leaving your side. This can help you be more conscious of your spending habits. It also makes it easier for you to keep track of. You don’t have to worry about hackers getting access to your stash remotely.

Accessible

Third, it’s accessible. Everyone—rich or poor, young or old—has access to cash. You don’t have to be tech savvy or connected to the Internet to manage your cash. According to a Pew Research Center survey conducted earlier this year, that’s good news for the 7% of U.S. adults who don’t use the Internet.

As long as there are unbanked and underbanked people, there will be cash. About 6% of Americans are unbanked while 16% are underbanked. Unbanked people do not have a banking relationship. They either don’t have enough money to bother with an account, can’t keep up with the fees, or just don’t trust banks.

Without a bank account, these people must rely on alternative financial products and services (payday loans, check cashing services, prepaid cards, etc.). They are able to purchase prepaid cards and use them at ATMs without the fear of incurring an overdraft fee if the funds aren’t available.

Underbanked Americans might have a checking and/or savings account but might also rely on alternative financial services. The FDIC’s 2019 How America Banks survey found that 95% (124 million) of U.S. households have at least one bank account. 

That is both the highest number and percent since the survey was first conducted in 2009. That’s good news for cash and ATMs. 

Private

Finally, there is a certain degree of privacy with cash payments. Average cash transactions can’t be tracked, and aside from a paper receipt that can easily be discarded, there is no paper or digital trail. We won’t go into all of the hypothetical scenarios where this might be useful, but many people still value their privacy especially since there is so little of it online.

It is better, easier, and safer to use cash for purchases under $20 to minimize the risk of identity theft.

The Payment Choice Act of 2021

There are some businesses that have chosen to go cashless. However, to keep this from becoming a trend and excluding those who only have access to cash, Congress passed the Payment Choice Act of 2021.

This Act prohibits retail businesses that accept in-person payments from refusing cash. This protects the consumer’s right to use cash at retail businesses.

On the other hand, there are many businesses that encourage cash payments because they are charged fees for every credit card transaction they process. Cash payments also decrease their rate of chargeback fees which saves businesses money as well.

The Future of ATM Machines

Although cash payments are decreasing, it isn’t because cash isn’t valuable. It’s just because there are so many more options. There is more currency in circulation than ever before.

The current environment in light of Covid-19 has made ATM machines more necessary than ever. Banks are limiting traffic in their lobbies to keep up with social distancing protocols and for the overall health of their customers. ATMs allow customers to access their accounts with limited personal interaction, which is appreciated by more and more people these days.

ATMs serve other purposes, too. They not only allow users to make deposits and withdrawals, they also provide business owners with other marketing opportunities. Offering ATM access in their stores increases foot traffic, impulse purchases, and overall business.

ATMs can be fitted with toppers to run ads, screens are getting bigger to accommodate advertising, and coupons can be printed on receipts to encourage future purchases.

ATMs are also starting to feature Bitcoin capabilities. So if you get into the ATM business now, there’s no telling what opportunities lie ahead. Your business will be able to grow with the times if cryptocurrency is something you are interested in.

Is the ATM Business Dying?

Although there are many digital payment options available, cash is still a winning option for a number of reasons. Cash payments are decreasing, but that’s just because more and more transactions are happening online. It doesn’t mean those are the only transactions happening. 

In order for cash to be completely eliminated, it would have to be by government decree. Since the government easily collects taxes on currency, it isn’t likely that a decree like this will happen anytime soon.

So to answer the burning question, “Is the ATM business dying,” we can confidently say, “No.” Cash still plays a very important role in our society. Therefore, there is still a need for ATMs. There might even be more need now as people shift from in-person bank business due to Covid-19 precautions.

Even IF cash is phased out completely, it won’t happen in our lifetime. Therefore, you are safe to invest in ATM machines and start making passive income!

How to Run an ATM Business Successfully

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Want to know how to run an ATM business successfully? Running a successful ATM business is simple. As long as you are willing to do the work, there is money to be made. But when it comes to being successful in the ATM business, it’s important to remember that not all ATM businesses look the same.

Someone else’s success might not look like yours. What that means is that you have a lot of decisions to make that no one can make for you. You have to decide which processor to work with, which machine to purchase, where to place your ATM, and how much to set the surcharge.

The answers to all of these questions will depend on your specific lifestyle and goals. The most successful ATM business is the one that works for you. All you need is a little strategy and patience to run an ATM business that brings in the revenue you aim for.

Here we share 5 tips that show you how to run an ATM business successfully. Follow these tips to make sure you have all of the pieces in place to run a successful ATM business.

1. Find an ATM Processor That Meets Your Business Needs

The first thing you need to do is find an ATM processor you want to work with. There are many things you will want to consider in terms of overall cost, support, and perks. If you aren’t sure how to run an ATM business, you want to find an ATM processor that acts as a good business partner, not just a service provider.

ATM Sales

One important factor is whether or not the ATM processor sells ATM machines as well. If you purchase your machine from an ATM processor, your machine is guaranteed to be compatible with their service. 

An ATM processor that sells machines might even have used and refurbished options that are compatible. This saves you time purchasing the machine first and then having to find a processor that will support it.

Automated Payments

You are earning passive income with your ATM business. That means you sit back, relax, and let the business work for you. But if you have to initiate transfers yourself, that’s time and energy you’re spending unnecessarily. Especially if you need to split the payment.

You might have a business partner with a separate account or you might have multiple accounts yourself that you use for different reasons. An ATM processor that offers automated ATM payments and payment splitting can save you the hassle of online banking to manage this yourself.

ATM Vaulting

It’s important to keep your ATMs stocked with cash. You have three different options when it comes to vaulting:

You can vault the ATM yourself which will save you money but cost you in time. If you vault yourself, you’ll want to work with an ATM processor that provides monitoring services to alert you when your machine is low on funds.

You can have the location owner vault the ATM. This is convenient since the location owner should be near the ATM regularly anyway. The location owner may or may not negotiate compensation for providing this service.

Or, you can have your ATM processor vault for you. There will be a charge for this, of course, but working with an ATM processor that at least offers the service can provide you with more options as you add more ATMs to your business and need to reduce your workload while also keeping your machines stocked.

Installation and Setup

You will want to work with an ATM processor that provides instructions for setting up and programming your ATM. The best ATM processors will offer to send a technician out to install an ATM in a new location for you. This might be convenient for you if you’re a first-time ATM owner who isn’t familiar with the technical side of owning an ATM machine.

Service Agreement Templates

A good service agreement leaves no room for error. You don’t want to have to hire a lawyer to settle a discrepancy in your service agreement if there is an issue between you and the location owner. 

You also don’t want to hire a lawyer to draft a service agreement for you. So if you aren’t qualified to draft a fool-proof service agreement, and you don’t want to spend money on a lawyer, you want to be working with an ATM processor that has templates for you.

By using a template, you ensure that all of your bases are covered while still saving yourself money by not hiring out and by avoiding long-term losses in the case of an incomplete service agreement.

Low Fees and Short Contracts

Some ATM processors charge more than others. Those that offer low prices on the sale of their ATM machines make up for the difference by locking you into a long-term contract and charging fees throughout the duration of the contract. 

There are ATM processors that do not do this. Try to find a good balance between fees and contracts when comparing ATM processors.

Support

Your relationship with your ATM processor doesn’t begin with ATM setup and installation and end with payment. Anything can go wrong at any time and you will need a resource to turn to for help. Make sure you have an ATM processor that will be available for you when you need technical support. There are ATM processors that offer 24/7 support should you need it.

When it comes to choosing an ATM processor, look at the options the processors provide. Which do you need at the current stage of your business?

Are you a new ATM owner who will need a lot of support? Do you plan on adding more ATM machines to your business? Are you an experienced ATM owner dissatisfied with your current ATM processor? What do you need that you don’t currently have?

In the end, you want to work with an ATM processor that will help you build the ATM business that helps you meet your goals.

2. Choose an Appropriate Machine

There are three factors you need to consider when purchasing an ATM machine: type, manufacturer, new vs. refurbished.

ATM Type

The type of machine you purchase is going to depend on the space you have available. A free-standing ATM generally has a small footprint. It can be placed anywhere there is a power supply. 

Through-the-wall (TTW) ATMs are typically quite bulky and you will need to invest in a little bit of construction if you don’t already have the space available. This is because the bulk of the machine, the interface, sits inside of the wall and extends into an adjacent room.

You might want a TTW ATM if you want more controlled access to the vault. If the interface extends into a room you can lock or where there is little foot traffic, you make the machine more secure. It isn’t accessible to the public and makes it safer for you when loading the machine.

TTW ATMs also work well when you have a space where the front (the chassis) can face outside. This makes the machine available 24/7 to all passers by, not just in-store customers during hours of operation.

Finally you have the option of a wall mount ATM. This is going to be the smallest option which is optimal if you don’t have a lot of space to work with. It can be placed on a countertop or hung on the wall. It’s going to hold less bills, so this is a good option for a low-traffic location. 

ATM Manufacturer

Some of the biggest names in the ATM industry are Hyosung, Genmega, Triton, and Hantle/Tranax. They all produce sturdy, reliable machines; that’s how they put themselves on the map. So you can’t go wrong with any of them.

Hyosung and Genmega are the best of the best. However, they still vary in size and features. So the decision still comes down to what you are looking for in terms of price versus features.

New vs. Refurbished

Next you want to consider purchasing a new vs. refurbished ATM machine. This decision might depend on your budget, experience, and concern for the environment. 

Purchasing a refurbished machine could save you money up front. You want to make sure that you purchase a certified refurbished machine, though. “Blow and go” refurbishments only clean up the surface of the machine. So you might end up spending more money down the line on repairs than you would have if you’d just purchased a new machine to begin with. 

You also might not get your ideal machine if you purchase refurbished since they are based on availability. You do, however, save on the 63 million tons of electronic waste when you purchase refurbished.

New machines are going to be easier to use. Usability constantly improves with each new model. Manufacturers want their machines to be user friendly, so if you are new to the ATM business, you might want to try a new machine first.

3. Place Your ATM Machine in a Profitable Location

The more people who use your machine, the more profit you will make. So you want your machine to be where people will pass by it, where they need the convenience, and where you aren’t competing with a bunch of other machines.

The most profitable locations tend to be those that are cash only, have liquor licenses, get a lot of foot traffic, and have good reviews. You want your machine where people are and where they need cash. 

You also want your machine in an area where there isn’t any competition. Or, if you see an area that already has ATMs but they are outdated, ask around and see if the location owners would be interested in updating.

Consider the convenience of the location for you, too. You want the machine close to where you live or work. The more time you spend getting to and from the machine, the less profit you make. And you need to be aware if your machine isn’t working properly, so you will need to check on it often. 

4. Determine a Fair Surcharge

You are completely in control when it comes to setting the surcharge. You want a surcharge fee that entices customers to use your machine but that also earns you a profit.

If your ATM is close to one across the street, you might want to set a competitive surcharge to bring more customers to your machine. If your ATM is the only one for a number of blocks, you might be able to set a higher surcharge. People will pay for the convenience.

You also need to account for profit sharing. If you place your machine in a location someone else owns, he or she might negotiate for a share of the surcharge profit. 

ATM surcharge fees range from $0-$8. You can offer a surcharge-free ATM service if the ATM itself brings more customers into a business that you own and encourages cash sales. More cash sales save on credit card fees. 

However, if your ATM is in a location owned by someone else, the surcharge is the only way you will make revenue. The average surcharge fee is $2.50. At an average of 6 transactions per day, that equals 180 transactions per month for a total of $450 a month. 

If that number sounds good to you, try starting with $2.50. If you’d like to try to make more, increase the surcharge. You can use trial and error to get the perfect number that satisfies both you and your customers.

5. Stay Compliant

If you purchase your ATM machine new, it’s going to be fully compliant automatically. This means that it meets ADA and EMV requirements. If you purchase a refurbished machine, depending on its age, it might not be fully compliant.

Often you can make upgrades to make an older machine compliant, but you have to weigh this cost against just purchasing a new machine. In any case, your machines need to meet these compliance regulations:

  • The top working button should not be higher than 48” off the ground.
  • The area in front of the machine needs to equal 48″ x 48″ (16 square feet).
  • There must be one unobstructed side of the clear floor space that adjoins an accessible route or another clear floor space leading up to the ATM and connecting to the clear floor space in front of the ATM.
  • All ATMs must be speech enabled. This may require that a 3.5mm female jack be accessible for headphones.
  • The display screen must be visible from 40″ above the center of the floor in front of the ATM. Characters on the screen must be in Sans Serif font, a minimum of 3/16″ in size, and must contrast with their background.
  • Braille instructions must also be provided.
  • Function keys must be designed to contrast visually from their background surfaces.
  • Input device control key surfaces must be raised above the surrounding surfaces.
  • Keypads must be arranged in an ascending or descending layout. The “enter” key should be marked with a raised circle, the “clear” key with a raised left arrow, and the “cancel” key should be marked with a raised X. The “add value” key should be marked with a raised plus sign and the “decrease value” key should be marked with a raised minus sign.

Upgrade kits are sometimes available for machines that do not meet these requirements, but not always. Make sure any machine you purchase meets these requirements or can be made compliant with an upgrade kit. If you already have a machine or two, check them for compliance to avoid hefty civil penalty fines.

How to Run an ATM Business Successfully

We’ve shown you how to run an ATM business successfully. There really are only 5 things you need to focus on to make the most amount of profit from your ATM business. There is some strategy involved, some trial and error, and you might have to make changes from one machine to the next. 

Considering these 5 tips before you jump into business can significantly increase your chances of running a successful ATM business that brings in the kind of revenue you expect.

But even if you’re already in the ATM game, it’s important not to forget these tips. It’s never too late to go another direction, especially if you plan on adding more machines to your business! ATM Depot specializes in ATM processing, sales, service, and independent ATM deployer (IAD) support. Give us a call and we’ll let you know if we think you have a good location. We can also help you figure out what you can expect to make from ATM processing with your machine. Contact us today!