Tag Archive for: atm business

7 Benefits of Starting a Business

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Starting a business can be scary, especially if you don’t have prior experience or formal training and education. However, none of that is really necessary to experience the benefits of starting a business. 

Now, not all businesses are created equal. Each has its own challenges. But the personal benefits each business owner earns from their business makes them uniquely qualified—they love doing it!

Here, we’ll list some benefits of starting a business you can experience. And, if you want to start now, see if our list of ATM business benefits appeals to you. If it is, we make it easy for you to get started today!

7 Benefits of Starting a Business

There are some benefits that many self-owned businesses share. These are the reasons more and more people are going into business for themselves:

1. Independence and Control

One of the biggest benefits of starting a business is the independence and control you experience. When you think about it, this kind of covers half of the benefits in this list. As the boss, you get to call the shots. You can make your business look the way you want it to. You can hire out the tasks you don’t enjoy while focusing on the ones you do. Most importantly, you don’t have anyone to report to.

2. Job Security

Independence and control are closely tied to a sense of job security. With no boss, you don’t have to worry about being let go or demoted. You control the success of your business and create opportunities that generate the revenue to keep going.

3. Financial Potential

Money is probably one of the most important benefits of starting a business. People start businesses to make money. Whether it’s to live a comfortable lifestyle, provide for a family, or generate a side income, everyone hopes to be financially compensated for their efforts. 

So while you control your own job security in your own business, you also control your financial potential. You will analyze things that are working and things that aren’t and make the necessary adjustments to reach your financial goals. Based on your success and resources, you can even scale your business when appropriate. Scaling comes with more work, but it also comes with a higher reward.

4. Flexibility

Flexibility is important to a lot of business owners. And, as your own boss, you have more flexibility than you would working for someone else. You can design your business around your lifestyle. Whether you want to spend more time with your family, travel more, work other jobs, pursue hobbies, etc., you set your working hours.

5. Skill Development

Since starting your own business doesn’t necessarily require any specific experience, training, or education, many new business owners encounter a lot of on-the-job learning. As a first-time business owner, you will develop both hard and soft skills that will benefit you in other areas of your life as well.

Hard skills are teachable and measurable. They might include things like financial management, marketing and sales, strategic planning, and technical skills. 

Soft skills are more behavioral, emotional, and interpersonal. You will have to practice time management, leadership, team management, communication, problem solving, adaptability, etc. 

You might already be good at some of these things, but others might be new. The point is that, as a business owner, you don’t just grow financially, you grow professionally, too. And these skills are transferable, so you never have to feel stuck.

6. Networking Opportunities

Networking is one of the key benefits of starting a business because it naturally expands your personal and professional connections in ways that can lead to growth, learning, and opportunity. (And it’s a soft skill…). 

Meeting other entrepreneurs, potential partners, mentors, and even investors offers access to more opportunities that might not be available in a traditional job. It can also help you learn and succeed faster, gaining insights from others’ experiences. What worked? What failed? And what strategies might you try yourself?

Networking can be good for your business by boosting your reputation and increasing referrals and recommendations. And you may find chances to collaborate on projects, bundle services with another business, or form strategic partnerships that benefit both sides.

7. Community Involvement

Networking also helps you increase your community involvement. But community involvement is one of the benefits of starting a business in and of itself. Community involvement is a valuable benefit of starting a small business because it fosters meaningful connections and long-term support.

When you engage with your community—through sponsorships, events, or local partnerships—people are more likely to support your business out of trust and shared values. Being seen as a business that “gives back” builds goodwill and enhances your reputation, which can influence buying decisions and word-of-mouth referrals. 

And many entrepreneurs find meaning in making a direct, positive impact in the place they live and work. This isn’t something as easily achieved in larger corporate environments.

Benefits of Starting a Business in the ATM Industry

Now that you know some of the benefits of starting a business, maybe you’re ready to do it. An ATM business is a good place to start for many reasons.

First, operations are simple. All you need is a location, a machine, a processing company, a bank account, and cash. You don’t need to worry about hiring or managing employees. Your technical knowledge is basically limited to the ATM machine operation. And you’ll have minimal customer service needs.

Second, overhead costs are low. You don’t have to purchase real estate, rent a storefront, pay utilities, or furnish an office. Just purchase an ATM machine and provide the vault cash.

And of course, one of the biggest benefits of starting a business in the ATM industry is its side hustle potential. An ATM business provides a semi-passive income stream offering you the flexibility to manage your business around your schedule, hobbies, other jobs, etc. An ATM machine does not require you to be on site except to refill and maintain the equipment. So, you essentially make money while you sleep or do literally anything else.

If you want to take your business from side hustle to full-time, you also have that option. An ATM business is completely scalable, allowing you to make as much money as you have bandwidth.

Are You Ready to Reap the Benefits of Starting a Business?

Now that you know what starting a business has to offer, do you think it’s for you? If it is, you can get started today. An ATM business might be that step you need to take the plunge into your dream business. Or, it could just be a way to generate some capital. Who knows? Your business goals could begin and end with ATMs! Most importantly, you can start an ATM business without disrupting your current lifestyle. It’s that simple. Check out our free ATM Business Start-Up Kit today to begin reaping the benefits of starting a business.

How to Become an ATM Owner Operator

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Want to become an ATM owner operator and earn semi-passive income? Well there is more than one way to do it. And that’s great news. It means you’ve got options. This article will cover a few avenues that can get you a semi-passive income stream. Consider your situation, your resources, and your goals to determine which path to ATM ownership is right for you.

What Is an ATM Owner Operator?

“Owner” and “operator” are two distinct terms in the ATM industry. You can be one or the other or both. Here’s what each role looks like:

The ATM owner decides who shares in the revenue. This might include the equipment owner, the location owner, a referrer, a partner, a cash vaulter, etc. The ATM owner completes a payee form with a processing company, like ATMDepot. This tells them how much to deposit into whose account.

The ATM operator is typically the person who is responsible for loading it with cash (also known as the ATM vaulter). They are also responsible for handling any service issues, balancing of funds, and maintaining the relationship with the location.

The terms “ATM owner” and “ATM operator” are sometimes used interchangeably. That’s because oftentimes individuals will purchase equipment that they plan on installing and managing day-to-day. So sometimes the owner and operator are one in the same individual. However, there are situations where an ATM business owner, group of individuals, or a company own the actual ATM while someone else manages the day-to-day operations.

Keep reading to find out what each of these situations might look like.

How to Become an ATM Owner Operator as a Business Owner

If you are already a business owner and have a physical store, restaurant, salon, etc., you can become an ATM owner operator on top of that. You might find that having an ATM on site can encourage more cash transactions, impulse purchases, and tips. An ATM machine can improve customer service by offering this extra convenience. And, on top of that, you make surcharge revenue with minimal effort.

There are two routes to getting an ATM machine in your business: buy an ATM machine or get a free ATM placement.

Buying an ATM Machine

If you want to be a true ATM owner operator, you need to purchase your own machine and bear responsibility for its operation. Our ATM Start-Up Kit provides you with information about our ATM processing program, pricing and brochures for our best-selling machines, the paperwork to ensure your compliance with operating the ATM, and a bonus ATM Business Start Guide to help walk you through the paperwork and documentation.

Review the kit, send us your completed paperwork, and you’ll be ready to place your order for your very own ATM machine. It can be delivered to your business, you can install it yourself or hire a technician, and once it’s got power and connection to all networks, you’re in the ATM business! Sit back and start earning revenue from the surcharge fee that you determine.

Free ATM Placement

The free ATM placement program offers you all the benefits of having an ATM machine on site without all of the responsibility. Once you send in your ATM Placement Request, ATMDepot will search our repertoire of well-established and certified independent ATM deployers (IADs) for a representative of ours in your area. Then, once we find one, we put you in touch.

The IAD will be able to place an ATM in your store for free. In addition, they will assist you with whatever ATM services you’d like provided. This might include filling the machine with cash and/or maintaining updates and cleanliness. You will work together to draft an agreement that stipulates the responsibilities of each party and the corresponding surcharge share.

As a store owner, you have to decide how much time you’re willing to put into an ATM machine at your establishment. Are you willing to fill it with cash? Will you be able to take time out of running your business to fix an ATM error if one occurs? Do you have time to keep the machine cleaned? Are you willing to keep it up-to-date with the latest software?

If you are equipped and prepared to take on the responsibility of owning and operating an ATM machine from your store, you can reap the many benefits including the entirety of the surcharge revenue. If you decide that you want an ATM on site but don’t want to commit to the work of operating it, you can find an IAD who will take care of the parts of the operation you don’t want to do for a share of the surcharge revenue.

Independent ATM Deployers (IADs)

IADs are typically sole proprietors who purchase, place, and may or may not operate ATM machines. As an IAD, you get to choose which parts of the business you like and which you don’t.

For example, you can purchase ATM equipment, find a location to place it in, install it, maintain it, stock it with cash, and enjoy the surcharge revenue (which you set) as compensation for your hard work.

Or, you can hire out any of those tasks to someone else for a fee or share of the surcharge revenue. In most cases, IADs identify a location that has a need for ATM service, approach the location owner to discuss placement options, and upon agreement the two parties work together to establish a contract that outlines the responsibilities, surcharge share, and other specifics pertaining to the shared interest.

There are three main routes to becoming an IAD: purchase and place equipment yourself, purchase established routes, or get matched with and take over an existing location.

Purchase and Place Equipment Yourself

This route is the most common and pretty much looks like the example above. You don’t need anyone’s permission to purchase an ATM machine. However, getting it up and running takes some paperwork and documentation.

As long as you pass a background check, get the appropriate bank account set up, and find a location that wants an ATM machine on site, you can install and operate that machine that you bought and own.

You determine (sometimes with the help of the location owner) the surcharge fee. You earn the revenue minus any share you might have negotiated for the placement. And, of course, you can handle the cash needs and vaulting, or you can pay someone else to. It is your machine and you can operate it however you see fit in mutual agreement with the location owner.

Purchase Established Routes

Sometimes, entire established routes will come up for sale. This means that someone else has placed machines in a number of locations and no longer wants to operate them.

You can find ATM routes for sale with a simple internet search. Search “ATM routes for sale + zip code” or expand your search to include a whole city. It just depends on how far you are willing to travel. You can also sometimes find routes in ATM Facebook groups and communities.

The good thing about purchasing an established route is that you don’t have to spend time negotiating locations. The machines are already installed and operating, too, so there is little to no downtime when taking over control. However, this avenue requires a lot more startup capital. You need enough to cover the cost of the equipment and the cash to vault all machines on the route.

Take Over a Single Location

Businesses that want an ATM machine on site can own and operate their own or participate in an ATM placement program. The placement program pairs businesses with an IAD in their area who can take over operation of the location’s existing machine or who owns and operates their own.

So instead of researching, contacting, and pitching location owners on the prospect of an ATM placement, in some cases the locations come to you.

If you are in Facebook business groups and communities, you might come across these opportunities. ATMDepot, for example, shares opportunities on our Facebook page when an ATM owner expresses their need for an ATM operator.

If you see “ATM Operator Needed,” for example, check the city and state to ensure the opportunity is local. The ad will include the type of location (convenience store, adult store, smoke shop, etc.), the duties required, and contact information for expressing your interest.

Getting Started as an ATM Owner Operator

Regardless of which path you choose, you will want to learn everything there is to know about owning and operating an ATM machine before you get started. The knowledge you have over another ATM owner could be the reason a location owner chooses to work with you over someone else. We have a list of resources to help you get started:

ATM Machine Business Start-Up PDF

First is a free PDF about the ATM machine business. This 17-page ATM Machine Business Start-Up PDF is an informative document for those entering the ATM machine industry.

How to Start and Grown an ATM Business: The Ultimate Side Hustle

Second, How to Start and Grow an ATM Business: The Ultimate Side Hustle is ATMDepot.com CEO Noah Wieder’s latest updated version of his original best-selling ATM business book on Amazon, The Amazing Money Machine. It is an intricately detailed description of how to profit from an ATM business.

ATMDepot.com Member’s Area

A third resource is the ATMDepot.com Member’s Area. This online Member’s Area features time-saving documents, informative audio, and helpful how-to and other videos that teach, support, and help you grow your ATM business. Get access to sales scripts, videos, and an editable sample ATM Business Contract.

Here, you can find information on how the business works, what to do when your first ATM arrives, and time-saving tips on how to speak with merchants and acquire locations. The ATMDepot Member’s Area includes many more resources to assist you. We just launched the Member’s Area Pro which features a comprehensive 9-step training system to help you get started on your ATM business journey. If you’re really serious about starting an ATM business, our Member’s Area is for you.

ATM Business Facebook Groups

Finally, join the ATM Business Entrepreneurs Facebook group and/or the ATM Depot-ATM Business HQ group. In the group, we post educational content and tips about the ATM business. Join today for free inside information, free camaraderie, and free networking.

Are You ATM Owner Operator Material?

Now you know what the path to becoming an ATM owner operator can look like. Hopefully, you also have an idea about which path to pursue. Consider the potential opportunities in your area, your budget, and your overall goals to help direct you. Do your research, purchase your equipment, and get in business! Becoming an ATM owner operator is as simple as that.

If you still have questions, don’t hesitate to contact us here or on Facebook! We’re happy to welcome you to the ATM owner operator community.

How Much Are Credit Card Processing Fees Costing You?

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Have you noticed signs on the counters of local restaurants offering a discounted price for cash payments? On the counters of local retail shops? What about at the pump? And maybe you’ve seen the opposite: notices that credit transactions will incur an extra fee. Maybe in the drive-thru windows of your favorite fast food joints? Why is this?

Merchants are charged credit card processing fees every time someone swipes their card. Basically, it costs money for the credit card processing company to communicate with the network and complete the transaction. To help cut costs, many companies are attempting to minimize these charges by encouraging more cash transactions. Or, they just pass the cost onto the customers.

So, cash is not becoming obsolete as some might have previously thought. This is good news for the ATM industry. It’s good news for you, too, if you are in or looking to enter the ATM machine business. 

But if you are a store owner, how much are credit card processing fees costing you? How much are they costing you as a consumer? Keep reading to learn more about credit card processing fees and how to avoid them.

What Are Credit Card Processing Fees and How Do They Work?

Credit card processing fees are the costs businesses pay to accept credit card payments. These fees cover the services of processing transactions, ensuring security, and transferring funds from the customer’s account to the merchant’s account.

When a customer makes a purchase using a credit card, the payment information is sent through a payment processor to verify the transaction. The card network (Visa, Mastercard, etc.) and the issuing bank approve or decline the transaction based on available funds and fraud checks. Once approved, the funds are transferred from the customer’s bank to the merchant’s account, minus processing fees.

Merchants are typically responsible for paying credit card processing fees. But while they absorb the initial cost, many try to recoup the expense by passing some or all of it onto the customer. 

How Much Are Credit Card Processing Fees Costing You?

Businesses

Credit card processing fees are generally 1.5% to 3.5% of the transaction ($1.50-$3.50 for a $100 sale). There are a number of factors that determine the cost including payment processor, card type, and transaction type.

Payment Processor

There are many different payment processors businesses can use to accept digital payments. Each processing company, such as PayPal, Stripe, Square, etc. sets its own rates and fee structures.

Card Type

Credit card companies like Visa, Mastercard, American Express, Discover, etc. are independent companies responsible for setting their own credit card processing fee amounts. Amex, for example, is notorious for charging slightly more than the other three major card brands.

Transaction Type

Furthermore, fees vary according to transaction type: card-present (in-person) or card-not-present (online, phone, or manually entered). This is due to differences in security, fraud risk, and processing costs.

For example, swipe, chip, and tapped transactions will be charged a lower credit card processing fee because they are more secure—the card is present. EMV chip technology and PIN verification also reduce fraud, minimizing the risk.

Online, phone, or manually entered transactions will experience higher credit card processing fees due to higher fraud and chargeback potential (disputes where the customer claims fraud or purchase errors). The higher cost also helps cover extra security measures like CVV verification and fraud detection tools.

For these same reasons, debit card transactions will experience lower credit card processing fees than credit card transactions. They are lower risk and cost less to process. 

First of all, debit transactions are lower risk for banks. There is no borrowing involved. Debit transactions pull funds directly from the customer’s bank account, so there’s no risk of non-payment or defaults like there is with credit cards. And since debit purchases use the customer’s actual funds, chargebacks are less common compared to credit cards.

And debit transactions cost less to process. Because they often use a PIN-based network, they are more direct and secure which reduces fraud risks and the need for extensive fraud prevention measures. Plus, when a debit card is used, the money moves directly from the customer’s bank to the merchant’s bank, eliminating the need for a credit extension or underwriting, which adds costs to credit card transactions.

You can use this calculator provided by NerdWallet to calculate your monthly credit card processing fee cost estimate.

Consumers

Now, while there are charts and calculators to help businesses estimate how much they’ll pay in credit card processing fees each month, it isn’t so easy for consumers. The biggest reason is because there are less transparent ways that businesses can pass the cost onto the consumer such as increasing product and service prices or reducing discounts. 

However, according to the National Association of Convenience Stores (NACS), swipe fees cost the average family $700 a year. Paying with cash can minimize or eliminate this extra cost.

How Can You Avoid Credit Card Processing Fees?

Businesses

If you feel like you are spending too much money on credit card processing fees, you can strategically choose a processor with lower markups or negotiate rates with a current processor. Sidestep avoidable fees by looking for a processor that doesn’t charge statement fees, minimum monthly processing fees, etc. And try to keep your chargeback rate to a minimum to reduce your perceived risk. High rates of chargebacks can cause providers to increase your transaction fees.

But obviously, the less credit card transactions you process, the less credit card processing fees eat into your revenue. Debit card transactions charge lower fees than credit card transactions. But you can’t really control the card type a customer uses where cards are accepted. So offer discounts for cash payments to promote cash over credit transactions.

You can also pass fees on to customers. However, there are some states (like Connecticut and Massachusetts) that have laws against credit card surcharges. In these states, it is unlawful for a retailer to add a fee to a credit card purchase to cover the processing fee. But every state allows for cash discounts. Cash discounts are protected by U.S. Code, so retailers can encourage customers to use cash over card.

Consumers

It goes without saying that if you don’t pay with a card, you, in many instances, pay less. It is not uncommon to see a discount for paying with cash or an extra charge for paying with a card. 

For example, according to a 2022 study conducted by NACS, 29% of participating convenience stores said they were offering consumers discounts for paying in cash. Convenience stores have noticed the impact the overall rising costs of goods and services have had on consumer buying behavior. “While sales and traffic have slowed as gas prices climbed, retailers continue to seek out innovative ways to provide value at the pump and inside the store to help their customers extend their paychecks and weather this period of inflated costs,” said Jeff Lenard, NACS vice president of strategic industry initiatives. 

Add to that the fierce gas price competition, and it’s no wonder we’ve started seeing two different prices at the pump: one for cash and one for card. KVUE reported that “NACS has repeatedly surveyed customers about their price sensitivity at the pump and has found that nearly half of all consumers would change their behavior to save 5 cents per gallon.”

According to convenience retailers surveyed by NACS, credit card processing fees average more than 10 cents per gallon. Therefore, not all businesses are passing the entire cost of credit card processing fees onto the customer but might, in some cases, simply be sharing it.

ATMs Can Help!

Want to encourage more cash transactions in your store? Want to transition to cash only? Both are possible by installing an ATM in your store or business. We make it easy to get started. 

You can purchase a machine for your location and earn the surcharge fee on withdrawals on top of avoiding credit card processing fees. Or, we can match you with a professional who will place and operate an ATM in your location hassle-free—for free! If you’re ready to save money on credit card processing fees, click here to get started today.

Are Credit Card Interest Rates Keeping You in Debt?

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“[Banks] own your butt, and you gave them the deed! Don’t give them the deed to your butt! They own you!” –Dave Ramsey

Credit card interest rates continue to rise, yet consumers are still spending. Why? Well there are a number of factors that contribute to Americans’ trillion dollars of credit card debt. Lower income households are struggling to stay afloat, especially after the Covid-19 pandemic. Many people continue to live and spend outside of their means. Credit card interest rates are at an all-time high. And credit card companies profit from keeping you in debt. 

This article will explore the tactics used by credit card companies to increase their profits and keep you in debt. We’ll also share ways to avoid credit card interest rates to get and stay out of credit card debt. 

As Dave Ramsey says, “You can make it without these things. Get you a debit card. Pay cash for it.” Here’s how:

How Bad Are Credit Card Interest Rates?

Basically, credit card interest rates determine how much extra you’ll pay if you carry a balance on your card from month to month. And, according to Bankrate, that’s the case for about 1 in 2 credit card holders. 

The Federal Reserve’s string of interest rate hikes lifted the average credit card rate to an all-time high of more than 20%. Credit card fees increased despite Joe Biden’s move to cap credit card late fees in March 2024. The financial industry responded by filing multiple lawsuits against the administration. 

Increasing credit card interest rates, in addition to steadily high inflation and the cumulative increase in prices over the last three years, leaves many households in a bind, says Greg McBride, chief financial analyst at Bankrate.com.

Credit cards have become one of the most expensive ways to borrow money. So why do people still use them? Well, aside from struggling to afford emergency and unplanned expenses, credit card companies intentionally mislead and manipulate borrowers. More on that next.

Why Americans Continue to Use Credit Cards

People continue to use credit cards. They offer convenience, financial flexibility, and various benefits that other payment methods often lack.

Credit cards are easy to use for both in-person and online purchases. They reduce the need to carry large amounts of cash. And automatic billing for subscriptions and recurring expenses simplifies payments.

There are also often a number of perks associated with using a credit card. Many credit cards offer cashback, travel points, or rewards for specific spending categories. Some provide perks like airport lounge access, travel insurance, or extended warranties. 

But Bankrate reported that the most common reasons for credit card debt include emergency and day-to-day expenses. Among respondents surveyed who carry a balance on their credit card(s), 47% say the primary cause was an emergency/unexpected expense(s): 15% named emergency/unexpected medical bills; 9% emergency/unexpected car repairs; 7% emergency/unexpected home repairs; and 16% other emergency/unexpected expenses. Twenty-eight percent cited day-to-day expenses such as groceries, childcare, and utilities as the primary cause.

Yes, credit card use can help build a positive credit history. Credit history is often crucial for securing loans, mortgages, and even some jobs. And paying on time and keeping balances low can improve your credit score. But this is only the case if credit cards are used responsibly and borrowers can avoid or minimize credit card interest rates. And, unfortunately, credit card companies actively work to prevent this. 

Why Credit Card Companies Want to Keep You in Debt

The bottom line is that credit card companies make money from credit card interest rates and other “junk fees”. Junk fees are extra charges that businesses add to the cost of a product or service. They often come with little explanation or transparency. These fees might include service fees, convenience fees, processing fees, late fees, etc. 

So the more products you purchase, the more credit card debt you accrue, and the harder it becomes for you to pay it off or get on top of it, the more money credit card companies make. 

Elena Botella, before resigning from her position with Capital One, questioned how raising credit card interest rates “radically” improves people’s lives. And this, she says, was one of the company’s “pie in the sky” goals. At the end of the day, it was just another way for the company to make more revenue. 

According to Bilal Beydoun, Director of Policy and Research for Groundwork Collaborative, credit card companies profit from predatory pricing. He defines this as “algorithmic-driven pricing,” or what you might have heard called “dynamic pricing”. Many companies were able to exploit the economic emergency created by the pandemic by raising their prices, contributing to inflation. So when you purchase a product at an inflated price and carry a balance at, say, 35% APR, you become a victim of what Beydoun refers to as “corporate profiteering.” The already inflated purchases you are charging follow you the rest of the year and cost you more and more every month.

Isn’t Credit Card Debt a Choice?

Most people believe that people who take out loans or open credit cards make that choice and should therefore be responsible for it. But Botella argues that most people wouldn’t make that choice if they had all of the information that credit card companies have. After leaving Capital One, Botella travelled the country looking for stories about the experiences of people living with debt and how they had been affected by the choices credit card companies like Capital One were making.

At one point in her career with Capital One, Botella was on a team where she was tasked with conducting experiments to see how much money the company could extract from people. “The bank is doing those experiments to measure, like, how much debt can I get somebody in, up until the point that they’re going to be in so much debt that they default because of that extra debt burden?” she explains. 

Botella believes that credit card companies are taking advantage of the fact that most people don’t understand the whole picture. “The two parties are operating with just completely different sets of information,” Botella says. “So they have a specific estimate: this person is going to get into $13,000 of debt. And over the next five years, they’re going to pay $8,000 worth of interest, whatever the case may be. They know that and you don’t and would you make the same decision if they just told you that?”

And raising credit card interest rates isn’t the only strategy credit card companies use to keep consumers in debt. Remember those perks we listed earlier? Just how much are you rewarded for the thousands of dollars the credit card company makes off of you? 

Understanding Credit Card Company Tactics

Capital One in particular has been penalized for practices like targeting people with low credit scores, tricking them into buying add-on services like credit and payment monitoring they didn’t actually need, and leading them to mistakenly believe that those things would improve their credit. But you have to understand that credit card companies are for-profit businesses. They will aim to increase their profits every year.  

“No one should be surprised that credit card debt hit another record high,” says Matt Schulz, chief credit analyst at LendingTree. And “there’s very little reason to believe that we won’t continue to see new credit card debt records being set going forward.”

Junk Fees

Rohit Chopra, former Commissioner of the United States Federal Trade Commission, has made big strides as Director of the Consumer Financial Protection Bureau (CFPB). He’s been particularly concerned with regulating excessive fees levied on people by credit card companies and banks. “We put out a rule…regarding credit card junk fees. And so what we found was that there was a loophole that the credit card companies had been abusing for years and years and years to extract an extra $27 million a day, $10 billion a year,” Chopra says.

Credit card junk fees might include anything like annual fees, balance transfer fees, late payment fees, foreign transaction fees, etc. Although, a staggering majority of credit card company profits comes from credit card interest rates ($105 billion out of $130 billion in 2022) rather than from junk fees.

Devaluation of Points

And those points and travel perks credit card holders are so quick to tout? Chopra has plans to reform how credit card points are used, too. “Well, we were actually pretty worried about these credit card companies engaging in massive devaluation of points. They want to say you’re going to be able to use this for free round trips, and then you try and use it and it’s almost worthless. That is not right. So we are actually trying to make sure that the promises are being kept,” he says.

Unethical Practices

Credit card companies have been caught opening up authorized accounts and making serious billing errors that they failed to correct until people reached out. And, believe it or not, Citibank is one example of application discrimination. They analyzed applicants’ last names under the impression that anyone with an Armenian-sounding name would somehow be a poor applicant. “So you simply cannot leave these credit card companies to their own devices,” says Beydoun, “because that almost certainly will lead to some of these practices that we just went through.”

So what can be done?

Why Paying in Cash Avoids Credit Card Debt

To combat credit card interest rates, it’s important to make sure you stay educated about how credit cards work. Read the fine print, ask questions, remain vigilant, and do your research. And of course, avoid credit cards altogether if possible. It’s easier said than done, but remember that the higher your balance, and especially the higher the balance you carry from month to month, the more debt you accumulate in credit card interest rates.

Paying with cash or debit can minimize credit card debt by promoting more intentional spending and reducing reliance on credit.

First, it minimizes impulse spending. When you use cash, you physically see the money leaving your wallet, which can make you more mindful of your purchases. This often leads to better budgeting and less overspending.

Credit cards can create a “buy now, pay later” mentality, encouraging spending beyond your means. Using cash sets a clear limit — once it’s gone, you can’t spend more without actively seeking additional funds. This helps limit overspending.

By using cash for everyday expenses, you reduce the need to put small purchases on your credit card. This helps you focus on paying down existing credit card balances without adding to them, thereby avoiding credit card interest rates.

Paying with cash often requires planning, which naturally leads to better money management. Many people set spending limits by withdrawing a set amount of cash for the week or month. Sticking to a planned budget can help minimize the “need” for credit card spending.

By relying less on credit cards for daily expenses, you can allocate more money toward paying down your existing debt and prevent further debt accumulation. Using cash for non-essential purchases or setting a cash-only rule for categories like dining out, entertainment, or groceries can significantly reduce the risk of accumulating debt.

What Credit Card Interest Rates Mean for ATM Business Owners

We’ve said it before, and we’ll say it again: cash is still relevant. As banks, credit card companies, and other financial institutions get dangerously large, or, “too big to fail”, more people than ever are encouraged to keep cash on hand as a safeguard against financial uncertainty. 

Cash continues to present certain benefits like privacy, budgeting power, and emergency preparedness. Most importantly, it could be the best defense against credit card interest rates and suffocating credit card debt. Don’t let credit card companies own you!

Ready to get into the ATM game? Whether you’ve been skeptical about the relevance of ATM machines amid electronic payment options or want to make some extra money to help tamp down your own accumulated debt, get your free ATM start-up kit today!

Buying an ATM Business vs. Starting an ATM Business

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Is buying an ATM machine business or starting an ATM machine business the best option? Are they even that different? If you want to make semi-passive income with ATM machines, these are two viable paths to take. In this article, we look at the ins and outs of each avenue of getting into the ATM business. 

Buying an ATM Machine Business vs. Starting an ATM Machine Business: How They’re Similar

First, here is what you can expect from both routes. Essentially, you are looking for the same end result. And regardless of how you get there, here is what an ATM business looks like:

Regulatory Compliance

Your ATM business will need to comply with all financial regulations, banking laws, and standards. There’s no getting out of that. 

Location Selection

No matter which path you take, the success of your ATM business is heavily dependent on the location. If your ATM machines are in high-traffic areas like convenience stores, malls, and tourist destinations, you will see more profit than in areas with less foot traffic. 

Cash Management

You will also need to determine a vaulting procedure. Who will be responsible for loading the machine with cash and when? You will need a reliable process for loading and securing cash in your machines. Otherwise, you’re out of business until you’re stocked. And being out of business gives you a bad reputation which can affect future business.

Maintenance and Servicing

ATM machines require maintenance and servicing. They have to be cleaned, monitored for tampering, fixed when they experience error codes, etc. So part of owning ATM machines includes maintenance agreements, troubleshooting knowledge, and relationships with technicians and/or reliable support from an ATM processing partner.

Processing

Speaking of which, you’ve got to have processing partners. You will need to work with a company that can connect your ATM machines to the credit card networks. Otherwise they won’t work. Your machines cannot release funds to ATM users unless they can confirm that the funds are available. This requires communication over a secure, dedicated network.

Banking Relationship

Finally, you will need a banking relationship. If you handle your own vaulting, you will have to find a bank willing to work with you to provide the regular large cash withdrawals you will need to stock your machines. If you decide to hire a vaulting company to handle your cash needs instead, you will still need a business bank account to receive earnings and manage business transactions like maintenance expenses.

But while the operation of an ATM business looks the same whether you are buying an ATM machine business or starting one from scratch, startup will look very different. Next is what you can expect from each option.

Buying an ATM Machine Business: Important Terms

Before getting into specifics, there are some terms that are used when discussing multiple ATM machines under one operator. 

Typically, when we help independent ATM deployers (IADs) get started in the ATM business, we walk them through the process of getting their first, single ATM machine placed, installed, and running. If you’re just getting started in the ATM business, it makes sense to start with just one machine. 

Learn the ins and outs. Master the process. Then you can think about purchasing, placing, and operating more machines once you gain traction and maybe even steady revenue to invest in more machines.

When talking about more than one ATM machine, you might start to hear terms like “route” and “fleet”. In the ATM business context, these terms are related but not always interchangeable.

Route vs. Fleet

An ATM route refers to a set of ATM locations managed by an operator. It emphasizes the geographic distribution and operational structure of ATMs placed in multiple locations (e.g., a route of ATMs in gas stations, hotels, or convenience stores).

An ATM fleet refers to the group of ATMs owned and managed by a single operator, regardless of their locations. It focuses more on the machines themselves rather than their placement.

While people often use the terms interchangeably, “route” is more commonly used when discussing buying or selling an ATM business because it implies an existing network of profitable locations. “Fleet” is more general and often used in discussions about ATM inventory or expansion plans.

Simply, you might have a “fleet” of ATM machines, and they may or may not be sitting in your garage waiting to be placed. Or, you may have a “route” of ATM machines that you regularly monitor, stock, and actively operate.

However, when buying an ATM machine business, the seller could be referring to a route or a fleet. So keep that in mind when determining whether the asking price is fair. Expect to pay more for a route which will have an existing customer base and earn consistent revenue.

Buying an ATM Machine Business vs. Starting an ATM Machine Business: How They’re Different

Initial Investment

Typically, the initial investment will be higher when buying an ATM machine business. ATM businesses for sale will be calculating the value of the equipment itself as well as the revenue potential. There are a number of factors that can influence the cost of buying an ATM machine business. But, for example, a route of 40 ATM machines in Houston, Texas might go for $160,000 and estimate a $90,000 annual cash flow.

When you start your own ATM business, you can purchase as many ATM machines as you can afford. ATM equipment ranges anywhere from $1,000-$3,000 plus the startup cash (~$2,000-$3,000) to vault them.

The main difference is that the existing route that you may be purchasing is already in business. So you would save the time it takes to find locations and negotiate agreements.

Buying an ATM machine business requires a higher upfront investment, but it comes with existing revenue streams. Starting an ATM business can be cheaper upfront, but it requires more leg work: finding locations, negotiating contracts, developing a customer base, etc. 

Revenue Generation

Similarly, buying an ATM machine business offers immediate cash flow from established locations. When you start your ATM business from the ground up, you have to build a client base and put in the effort to strategically place ATMs in profitable locations.

Operational Setup

Again, buying an ATM machine business comes with contracts, locations, and possibly a team in place already. Starting your own ATM business requires you to set everything up from scratch, including securing contracts.

Risk Level

You can typically expect the risk level to be lower when buying an ATM machine business as the business already has historical data. However, you have to be able to verify this for yourself or rely on the seller to provide accurate data. Be wary of sellers who are desperate to sell a route that costs more to operate than it’s worth.

Alternatively, the risk associated with starting an ATM business can be higher due to the uncertainty of how a particular location will perform, how the relationship with the location owner will pan out, etc.

Growth Potential

Typically, when buying an ATM machine business, you are limited by existing contracts unless you are able to negotiate out of them or expand further. You have less flexibility if you want to make changes to existing agreements or add more machines to a route if you are already stretched thin (in labor and funding). 

However, if you start an ATM machine business from scratch, your growth is potentially unlimited depending on your ability to secure successful, profitable locations.

Conclusion

So, buying an ATM machine business is ideal for those who want an established system with immediate cash flow. On the other hand, starting one from scratch allows for more control and flexibility but comes with higher risks and effort.

When evaluating an ATM route purchase, consider the following factors:

  • Location Quality: High-traffic areas can lead to increased transaction volumes.
  • Machine Condition: Ensure ATMs are up-to-date and compliant with current regulations.
  • Existing Contracts: Review the terms with location owners to understand revenue splits and contract durations.
  • Operational Costs: Account for expenses such as maintenance, cash replenishment, and potential location fees.

Overall, remember that it’s essential to conduct thorough due diligence to assess the profitability and sustainability of a route before making a purchase. And, if you come across an opportunity that is just for a fleet of ATM machines, keep in mind that you might still have to put in some effort in getting each machine established.

If you’re looking for an ATM route for sale, you can check online business marketplaces like BizBuySell or Facebook Groups like ATM Business Entrepreneurs. If you’d rather start your own ATM machine business, get your free ATM business start-up kit or contact us today!