Becoming an independent ATM deployer (IAD) is a great way to generate passive income. It can also become your main source of income depending on your individual goals. But while becoming an IAD is quite simple, it isn’t necessarily easy.
There are some industry ins and outs you will need to become familiar with before you really get going. So you will have to put a little work into getting started. Fortunately, there are a ton of resources and experienced IADs available to help you every step of the way (and there really aren’t that many steps).
To help get you past any pre-business jitters you might be experiencing or any other obstacles that might be standing in your way, we’ve compiled a list of the most frequently asked questions from new IADs. Our hope is to remove as many hurdles as possible so that you feel confident going into business for yourself as an IAD.
What is an Independent ATM Deployer?
An IAD is an individual (or a company) who owns and operates ATMs without being affiliated with any specific financial institution. A common misconception is that all ATMs are owned by banks. But ATMs can be deployed in various locations such as retail stores, gas stations, salons, and other public places. Just like bank-owned ATMs, independent ATMs offer cash withdrawal and sometimes additional services like balance inquiries and transfers.
An IAD works with an independent sales organization (ISO) that provides processing. This is how an independent ATM machine is able to communicate with users’ financial institutions to provide account information and approve or deny withdrawal requests. It is an IAD’s job to purchase ATM equipment, place it in a location that provides customers with convenient access to their accounts, and maintain the machine to keep it functional.
How Can I Become an Independent ATM Deployer?
You can become an IAD in just a few simple steps. First, there is some documentation you need to prepare. You will need to prove your identity, pass a background check, and complete any agreement forms required by your ATM processing company. This documentation might include your ATM business bank account information so that the processing company knows where to send your settlement funds and surcharge income (more on this later).
You also need to find a bank that will work with your ATM business. This can be tricky, so keep reading for more information on finding a bank to work with. Next, you want to purchase your ATM equipment. This can include the machine and any upgrades or ad-ons you’d like. At the very minimum, you will need a machine. The rest can come later depending on your budget (cost estimates coming up next!).
Once you have the ATM machine, you can begin to learn the functions (most new ATM machines come preprogrammed). Review the manual, test it out, and practice operating it. The only thing that’s left to do is to find a location to place it.
When you find a location that can benefit from having an ATM onsite, and the location owner agrees to work with you, you can plug the machine in, connect it to the internet, load it with cash, and start making money! And THAT is how you become an independent ATM deployer.
How Much Does It Cost to Start an ATM Business?
There are some startup costs associated with starting an ATM business, just like there are with any business. However, compared to most other businesses, ATM business startup costs are fairly low. The biggest expenses will be the purchase of the machine itself and the cash you use to vault the machine.
ATM Equipment
We recommend that new IADs start with a new ATM machine. They are user-friendly, compliant, programmed, and typically experience fewer technical problems. New machines run from around $2,000-$3,000 depending on the size and manufacturer. Of course, you can find used and refurbished machines for a little less, but they also come with a modicum of risk.
Once you feel a little more comfortable and confident with ATM equipment, you can look into used and refurbished machines for future placements. But you will want to make sure that all faulty parts have been replaced or repaired, software has been updated, and that it is compliant.
Vault Cash
The other major startup cost is the vault cash. This is the cash that you load into the machine to be dispensed to your ATM users. Plan to start with about $2,000.
At the end of each business day, your ATM processing company will deposit the sum of all cash withdrawn from your machine back to your settlement account, or your ATM business bank account. Then, you can withdraw the funds back from this account when you are ready to restock the machine, so on and so forth. Vault cash is yours at the end of the day, but it is tied up in your machine, so try not to think of it as cash you are able to use.
Other Costs
Other costs associated with operating an ATM business include receipt paper, any cleaning supplies you need to maintain your machine, travel to and from the machine, insurance if you have the budget to purchase it right away, and a wireless device.
It’s a good idea to just invest in your own internet connection from the start. That way you don’t have to rely on the location’s internet service. If their internet goes down, you will be at their mercy and that of their service provider to get back up and running. And the time that your machine isn’t operational is time that you aren’t making money.
How Can I Make Money as an Independent ATM Deployer?
You make money as an IAD from the surcharge fee. This is the fee that you set for each transaction made on your machine. It’s the price your customers pay for convenient access to their accounts. A standard surcharge fee is about $3 but can be as high as $8 and even more in some locations. It depends on the type of location, average withdrawal amount, and convenience of the ATM.
Before you can start to make a profit, you need to make back as much as you put into the business. Your surcharge fee and revenue split with the location owner will determine how quickly you make your ROI and can begin to profit.
You can expect to make a few hundred dollars a month, a few thousand a year, with one machine. But remember that this is passive income. Your machine makes money while you work your day job, travel, sleep…. Once you get the hang of the business, you can start adding more machines to your portfolio. Soon, that few thousand a year can turn into tens of thousands a year so that you are making full-time income.
How Do I Get a Bank Account for an ATM Business?
It can be tricky to get a bank to work with your ATM business. Because of the cash-heavy nature of the business, banks can be held liable for your business practices. Therefore, banks that handle ATM business accounts are subject to costly audits to help monitor and prevent money laundering.
Our number one tip when it comes to finding a bank is to start where you already have a good relationship. If you already know your bank manager or tellers well or have had accounts with them for years, make an appointment to speak with someone about opening an account for your ATM business.
Some banks will flat out say no; some banks don’t handle these types of accounts at all. Others might use their discretion on a case-by-case basis. So if you are turned down from one financial institution, be polite, patient, and understanding, and move on.
To make yourself a more appealing customer, offer to open multiple accounts. The more products and services you purchase, the more lucrative you will be as a customer and the less likely the bank will be to close your ATM business account. Your settlement account will often have a low balance as you withdraw the funds to vault your machine, and it will take extra time and money for the bank employees to order and count enough cash for your business needs. So prove to them that you’re worth their time.
Some IADs have success at banks that others don’t and vice versa. Our list of ATM business-friendly banks is a good place to start, but don’t rule out local, regional, community banks. Sometimes, they are under less scrutiny than tier 1 financial institutions and might be more likely to take on your business.
How Do I Find a Location for an ATM Deployment?
There are a few tips to keep in mind when it comes to looking for a location to place your ATM machine.
The first, again, is to start where you have good relationships. What are some businesses that you frequent and even know some of the employees? This could be a good way to get your foot in the door or even get a referral.
Look for gaps in service. Where do you see a need for an ATM where there currently isn’t one? Find out who owns the location or property and see if they wouldn’t mind a free ATM placement.
And obviously, look for places that experience a lot of foot traffic like shopping centers, event areas, or other attractions. Statistically, the more people who pass by your machine, the more transactions you are likely to see. Cash-only locations are great spots as well as new businesses that haven’t been approached yet for ATM service.
Even if a location already has a machine, find out if they are happy with it. It doesn’t hurt to ask, and you could end up replacing someone else’s machine that’s been neglected.
What Are the Advantages of Becoming an Independent ATM Deployer?
There are many advantages to becoming an independent ATM deployer. First and foremost is being your own boss. Each ATM business looks different. There are a lot of decisions you get to make based on your own specific situation, needs, and goals. Your ATM business is yours to curate.
That includes curated responsibilities. As an IAD, you can outsource any aspects of the business you can’t or don’t want to handle, whether it be vaulting or cleaning or maintenance.
Which brings us to the most appealing advantage of becoming an independent ATM deployer: generating passive income. Your ATM machine works with very little onsite effort from you. Aside from loading the machine and regular cleaning and maintenance (all of which you can hire out if you want), you can go about your regular life and watch those revenue deposits hit your account.
Finally, the ATM business is scalable. Want to make a little more passive income? Place a second machine. Want to replace your 9-5 income? Invest in 10 or more machines. You’re in control. And you don’t even need any official business or entrepreneur education, training, certification, or experience to get started.
What Are the Challenges and Risks Associated with Being an Independent ATM Deployer?
Like any other business venture, there are some challenges and risks associated with being an IAD. But there are also ways to mitigate and handle them.
Challenges
The first challenge might be the initial funding. However, since good ATM machines are about $2,000-$3,000, you can sometimes find credit companies that offer little to no interest for 12-18 months. That gives you time to get your business up and running so that you can start to pay off your machine as soon as you start to generate income rather than purchasing the machine outright.
Another big challenge for IADs is finding and negotiating locations. But there are a couple of things to remember here:
First, you don’t have to limit your search to locations without an ATM machine. You could be looking for machines that are old, unkempt, or frequently out of order. This could be a great opportunity to approach a location that clearly wants ATM service but can’t keep up with it on their own or is dissatisfied with their current provider.
Second, it helps instill confidence in new IADs to remember that they aren’t selling anything. As an IAD, you are offering a service—for free—that benefits the location and its customers.
There are a number of objections you might encounter when approaching location owners to negotiate a placement. But with preparation, practice, and active listening skills, you can become better at addressing these.
An obstacle that isn’t unique to the ATM business is imposter syndrome. It can be particularly daunting to try to negotiate a deal when you don’t have any experience under your belt. But you can also spin this in your favor by emphasizing your dedication to just ONE machine and your motivation to provide service that’s good enough for a referral or recommendation in the future.
Risks
As with any business, again, you risk not making money. But unlike other businesses, your ATM investment probably won’t bankrupt you, and you can always move your machine to a better-performing location.
Actually, let us take that back. It’s really hard to lose money with an ATM business. As long as it’s up and running, if someone uses it, it will make money. However, it might not bring in enough quickly enough, and that is a potential risk that can be solved by relocating the machine or adjusting your signage, advertising, surcharge rate, and/or incentives.
Safety and security can be a risk as well. When it comes to the safety of your business, just make sure you protect yourself with contracts. There are templates you can use and industry experts you can borrow from without having to get a lawyer involved.
When it comes to the safety and security of your machine, there are lots of things you can do to protect your assets. You can also prevent potential risks and unnecessary challenges by avoiding some of the most common small business mistakes.
How Can I Ensure the Safety and Security of My ATMs?
The first thing you can do is to purchase general liability insurance. There are other, more comprehensive policies you can invest in, too, but general liability is pretty standard. While insurance isn’t preventative, it can provide you with peace of mind and protect you in the long run.
Second, use common knowledge. Make sure that the machine is within eyesight of employees and/or security cameras (some machines come with a camera which is a great way to deter crime). Don’t place the machine in an area that is easy to breach like near doors or windows. If you want to, you can invest in your own surveillance system (cheap cameras can be purchased on Amazon, for example) or GPS tracker for your cash. And bolt down the machine. Don’t let a location owner talk you out of it.
Most of the time, a simple sign that announces that the machine is under constant surveillance is enough to deter criminals. But try to predict weaknesses or potential points of ingress and reinforce them. Blocking the machine against a wall or other furniture can prevent both external attacks and internal attacks like software hacking.
Maintaining current software updates can help protect your customer data as well. And keeping up with compliance changes can help protect you and your customers.
Finally, keep an irregular vaulting schedule. Don’t make it easy for someone to predict and plan when you and the machine will be vulnerable. It’s also a good idea to vault the machine outside of the location’s hours of operation so that there is less foot traffic during vaulting.
Is An ATM Business Worth It?
Only you can answer this question. We will say that an ATM business is worth it for thousands of IADs in the United States. If it works for them, it could work for you. You don’t need any official education, training, certification, or experience to get started in the ATM business. And once you get past those few initial steps, you can start making money immediately with little to no marketing efforts.
Your success as an independent ATM deployer is completely up to you. The process is simple, but don’t expect it to be easy. It will require some effort. You will need to plan, be organized, and make well-informed decisions. Fortunately, you don’t have to do any of it alone.
If you work with an ATM processing company like ATMDepot.com, they will walk you through each step. Do your research, ask lots of questions, and start making passive income! How much is up to you. Ready to get started? Get your free ATM start-up kit today!
https://i0.wp.com/atmdepot.com/wp-content/uploads/2023/07/IMG_5103.jpg?fit=1080%2C1080&ssl=110801080Amber Ivenhttps://atmdepot.com/wp-content/uploads/2022/12/ATM-Depot-Logo.pngAmber Iven2023-07-26 06:14:412024-10-25 14:53:48Becoming an Independent ATM Deployer: FAQs
There are some common small business mistakes that apply to independent ATM deployers (IADs) as well. Fortunately, you have an opportunity to learn from those mistakes others have made. Being aware ahead of time of what can go wrong can not only provide you with peace of mind but also save you time and money in the long run.
Knowing where things can go wrong can help you avoid headaches and early failure. Use this list of 7 common small business mistakes to make the most out of starting your ATM business.
7 Common Small Business Mistakes
1. Trying to Do Everything Yourself
Don’t try to do everything yourself. Especially at the beginning. Use your resources. Ask for help when you need it. This will help you avoid a number of other, industry-specific mistakes.
Talk to other IADs for advice. There are a number of Facebook groups you can join to learn from other people’s questions and ask your own. And don’t hesitate to ask your ATM company for help. You never know what resources are available until you ask. Your ATM processing company wants you to succeed because if you make money, they make money.
Finally, it’s absolutely okay to delegate any ATM business operations you don’t enjoy handling. If you don’t want to clean your machine or load cash, pay someone else to do it for you. The point of an ATM business is to generate passive income. So if you find that you are doing more work than you feel is worth it, share the load!
The point is to avoid making mistakes by not being afraid to ask for help. Plus, you want to make sure you don’t get burned out. Operating a business that you don’t enjoy isn’t going to see as much success as one you do enjoy.
2. Overspending or Underspending
This one is tricky. You want to make sure you find a happy medium when it comes to overspending and underspending. You will need to weigh pros and cons to determine which costs are necessary and which are extra.
For example, a refurbished ATM machine will save you money upfront compared to a brand new machine. However, if you aren’t great with tech, a new machine might be worth it in the long run if it saves you time and money having to figure out a less user-friendly machine or constantly calling technicians for help.
You also want to be mindful of your cash flow. Make sure that your list of expenses is very detailed and that you have a budget for your business. Although it’s exciting to start seeing that passive income hit your account, be careful not to spend it right away. You will want to account for any costs related to maintenance, repairs, insurance, or other emergencies, so make sure you set some money aside for these things.
And don’t forget about financing. You can always look into leasing a machine or getting a loan from your bank, a friend, or a family member to get your business up and running. Don’t let that stop you from starting your business.
Just remember that some costs are absolutely necessary while others can wait. You might want to go ahead and pay for your own wireless router but wait until your business starts making money to spring for video surveillance. You want your business to be reliably operational before looking for ways to improve the customer experience.
3. Launching without a Plan
One of the most harmful common small business mistakes in the ATM industry is starting without a plan. Planning includes everything from negotiating a good placement location to drafting contracts to preparing for emergencies.
Before you can operate your ATM machine, you need to have a site to operate it from. Before you can get a site, you have to approach multiple location owners to gauge interest. And before you can get a location owner’s interest, you have to know what you are going to say and how you are going to handle their objections.
If you don’t have these plans ahead of time, you could get overwhelmed or feel pressured and stressed. The longer you have a machine without a place to operate it from, the longer it will take you to make your return on investment (ROI) and profit. So the better your plan, the quicker and easier getting started will be.
And don’t skip the contracts. Any time you enter into an agreement with a location owner, vendor, or other third party, make sure you read their contracts very carefully or develop your own. This is an important step in ensuring that all responsibilities and compensation are clearly outlined and that no one backs out unexpectedly leaving other parties in a tight spot.
4. Neglecting to Set SMART Goals
Goal setting is paramount to success. How else will you know whether your business is working for you or not? How else will you be able to scale your business? Specifically, we recommend setting SMART goals. SMART goals are specific, measurable, actionable, relevant, and timely.
So any goal you set for yourself should be specific. Rather than just say, I want to make passive income, think of a number (this will also help you determine the perfect surcharge fee).
Numbers are also measurable. If you say you want to make $100/day, you can definitively say yes you’ve accomplished that or no you haven’t by looking at the transaction history.
Once you have that specific, measurable goal, you can then act on it. If you say you want to make $100/day, then you know that by setting a $5 surcharge, you can reach that goal with 20 transactions. If you are shy of your goal, act again. Do you need to reposition the machine? Add a sign to draw attention? Lower the surcharge fee to get more transactions?
A financial goal is also relevant. It is an important reason for why you are in this business in the first place. It’s an important step toward other goals you might have such as purchasing a vehicle, taking a vacation, quitting your day job. A goal that is important to you is more likely to be accomplished.
Finally, you want to set a timeframe. Maybe expecting to make $100/day is a lofty expectation to have the day you install and program your machine. Maybe, at the very latest, you want to start making $100/day within the first 6 months of being up and running. THAT is a specific, measurable, actionable, relevant, and timely goal.
5. Failing to Market or Advertise
This is one of the common small business mistakes to avoid when you are looking for more placements. If one of your goals is to scale your business, you need to let people know what it is that you do. So once you’ve been in business with at least one machine for a while, it’s a good idea to start marketing yourself once you have enough revenue to do so.
You can create a business name and logo to display on your machine screen or ATM wrap. You can create ATM business cards to have on hand when meeting new people. And you can even advertise your service on social media. There are lots of ways to market yourself, so don’t skip out on this if you want to own a fleet of machines!
6. Being Disorganized
As you’ve probably gathered from the five common small business mistakes above, it’s extremely important to be organized. But don’t worry. There are a lot of tools and resources at your disposal. And if you don’t consider yourself to be a very organized person, maybe this is one of the tasks you end up delegating!
First, of course, don’t start without a plan. Second, make sure you are prepared to start your business by gathering all of the necessary paperwork and documentation. Third, don’t forget about contracts, particularly the site location agreement (SLA).
Additionally, keep your finances organized so that you don’t find yourself out of money in the event of an emergency. Finally, make sure your machine never runs out of cash!
If your machine runs out of cash, you won’t be able to operate your business. You will lose out on income during this downtime, and you risk losing face with the location owner and customers. Running out of vault cash over the weekend or a holiday is even worse since you won’t be able to withdraw large sums of cash when your bank is closed.
Fortunately, with remote online monitoring, you can get low cash alerts. This is the number one tool you will want to use to stay organized. You can view all activity on your machine in real time, and you will want to use this data to inform all of your business decisions. Knowing the busiest days and times can help you create a convenient vault loading schedule to ensure your machine is always stocked.
Being organized shows that you are serious, professional, and reliable. That is the kind of IAD people want to work with.
7. Fearing Failure
The most important of all of the common small business mistakes you can make is fearing failure. This is what can keep you from trying at all. You can’t start a business or make money if you don’t even try. You have to take the ATM business one step at a time knowing that if you fail, you will learn from it and do even better going forward.
But fearing failure is a mistake you can make even after you’ve been in business for a while. This can cause you to refuse to pivot which can be a costly mistake. You have to be able to recognize when something isn’t working or when something could be done better—and then change it.
Don’t just do something because it’s what you’ve always done or because it’s what everyone else is doing. Every small business is different. Each ATM business is curated to fit the IAD’s lifestyle and goals. So if your business model stops aligning with your lifestyle and goals, your business model needs to be adjusted.
This might mean leaving a toxic partnership with a particular location owner or delegating some of the ATM operations. Try not to worry about revenue risks. It will be worth it to get back to enjoying your business. Your business should not hurt other areas of your life. If it does, it might be time to pivot.
Finally, don’t be afraid of new technology. Technology is constantly improving to make your life and your customers’ lives easier. So don’t be afraid to try something new and improved, and don’t choose traditional routes just because they are familiar.
You can’t win if you don’t play. You can’t succeed if you don’t try. So don’t be afraid to pivot, and don’t be afraid to fail.
Conclusion
Don’t plan to make no mistakes in your ATM business. If you set out with that expectation, you risk disappointment and discouragement. Instead, treat them as learning experiences and move forward stronger. Sometimes, it can help to document these mistakes. Jot down what went wrong, what you did to fix it, and how you can prevent or avoid repeating the mistake.
Use this list of 7 common small business mistakes as a map for how to proceed in your ATM business smoothly, and rest assured knowing that there are very few mistakes you could make that you wouldn’t be able to recover from. And remember: ask for help. ATMDepot.com has a host of resources for new IADs including training videos, SLA templates, and 24/7 live support. So don’t hesitate to contact us today!
https://i0.wp.com/atmdepot.com/wp-content/uploads/2023/07/IMG-5062.png?fit=1080%2C1080&ssl=110801080Amber Ivenhttps://atmdepot.com/wp-content/uploads/2022/12/ATM-Depot-Logo.pngAmber Iven2023-07-14 11:50:182024-10-25 14:55:247 Common Small Business Mistakes
PCI Compliance: Best Practices for Enhanced Security
Digital transactions have undoubtedly transformed how we interact with our finances. ATMs play a vital role in facilitating these transactions, offering convenience and accessibility to users worldwide. However, with the increasing prevalence of cyber threats, ATM providers and financial institutions must prioritize security measures.
This article will explore the upcoming mandatory ATM keyboard PCI compliance that will take effect on January 1, 2025.
Understanding PCI Compliance:
The Payment Card Industry Security Standards Council (PCI) is the unified governing body of ATM networks. They are a self-policing group that comes up with the rules that ATMs, credit card terminals, and processors must abide by in the United States.
What is the ATM Keyboard PCI Compliance?
Intending to keep ATM processors and users safe, the PCI Security Standards Council (PCI SSC) has released new mandates for ATM PIN pads and data encryption. The latest update states that by December 31, 2024, all terminals that have the potential to be upgraded to the latest version of encrypting pin pad (EPP) must undergo the necessary upgrades. Any and all terminals that are not eligible for upgrades will need to be replaced entirely.
Starting January 1, 2025, operational ATMs must have up-to-date firmware and software utilizing the TR31 Phase 3 key blocks. These key block encryption measures have been implemented to enhance the security of PINs and data transmitted through ATMs and payment network infrastructure. The strengthened security measures aim to safeguard the cryptographic integrity of payment data, making it significantly more challenging for hackers to exploit vulnerabilities.
After the specified deadline, machines not equipped with the latest pin pads and key blocks will no longer receive support from host processors. Consequently, the networks will not accept any attempted transactions on these ATMs, rendering the machines non-operational. In other words, your ATM will be turned off if you do not have the updated firmware or keypads to support this new compliance standard.
What does this mean for current and future IADs (Independent ATM Deployers)?
For current IADs, we strongly advise upgrading your ATMs as soon as possible in the upcoming months and not waiting until the end of 2024. We see this happen anytime there are mandatory updates and parts become scarce and more expensive, field technicians get busier, and you may miss the deadline and have your ATM shut off until you complete the update. If you have a Hyosung, Genmega, Hantle, or Triton ATM and want to can if your ATM model has an upgrade available, you can download this compliance and upgrade paths pdf.
If you are just starting in the ATM business and considering a used machine, be mindful of this new requirement. For example, if you see a good deal on a used Hyosung 1800CE, looking at the above compliance PDF, you can see the Hyosung 1800CE ATM will need to be replaced by 2025 ss the ATM core is WinCE5.0 and is not PCI compliant and can’t be upgraded.
If you wait too long to upgrade, there will be price increases and delays in equipment after October 2024. Schedule your updates by the summer of 2024 so you can be sure of availability. All the PDF ATMs showing “Replace ATM” are boat anchors in 2025.
All the Hyosung ATMs in this compliant Hyosung ATMs PDF show which ATMs will need to be replaced, so don’t buy any used or refurbished Hyosung ATMs listed in this document where it says “Replace ATM?” = Yes!
So, this is a huge warning to all retailers and IADs, be careful who you buy ATMs from and what they did to refurbish them if anything. Used machines have to be cleaned, and tested, have parts replaced, have software reset to factory defaults, include keys and passwords, and be PCI compliant so they can be properly programmed for installation and use after 2025.
Although January 1, 2025 feels like it’s way out in the future, please do not delay updating your ATM. Our CEO has been in the ATM business for over 30 years and our parent company Intelligent e-Commerce, Inc. has been around for almost as long.
We have seen our fair share of ATM security updates including Triple Des & EMV as well as other changes including new ADA guidelines and software sunsets like Windows XP and so on.
We know from decades of experience that updating ATMs early can save you money, time, and headaches as people wait, parts and services become scares and wait times grow longer. If you wait until the middle or end of 2024 or you hope that an extension will be forthcoming, our experience has proven the upgrade kits will be more expensive. It will also mean technicians will be swamped and you may not get your ATM upgraded before the deadline and it would be turned off.
We can not stress how important this update is. Please check the links above and see if your ATM requires an update. If it does, we urge you to call us soon.
If you want to make sure the machine you are buying is PCI compliant, please check out our line of brand-new future-proof ATM Machines.
https://i0.wp.com/atmdepot.com/wp-content/uploads/2023/06/TR-31-Requirements.png?fit=1200%2C1200&ssl=112001200Jim Rey Bauyanhttps://atmdepot.com/wp-content/uploads/2022/12/ATM-Depot-Logo.pngJim Rey Bauyan2023-06-26 15:33:552024-10-25 14:54:19ATM Keypad Encryption PCI Compliance Updates – Upgrades Due by January 1, 2025
Are you looking for side hustles that could make you a little extra money each month? Are you struggling to find something perfect? Something that doesn’t cause you extra stress and anxiety? Something that you can fit into your already busy schedule?
Here, we’ve got a list of some of the most common side hustles including what we consider to be the ultimate side hustle. Keep reading to find out which side hustle you can turn into a fully-fledged business that works—even when you don’t!
Other Side Hustles
There are so many things people are doing to earn extra cash, build savings, or create a legitimate small business. And it’s not surprising. In the United States, about 340 million people and 77% of households are in some kind of debt. About 40% of adults struggle to make ends meet each month (a 5.6% increase from 2022). Furthermore, 60% of adults live paycheck to paycheck. Finally, 6.3 million Americans are classified as “working poor”, people who actively work or spend time looking for work but whose incomes still fall below the official poverty level.
It’s unfortunate that so many Americans feel the need for side hustles to supplement their regular employment. But the internet and the rise of work-from-home opportunities make it easier than ever to make a little extra cash.
Driving/Delivery Side Hustles
Many people make driving and delivery service their full-time job. But there’s no reason why you can’t do a little on the side when you have some spare time. Most Uber drivers make between $15 and $25 an hour. But if you don’t like the small-talk aspect of rideshare service, don’t have a comfortable vehicle, or just don’t feel comfortable letting strangers in your car, you can consider food or grocery delivery.
Doordashers can also expect to make around $15 and $25 an hour. And you can make $200-$1,000 a week as a personal shopper with Instacart. Amazon Flex is a package delivery service that allows drivers to make $18-$25 an hour. However, you still need a reliable vehicle to make these side hustles work, not to mention the wear it will cost. And your income potential will depend on where you live, the busiest times of the day, and the size of the orders.
Online Side Hustles
If you don’t have your own, reliable vehicle, there are a number of ways you can make money online from home. If you are a quick typer, you can look for online transcription jobs that pay by the project. You just listen to audio files and type scripts of them. However, these jobs typically require training and certification.
Websites like Fiverr, Upwork, and 99Designs allow you to market your writing, editing, photography, graphic design skills, etc. Create a profile with your experience, qualifications, and portfolio, set your price, and users can find you and your services.
Or, you can create your own website or blog and sell ad space or become an Amazon affiliate. If you are crafty, Etsy is a very popular site for people to sell their handmade goods and personalized products.
While you don’t necessarily need any special training or certification for these other online side hustles, you do need to have a marketable skill. If you don’t, you can still make money online by taking surveys, joining focus groups, or testing products.
In-Home Side Hustles
Maybe you have a more practical skill or just don’t want to bother with the internet. There are many in-home side hustles you can do from your home or a client’s home. All you have to do is get the word out that you are available for a price!
You can babysit, petsit, dog walk—we’ve even heard of plant sitters! You can clean homes, do hair and makeup, and even meal prep. People pay for services like HelloFresh, so if you like to cook, create a menu and start taking orders!
Labor Side Hustles
If you are strong and healthy, good with tools, or just enjoy working outdoors, you can make extra money doing yard work, washing and detailing vehicles, or moving furniture. Websites like TaskRabbit and Handy are great for Jacks- and Jills-of-all-trades to pick up jobs that other people can’t or don’t want to do themselves.
Teaching/Tutoring Side Hustles
Teaching and tutoring can be done in person or online. It just depends on what platforms or channels you use to get clients. You can offer in-home tutoring to students in your community. Or, you can apply with a website like Tutor.com to tutor online. Depending on the website, you might not even need a degree. Sometimes you just have to pass a content test to prove that you are proficient in a certain subject.
You especially don’t need a degree to teach English language online. Websites like VIPKid and Preply will accept almost any native English speaker to teach the English language to people all over the world.
You can even teach music or art in-home or online. It just depends on your preference and the preference of your clients.
The Ultimate Side Hustle: ATMs
Flexibility is the nature of any side hustle. All of the examples above can be done day or night on your own schedule. With a side hustle, you need to be able to pick and choose your own hours because you’ve got to make it work with your regular job.
But do you really want to work when you aren’t working? Do you want to turn your hobby into work and risk compromising its enjoyment? If you have a regular job and a side hustle, do you have time for anything else? With the ultimate side hustle, you don’t have to sacrifice more of your time to make that extra cash.
How an ATM Business Works
Not all ATM machines are owned and operated by banks. If you’ve ever seen or used an ATM at a gas station, grocery store, pop-up market, cannabis dispensary, etc., someone owns it and makes money from it. Sometimes the store itself owns the machine. But other times, independent ATM deployers (IADs) own the machine in exchange for the store’s customers benefiting from the convenience.
So if there are places in your community where you see that people need access to cash and there is no ATM nearby, inquire with the business owners if they would be interested in having an ATM onsite. Alternatively, if you see ATMs that are in bad shape or that are often out of order, find out if the location owner wants you to take over! Maybe they own the machine and can’t keep up with the maintenance, or maybe they are unhappy with their current IAD. These are all great opportunities for you.
Once you get some good leads, work with the location owner to figure out a deal that works for you both. Maybe you share the surcharge revenue, maybe you share the responsibilities. Either way, you get paid a surcharge fee every time someone uses the machine. You can even negotiate how much time you spend on the business.
The only work you really have to do once the machine is up and running is make sure it stays stocked with cash and keep it maintained and functioning. You can use remote online monitoring to view all ATM activity on your phone from the comfort of your own home—and make money while you sleep!
What Makes an ATM Business the Ultimate Side Hustle
Passive income is the name of the game. With an ATM business, you make money without spending a ton of time and effort. Your ATM machine can make money while you sleep, spend time with your family, go on vacation….
In terms of starting a business, the upfront costs are minimal compared to other side hustles like buying and flipping or renting property, reselling thrifted items, operating a food truck, or buying or renting a storefront for a brick-and-mortar business. Plus, you are your own boss!
Finally, it’s a completely customizable business. Depending on how much money you want or need to make, you can pick and choose which aspects of the business you want to handle and which you want to outsource or partner up for. You can operate one ATM machine for a little extra cash each month, or you can replace your full-time income with passive income from a fleet of ATM machines.
How to Start an ATM Business
You can start an ATM business in just a few steps. All you need to do is pass a background check, open an ATM business bank account, purchase an ATM machine, find a store or location willing to share its space with you, and install and program your machine. Then, you can start making money on each transaction made on your ATM!
Get Started!
There are a ton of resources available to new IADs. You can download a free guide about how to profit from an ATM business, purchase a more detailed book (the best selling ATM business book on Amazon…), join ATMDepot’s Members Area, and/or join our Facebook group.
We won’t say that owning and operating an ATM business is easy. It will require some work up front. But after that, you can relax! Other side hustles are basically second jobs, and that can take away from your friends, family, and free time.
An ATM business is, however, simple. There are only a few steps to get started, and you don’t need any special business license, entrepreneurial experience, or certification. You also don’t have to spend a lot of time working with clients or customers, working on a computer all day, or worry about your job security. As an ATM owner and operator, you are your own boss! What could be better than that?
Let us help you master the ultimate side hustle today!
https://i0.wp.com/atmdepot.com/wp-content/uploads/2023/06/There-Are-Other-Side-Hustles-Then-Theres-The-Ultimate-Side-Hustle-1080-×-1080-px.png?fit=1080%2C1080&ssl=110801080Amber Ivenhttps://atmdepot.com/wp-content/uploads/2022/12/ATM-Depot-Logo.pngAmber Iven2023-06-16 06:02:422024-10-25 15:04:55There Are Other Side Hustles, Then There’s The Ultimate Side Hustle
An independent ATM deployer (IAD) is someone who owns and operates at least one ATM machine. If you want to start an ATM business, IAD is the most lucrative position. In the simplest terms, as an IAD, you purchase an ATM machine, install it in a busy location, keep it functioning, and earn passive income from surcharge fees.
There are many benefits if you want to start an ATM business. First of all, you are your own boss. That means that you can set your own hours, control your own income, and outsource any parts of the business you don’t want to handle.
Additionally, an ATM business has a relatively simple business model. It requires a comparably low initial investment, you make passive income, and you can easily scale the business by placing more machines.
As an IAD, you make money every time someone uses your machine. Your return on investment (ROI) can happen in as quick as a few months depending on the location. You can monitor all activity remotely. And, there is an increasing need for ATM services.
Making Money
As an IAD, you can expect to make an annualized return of 35% – 70% or more. Remember, you make money every time someone uses your machine to withdraw cash from their checking, savings, or other accounts. At, say, $3 per transaction, a location that sees 5 transactions a day can expect to make about $450 a month.
And that’s just from one machine. Once you get familiar with the process, you can scale your business and add more machines to your route. A few machines create good supplemental income; 12 – 24 machines would be considered a full-time ATM business that only requires 10 or so hours of your time a week.
In just a few steps, you can learn how to start an ATM business. Before you can operate an ATM machine, you need to find a processor, ISO, or sub-ISO; a location, a bank, and a machine. In the upcoming sections, we’ll explain everything.
2. Paperwork and Documentation
If you want to start an ATM business, you need to find an ATM processor. You can purchase an ATM machine from anywhere; but without a processing company, your machine won’t be able to communicate to the card networks and therefore will not work. You can find an ATM processor that also sells machines, or you can purchase a machine elsewhere and then find a processor to work with.
This processing company will help make sure your ATM machine is registered, legal, and compliant. This will require some paperwork. Here, we’ll tell you what to expect so that you’re prepared. This will alleviate some stress and make sure your business gets set up quickly and smoothly.
Verify Your Identity
The process for setting up an ATM business is similar to opening a bank account in the sense that you have to verify your identity. You will have to provide the ATM processor with a copy of your driver’s license, and you’ll have to pass a background check.
The background check is mostly to make sure you haven’t been convicted of a felony or a financial crime. If so, you won’t be able to legally operate an ATM business. However, keep in mind that you can still register the business under a friend, family member, or business partner.
Equipment Order Form
You will also need to complete an equipment order. Often it’s a form on an online purchase.
Bank Account
You will need an ATM business bank account for cash that goes into the ATM and for the ATM processor to put the money back into.
It can be tricky to find a bank, but we explain this at length in another article. If you want to learn about the best banks for the ATM business, read here.
Once you have an ATM business bank account established, you can complete the ACH form and submit a voided check for your ATM processing so you can set up the ATM you purchased.
Other Forms
There is an ATM application form known as an ATM Operator Agreement. If you plan to operate ATMs in 3rd party retail locations, you’ll need to complete the IAD Operator Agreement .The agreements are the legal contracts between you and the ATM processor that list the rights and obligations of you as the IAD and ATM owner and those of the ATM processor.
The ATM processor is responsible for enabling transactions, moving funds, and providing you with remote online access to your ATM machine and its activity. This contract also confirms the details of your payment schedule.
And, as with any other income source, you will need to complete a W-9 form to report residuals for tax purposes.
A placement agreement, or site location agreement(SLA), is the contract between you and the merchant or owner of the location where you will place your ATM machine. It typically outlines the responsibilities of each party and the revenue split if applicable. You can work with a lawyer to draft this contract or use our customizable template in our member area.
3. Choosing Equipment
There are three types (smallest to largest) of ATM machines you want to check out: wall mount, free standing, and through-the-wall (TTW). The type you want will more than likely depend on how much space you have available to place the machine and how busy the location is. For example, since a wall mount ATM is smaller than a free standing ATM, it will hold less cash.
ATM Manufacturers and Recommendations
Free standing machines can be installed anywhere there is a power supply which makes placement a little more convenient than TTW. The bulky part (the interface) of a TTW ATM extends from the front of the ATM (the chassis) which fits into or through the wall protruding into the next room. This can require some construction, but it is highly secure and can facilitate 24-hour access when facing outdoors.
The most well-known and trusted ATM manufacturers are Hyosung, Genmega, and Triton. Triton is the only ATM made in the USA.
If you have limited floor space, the Genmega Onyx-W is a space-saving option that can be mounted to a counter-top or vertical surface. Additionally, the free standing Hyosung Halo II (Hyosung Halo 2) is a very popular model that has a proven track record for longevity and few problems
The through-the-wall Genmega GT3000 is compact and weather-resistant. It’s a great option for outdoor space or where space is limited. The G2500 is comparable to the Halo II and is the latest option for a brand-new Genmega ATM machine. A little bit lower in cost, it’s our second most popular machine after the Halo II.
New vs. Refurbished
It doesn’t really matter whether you buy a new or refurbished ATM machine. The five main differences are lifespan, technology, usability, compliance, and total cost of ownership (TCO). You will need to find the right balance between these factors to choose the ATM that’s right for you.
For a first time ATM buyer, we recommend a new machine. Each new model becomes more user-friendly which can be helpful for someone just learning the mechanics of an ATM machine. Plus, new ATMs can be shipped pre-programmed, meaning they are ready to use upon arrival.
But there is nothing wrong with purchasing a refurbished machine. It can, however, limit your options as not all models will be available. So weigh your feature “wishlist” against your budget, and see what models and deals your ATM processing company can offer.
Most importantly, make sure that any used or refurbished machine you purchase is certified refurbished. A certified refurbishment should include specific standards checks, detailing, and upgrades, replaced decals, the newest software, and updated security. Otherwise, you risk spending any money you saved up front on repairs and maintenance costs down the line.
Also be careful not to purchase a discontinued model. Some heavily discounted machines can be so outdated that they no longer meet legal requirements or process transactions.
4. Determining Surcharge Fee and Additional Percentage Charges
The surcharge fee is the cornerstone of how to start an ATM business. It’s the fee that users pay for the convenience of accessing their accounts from your machine and serves as the primary source of your revenue. Surcharge fees can range from $1-$8, with a standard fee hovering around $3.
However, there’s another avenue for maximizing your revenue: charging an additional percentage on top of the surcharge fee. This allows you to charge more for higher cash withdrawals made by the customer. Popular percentage options range from 1.5% to 2%, with 1.75% being the industry average.
By implementing this strategy, you can raise the maximum amount that can be charged to at least $200-$300 or higher. Keep in mind that this approach may require more capital to ensure sufficient cash availability in the machine.
Balancing Competitiveness and Profit When determining the surcharge fee and additional percentage, it’s crucial to strike a balance between competitiveness and profitability. You want your surcharge to be high enough to achieve a quick return on investment (ROI) but not so high that you deter potential customers.
Location-Specific Considerations The right surcharge fee and additional percentage will depend heavily on the location. ATMs situated in event spaces, casinos, bars, and other high-traffic areas can command a higher surcharge and percentage. Conversely, ATMs in low-income areas should have a lower surcharge and percentage to better serve the local demographic.
Revenue Share with Location Owner Another important consideration is your revenue-sharing agreement with the location owner. Your Service Level Agreement (SLA) should specify how much of the surcharge fee—and potentially the additional percentage—goes to the location owner. This is crucial for calculating how long it will take to reach your ROI.
Collaborate with Merchants The location owner may also have insights into what would be a fair, competitive surcharge and percentage to charge their patrons. Collaborating with the merchant can help you set a fee structure that benefits both parties.
5. Cash Needs and Vaulting
Cassette Types
The amount of cash your machine will hold depends on the cassette you select. One cassette can hold from 700 notes to 2,000 notes, and the number of cassettes a machine can accommodate will vary. There are fixed cassettes and removable cassettes.
Fixed cassettes must be refilled in place. Removable cassettes can be refilled in an alternate, secure location. Additionally, a multi-cassette dispenser gives you the option for more than one denomination.
Don’t worry about this too much when you are getting started. You can just use the cassette your machine comes with.
Denomination Options
The standard denomination for an ATM machine is 20s. It’s common, easy to obtain, and facilitates most withdrawal amounts (the national average being $80). However, if your ATM machine is located in a low-income neighborhood or by a laundromat or carwash, 5s or 10s might be more convenient for your customers’ particular needs.
Vault Cash
You can’t start an ATM business without vault cash. Load your machine with about $2,000-$3,000 in cash at first. Then monitor the activity to see if you need more or less to facilitate withdrawals in between vaulting. You can use your own money to vault the machine. (You can use less than $2,000 if that’s all you have and just refill the machine more frequently.)
Factor this into your startup costs, and your ATM processing company will add the total withdrawal amount back to your account via ACH. When the machine runs low on cash, withdraw it from your ATM business bank account and load it again.
Alternatively, you can delegate vaulting to the location owner who could use funds from the store’s business account. This extra responsibility for the merchant might cost you a bigger share of the ATM revenue, though.
You can also hire a third party vaulting company to handle your cash needs. This is the most expensive option but can help you avoid vaulting hassles.
Vaulting frequency depends on how much cash you load and how much activity your ATM sees. Use real-time online ATM monitoring to identify trends such as withdrawal amounts and high-usage days (paydays, weekends, holidays…). Then you will be better able to predict how much cash to load and when.
Although you’ll eventually be able to single out the best days to load cash, if you do the vaulting yourself, try to keep an irregular schedule. You don’t want someone to be able to predict when you and the cash will be vulnerable.
6. Programming and Installation
If you want to know how to start an ATM business, you need to know how an ATM works to some extent. However, there are many resources available to help.
Programming
Some ISOs, sub-ISOs and ATM resellers offer to have the ATM pre-programmed at the factory for a nominal fee. This makes it especially easy to just bolt it down, plug it in and use it when it arrives.
You can opt to do the programming yourself using videos and instruction manuals and help from your ATM provider. You can also see if your ATM processing company offers call-in assistance where you can work with someone over the phone if you have questions during the process. Or, of course, you can hire a professional technician to handle the process for you.
If you opt for the latter, make sure you are present and take notes or ask if you can record the process. That way you can do it yourself a little easier the next time if you want to.
Programming the machine involves setting up the home screen and distinguishing the denomination(s) to be dispensed. (If you ever want to change the denomination, you need to let your ATM company know.)
The machine can be programmed after it arrives at the location. Or, you can pay to have it pre-programmed before the ATM company ships it. Many ATM providers require the ATM programming and master keys to be completed by a professional field technician. Otherwise, you can inquire about call-in or scheduled programming.
Installation
You can also install the ATM machine yourself or hire a professional. First, you need to make sure the space is ADA compliant. This means that people with disabilities should have equal access to the public service of your ATM machine. This is not just your responsibility but also the responsibility of the merchant.
For example, the reachable buttons on a mounted machine cannot be higher than 48” from the ground so anyone can reach all controls. And to ensure wheelchair access, the minimum clear floor or ground space required is 30 x 48 inches (10 sq. ft.). So it is the responsibility of the merchant to ensure that this space remains clear rather than obscured by inventory or other furniture.
You will also need a power supply. Look for 110/115v 15a outlets that aren’t dedicated to other major appliances. Try to avoid glass doors and windows, too, to minimize break-in and theft temptations.
When installing the machine to the floor, it’s best to bolt it down on a flat, level surface to prevent damage and theft. You will need some equipment such as a center punch, hammer drill, concrete bit, and red head anchors. Wall mount ATM machines should come with all necessary mounting equipment.
Finally, you’ll want to connect your ATM machine to a wireless communication device. Having control of your own wireless communication device ensures that you never have to worry about dealing with the location’s ISP. This gives you more control and reliable service.
7. Setting Up a Business Bank Account
To start an ATM business, like any other business, you will need a business bank account. This can be tricky for an ATM business, unfortunately, because the cash-heavy nature poses certain money laundering risks for financial institutions. However, there are some best practices you can utilize to help find a bank to work with you.
Be a Profitable Customer
First, prove to the bank that you are worth their time. Banks make money off of customers’ account balances. This is the money that banks invest in loans and other opportunities that earn them interest payments; very little of customers’ account balances are actually held at the bank as cash.
As you know, your ATM business bank account will frequently have a low balance because you will regularly withdraw it to vault your machine. So, to make up for this, offer to move or purchase other products. For example, start a line of credit, move loans, and/or open other accounts. This is the type of customer that banks profit from; this is the kind of customer you want to be.
Be Honest
Second, be open and honest with the bank. Start where you already have strong relationships, whether it’s at a tier 1 financial institution or a local, regional, or community bank. Both have their pros and cons.
Tier 1 financial institutions are subject to more scrutiny and audits on ATM business accounts, so if you aren’t able to make yourself worth their time, they might turn you down. Smaller banks, on the other hand, might not be able to accommodate your cash or staffing needs. The only way to know whether a bank can or will work with you is if you let them know exactly what your banking needs are up front.
Be Respectful
Finally, be respectful, polite, patient, and understanding. Banks are not obligated to take you on as a customer. Each account is a strategic business decision for them. If you are denied, the bank has its reasons. It’s not personal. It might just depend on the experiences they’ve had with ATM business bank accounts in the past. So respectfully move on.
Once you do find a bank to open your ATM business bank account, be sure to show your appreciation. ATM business accounts require a lot of work. Treat the bankers kindly, bring gifts, build relationships. Be a customer they want to keep around.
There will be lots of documentation the bank will request to open your ATM business bank account. Be organized, prompt, and patient. Jump through whatever hoops you need to with a smile on your face. After all, the bank is doing you a favor.
8. Finding and Negotiating a Location
Finding a location to place an ATM machine can be a daunting task for some people learning how to start an ATM business because it requires some degree of negotiation. Unless you know someone with a business or starting a business where they will want an ATM on site, you will have to find potentially lucrative locations and convince the merchant to work with you.
Some ATM vendors also offer locations via their website inquiry system, like ATMDepot.com. We receive requests for placements and work with our nationwide IAD network to fulfill the requests. Some vendors sell locations, some partner with their IADs, and some vendors offer location finder services.
The cheapest way to get locations is with good old pounding the pavement. Go out, meet people, talk to them, tell them you’re giving out free ATMs, and strike up a conversation. There are many strategies you can employ to simplify this process.
The Best Locations
It’s a good idea to start where you are already a regular customer. You already know the business well and maybe even some of the employees. You can use this existing relationship to help you negotiate a placement. However, your ATM machine will only be profitable for you and the location if people use it. So more than looking at familiar places, you’ll want to find gaps in the market.
The best ATM locations are places where people need access to cash. Cash-only businesses (especially cannabis dispensaries); nail salons, barbershops, tattoo shops, and similar services where tipping is expected; new businesses not already approached; and locations that have liquor licenses are good places to start.
Think of places in your city that experience high foot traffic. Then, scope out the area and see if you can find gaps in ATM access. This doesn’t necessarily mean places where there aren’t already ATM machines. Places where ATMs are old, worn, or out-of-order are good opportunities as well.
If you see an ATM in one of these conditions, inquire with the location about their satisfaction with their ATM. Maybe they own it and are tired of the required upkeep. Or maybe their current IAD is unreliable and they’d be interested in changing partners. You can always add the prospect of a shiny, new ATM on the premises as a selling point.
Negotiation Tips
Your number one goal when approaching locations for ATM placement is to get in touch with a decision maker, whether that’s a manager or the owner. You want to speak to or meet with someone who has the authority to approve ATM placement at that location. With these tips, you should have no problem starting an ATM business.
Make an Appointment
Whether you cold call or arrive in person for the first contact, make sure you end up with an appointment with or contact information for the person in charge. Then, the negotiating can begin. Although cold calling is a tried and true method of contacting leads with your offer, appearing in person can be more successful for a couple of reasons.
Do Your Research
If you check out the location in person, you can get a better idea of the layout of the store and what business looks like at that location. This will be valuable information for you to refer to in your negotiations. For example, you can identify prime locations for an ATM machine and point out opportunities for the location to bring in more foot traffic and sales.
Leave Something Behind
Second, you can leave information behind. Whether it’s an ATM business card or an ATM business flier, leaving behind something tangible can help make sure that your offer doesn’t get overlooked. It also gives the decision-maker some information before calling you back; that way neither their time or yours is wasted.
Offer Value
When you get a meeting, emphasize the benefits the location will experience from having an ATM on the premises. For example, it offers a convenient service for customers, can bring in new customers, and encourages cash transactions which save money on credit card transaction fees at the counter.
Offer value, listen to the objections your prospect might have, address them, and give them time to think. Leave information behind along with your contact information. If nothing else, maybe he or she knows someone interested in your offer.
Borrow Authority
It can be especially difficult to get your first placement without a portfolio under your belt. Just align yourself with your ATM provider using their name and credibility to back you up. Explain that you work with a reputable ATM company and therefore are serious and committed to providing reliable service.
Emphasize that as it is your first placement, you are particularly committed to creating a positive experience. After all, all future placements will rely heavily on your performance at this first location. You can also add that without other machines to manage, you are able to devote more time and attention to this initial placement.
If approaching location owners still makes you nervous, you can use scripts to help you know exactly what to say. As an ATMDepot.com member, you can use ours!
9. Ownership and Responsibilities
Once you secure a location, you are ready to start an ATM business. You now have a place to deliver, program, and install your machine for use. All that’s left is documenting the final details: ownership and responsibilities.
Site Location Agreement (SLA)
If you place your ATM machine in a location owned by someone else, you will need a site location agreement (SLA). This is the legal and binding documentation of the location owner’s approval to place your ATM in his or her store. This is also the contract that documents each party’s responsibilities.
For example, you will want a clause that clearly outlines ADA requirements, one that clarifies who is responsible for vaulting the machine, and one that defines the revenue share. The location owner might want a share of the surcharge revenue as a condition of allowing your ATM placement. This could be a percentage, a set amount, or even only after you make your ROI.
Ownership and Responsibilities
Other processes and responsibilities include making sure the machine is clean and operable. You don’t make money if your machine isn’t working. And you don’t want to develop a reputation for being unreliable if your machine is frequently out of order.
So someone needs to handle any error codes. These could result from jams, low cash, low receipt paper, or other maintenance issues. You also want to make sure the ATM and the area around it remain clean so that customers feel comfortable using it.
You retain ownership of the ATM machine, even if you place it in someone else’s store, and even if you split the revenue. Your name is associated with the ATM machine and your ATM business. Any responsibilities you wish to delegate will be indicated on the associated contracts that detail the agreements.
Whatever terms you and the location owner agree upon regarding ATM operation should be documented in the SLA. You can work with a lawyer to create a personalized contract or agreement, or you can use one of our templates on ATMDepot.com if you are a member.
10. Revenue and Costs
Revenue is the money that your ATM machine brings in the form of transaction fees and advertising. Profit is what is left over after you earn back your initial investment and subtract any costs associated with operating your ATM business.
The point of learning how to start an ATM business is to make money. So how much can you make?
Surcharge Fees
The surcharge fee is the convenience fee ATM users pay for access to their bank accounts and cash. This is your number one source of revenue. You want to make your ROI as quickly as possible so that you can start to profit as soon as possible. So you might want to work backwards.
For instance, if your initial investment is $5,000 (ATM equipment + vault cash + other costs), it would take about 4-5 $3 transactions a day to make that back in a year (assuming the location is open 7 days a week). So determine a goal and work from that.
Keep in mind that the money you put in the ATM is not really invested. Those funds are either in the ATM, in the bank, or on their way back to the bank. While that money is tied up, you can liquidate it or use it if needed in an emergency. So, only use your hard costs to calculate your ROI for each location.
Monitor the activity the first few months, too, and adjust as necessary. Because 6-7 transactions at $2.50 earns you more than 4-5 transactions at $3. So if you can increase your ATM traffic by setting a lower surcharge fee, that might work out in your favor in the long run. Then, you can always increase the surcharge fee after you make your ROI.
So if you want to make thousands of dollars, you will need more than one machine. One machine is plenty to start with to learn the ins and outs of the business. One machine can generate some extra passive income to help supplement your regular salary or fund a savings account or large purchase. But if you want to rely on ATM business income, plan to scale your business.
Ad Space
If the merchant is in agreement (you will want to cover this in your SLA), you can sell ad space to local businesses to display on your ATM screen. Your ATM can be programmed to display carousel (or rotating) ads on the welcome screen or transaction screen, whether it’s for your own ATM business, the location itself, or other local, small businesses. This can be a great extra source of revenue.
Costs
When you start an ATM business, there are some costs you’ll need to consider. So how much will you be subtracting from your revenue in the form of business costs? First, consider your initial investment, then look at regular costs you will need to factor into your income.
One-Time Costs
ATM equipment will be your biggest cost. ATM machines can range between $1,300 and $8,000 depending on size and age. However, you should realistically expect to pay about $2,200-$3,000 for the machine itself.
Some costs you can avoid by putting in the work yourself. It just depends on your budget, time, and savvy. For example, ATM programming, installation, and custom screens can be done by you or a professional for a price.
You might want to factor in vault cash or not; that’s up to you. This is still your money at the end of the day, but it’s money that’s tied up in your ATM business operation that you won’t be able to use for anything else.
Many new IADs start by purchasing an ATM on a credit card that offers 12 – 18 months interest free financing. This is a great way to reduce the one-time out of pocket costs and spread them out over time paying them from the surcharge revenue.
Additional Costs
You can get an ATM machine as it comes, or you can pay for extra features and upgrades like a topper, removable or multiple cassettes, eLock, etc. You also want to purchase a wireless device and service so that you don’t have to rely on the location’s ISP.
Except for the wireless device, these are “nice-to-haves” that can be purchased later after you start making money. A wireless device is practically a necessity. If you use the merchant’s ISP and have even one communication issue that puts you out of business for a few days, you lose more than what having a wireless device costs.
You might also want to look into an ATM business insurance policy. It isn’t legally required, but it can provide you with some peace of mind knowing that you are covered in the case of an accident. You can purchase insurance at any time, and you can always adjust your policy. As you start making more money, you might spring for more coverage.
General liability is enough to start. General liability insurance is designed to protect your assets. It’s the most common and most important policy business owners purchase. It typically covers bodily injury, property damage, medical payments, and legal defense. You can expect to spend about $400-$700 a year for $1 million in general liability coverage.
General liability insurance, however, won’t cover your machine or the cash inside. So if you want more than general liability coverage, you will need to look for a more specialized insurance policy. Typically a policy to cover ATMs has a minimum of $2,500 per year, so it wouldn’t be worthwhile until you have a few ATMs to cover.
Regular Costs
Insurance premium and wireless service will be regular costs if you opt for them. But there are some costs that you can’t avoid.
When looking for potential placement locations, consider transportation costs. If a location is farther than you normally travel or is out of the way of where you live or work, then transportation to and from the machine will technically cost your ATM business.
You will also have to regularly purchase receipt paper for your machine and any cleaning supplies necessary for keeping your ATM approachable and workable.
It’s a good idea to set a little money aside each month for maintenance costs. Hopefully you won’t regularly have to pay to handle maintenance or technical issues, but these things are unpredictable. So having some money set aside for this can put your mind at ease and make sure you are able to get back in business as soon as possible!
Finally, you might have placement costs. If your location does not require a share of the surcharge revenue, then it’s all yours! But you might need to factor in revenue share as a regular cost of your business. Or, you might have found a space to lease to place your machine. Factor in this rent cost when determining how much you need to charge to make a decent profit.
11. Other Opportunities in the ATM Business
Just because you want to start an ATM business does not mean you have to be an IAD. There are lots of other ways to make money in the ATM business.
For example, you can be an ATM site locator. This is someone who negotiates with location owners on behalf of ATM owners. So someone who wants to own and operate an ATM machine but doesn’t want to put in the effort of finding a location can hire a site locator.
A site locator typically does not own any machines but matches locations and ATM owners. In exchange, an ATM site locator can request a flat rate or negotiate for a share of the surcharge from the ATM owner. Keep in mind, you could potentially be a site locator as well as an IAD if you wanted to make extra money without managing more machines.
You could be an ATM vendor, or salesperson. There are business owners who want an ATM machine on site and want to operate it themselves rather than working with an IAD. You would explain ATM options and add your commission rate to the cost of the equipment.
You can also be an ATM vaulter. If you have access to cash you can partner with ATM providers to offer cash vaulting services. You travel to each ATM and make sure it’s stocked with cash. You could charge a flat rate or create a fee schedule based on distance and travel time.
12. How to Start an ATM Business Startup Checklist
To summarize, these are the steps involved in how to start an ATM business and the things you need.
1. Find
ATM processing company
Bank
Location
Equipment
2. Complete
Background Check
Documentation and Paperwork
SLA and Other Contracts
3. Do
Programming
Installation
Vaulting
4. Start Making Money
5. Scale Your Business
While we won’t say that owning an ATM business is easy, we will say that it is relatively simple. There is a set number of steps involved in getting started, minimal startup costs, and lots of industry professionals with years of experience you can draw upon.
Each ATM business looks different. It’s completely customizable. Do what works for you. Your business will be the most successful if you are happy with it, partner with the right people, and put in the work. After that, let your business work for you.
If you still have questions, contact us at ATMDepot.com today! Want more info or ready to start your ATM Business side hustle? Download our free quick start guide now.
13. Glossary
Americans with Disabilities Act (ADA) – A 1990 civil rights law that gives people with disabilities equal access to public services by mandating certain accommodations.
ATM Owner – The individual, group of individuals, or company that purchases an ATM machine, operates it, and receives the majority of the profits made through the machine.
Cassette – The box in an ATM machine that holds a specific denomination of cash.
Certified Refurbished – Used machines that have been cleaned, fixed, retrofitted with the newest software upgrades, and furnished with replacement decals, making it nicer than just a machine categorized as “used,” before being sold.
Cold Call – An unsolicited call to a lead you’ve never had contact with before in order to convince him or her to buy into a product or service.
E-lock – An electronic lock operated by an electric current.
Independent ATM Deployer (IAD) – An individual, group of individuals, or company that invests money in an ATM to generate income.
ISO – Independent Sales Organization; a third-party company that sells credit card processing services independently from a bank or financial firm to a business that wants to accept credit card payments.
Master Keys – Sets of binary numbers used by the ATM owner to access and program the ATM machine.
Placement – Arrangement where an ATM company or IAD places an ATM in a location and owns and operates all aspects of the ATM machine. The location owner receives a small percentage of the revenue generated from the ATM in return for letting the IAD place the ATM at the location.
Processing – Communication between an ATM machine and a processing network that communicates with the user’s bank in order to approve financial transactions.
Processor – ATM vendor—or company—that sells and provides support for ATM machines.
Profit – The net income collected after investment costs.
Real-Time Online ATM Monitoring – A system that provides updates regarding ATM functions and alerts such as low cash balance.
Return on Investment (ROI) – The ratio between net income and investment. A performance measure used to evaluate the efficiency of an investment.
Revenue – The gross income collected on an investment.
Revenue Share/Revenue Split – Compensation paid to a store owner in exchange for the space for the ATM machine.
Route – The locations where you own and/or operate ATM machines that you routinely and systematically travel to and from.
Site Location Agreement (SLA) – Also known as placement agreement, is the contract between you and the merchant or owner of the location where you will place your ATM machine that outlines the responsibilities of each party.
Site Locator – A person who finds locations interested in an ATM in or at their location.
Surcharge – The fee that you set for each cash withdrawal transaction made on your ATM.
Topper – A feature added to ATM machines to display ads and other graphics.
Vaulter – The person who loads the ATM with cash.
Vaulting – The process of loading the ATM with cash.
Vendor – Company that sells and provides support for ATM machines.
Wireless Communication Device – Also known as a wireless router, it provides 4G data connection from cellular networks, and will use 5G in the future, with major carriers such as AT&T, Sprint, Verizon, and T-Mobile.
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