Tag Archive for: ATM Equipment

How Do ATM Machines Work?

by

An ATM machine is a self-service banking terminal that allows users to perform basic financial transactions without the need for a human teller. Anyone can own and operate an ATM machine, not just banks. But how do ATM machines work?

Aside from the actual technical functions of an ATM machine, you might be wondering how an ATM can work to make you money. In this article, we’ll not only explain the inner workings of ATM machines but also how they can work for you.

How Do ATM Machines Work: Technical Components

Most ATM machines are composed of 5 main components: card reader, keypad, display screen, cash dispenser, receipt printer. If you’ve ever used an ATM before, you’re probably familiar with most of these parts. However, as the owner and operator of an ATM machine, they can take on a new meaning as it is your responsibility to keep them functioning smoothly. 

Card Reader

The card reader reads the magnetic stripe or chip on a debit/credit card to access the user’s account information. Card readers must meet certain compliance standards, and they change periodically as technology and security measures evolve. 

Keypad

The 3×4 (standard numeric) keypad is where users enter their PIN and select transaction options. There are a few keypad variations to support different security standards, user needs, and regulatory environments. However, most keypads in the United States have standard features. 

For example, metal keypads are common because they are more difficult to tamper with and overlay. Privacy shields help prevent “shoulder surfing”. And ADA compliance requires that the keys have tactile symbols (like a raised dot on the 5 key), high contrast markings, and auditory output.

Finally, Encrypting PIN Pads (EPPs) are the industry standard. EPPs are tamper-resistant keypads that encrypt the PIN internally before sending it to the ATM processor. They are required by PCI PTS standards to maintain compliance. If tampered with, the self-destruct feature automatically erases encryption keys.

Display Screen 

The display screen shows the instructions and transaction details. ATM display screens come in a variety of types and configurations, depending on the machine’s age, purpose, location, and technology level. These screens serve not just as user interfaces but also as a platform for branding, advertising, and accessibility.

Older screens are monochrome LCD screens. They display in black-and-white or grayscale, have low resolution, and do not have touchscreen capability.

Color LCD screens are the most common type in modern ATMs. They range from 7-15 inches in size. They can support simple graphics, animations, and branding. And resolution might vary from basic VGA to high-definition.

Touchscreens allow users to interact directly with the screen without the need for physical navigation buttons. Touchscreens are common in newer ATMs and can only be used for navigation; PIN entry must still go through a certified EPP unless the screen is PCI-certified.

Outdoor ATMs or drive-up terminals might have sunlight-readable or anti-glare screens. They use transflective LCDs, anti-glare coatings, or high-brightness backlights and help ensure visibility in direct sunlight.

Privacy screens are made of integrated filters that narrow the viewing angle. This allows only the user directly in front of the ATM to read it. These are often used at walk-up indoor ATMs in high-traffic areas.

Finally, voice-assisted screen interfaces combine a visual screen with audio prompts via a headphone jack (for ADA compliance). These are used by visually impaired users to navigate via voice and tactile keypad input.

Cash Dispenser 

The cash dispenser presents cash to the user based on their requested amount. It draws from secure containers called cassettes, each of which holds a single denomination of currency (e.g., $20 bills, $50 bills).

Most ATM machines have only one or two cassettes, so they can only offer one or two denominations in withdrawals. This is why you might see withdrawal options on some machines only in $20 increments—those machines have one cassette that only dispenses twenty dollar bills.

The cash dispenser uses rollers, sensors, and error-checking systems to ensure the correct number of bills is dispensed, bills are not stuck together, and counterfeit or damaged notes are rejected. If there’s a jam or error, the transaction is logged, and the cash is typically returned to a reject bin inside the ATM rather than being lost.

Receipt Printer

The receipt printer prints a paper record of the user’s transaction. Details might include the transaction type, date and time, location, account balance, and a confirmation number. ATMs can also be programmed to print custom messages (like a thank you) and/or include location-specific offers, coupon codes, or branded ads to drive customer engagement or encourage repeat transactions.

Most ATM receipt printers use thermal printing technology. No ink is required, just special heat-sensitive paper. This helps reduce maintenance but requires the correct thermal paper rolls. As the owner/operator of an ATM machine, it is your responsibility to purchase the receipt paper and make sure the machine is always stocked and free of paper jams. 

For all of these parts to function, the ATM machine must be plugged into a power source and connected to the internet. The internet connection is how the machine communicates with the user’s bank and the credit card networks to verify user information and approve or deny the transaction.

How Do ATM Machines Work: Compliance Requirements

ATM card readers must follow a set of standards and regulations to ensure security, interoperability, and fraud prevention. It’s especially important for both bank-owned ATMs and Independent ATM Deployers (IADs) to meet certain industry standards to protect users and participate in card networks (like Visa, Mastercard, etc.).

EMV Compliance

Card readers must be EMV compliant. EMV stands for Europay, Mastercard, and Visa. Basically, this is the term applied to cards with chips. Chip-enabled cards are more secure than cards with only a magnetic stripe and are therefore required in most regions to reduce card-present fraud. All ATM machines have to be able to accept and read chip cards. 

PCI DSS Compliance

PCI DSS stands for Payment Card Industry Data Security Standard. This applies to any system that handles cardholder data, which includes ATM machines. ATMs must encrypt card data during and after reading it and therefore must maintain compliance.

PCI PTS

PCI PTS refers to PIN Transaction Security. This compliance regulation focuses specifically on secure PIN entry and encryption. ATMs must use approved PIN entry devices (PEDs) that protect against skimming and PIN compromise. Hardware must be certified to resist tampering or keylogging to be compliant.

ADA and Accessibility Compliance

The Americans with Disabilities Act (ADA) is a United States law that requires certain accommodations for citizens who would not otherwise be able to benefit from services. To comply, ATMs must include Braille instructions, voice guidance via headphone jack, and specific wheelchair reach height requirements for all keys and functions. ADA compliance is a legal compliance requirement for ATMs that handle cards.

It is important to understand that there are penalties for non-compliant ATM machines. For example, the machine could be excluded from card networks like Visa, Mastercard, and Discover. The ATM owner could be held liable for any fraudulent transactions made on a non-compliant machine. And the machine can be fined and/or shut down altogether. Penalties aside, failure to comply with regulations exposes users to a higher risk of card skimming or data theft.

How Do ATM Machines Work: The Process

The process of using an ATM machine is very simple. The whole point of ATM machines is convenience, so any cardholder has to be able to use it easily. Here is how it typically works:

First, the user inserts the debit or credit card into the machine. The ATM reads the account number from the card’s chip. The user enters the card’s 4-digit PIN using the keypad. Then, the ATM encrypts this information and sends it to the user’s bank for verification. 

Once the information is verified, the user can select the desired transaction (withdraw cash, check balance, etc.). The ATM then sends a request to the bank through a secure network like Visa or Mastercard networks. At this point, the bank approves or denies the transaction based on the user’s account status and balance. If approved, the ATM performs the transaction (dispenses the withdrawal amount or prints a balance receipt).

The machine keeps a record, and the transaction updates the user’s account in real time. Finally, the machine prints a receipt and ejects the card.

How Do ATM Machines Work: Security Measures

ATMs would not be successful if consumers did not absolutely trust them with their sensitive financial data and access to their accounts. So there are a number of measures ATMs take to uphold the utmost security.

First, all PINs and data are encrypted during transmission. There are also anti-skimming tools that many machines use to protect against devices that are designed to steal card data. Timeouts also help protect users by automatically ending sessions after a certain period of inactivity. 

The cash inside the ATM machine is secured with a lock and key or an eLock with an electronic passcode. Some machines might be equipped with a GPS tracker to protect against the removal of the machine. Finally, most ATM machines are under camera surveillance and monitored to help prevent fraud, theft, tampering, and vandalism.

How to Make Money with ATM Machines

Knowing how ATM machines technically work makes it easier to understand how to make money with one. You can charge users a surcharge fee in exchange for the service your ATM provides. If a user needs cash and doesn’t want to travel to their nearest bank ATM, they can conveniently access their account from your machine for a mere 3 or 4 dollars (or whatever surcharge amount you set). 

But keep in mind, you can only make money with an ATM machine if it’s compliant and functioning properly. It is your responsibility as the owner/operator to ensure it is always stocked with cash, powered, connected to the internet, and free of any technical issues.  

How Do ATM Machines Work? Now You Know

In conclusion, for ATM machines to work seamlessly, there are a number of working parts and conditions that must all be properly in place. Furthermore, as an ATM owner/operator, the better your ATM machine works and the more often, the more money you stand to make. 

It’s important to understand at least generally how ATM machines work before you get into business with one. However, compared to many other businesses, understanding ATMs is relatively simple. Plus, if you work with a company dedicated to customer service like ATMDepot, you are never at a loss for support and resources. 

If you are interested in making semi-passive income with ATM machines, it’s easy to get started today! Still have questions? Don’t hesitate to contact us. We know all there is to know about how ATMs work!

Where to Buy ATM Machines

by

If you want to start an ATM business, you need to know where to buy ATM machines. This is the business. You can’t get started until you have one. It is one of the first and most important steps of starting an ATM business. 

But if you’ve never purchased ATM equipment before, you might have no idea where to start. And once you start shopping around, who can you trust?

In this article, we’ll offer some recommendations for where to buy ATM machines. We’ll also let you know what red flags to look for and what to avoid. This way, you can be confident that you have the perfect ATM machine for your business needs and budget.

Where to Buy ATM Machines: Our Top Recommendations

You can buy an ATM machine from a variety of sources depending on your needs and budget. Here are the most common ways and places to buy one:

ATM Manufacturers and Distributors

You can purchase ATM equipment straight from the companies that manufacture them. You can buy an ATM brand new, or distributors may have select refurbished options. The top ATM manufacturers are

  • Hyosung
  • Genmega
  • Hantle
  • Triton

You can buy directly from their websites or through authorized distributors like ATMDepot. 

ATM ISOs and Processing Companies

Independent Sales Organizations (ISOs) and processing companies like ATMDepot often bundle ATMs with transaction processing services. This can be a huge benefit because you can purchase equipment and partner with just one company. Otherwise, you still have to find a processing company after purchasing your machine from anywhere else.

ISOs and processing companies might also offer leasing options. While this can reduce your upfront cost, it will increase total cost over time.

Online Marketplaces

Finally, you might come across or even search for ATM equipment on sites like Facebook Marketplace, eBay, or even Amazon. Local sellers sometimes list ATMs on Facebook Marketplace. You might find listings for both new and used ATMs on eBay. And some new ATMs are listed by commercial resellers on Amazon.

However, in terms of where to buy ATM machines, this is the riskiest route. Although you might find a used or refurbished machine cheaper in online marketplaces, you can’t always be sure what you’re getting.

Not Where to Buy ATM Machines: Sources to Approach with Caution

Peer-to-peer resellers like eBay or Craigslist will list older ATM models that might look like a great deal. However, looks can be deceiving. Just because an ATM machine looks legit, it might not be EMV-compliant or no longer be supported by processors. Not all listings disclose model years or software versions. So you have no guarantee that the machine functions, is compliant, or can be upgraded.

Local Buy & Sell groups like Facebook Marketplace can also advertise outdated equipment. You might even see listings for stolen equipment for sale.

Non-ATM-specific equipment liquidators can be risky, too. You might find ATM machines on general auction or surplus equipment sites like Liquidation.com, but often these are old bank ATMs that lack proper documentation. An old bank ATM might not be the kind of machine you want to start your business with anyway. They are large, outdated, hard to move, and not retail compliant.

The risk with unverified third-party sellers on sites like Amazon or Alibaba is that the machine might be shipped from overseas. This can take longer, be more expensive, and increase the risk of damage during the shipping process. Furthermore, overseas equipment might not be configured for U.S. networks and/or might not be EMV/ADA compliant without necessary upgrades.

And of course, a big drawback of purchasing from these sources is that you are left without processing services. You still have to find a company to process transactions on your machine on top of making a purchase risk.

Red Flags to Watch Out For

Now, if you are on a tight budget, you might be able to find a good deal from a local peer-to-peer seller. There is nothing wrong with that. But it’s up to you to make sure the ATM machine checks all the necessary boxes.

First, check for an EMV chip reader. An ATM machine without an EMV chip reader is a red flag. If a machine only has a magstripe reader, it’s outdated. U.S. networks now require EMV for liability protection and transaction approval. Some machines, however, support an EMV upgrade. So this isn’t always a deal-breaker. But it will be an additional cost and something you will want to use in price negotiations.

Next, you want to know what operating system (OS) the machine is running. Missing Windows CE or updated operating system is a red flag. Older operating systems may no longer be supported by ATM processors.

Older models also don’t support secure network protocols and can’t connect to processors anymore. So if a machine doesn’t support TLS 1.2 encryption, it isn’t going to work.

While some models can be upgraded to become compliant and operable, discontinued models cannot. Even name-brand machines like Triton 9600 may not be upgradable. To be sure, you can check the model number against the manufacturer’s website for End-of-Life (EOL) notices.

Finally, a super-low price tag is an obvious red flag. A $500 ATM might sound like a deal, but if it’s non-compliant, it’s just a heavy paperweight—too cheap to be true.

Safe Buying Tips for Where to Buy ATM Machines

To ensure you get the best deal, there are some things you can do to protect yourself. The first thing is to buy from an ATM distributor or ISO who can confirm certain machine specs like compliance and programming. These companies are also likely to offer you tech support and product warranty to further protect yourself.

Always ask for the model number and software version before buying anything. And consult with your intended processing company before buying to make sure your machine is supported.

Where to Buy ATM Machines that Are Compliant

There are some names in the ATM industry you can trust. Some recommended ATM models for 2025 and beyond include Genmega G2500, Genmega Onyx, Hyosung Halo II (2600SE), and Hyosung Force (2800SE).

Known obsolete or risky models to avoid include all Tranax machines, Triton 9600/9700, Genmega G1900, Diebold, and NCR. Early Genmega 1900 models may not support EMV. And bank ATMs like Diebold and NCR are too large and outdated.

Where to Buy ATM Machines Refurbished

Choosing between a new and refurbished ATM machine depends on your goals, budget, and how involved you want to be with maintenance. However, if you do go the refurbished route, ensure that it is a certified refurbishment. Certified refurbished means that the machine has been repaired, updated, and good as new, just pre-owned. Some sellers advertise refurbished equipment when all they did was clean and polish it. 

Our top recommendations for where to buy ATM machines are all likely to offer select refurbished ATM machine options. The sources to approach with caution, on the other hand, are much more likely to skimp on the refurbishment.

When making the decision between new and refurbished, here’s what you need to know: 

Refurbished ATM machines are a popular route because they are sold for a much lower initial cost than a new machine. So if your location is low-traffic, this might be a wise decision since your ROI will be slower. Refurbished machines should include all EMV/ADA upgrades if sold by a reputable dealer. And refurbished machines can be suitable for DIY owners comfortable with minor repairs or part replacement.

However, refurbished machines might come with a shorter or no warranty. Upgrades not already included could add to your equipment cost. Parts may be harder to source. There could be hidden wear and tear. You don’t have as many options—you are limited to the refurbished machines on-hand. And you lose out on resale value.

If you’re considering refurbished, only buy from a vendor who guarantees that the model is compliant, is tested and certified to work with your processor, and comes with tech support or setup guidance.

Now You Know Where to Buy ATM Machines

Now you know your options for where to buy ATM machines. Equipped with the necessary knowledge, you can confidently purchase an ATM machine from anywhere. Just be vigilant about the specifications and ask the seller the right questions. 

If you want to get your ATM machine and processing service all in one place, check out ATMDepot’s equipment options! We carry the full line of Hyosung, Genmega, and Triton machines including BITCoin sidecars and crypto kiosks. We also offer new, used, and certified refurbished ATM equipment at discounted cash prices.

All ATM machines include nationwide processing services at no charge. But you don’t have to purchase equipment from us to receive free ATM processing. And if you only need equipment, we match or beat most written quotes.

You don’t have to look any further for where to buy ATM machines. Just click here!

Buying an ATM Business vs. Starting an ATM Business

by

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!

What Should I Consider When Buying an ATM for My Business?

by

I need an ATM for my business. Which one should I purchase? How do I know if I’ve made a good decision? How do I know if I’ve gotten a good deal?

If you’ve found yourself asking any of these questions, you are probably starting an ATM business for the first time. And while it might seem overwhelming to enter an industry where you don’t have a lot of experience or knowledge, the answers to your questions are quite simple.

Now, we aren’t saying it’s going to be an easy decision. There are a lot of factors to account for. That’s why, to help, we’ve outlined a list of considerations you’ll want to think about as you shop for and purchase an ATM for your business.

What Is the Best Type of ATM for My Business?

There are three different types of ATM machines: wall mount, freestanding, and through-the-wall (TTW). The main difference among the three is size.

Wall Mount

A wall mount ATM machine is the smallest type. For this reason, it is a good option for small businesses where there isn’t a ton of available floor space. This machine can be, as the name suggests, mounted to a wall or even set up on a table or counter. Due to its size, it also doesn’t hold as much cash as the other ATM types. So, wall mount ATM machines are optimal for businesses with lower cash needs.

Through-the-Wall

TTW machines are the largest type. They, as the name suggests, face through the wall of another room. This is great for security purposes since they can be loaded with cash from behind the safety of a locked door. They also provide businesses with the luxury of offering 24/7 ATM service if the ATM faces the outside of the building.

Round the clock operation of your ATM machine equals more revenue potential which you’ll need to cover the construction of the space for installation. But after that, ATM service isn’t restricted to the business’s hours of operation. A larger machine means more cash capacity. And with a 24/7 machine, you’ll need a lot of cash!

Freestanding

Freestanding machines are the most common ATM choice for independent ATM deployers (IADs). They take up relatively little floor space and hold enough cash to last most businesses a week or more at a time.

If you plan on purchasing an ATM machine before securing a location to operate from, you might not know what kind of space will be available for placement. But a freestanding machine is a safe bet because it’s easy to accommodate and install. If you are just getting started in the ATM business, chances are you’ll be looking for a freestanding ATM machine.

How Much Does It Cost to Purchase an ATM for My Business?

The cost of ATM equipment will depend on a few factors: type, model, and age.

There are three different types of ATM machines that range in size. The cost of each ranges accordingly: expect to pay more for a TTW machine than a wall mount. Freestanding machines fall somewhere in the middle. Then there are a number of different models that also range in cost based on the features they offer. Finally, you’ll want to consider whether you want a new or certified refurbished machine.

For example, you can get a refurbished Triton 9100 for between $1,199 and $1,495 or a brand-new Genmega 2500 for around $2,295. While the Triton is a great buy, it has a small screen compared to the Genmega. And the Genmega offers better features like a Windows OS and a GenCam.

When making your decision, it’s important to consider your budget and the features that are non-negotiable for you. What do you want your machine to look like and offer? What are the location and potential customer needs? And what can you afford? 

Just be aware that some sites will try to sell machines that are no longer compliant. Don’t waste your money on a machine that won’t work on the network, and don’t fall for a “good deal” when you’ll have to turn around and spend your “savings” on repairs and/or upgrade kits. You might as well just get a new or certified refurbished machine!

Finally, if you opt for a refurbished machine, ensure that it is in fact certified refurbished. This means that, in addition to cleaning and decal replacement (cosmetic fixes), the machine has been upgraded and all repairs addressed. Some vendors will try to pass off used machines as refurbished when all they do is clean up the exterior!

What Is the Best Brand of ATM for My Business?

There are a few big names in ATM equipment that you can count on for reliability and longevity: Triton, Genmega, and Hyosung.

Triton is the only 100% made-in-the-USA ATM manufacturer. They have been a market leader since the 1990s. The Triton RL200, RL1600, and 9100 models can be purchased used and refurbished and are, therefore, great options for a smaller budget. Freestanding machine cost ranges from about $1,199-$1,799. ATMDepot.com carries the full line of Triton ATM machines.

Hyosung is a Korean-based company that first introduced its Nautilus Hyosung ATMs to the United States in 1998. Hyosung is considered to be the leading provider of ATM hardware, software, and service. They have a reputation for having the most reliable, durable, and flexible ATMs. Freestanding models can range in price from about $1,895-$2,755.

Genmega is one of the newest ATM companies, introducing their first ATMs in 2006. Genmega machines come standard with the Genmega GenCam. The GenCam takes a photo of everyone that uses your ATM so there is always photo proof when handling disputes. Genmega freestanding machines range from about $2,295-$3,295.

There really is no “best” brand when it comes to trusted names in the ATM industry. Compare prices and features to get the machine that suits you and your business needs. And keep in mind that if you are shopping refurbished, your options will be limited to the available stock.

Is a New or Refurbished Machine the Best ATM for My Business?

Again, this comes down to your budget and your preferences. What do you want? What can you afford? Can you find it available refurbished? Both are good, reliable options so long as you trust that the refurbishment is certified.

New machines will last you longer because a used or refurbished machine already has years of its life taken off of it. And, typically, the newer the machine, the more user-friendly it is. Every new model comes with adjustments and improvements from the previous. This means that functionality is improved both for the ATM operator and the ATM customer.

On the other hand, a refurbished machine can be cheaper and any mechanical kinks it might have had will have already been identified, addressed, and repaired. Just remember that if you fall in love with a particular type of machine, it might not be available refurbished. You’ll have a narrower selection, but the money you save can be applied elsewhere.

I’m Ready to Purchase an ATM for My Business!

Hopefully you now feel more confident about purchasing an ATM machine for your business. When you consider each factor individually, you’ll find that the decision is much simpler than you anticipated.  

Write down your budget. Research options. List your preferences. Then purchase the machine that makes the most sense for you and your business needs. Consider the ATM location and customers. What do the need? Want? Expect? What kind of machine will make you the most money?

ATMDepot offers a complete array of ATM equipment (new, used, and certified refurbished). We carry the full line of Hyosung, Genmega, and Triton machines. We can quote you on any ATM machine even if it isn’t listed on our site. Simply inquire if you have a specific ATM model in mind. 

Want to purchase an ATM somewhere else? You can still get processing from us, no purchase necessary! If you only need equipment, we match or beat most written quotes. Call to inquire about special sales, upgrades, flexible payment options, and financing.

Related topic: Discover the Power of Cialis: A Comprehensive Guide

Check out our ATM Buyers Guide for more information, and if you still have questions, contact us today!

Cost to Start ATM Business: Is It Worth It?

by

How much does it cost to start ATM business? Well, it depends on your goals. You might be looking for the ultimate side hustle that helps you generate a little extra spending cash or supplement your regular job. Or, you might be looking for a semi-passive income stream to replace your 9-5 grind. 

Regardless of your goals, ATM business startup costs will fall into three categories: equipment, vault cash, and various operational costs. All of these costs vary from owner to owner. 

Are the startup costs worth it? Can you generate enough revenue to turn a profit? Well, yes. Otherwise no one would do it! Owning ATM machines won’t get you rich. But an ATM business requires relatively little overhead compared to other small business models. And it’s difficult to lose money with an ATM business. It isn’t a matter of if you will make money, it’s a matter of when.

The sooner you reach your return on investment (ROI), the sooner you can start to turn a profit, making all of your time and effort worth it. This article will give you an idea of how much to budget to start an ATM business and the return you can expect.

Cost to Start ATM Business

Equipment

The main cost to start ATM business is the machine itself. ATM machines can range in cost from $1,000 to $8,000. But realistically, $2,000-$3,000 is the range for the most common free standing ATM machines. 

There are various factors that can affect the cost of an ATM machine. For example, you can purchase new or certified refurbished equipment (this is really the only kind of used equipment we recommend). There are different sizes of machines, too. Smaller, wall-mount machines will be chapter than the bulky through-the-wall (TTW) machines. 

But free standing is the most common. It holds more bills than a wall- or counter-mount which saves you time on vaulting and therefore makes more money because it can service more customers and accommodate higher withdrawal amounts. TTW machines are great for garnering 24/7 access to your ATM machine, but creating a space for this type requires construction.

Then you want to consider features. There are different brands of ATM machines and different models. Some offer features that others don’t. So which ones are the most important to you and fit in your budget? 

For example, lighted keypads draw customers in at night. Signs can be added to the top of your machine to help catch the eye of passers-by. And cameras can add an extra layer of security to your business.

You’ll have to weigh the decisions of your ATM equipment purchase. Do you want to spend a little bit more for a brand new ATM machine that comes fully loaded or is it a bargain to purchase a used or refurbished machine that might need upgrades or supplemental features to draw customers?

Vault Cash

Vault cash is about $2,000 of your own money that is tied up in your business. This is the money that you withdraw from your bank and fill the machine with. This is the money that is dispensed to your customers, the ATM users.

Don’t worry: your processing company will settle these funds back to your account. But you can’t use this money for anything else because you’re out of business if you don’t have cash for your customers!

You can also hire an independent vaulter or vaulting service to take care of this for you. If you don’t have the $2,000 startup cash to vault the machine yourself, you can consider hiring this out, but over time you will end up paying more than $2,000 for this service, and it’s going to cut into your profit.

Operational Costs

What is the ongoing, operational cost to start ATM business? Again, this depends on what you decide is the most important to operating your ATM. For example, you don’t have to get insurance, but it’s a good idea to! You can typically get $1 million in general liability coverage for $400-$700 a year. 

Then there’s internet service. Your ATM machine will need to connect to the internet in order to communicate with the networks and, essentially, function. The location or business where you install your machine will probably have an internet service provider (ISP) already. But what happens if they forget to pay the bill or service goes out? You’re out of business, and time is money. It is better for you to invest in your own wireless device so that you have complete control over your machine’s operation and you don’t have to wait on anyone else to solve the problem.

You will want to purchase some simple cleaning supplies to make sure your machine is always presentable and attractive to customers. And some IADs lease a space to operate their ATM from, but it typically makes more financial sense to negotiate a split of the revenue between you and the location owner so that everyone wins and is motivated to drum up business.

Mileage and gas are also considerations when it comes to regular travel to and from your machine. So you’ll want to assess the opportunities for ATM service in your area to determine whether or not it’s worth it to start an ATM business. The point of an ATM business is to generate semi-passive income. Therefore, you want your business to be as convenient and easy as possible.

Is It Worth the Cost to Start ATM Business?

One of the beautiful things about starting an ATM business is being your own boss. An ATM business is flexible, customizable, and little work (you can be making money while you sleep). For a lot of people, that’s enough motivation right there. 

But it also makes it difficult to put an exact number on startup costs. We can say, though, that you’re looking at a lot less overhead than most other businesses. And if you don’t make a lot of money with your machine, you can move it to a better location! If you find a great spot where there is a demand for cash and little competition, you will make money. But how much?

Well, let’s do some more math:

Formula #1

Approximately 2-3% of people that actually see an ATM machine in an establishment will likely use the ATM. So say, for example, that your location has an average of 200 customers visiting each day. You could estimate that approximately 5 of those 200 people would use that ATM daily.

You can then take that number of people and multiply it by the amount of your surcharge ($3-$4). If you take that number and multiply it by how many days the location is open during the year, you’ll be able to estimate how much money your machine might make in a year. You can also get a monthly revenue estimate. 

(5 x Surcharge Amount) x Days Open Per Year = ATM Revenue Per Year

Use the calculator here to help do the math more quickly.

Formula #2

Or, you can operate under the assumption that the number of adult patrons an establishment has in a given day—plus or minus 10%—will use the ATM on a monthly basis.

This rule of thumb is more commonly followed if the establishment accepts credit cards or gives cash back at the point of sale (POS). However, alternate payment methods will affect ATM usage but will also convert some users to cash. This also helps lower credit card fees the establishment pays. Usage could be affected by as much as 20%-40%.

# of Adult Patrons Per Day +/- 10% = # of ATM Uses Per Month

Use the calculator here to help do the math more quickly.

Basically, once you purchase an ATM machine and set it up with processing, it could pay for itself in less than a year if it’s in a good location. It could pay for itself in as little as a few months in a great location. After that, you begin to profit!

Is the Cost to Start ATM Business Worth It to You?

So what do you think? Does the profit potential outweigh your startup costs? Most importantly, have you spotted a gap in the market where a machine could perform really well? If so, jump on it before someone else does! There is still plenty of money to be made from an ATM business because people are still using cash. It just might depend on where you’re located and the opportunities in your area. 

If you’re interested in learning more about how to start an ATM business, check out the ATM business road map which will walk you through the entire process from start to finish. Simply have questions? Contact us today to see if an ATM business might be right for you!