Tag Archive for: atm machine

Why Every Retail Store Should Consider a Free ATM Placement

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Every retail store should consider a free ATM placement. As a business owner, you are probably always searching for ways to attract more customers and increase revenue, especially in today’s competitive retail environment. One powerful strategy is free ATM placement. 

By partnering with a provider who installs and manages an ATM at no cost, retailers can transform a small corner of their store into a profit-generating convenience for customers. In this article, we’ll highlight all the ways your store can benefit from an on-site ATM machine and how you can get one installed for free.

What Is Free ATM Placement?

Does a free ATM placement sound too good to be true? Here’s how it works:

Free ATM placement means a third party provides your business with an ATM. This third party typically handles installation, maintenance, and cash loading all at no charge to you. In some cases, however, you can agree to take on one or more of these responsibilities for a share of the surcharge revenue (more on that later).

Essentially, a free ATM placement is a hands-off way to add a valuable service for your customers. But there are a number of other ways your store can benefit as well.

Benefits of Free ATM Placement for Retail Stores

Increased Foot Traffic

Increased foot traffic means more potential business and revenue. Shoppers in need of cash will naturally be drawn to your store if they know an ATM is available. 

Recently, public opinion company Creative Consumer Research surveyed retail customers across the US on store premises at locations where ATMs were available in an effort to gain insight into the impact of in-store ATMs on consumer traffic and purchase behaviors. 

Of the 395 customers surveyed, 70% reported visiting the store primarily to use the ATM! This extra traffic translates into more opportunities for new customers and higher overall sales.

Higher Sales and Impulse Purchases

Customers who withdraw money from an in-store ATM often spend it immediately, many times in your store. According to the Creative Consumer Research survey, 33% of ATM users made a purchase while in the store, about 52% of whom paid for their purchases with cash they had just withdrawn from the in-store ATM. Convenience stores, gas stations, and small retailers especially benefit from this spending pattern.

Enhanced Customer Convenience

A retail ATM placement also ensures that customers don’t have to leave your business to find cash. The Creative Consumer Research survey found that 59% of respondents came to the in-store ATM because it was convenient. Furthermore, 54% said they would shop at the store less often if the ATM was removed. Convenience keeps sales in your store and positions you as a customer-first location. 

Passive Income Through Surcharge Revenue

With free ATM placement, store owners have the potential to receive a share of each transaction fee. Even with moderate use, these small payments can add up to a steady passive income stream. 

However, this is dependent on the agreement you make with the third party ATM owner. Even if you opt for a free placement without a share of the surcharge revenue, you are still going to experience a number of lucrative benefits simply based on the added convenience it offers your customers.

Zero Cost, Zero Responsibility

Alternatively to receiving passive income through surcharge revenue, you could be experiencing other lucrative benefits with zero cost and zero responsibility on your part. In a typical free ATM placement arrangement, the provider, or ATM owner, covers the equipment, service, and ongoing support. 

Your only responsibility is offering the floor space. That is, unless the provider shirks their responsibilities. Hosting an ATM machine that is frequently out of service or out of order negates all of these benefits. 

When questioned in the Creative Consumer Research survey about the most valued attributes in an ATM, 27% cited reliability. And remember that 59% cited convenience. Your ATM is neither reliable nor convenient if it isn’t consistently functional or properly stocked with cash. 

So, if you find yourself in a situation where your provider is not holding up their end of the bargain, it then becomes your responsibility to terminate your contract and find another, more reliable provider to partner with. 

Competitive Edge

By offering on-site cash access, your business gains an advantage over nearby competitors. Shoppers are more likely—59% more likely—to choose your location if they know they can access both cash and their essentials in one stop.

Reduced Credit Card Processing Fees

Every time a customer pays with a card, retailers lose a portion of the sale to processing fees. Processing fees typically account for between 1.5% and 3.5% of the sale which adds up quickly, especially for businesses that operate on thin margins or process many small-ticket transactions.

By offering an on-site ATM, you make it easier for customers to pay with cash instead of cards. Cash purchases mean no swipe fees, no interchange costs, and no deductions from your profits. 

For convenience stores, gas stations, and other retailers where small-ticket transactions are common, encouraging cash transactions can preserve a meaningful share of revenue. In this way, free ATM placement not only increases sales but also helps you keep more of what you earn.

Is Free ATM Placement Right for Your Store?

If you operate a retail store, gas station, convenience store, or other high-traffic business, a free ATM could significantly enhance your bottom line. The best part is it requires no investment, no maintenance, and little to no effort on your part.

When it comes to determining whether you want to buy an ATM for your location or have a professional place and operate a free ATM at your location, you first have to figure out how much time you’re willing to put into an ATM machine. Are you willing to fill it with cash? Willing to take time out of running your business to fix an ATM error if one does occur? Are you willing to take time to keep the machine cleaned? Willing to keep it up-to-date with the latest software? Are you prepared to foot the cost of an ATM machine for your business by yourself?

If your answer is yes, you can own and operate your own ATM machine from your own store. Our free ATM Start-Up Kit will walk you through each step you need to get started. Simply review the kit, fill out the paperwork, send it back to us, and you’ll be ready to place your order!

If you answered no to any of the questions above, then a free ATM placement could be right for your store! 

How to Secure Your Own Free ATM Placement

Free ATM placement is a simple, no-cost way to boost foot traffic, sales, and customer satisfaction while potentially earning passive income. In an industry where every advantage matters, offering on-site ATM access can set your store apart. Partnering with an ATM provider allows you to grow your business. ATMDepot can help.

Send in an ATM Placement Request, and ATMDepot will search our repertoire of well-established and certified Independent ATM Deployers (IADs) for a representative of ours in your area. Once we find one, we’ll get you in touch. The IAD will be able to place an ATM in your store for free in addition to assisting you with whatever ATM services you’d like provided like filling the machine with cash and/or maintaining updates and cleanliness. Contact us to take the first step today!

Who’s Starting a Side Hustle and Why?

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

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

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

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

Why Start a Side Hustle?

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

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

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

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

Who’s Starting a Side Hustle?

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

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

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

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

Why an ATM Business Is the Ultimate Side Hustle

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

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

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

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

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

Benefits of an ATM Business

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

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

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

How Does Owning an ATM Work?

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Owning an ATM is one of the best side hustles. But how does owning an ATM work? If you want to know what to expect from ATM ownership before getting started, keep reading.

Anyone can own an ATM. Literally all you have to do is purchase equipment. However, to actually operate an ATM and generate semi-passive income with it, there are some things you need to know to be successful. 

Whether you’re an entrepreneur or a store owner, this article offers an overview of what responsibilities and benefits come with owning an ATM. Then, you can confidently purchase ATM equipment without the fear of any surprises. 

How Does Owning an ATM Work for Entrepreneurs?

ATM entrepreneurs, or solopreneurs, are individuals who work for themselves in the ATM industry. Independent ATM deployers (IADs) typically operate by purchasing ATM equipment and installing it in a store, business, or other location owned by someone else. The knowledge you have over another ATM owner may be key. It could be the reason a location owner chooses you over other ATM deployers. 

Acquisition and Location

ATM owners need two major things to operate a machine: the machine itself and a location to install it in. 

You have a few options when it comes to purchasing ATM equipment. You can find ATM machines sold by ATM manufacturers and distributors, independent sales organizations (ISOs) and processing companies, and online marketplaces. 

There are also a couple of options in securing a location. If you want to operate your machine from a shopping plaza or mall, you can rent a space similar to how each individual business within the mall does. But the most common route is to find a store or location owner who is willing to work with you to install your machine within their walls. Be prepared to negotiate, possibly offering a percentage of the surcharge revenue as an incentive.

When searching for a location, ideal spots are businesses or areas where there is a high need for cash as well as heavy foot traffic. The more people who pass by the machine and also need its services, the more money you stand to make.

Operation and Management

Owning an ATM is a great way to generate semi-passive income. What this means is that the machine makes money without you having to be there. However, it is only semi-passive because there are some responsibilities required to ensure the machine is operational. After all, you can’t make money if the machine doesn’t work.

One of the most important responsibilities is cash loading. You can stock the machine with cash yourself, delegate this to the location owner, or hire a third party vaulting service. When you stock the machine yourself, you use your own money. So calculate a couple thousand dollars of vault cash as part of your startup costs.

You also need to set up transaction processing. An ATM processing company like ATMDepot facilitates the communication between the credit card networks and your ATM machine. This is how your machine “knows” how to process transactions and transfer funds. This processing company also keeps track of the funds that are withdrawn from your machine so that they can be deposited back to your bank account. Then you withdraw those same funds again and again to restock the ATM.

Finally, you’ll need to handle maintenance, repairs, and security. Maintenance might include stocking printer paper for receipts, cleaning the equipment, and addressing any error codes that might arise. Repairs will be necessary if parts fail or become damaged. And you can use remote online monitoring to ensure your machine is secure from fraud or theft. 

Revenue and Expenses

ATM owners/operators earn their money from surcharge fees. This is the cost users pay for the convenience of accessing the funds in their accounts without having to travel to their bank. You as the ATM owner/operator get to set the surcharge rate. On average, this might be between 2 and 4 dollars, but you can check out our guide here for more specific, location-based advice.

Now, revenue is the money you generate, but profit is the amount you make after expenses are deducted. The overhead expenses for an ATM business includes the equipment itself and the vault cash. Ongoing expenses you should expect to budget for are internet service (to facilitate transaction processing), maintenance like cleaning supplies and technician calls or repairs if necessary, and insurance if you choose.

How Does Owning an ATM Work for Store Owners?

While owning an ATM can be a business on its own, store owners can also purchase their own machines to operate. There are many benefits stores and other businesses can experience from an on-site ATM.

Adding an ATM to your store increases foot traffic, attracting customers who might make impulse purchases. An ATM gives you an additional revenue stream, earning surcharge fees on each withdrawal. ATMs also promote cash transactions which can save you money on credit card transaction fees and are a particularly wise investment if you are a cash-only business.

So, if you want to add an ATM to your store or business there are two main ways: you can purchase a machine outright or find an IAD in your area. ATM companies like ATMDepot offer placement programs that match businesses and IADs. That way, you don’t have to hunt for one yourself. 

Keep in mind, though, that while you do not have to purchase the ATM equipment outright in a placement program, you therefore do not own it. IADs typically front the equipment cost in exchange for a location. You do have the leverage, though, to negotiate a portion of the surcharge revenue.

So, buying and operating an ATM yourself earns you a higher profit from the surcharge fee, but you are then also responsible for all of the associated responsibilities: cash loading, maintenance, and security monitoring. On the other hand, if you partner with an ATM processing company (which you need anyway for card network communications), the IAD helps you handle the operation while you earn commission on top of the other benefits an ATM offers your business.

How Does Owning an ATM Work for You?

Owning an ATM—whether as an entrepreneur or as a supplement to your existing business—can be a smart way to generate passive income, boost sales, and provide a valuable service to customers. The key is understanding your goals, weighing your responsibilities, and choosing the right setup to match your time, budget, and business model. 

With the right planning and partnerships, adding an ATM can be a low-maintenance investment with steady returns. ATMDepot can help. For more information about the ATM business, check out our free start-up kits designed specifically for entrepreneurs and store owners.

Where to Put ATM Machines: Installation 101

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We’ve published a few articles about where to put ATM machines in terms of the best performing locations. But what about once you’ve gotten that far? How do you know where to put ATM machines at that location? 

Here, we’ll summarize locations that have high or consistent transaction volume in case you missed it. But we’ll mostly offer tips for how and where to put ATM machines once you’ve secured a high-traffic location. Use this as a basic guide or a regular checklist as you install machine after machine. Or, if you are the location owner already, here is what you need to know to get started installing your new ATM machine!

Where to Put ATM Machines to Achieve Your Goals

Before choosing where to place an ATM, clarify your goals. Are you installing a machine to boost foot traffic and sales inside your own business? Or are you entering the ATM ownership space for passive income through transaction fees? Your purpose influences the ideal type of location and expected traffic patterns.

Are you a store or business owner increasing in-store purchases by offering convenience? Are you an independent ATM deployer (IAD) generating passive income in high-traffic or cash-heavy areas? Or are you serving a specific community like college students, tourists, or cash-only clientele? Maybe you’re just filling a market gap where banks or ATMs are scarce.

Knowing your objectives will help you prioritize the right kind of location, installation features, and revenue strategy.

If you are still in the location stage of starting an ATM business, you will want to read some of our other articles about the best locations to secure. But this article will cover some best practices for installing ATM machines with the most typical location conditions in mind.

For example, common and profitable locations for ATM placement include gas stations, convenience stores, and retail stores; bars, nightclubs, casinos, and other event spaces; hotels and tourist hubs; cannabis dispensaries and other specialty markets. However, an ATM installed at a prime location can perform poorly if it isn’t positioned strategically. So there are other factors to keep in mind.

General Guidelines for Where to Put ATM Machines

When it comes down to where to put ATM machines, it’s best to position the machine where users can easily see and access it. Typically, this helps everyone reach their goals, consumers and business owners alike. But there are some requirements and strategies that will restrict and influence your options.

First, you’re limited to the electrical set-up: wherever there is power and internet access is where to put ATM machines. Machines need consistent electricity and internet whether it’s via Wi-Fi, ethernet, or wireless modem.

Second, the machine should be visible. The ATM should be in plain sight and near natural traffic flow like checkout lanes or entrances. But the machine also legally has to be accessible. Customers, including those in wheelchairs, should easily be able to approach the ATM without obstruction.

If you have the luxury of doing so, you should consider security as well. For example, look for well-lit areas, camera coverage, and/or direct line of sight of an employee. This is especially important if you want to know where to put ATM machines for after-hours access. This doesn’t just help customers feel more safe and secure during transactions but also allows for safe and discreet cash vaulting and repairs. 

Where to Put ATM Machines Legally

Before installation, you must comply with local laws and accessibility standards. Some municipalities require a business license or permit for ATM placement. Outdoor machines may require additional zoning approvals or signage restrictions. And if you’re placing the machine on someone else’s property, make sure you draft a placement agreement clearly outlining terms, revenue split (if applicable), maintenance duties, duration, etc.

Every ATM placement must be ADA compliant. The Americans with Disabilities Act (ADA) mandates that ATMs be accessible to all users. This means that buttons, touchscreens, and card slots must be within accessible height and depth ranges. And the space around the machine must be clear. Users in wheelchairs must be able to approach and maneuver around the ATM.

Ensure your ATM model is ADA-compliant and that installation allows for sufficient access and use. Noncompliance can lead to lawsuits or fines.

Installation Basics

Once you’ve selected the location and cleared legal requirements, the next phase is installation. Your machine will need power and network connections. The area around the ATM must allow for user access and ADA-compliant clearances. And it is recommended that you bolt down both indoor and outdoor machines to deter theft and vandalism. 

Through-the-wall (TTW) ATMs will require a little more construction. You will either need a space in a wall that faces the outside to offer 24/7 access to passers-by, or you will need a space where the interface is available to users on the wall of a locked, secured, and/or managed area where the chassis is stored. Ensure that this area is protected during cash vaulting.

However, for standalone machines, you can handle the installation yourself with the help of a simple YouTube video, the equipment manual, or a tech call. Or, if you prefer, you can hire a technician to install the machine for you. Check with your ATM company to see what services and resources they offer to help with installation.

After setup, the machine must be loaded with cash and configured to your processor. Then, it’s a good idea to run test transactions to ensure smooth operation.

Mistakes to Avoid

There are some common mistakes you can avoid to save time, money, and stress. 

First, make sure your ATM machine isn’t hidden. Low visibility reduces usage. Customers can’t use your machine if they don’t know it exists.

Customers also can’t use your machine if it’s out of order. Out-of-service machines lose money, so don’t neglect maintenance. Establish a maintenance plan for cash loading, paper replacement, and tech issues.

Be careful not to underestimate foot traffic. Just because a space looks busy doesn’t mean it is. Track actual customer flow and consider peak hours before choosing a location.

Don’t ignore ADA or other compliance regulations. ADA lawsuits and permit violations can be costly. Make compliance a non-negotiable from the beginning.

Finally, make sure you have formal documentation of your agreements with the location owner. Vague or handshake-only deals can lead to disputes. A written placement contract can ensure that each party upholds their responsibilities, is compensated accordingly, and is protected in extenuating circumstances.

Who Knows Best Where to Put ATM Machines?

If you are installing a machine in someone else’s store, the location owner might have their own preferences about where to put it. The ATM machine is your business, and you’re the expert. You want to place the machine where it will get the most usage. But the location owner is the expert of their business as well. They have their customers in mind and won’t want to risk damaging their current business. 

So if you find yourself disagreeing with the location owner about installation, just explain the reasoning behind these best practices. Work together to create the best possible user experience focused on accessibility, convenience, and safety. 

If you partner with ATMDepot.com for transaction processing, you get access to installation resources including 24/7 customer support. ATMDepot can arrange for a certified ATM technician to professionally install your first unit. During installation, technicians often provide training—demonstrating setup steps, running test transactions, and teaching upkeep best practices. And ATMDepot’s online resources include detailed guides covering everything from unpacking and leveling to anchoring and connectivity. 

For more help with DIY installation, check out our 7 ATM Installation Tips or contact us with questions. Now, you’re ready to install your machine. We’re here to help if you need it!

How Do ATM Machines Work?

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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!