Tag Archive for: atm owner

ATM Card vs. Debit Card: What’s the Difference?

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You might have to consider ATM card vs. debit card when opening a new bank account. But many people consider these two cards the same and use the names interchangeably. However, they are different types of cards with distinct purposes and functions.

In this article, we’ll discuss the similarities and differences between ATM cards and debit cards as well as the benefits of each. The distinction is important when it comes to making purchases, withdrawals, and sales. 

ATM Card vs. Debit Card: Similarities

Both ATM cards and debit cards are rectangular pieces of plastic issued by your bank and tied to your checking and savings accounts. This means that they can both be used at an ATM with a PIN to check account balances, transfer funds, withdraw cash, and even make deposits. 

ATM Fees

The fee structure for both is also similar. Both ATM cards and debit cards can be used on any ATM machine. But you can incur ATM usage fees on machines outside of your bank’s network. Many times, ATM usage fees are waived at ATMs that are in-network. But banks can charge fees to cover the cost of communication with an out-of-network ATM. And the owner of the out-of-network ATM machine can impose a surcharge fee on top of that.

Overdraft Fees

You can also incur overdraft fees with each card. Usually, overdraft protection is not automatic—it’s a service you opt into. Overdraft protection service allows you to make purchases and withdrawals beyond your account balance. However, there is a fee charged each time the bank covers the difference.

It isn’t a good idea, however, to rely on overdraft protection service as it is offered only at the bank’s discretion. For example, you might only be covered up to a certain dollar amount, a certain number of transactions, or not at all if you are considered high risk. This can happen if you make too many transactions into overdraft or if you maintain a negative balance that is too high or that is negative for too long.

There is another type of overdraft protection that rolls funds over from your savings account. This protection can be extended to both ATM card and debit card usage if you opt in. There is still a fee for the bank making this transfer on your behalf. However, the FDIC assures it is usually lower than a typical overdraft fee. Savings accounts are also limited to 6 withdrawals per month. 

If you reach your balance limit or are denied overdraft coverage for any of the reasons listed above, both an ATM card and debit card transaction will be declined.

ATM usage is where the similarities end. While both ATM cards and debit cards can be used to access your bank accounts at an ATM, only a debit card can be used to make purchases and payments.

ATM Card vs. Debit Card: Differences

Although ATM cards and debit cards can both be used at ATMs, only debit cards can be used to make purchases. That is why you will see a payment processing network logo, like MasterCard or Visa, on a debit card but not on an ATM card. ATM cards are also limited to national use while debit cards can be used internationally.

So, debit cards are much more common than ATM cards. Debit cards have a much wider range of uses. They can be used at ATMs, for point of sales (POS) transactions, and for paying bills. In 2021, over 80% of Americans aged 15 and older had a debit card.

Debit cards are electronic versions of checks. When you make a purchase with your debit card, the funds are immediately taken out of (or debited from) your checking account. So you should always keep a register of your transactions to ensure you don’t spend more than your account balance.

You can also, however, run your debit card transaction as a credit transaction. All this really does is postpones the debit. A debit transaction made using your PIN number will automatically deduct the funds from your account. Bypassing the PIN for a credit transaction, on the other hand, will take it a few days to process. It might even require a signature.

So which is better: an ATM card vs. debit card?

ATM Card vs. Debit Card: Benefits

Since ATM cards and debit cards have distinct purposes, they also have specific benefits. Here, we’ll consider the benefits of each from a few different perspectives.

Consumer

From a consumer perspective, it is risky to carry either an ATM card or a debit card. Since they are both directly linked to your bank accounts, if they are lost or stolen, then more of your funds are at risk. So, it could be safer to use an ATM card a few times a month to withdraw the cash you need temporarily and leave your card in a safe place the rest of the time.

This can also make it easier to budget, and it can prevent overdraft fees or card declines. Using cash can help make it easier to spend only what’s available without the inconvenience of physically having to document each transaction.

You can do the same with a debit card, of course. It just might be tempting to end up using your debit card for transactions as well which can cause money management issues. Withdrawal limits are also typically higher on a debit card than on an ATM card. So if something happens to your debit card, more of your funds are at risk.

However, you will need a debit card to pay certain bills. If you are enrolled for any online bill payments, you will need to provide a debit card number. 

Could you have both cards? Absolutely. Just ask your bank. And make sure you understand the fee structure because each card will have it.

Merchant

As a merchant, you can only accept debit cards, or cards associated with a network like MasterCard or Visa, as a form of payment. However, if you have an ATM machine on-site, ATM cards could bring you more surcharge income if customers have to withdraw cash to make purchases or payments. 

It can be disappointing to turn away a customer who only has an ATM card. But hopefully you can direct them to an ATM machine in your store. This is one of many reasons why it’s a good idea to have an ATM machine on-site—you experience less missed sales.

ATM Owner

As an independent ATM deployer (IAD), you reap nothing but benefits from both ATM and debit cards. When either is used on your ATM to make a withdrawal, you earn the surcharge fee. Of course, the same concept applies: if someone has a debit card, they might not need an ATM if they can simply use the card to make a purchase.

Conclusion

ATM cards and debit cards are both convenient ways to access your bank accounts at any time. You avoid being restricted to bank hours or facing long teller lines. However, if you are looking for a card you can use to make purchases or pay bills online, you are going to need a debit card. Especially if you don’t have a credit card.

ATM cards do not offer as much functionality as a debit card. Therefore, most banks will automatically issue you a debit card when you open a bank account. In the past, you might have received an ATM card initially. 

The preference is up to you. But remember that even though you and others might refer to debit cards as ATM cards, the two do have distinct purposes.

9 Tips to Planning Your ATM Purchase

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Planning Your ATM Purchase

Planning your ATM purchase

Many business owners find themselves wondering if they should purchase an ATM. If you have a lot of foot traffic in your establishment, have people asking, often, if you have an older machine, or you know there isn’t another machine close, are all good reasons to consider the purchase.

Once the decision has been made to purchase an ATM, the decision maker needs to research and plan out the path they want to take. Some things to consider when planning an ATM purchase are the machine options, costs, and profitability. Knowing exactly what you are getting into and what to expect can alleviate stress throughout the purchase. Read more

Advertisements Vs. ATM Fees

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Advertisements Vs. ATM Fees

ATM fees are just one of those touchy subjects that can make even the meekest of personalities take a turn and show a wild side. That could be mainly because ATM fees vary so widely from one ATM owner to the next and from one financial institution to the next. This can make it virtually impossible sometimes to get a reasonable grip on what’s fair to outrageous to pay. Of course, for the customer, fees are about paying the lowest amount as possible. But for the ATM owner, fees are an integral part of doing business, so while there is a desire to be reasonable, they must also stay competitive in the market just to stay on level with other ATM institutions.

Creative Advertising

While assessing ATM fees are certainly an important part of doing business, they’re not always welcomed or embraced by customers. There can be a lot of complaining about the rates, and even requests for refunds from customers who may decide to challenge the fee amounts based on several criteria. At any rate, the ATM owner has to become creative at ways to keep his customers happy enough to continue doing business with his establishment. And, at the same time, the owner must try to develop a workable solution that will keep a crucial and much-needed revenue stream coming into his financial business.

ATM advertising is a possible solution that owners can implement that may help to solve some of the customers concerns. It’s an on-screen video message where the customer agrees to watch a pre-recorded advertising message in return for reduced or an elimination of ATM surcharges. The customer is given this option when they begin making their transaction, so there are no worries that the commercial will just simply “play” for them, without their permission. Infringement on a customer’s time in that way can be annoying, so ATM owners want to be sure be aware of that possibility and offer the customers options.

With this type of marketing and advertising, both the customer and the ATM owner are appeased on different levels; the advertiser for agreeing to play the advertising video compensates the ATM owner, and the customer (possibly) pays a significantly reduced bank fee in exchange for watching the advertiser’s sales pitch. The sales pitch usually won’t take any longer to view than it would to make an ATM transaction, so there is no lengthy, inordinate amount of time spent watching video commercials while standing at the ATM machine. Usually, the ads will be anywhere from 10-30 seconds, just enough time to capture the customer’s attention and make a lasting sales impression.

The ATM owner and the advertiser will work out and negotiate the terms of the advertising contract. They will determine how long, how frequently and what style of commercial is best suited for the machines. Varying factors can determine ad costs, which is why negotiation is crucial. Since this type of advertising is vastly different from print or even television advertising, it’s important to look at the overall marketing package in terms of quality, relevance and style and not just length. For instance, in some cases, the advertiser will need to negotiate the rate based on the length of the commercial, whether it’s 10 seconds or 60 seconds, especially if it’s for a well-known product or brand.

Coupons and More Savings

Another feature that gets the customers attention is the tear-off coupon that’s at the bottom of their banking receipt. These receipts are good for other services or products that are with local businesses in the area, encouraging customers to keep their business with local establishments. This also incentivizes the business owners to place ads with the ATM machines, especially if they’re trying to target a certain demographic or entice the foot traffic that surrounds the area where the ATM is located.

What makes these types of transactions so worthwhile is because the advertisements are targeted specifically to ATM-style audiences, so it’s something (a product or a service) that would interest the customer. The customer does however have the option to “opt-out” of the feature and choose to not watch the videos. If the customer does go this route, they usually will have to agree to pay the ATM fees.

 

The Reason for ATM Fees

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It’s not always a bad thing, but talking to a few banking customers will give you a lot of insight about how they feel on the subject of ATM fees. They will tell you that paying outrageous ATM fees, for them, is sometimes annoying and even alarming. It can be quite alarming if the customer has to use an ATM at a location where they weren’t expecting to get such a high usage rate attached to their transaction. For the ATM owners, the more profits that they can charge and obtain, the better it is for their business’ bottom line. But for the customer, finding the ATM with the lowest to no ATM transaction fee is going to be the ideal situation.

Great for the Owner

The Reason for ATM Fees

Without a healthy bottom line, the ATM owner doesn’t have the financial resources he needs to provide a quality service to his customers, not to mention a much-needed convenience that some customers love. ATM fees allow owners to offer their customers the latest software updates for their transactions, a faster processor on the machine, equipment that’s in excellent condition and the peace of mind in knowing that the machine will always be able to accommodate their cash requests whenever they need it to. Not to mention also that ATM owners are furiously competing with one another on getting the bulk of the ATM business traffic, so it’s in their best interest to offer customers an attractive deal in return for their business.

Great for the Customer

For the customer, exorbitant ATM fees could mean less trips to the ATM, or, going out of their (convenient) way to find a machine that charges less that machines that are closer to them. Some customers will even go out of their way to transact with ATM machines that charge anywhere from $.50- $2.00 less than the machines that are closer to them, all to save as much money as they can. However, when the customer takes his business elsewhere, the ATM owner could possibly feel the effects of it and may feel compelled to lower their rates in order to draw that customer back.

So, who should profit more and be better accommodated? The ATM owners… or the customers?

Where Do ATM Fees Go?

As far as ATM fees go, sometimes these charges are implemented solely for the customers who are non-members. That means that if a customer doesn’t already bank with an institution or have an account with that bank, they may be charged an ATM fee in order to perform a transaction by withdrawing money or using another banking service. In other cases, relatively fewer, fees are often charged to all customers, regardless of whether or not they have an account with that particular banking institution. One of the biggest complaints that customers have of exorbitant ATM fees is that since there isn’t a human teller helping them with their transaction, there is no reason why the fees have to be so incredibly high, or at best, no reason why there has to be such frequent and periodic steep increases just to access that bank’s financial services.

Fees…For What?

One of the main reasons as to why there are ATM fees is simply to manage this service and to keep it running smoothly and conveniently for the bank or ATM owner’s customers. In fact, there is software that has to be upgraded on a routine basis, that which is often covered with fee services. The machine also has to be repaired on occasion, or at the very least, maintained for service. There is also the insurance responsibility that is required for ATM machines that owners have to take into account in case of theft, natural environmental causes or other issues. When a customer is a member of a bank, these types of maintenance fees are built into either the customer’s monthly fees or through fees to their accounts if their balances fall below a minimum balance requirement.

So while having ATM fees assessed to customers is not at all a “waste,” it helps when customers understand the need for these types of fees and why some banks charge one amount while other banks charge another. The best thing for ATM owners to do to keep a steady stream of business is to keep their fees reasonable but comparable to what their competition is charging in the market. For customers, it’s a good idea to try and be as consistent as possible with one banking institution so as to cut down on the amount of fees that they pay out, but ideally it’s best to be a member of the banking institution where they frequently use the ATM machine. This will help to ensure that their fees stay stead

Successfully Owning an ATM Business

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ATM BusinessBeing your own small business owner affords you a lot of beneficial pluses. Being in a self-owned business with a profitable business model is also the best of all worlds. You get to control and manage your own business, reap handsome profits and you get to enjoy doing something that you like on a daily basis. Deciding on the right type of business is what determines just how successful you become.

Many different types of businesses can certainly be profitable, but the ATM machine business has proven to be immensely profitable because of all that it affords its owners and operators.  We make Successfully Owning an ATM Business easy. We help you get started and show you how ATM Machines work. It is fairly easy to manage the ATM business once it has been properly set up. It does require some dedicated initial time investment in order to get things ramped up, but once your system is in place, all the owner has to do is manage and monitor the machines as efficiently as possible for best results.

The ATM machine business offer owners a lot of benefits that include:

  • business flexibility that moves and changes according to customer needs
  • convenience, with hours they can control and manage
  • minimal time investment, both daily and weekly
  • ability to reap large profits with the right company and machine placements

What’s the Draw?

Convenience is key in today’s fast-paced climate, and customers always tend to gravitate towards businesses that offer them that convenience. Think fast-food drive thru’s, drive-thru car washes or self-pump gas stations; all of these businesses and other types like them allow customers to get in and out quickly, all while enjoying a service that they need. The same thing goes for ATM machine businesses and the customers that frequent them.

Whenever customers need cash fast, they look for the nearest ATM machine to withdraw money. They will not go out of their way to find an ATM machine (usually), and also they’re more inclined to withdraw cash from an available machine even at times when they don’t need it right away. Because of the habits of convenience-craved customers, it’s beneficial for ATM business owners to create opportunities to service customers as much as they can.

Also, since convenience is a crucial benefit for the ATM business owner to provide to his customer, there are also other important areas that should be incorporated into the owner’s business plan in order for it to work. The ATM owners can achieve this with their machines by:

Being Available

Make sure that his machines are in high-traffic areas where people look for, need and want the services of an ATM machine.

Being Accessible

Don’t place the machines in a hard-to-reach area or off the main traffic-ways, whether that’s by car or foot. It needs to be easy to fair to reach for customers in order to attract their business.

Being Convenient

Right along with accessibility, the machines need to also be convenient and a part of the environment in which they’re found. In other words, place ATM machines next to areas where people will actually need them. They will not go out of their way to find a machine, but certainly will use one if it’s available to them.

Competition

It’s okay if there are other ATMs in the area as long as your ATM doesn’t have the highest fee. If your ATM is the most convenient, it will still get used. Avoid placing ATM machines in slow retail stores (where traffic is less than 100 people per day). Try to avoid stores or locations where customers can easily get cash back at the register via a debit card.

Machines Working Properly

ATM business owners should always perform routine and consistent checks on their units to ensure that they’re working properly and in order.  An alert service where the ATM will send you a text message can help avoid down times. Keep them stocked with sufficient cash in ideal increments (we can help determine the best denomination for your location type) and using our online monitoring service you can always check to see if your ATM has enough funds. Routine checks should also include software updating and checking the machine’s hardware and external components for any signs of wear and tear.

Once an ATM machine has established itself as a steady, consistent and reliable machine in an area, people learn to trust it and will give their business to that machine whenever they’re in need of fast cash or banking transactions. In the end, this turns out to be a win-win situation for both the ATM owner and the customer.

There are very few business opportunities where you can invest just a few thousand dollars and ear a few hundred per month in return.  Let us show you how you can earn 10%, 20% or even 60% on your investment by successfully owning an ATM business.