Tag Archive for: atm placement strategies

Bank Branch Closures and What They Mean for ATM Owners

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Bank branch closures have been accelerating across the United States for decades. The trend continued last year as banks in the U.S. closed hundreds more branches than they opened. Banks are consolidating physical locations at a rapid pace because of rising operational costs, shifts toward digital banking, and changes in consumer behavior. While bank branch closures create certain challenges for some communities, it also presents opportunities for ATM owners.

Understanding how branch closures affect cash access, transaction volume, and placement strategy is critical for anyone operating or considering investing in ATMs. Here is why banks are closing and how it might affect you as an ATM owner.

Why Bank Branches Are Closing

Several factors contribute to widespread bank branch closures. First is the overwhelming shift to digital banking. Because consumers can use mobile apps, online bill pay services, and remote check depositing, foot traffic to banks has significantly decreased. 

Furthermore, maintaining brick-and-mortar locations is expensive, especially in low-traffic or rural areas. Therefore, branches struggling to cover these expenses are forced to close; others may close simply to reduce operating costs. 

It becomes more difficult for branches to justify high operating costs when foot traffic declines. Accelerated by the pandemic, customer habits have changed in recent years. Consumers have become accustomed to and increasingly prefer self-service and on-demand access to banking services over in-branch visits.

While banks may see closures as a way to improve efficiency, the impact on local cash access is significant and detrimental especially to low-income and rural areas.

Reduced Cash Access Creates Demand for ATMs

When a branch closes, customers often lose access to important banking services like teller withdrawals and in-branch ATMs. For independent ATM owners, then, this gap creates new demand, particularly in areas where the next closest branch is several miles away and public transportation is limited.

Bank branch closures are most common in low-income and rural areas. These populations rely heavily on cash as many residents are likely underbanked. In these cases, an independently owned ATM becomes the primary cash access point for an entire neighborhood.

Increased Transaction Volume Opportunities

As an ATM owner/operator, it’s important to understand how bank branch closures affect ATM usage as well. Keep in mind that ATMs in neighborhoods that have experienced bank branch closures will see higher ATM withdrawal frequencies and larger average withdrawal amounts. Therefore, surcharge fees may increase due to limited alternatives.  

ATM owners who strategically place machines in locations near closed branches often see a noticeable increase in transaction volume within months. So how can ATM owners intentionally target these locations?

How to Identify Post-Closure ATM Opportunities

Identifying the best opportunities after bank branch closures requires more than noticing an empty building. Successful ATM owners combine local awareness with data-driven decisions and strategic partnerships to determine where demand will actually materialize.

Branch Closure Tracking and Market Intelligence

One of the most effective strategies is actively tracking announced and recent bank branch closures. Public regulatory filings, bank press releases, and local news often reveal closures months before they occur. Furthermore, the FDIC requires that banks notify customers at least 90 days before closing and post signs at the branch 30 days prior. This advance notice gives ATM owners time to evaluate surrounding neighborhoods and secure placement agreements before competitors move in.

Owners who consistently monitor closure data can spot patterns—such as clusters of closures in suburban or rural markets—that indicate sustained, long-term demand rather than temporary disruption.

Demographic and Cash-Usage Analysis

Not all areas affected by branch closures will generate strong ATM performance. Insight into local demographics helps ATM owners focus on markets where cash use remains high. Census data, consumer spending reports, and local economic development resources can help confirm whether a closed-branch area is likely to support consistent ATM usage.

Specifically, there might be greater demand in areas with a high concentration of hourly workers or tipped employees. Neighborhoods with limited access to alternative financial services can also benefit from independent ATM services. And, communities with older populations or lower smartphone adoption might rely more on ATMs.

ATM and Banking Location Mapping

Mapping tools are critical for visualizing cash-access gaps. By plotting former bank branches alongside existing ATMs and remaining financial institutions, ATM owners can identify “cash-” or “banking deserts” where demand is likely to concentrate.

These tools also help assess distance to the nearest bank or credit union, walkability and foot traffic, and competitive ATM density and surcharge ranges. A location that looks marginal on paper may become highly attractive once nearby branch access disappears.

Local Business Partnerships

Retailers located near closed branches often experience an increase in cash-related customer requests. Proactively approaching convenience stores, grocery stores, bars, and service-based businesses in these areas can lead to mutually beneficial placement agreements.

For ATM owners, these partnerships offer built-in foot traffic from displaced bank customers, shared interest in keeping customers on-site longer, and opportunities for lower placement costs in exchange for revenue sharing.

Business owners frequently welcome ATMs as a way to offset card processing fees and capture sales that might otherwise go elsewhere.

Performance Monitoring and Rapid Deployment

Finally, ATM owners who already operate machines nearby can use transaction data to spot early signals of increased demand. Rising withdrawal frequency or larger average withdrawals often indicate that a branch closure is pushing users toward alternative access points.

Operators who can quickly redeploy machines or install additional units in response to these trends are best positioned to capitalize on post-closure demand before the market becomes saturated.

Challenges for ATM Owners Under Heavy Transaction Loads

ATM owners who are able to serve communities that have experienced bank branch closures might see higher usage, but that also increases the operational workload. Higher usage means more frequent cash replenishment. And there is more at stake if machines go offline or experience downtime for any reason.

When serving “banking deserts,” there is a greater importance placed on monitoring, maintenance, and fraud prevention. ATM owners must ensure their infrastructure can scale with increased demand, especially in areas where customers have few alternatives.

Finally, ATM owners should be sensitive to community considerations when setting surcharge fees, balancing profitability with community impact. Excessive surcharges can create backlash in underserved areas while transparent pricing builds trust and repeat usage. 

The Long-Term Outlook for ATM Owners

Bank branch closures are reshaping how consumers access cash. For ATM owners, these changes present a rare combination of increased demand and strategic opportunity, provided operators are thoughtful about placement, pricing, and reliability.

Despite hints to a cashless future, bank branch closures suggest the opposite reality for many communities: cash is still essential, but access points are shrinking.

For ATM owners, this means that ATMs remain relevant in the financial ecosystem. There are strong opportunities in underserved and transitional markets. And there is a greater need for smarter placement, reliable uptime, and community-aware pricing.

In communities affected by branch closures, ATM owners often become a critical financial access point rather than just a convenience service. So ATM owners should do their research and offer services and surcharges that really serve their communities.

As banks pull back from physical locations, independent ATM owners are increasingly stepping forward as the backbone of everyday cash access. But not every closed branch location translates into a profitable ATM opportunity. Smart placement depends on a variety of factors. Therefore, data-driven placement decisions are becoming a key differentiator for successful ATM operators.

Think you’ve identified an area that could benefit from independent ATM service? Contact us today to get started!

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!

Where Should I Place My ATM?

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Where Should I Place My ATM?

Where Should I Place My ATM

To really maximize the profits you earn from your business’s automatic teller machine, you need to place that machine in the right location. ATM placement is an art, not a science, however, even experts on the topic can sometimes disagree about ATM placement strategies. So consider the following an introduction to the factors that go into this important decision.

First and foremost, your customers won’t want to use your ATM unless they feel safe doing so. Therefore, install your ATM someplace in your business that’s lit brightly, somewhere under the watchful eye of a security camera, perhaps with a visible alarm system within arm’s reach.

You also have to decide whether to install your ATM indoors or outdoors. Outdoor ATM’s can be accessed twenty-four hours a day, of course, but they’re more vulnerable to vandals and thieves. You’ll have to invest in a first-rate (in other words, expensive) security system. There might even be specific safety/security laws in your state and municipality dictating the kinds of security measures you’re required to have in place for an outdoor ATM. In addition, during the day many customers prefer using indoor rather than outdoor ATM’s, as they feel safer doing so. In that regard, you might actually lose some ATM business if you place your automatic teller machine outside.

If you manage a large complex, such as a shopping mall or a resort hotel, then choosing the spot in which to install your ATM becomes significantly more challenging. Many such facilities set up an ATM in the lobby, believing that customers expect to find ATM’s there, and also believing that a lobby is a safe place because it receives so much traffic all day long. And many hotels, malls and even hospitals decide to maintain more than one on-site ATM. For instance, a hotel might find it worth the investment to put an ATM on every floor. If you decide to go this route, it probably makes sense to put the ATM at the same location on each floor – just to the left of the elevator, for instance.

You don’t have to run a business with multiple floors in order to derive benefit from multiple ATM’s, though. Even if you own, for example, a fairly large, one-story convenience store, you might find that if you purchase more than one ATM, and place those ATM’s in opposite sections of your store, those ATM’s will increase your profit margins each month.

One of the longest-running debates when it comes to the placement of ATM’s is this: Should you put an ATM right next to the front door of your establishment? There are passionate advocates on both sides of this argument. Those who say that an ATM should go beside the front door can site statistics indicating that putting an ATM here greatly increases the usage that ATM will get over time. Some studies have even said that an ATM beside the front door gets twice as many transactions as an ATM placed in, say, one of the far corners of a business’s interior.

On the other hand, the case against putting an ATM by the front door is also convincing. First, if you attract lots of customers each day, an ATM next to the door could cause congestion around that door. People lining up here might even block the entrance. And if potential customers walking by on the street see this commotion, they might be discouraged from entering your establishment, thus costing you business. Even worse, a line of customers near your front door might constitute a minor fire hazard, should that line be thick enough. And if your front door is glass, it might be tempting for drug addicts and other amateur robbers to break the glass at night, step inside and try to loot your ATM.

If you have no idea how many ATM’s to buy, or where to place them, you can always contact experts at an ATM consulting service. They’ll be able to analyze your floor plan and your flow of traffic and tell you the best place to put your machine(s).