The best banks for ATM business can be hard to find. Not only are a lot of banks hesitant to take on an ATM business bank account, but bank relationships are also very subjective. So you might find that opening an ATM business bank account on the recommendation of others isn’t a foolproof plan.

That includes recommendations from ATM industry experts. ISOs that work with hundreds of IADs and help them set up their ATM businesses can really only collect data from their collective experiences. And many have found that there is no one-size-fits-all answer for finding ATM business friendly banks.

However, while it can be difficult to find banks that allow ATM business accounts, we do know why banks are hesitant. And we therefore know ways you can increase your chances of finding banks that support ATM business in your case. So keep reading to find out what you need to do to open an ATM business bank account.

Why is it Hard to Find ATM Business Friendly Banks?

Many IADs mistakenly believe that banks want them as customers no matter what type of account they need to open. They believe that banks should be begging for and bending over backward to earn and retain their ATM business bank account.

In reality, however, an ATM business bank account requires a lot of work and does not make a lot of money. So, many banks are hesitant to take on these high risk, low reward accounts. Banks with ATM business bank accounts are typically subject to more audits to ensure compliance with anti-money laundering laws because of the cash-heavy nature of ATM businesses.

Then there are the added tasks of counting all of the cash and even keeping enough on hand for your vaulting needs to begin with. And as your business grows, that volume will grow too. 

Banks make money off of their customers’ account balances. That is the money that the bank invests into loans and other products that earn them interest payments. Little of customers’ deposits are actually held as cash at the bank. And ATM business bank accounts typically maintain low account balances.

So not only do banks see an ATM business bank account as more trouble than it’s worth to open, but banks can also close accounts that cost more to maintain than they make. It can be difficult to convince a bank to work with you and your business, but it also takes some effort on your part to prove that your ATM business bank account is worth keeping open.

The Best Banks for ATM Business

Banks undergo audits to ensure they comply with anti-money laundering laws. Because of their size, larger, tier 1 banks are under more scrutiny than local regional banks, community banks, and credit unions. However, while this can make tier 1 banks less likely to accept ATM business bank accounts, it doesn’t mean it’s unheard of.

Smaller banks, on the other hand, are less likely to be able to support a cash volume over $5,000. That’s a lot of 20s, and some might end up being bad bills. You will need to inquire with the bank when you go to open an account to see whether they have enough cash for your needs and if they don’t, whether they are open to getting more to be able to service your account. 

Speak to the person who orders cash from the armored service for the branch as they usually deliver weekly. They can ask when they can place a cash order to be included with the bank’s cash order so they can be sure they have enough 20s for you.

Tier 1 financial institutions with the worst reputations for denying ATM business bank accounts and closing others are Wells Fargo, Bank of America, and JP Morgan Chase. But there are still plenty of IADs who have ATM business bank accounts at these institutions.

In our experience, the best banks for ATM business accounts are the ones where you already have other accounts and good relationships. 

How to Improve Your Chances of Opening an ATM Business Bank Account

Offer to Purchase Multiple Products

An ATM business bank account typically maintains a low balance and does not make the bank much money. But other accounts do: savings accounts, CDs, lines of credit, loans…. 

So if you are looking for banks that accept ATM business accounts, your chances of finding one are better if you can offer to purchase these other products or to move your existing accounts to the new bank. These multiple accounts make you a money-making customer. You will then be especially enticing to smaller banks who are more eager for your business. 

Start with Existing Relationships

We also recommend starting with a bank you already have a relationship with. Set up a meeting with your current bank manager to discuss your ATM business banking needs. If they turn you down, look elsewhere and consider moving your accounts to the new bank to encourage them to take you on.

Bank with More than One Institution

It can be a good idea to have accounts at more than one institution. Accounts that cost more money to maintain than they make can be closed. Normally, a bank gives at least 10 days notice before closing an account unless they suspect unethical or illegal activity. 

If this happens to you, your ATM business will be put on pause unexpectedly until you can get set up at another bank. This is wasted time that you’re not able to generate income. So it can be a good idea to have a backup account at another institution.

Sometimes, the bank will help you by referring you to another institution. This is another reason why it’s important to maintain a friendly relationship with your banker. 

Be Open and Honest

Regardless of where you start, make sure you are open and honest about your ATM business banking needs. This facilitates a healthy relationship between you and the bank and is a better way to make sure your account doesn’t get closed out of the blue. 

It also helps to make sure that the bank can even handle the volume of cash you will need. You will also want to make sure they are open to working with you as your business and cash volume increase over time. 

Tell them how much cash you will need, how frequently, what denominations, and how much will be in your account regularly. This will give them a good idea of what to expect so that they are prepared to handle your account if they agree to open it. The bank can then advise you to order the cash you need to be added to their armored delivery.

Being up-front also lets you know whether or not the bank has experience with ATM bank accounts. Banks that haven’t had many ATM bank accounts might be eager for the business and then find out later that the account is too much for them to manage. 

It’s best to find a bank that knows ATM businesses and their needs. Banks that offer ATM business banking will usually have a questionnaire and a procedure. This helps them with their yearly audits where they will need to know where the IAD ATMs are, the names and addresses of the locations, and the average monthly usage in dollars withdrawn.

Be Respectful

As you have these conversations with these financial institutions, be polite and understanding. Remember, your ATM business bank account is going to require a lot of work on the part of the bank employees—and they don’t have to accept you as a customer. 

If the bank expresses hesitation or declines your account, understand that ATM business bank accounts are risky for them to take on. You won’t accomplish anything by being rude or angry. It will just confirm their decision to not want to do business with you. 

You can always ask for a referral to another bank. Many bankers have worked at other financial institutions and know other bankers. Being nice and even giving some token of appreciation can go a long way. 

Be Prepared

There is some documentation that banks can request in order to open an account for your ATM business. This can include a copy of your IAD processing agreement, copies of your SLA agreements with your merchants, and your business paperwork showing your a licensed or registered business with the city or county. Just ask your ATM vendor ahead of time to help you access these documents.

The bank might even ask for transaction statements that show a history for the last 12 months for all of your ATMs if it applies. Jump through as many hoops as the bank asks you to. Get all documentation to them promptly. Show them that you are serious and organized.

Show Gratitude

If you are successful, be appreciative. Be friendly and patient with the bankers. Surprise them with cards or gifts or snacks. If you become a friendly face that the bank employees are happy to have around, they will be sad to lose you as a customer. This can help protect your account from spontaneous closure.

Third-Party Alternative Vaulters

If you are still having trouble finding banks that accept ATM business or your bank is unable to handle the volume of your cash needs, you should ask your ATM vendor if they offer armored carrier service or have 3rd party vaulting options. Ask if they have delivery and pickup services to avoid the cash volume issue altogether.

You will have to pay for this service, of course. But working with third party alternative vaulters is safe, hassle-free, and they take care of the cash loading for you. 

ATMDepot has a trusted network of third-party vaulters that currently work with us and our IADs. We work with third party vaulters in the following cities and have armored service in many others on an as-needed basis:

• Los Angeles, CA
• San Diego, CA
• Fort Myers, FL
• Chicago, IL
• Las Vegas, NV
• Newark, NJ
• New York, NY
• Columbus, OH
• Lancaster, PA
• Nashville, TN
• El Paso, TX
• Houston, TX

This is a good option for those who want to operate an ATM business but don’t have a bank yet or the funds to load their own ATMs in these cities.

ATM Friendly Banks by State

While we can’t guarantee any bank will accept your ATM business, here is a list of some ATM business friendly banks we’ve garnered from various feedback and sources. 

ATMDepot.com and its parent company Intelligent e-Commerce, Inc. make no guarantees that financial institutions listed below will offer ATM business bank accounts. Each financial institution and branch has its own acceptance policy. 

This is not a comprehensive list and should not be the definitive guide. There are many more banks than what we show here. Just because we list one or two banks in a state does not mean they are the only ones that accept ATM businesses. It just means we know an IAD who may use that particular bank. 

It’s very difficult to say a particular bank does not work with IADs when in some cases they do. We work with a tier 1 bank, US Bank, but have been with them for over a decade and have more than just an ATM account. 

Bank managers can often decide on a case-by-case basis if they want to work with a particular IAD. When you open your account, be sure to maintain the relationship and use other banking services like credit cards, loans, and more. That can help you better than just going by this list.

How to Find the Best Banks for ATM Business

Bank relationships are very subjective. You might find that one person’s experience with the best banks for ATM business differs from the next. You might encounter people with the same tier 1 banks that support ATM business that you are having trouble with. Each state is different, too. 

If you want to know what banks accept ATM business accounts and what banks don’t, your best bet is to get out there and find out. Remember, the best banks for ATM business accounts are those where you have good relationships. Not only will banks appreciate you having multiple accounts and products, but they will also be less likely to close your ATM business bank account, leaving you out of business.

Start with your current bank. Inquire with small local, regional credit unions and community banks. Research known ATM business friendly banks in your state. And if cash volume is an issue, look into a third party vaulting service.

If you still have questions or need any help, contact us today!