Tag Archive for: How to start an ATM business

Bookkeeping and Taxes for ATM Entrepreneurs: Why Zoho Books Is the Smart Start

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Disclaimer: This is not tax advice. I’m not a CPA. Always check with a qualified tax professional before making financial decisions. What follows is based on real-world experience in the ATM business, plus what works for many independent ATM deployers (IADs) just getting started.

Why Bookkeeping Matters in the ATM Business

When you’re new to the ATM business, it’s easy to think:

  • “I’ll track deposits in my bank account.”
  • “I’ll remember what I spent on paper and modems.”
  • “Taxes? I’ll deal with them when April rolls around.”

That approach works for about three months… until:

  • You forget which deposits are surcharge revenue vs. vault cash cycling back.
  • You scramble to find receipts for ATM supplies.
  • You miss deductions that could have saved you thousands.

Good bookkeeping isn’t busywork. It’s the foundation of:

  • Clear financial reporting
  • Stress-free tax preparation
  • Understanding which ATMs make money and which need to be relocated

And here’s the truth: your ATM business may be small at first, but the IRS doesn’t care. If you earn $1 or $1 million, they expect clean, accurate reporting.

How the ATM Business Works with Bookkeeping

Before diving into software, let’s clear up what you actually need to track:

  • Surcharge Income: This is your revenue. Every transaction generates a fee, and your processor pays it out to you.
  • Vault Cash: This refers to your money circulating in and out of the machine. It’s not income, but you need to track it so you know how much is tied up in ATMs.
  • Expenses: Wireless modems, receipt paper, ATM parts, travel costs, insurance, marketing, etc.
  • ATM Assets: The machines themselves. You’ll depreciate these for tax purposes (typically 5 years under MACRS).

If you try to track all this with just a bank statement, good luck. You’ll constantly mix up deposits, and when tax time comes, you’ll wish you had started earlier.

Why Zoho Books Free Plan Is a Great Starting Point

Here’s the deal:

  • Zoho Books is 100% free if your annual revenue is under $50,000.
  • When you’re starting, $50k revenue is usually half a dozen ATMs doing around $700–$800 each per month.
  • It could take 6 months to a year to hit that, unless you’re an absolute hustler placing machines nonstop.

That means you can run your books professionally, at no cost, during your startup phase. By the time you outgrow the free plan, your business should be making enough to cover paid software.

Pros and Cons of Zoho Books

Pros:

  • Free under $50k revenue
  • Cloud-based (log in anywhere)
  • Easy to use—much friendlier than spreadsheets
  • Automates recurring entries (like surcharge payouts)
  • Can connect to bank accounts for automatic imports
  • Generates basic tax-ready reports

Cons:

  • Not as widely recognized as QuickBooks (some CPAs prefer QuickBooks files)
  • Limited integrations compared to larger tools
  • If you outgrow the free plan, pricing jumps (though still cheaper than QuickBooks)
  • Payroll features are limited in the U.S.

For most new IADs, the pros heavily outweigh the cons.

Zoho Books vs QuickBooks vs Spreadsheets

Here’s the side-by-side:

FeatureZoho Books FreeQuickBooks OnlineSpreadsheets
CostFree under $50k$30–$90/monthFree (time cost)
Ease of UseBeginner-friendlySteeper learning curveDepends on your skills
ATM Specific SetupEasy to customize categoriesDoable, more complexManual formulas
ReportsGood basics (P&L, balance sheet)Excellent, advancedOnly what you build
ScalabilityUpgrade when you growScales easilyDoesn’t scale well
CPA FriendlySome CPAs less familiarIndustry standardCPAs hate it
AutomationBank feeds, recurring entriesBest-in-class automationZero

Verdict:

  • Spreadsheets are fine if you like pain, broken formulas, and staying up until 2 AM in April.
  • QuickBooks is powerful, but it can be pricey for beginners.
  • Zoho Books free plan is the sweet spot for new IADs.

Setting Up Zoho Books

Here’s how to get started. I’m not going to show actual screenshots of my setup and blur things, so show you with a simulated screenshot.

Step 1: Create Your Account

Welcome to Zoho Books
[Get Started for Free]
Track income, expenses, invoices and more—all in one place.
  • Go to Zoho Books and sign up for the free plan.
  • Use your business email (not personal Gmail) to keep things professional.

Step 2: Add Your Bank Account

 Banking  
[Link Bank Account]
No accounts linked yet
  • Click Link Bank Account.
  • Connect the account where your processor deposits surcharge or where you receive any other revenue (this is NOT your vault account).
  • This will let you automatically import transactions.

Step 3: Set Up Categories

ATM Revenue

 Record Income
Amount: $1,000 
Category: [ +Add New Category ] 

Notes: Processor payouts or Surcharge Income
  • Add new category: ATM Surcharge Revenue
  • Use this every time your processor deposits your surcharge share.

Vault Cash

Transfer Funds  
From: Business Bank Account
To: Vault Cash Clearing 
Amount: $5,000 
  • Create a category called Vault Cash Clearing.
  • This helps you track how much of your money is sitting inside ATMs.
  • Set aside a fixed amount that you will use for vault cash. You will always balance back to this amount, as vault cash funds are either in the ATM, in the vault cash account, or in transit after being withdrawn. This will be set up in a vault cash account at your bank (other than your income account).

Step 4: Generate Reports

Reports
Profit & Loss 
Balance Sheet
Cash Flow Statement
Expense by Category
  • Profit & Loss shows surcharge revenue minus expenses.
  • The Balance Sheet shows ATM machines as assets, and vault cash as clearing.
  • Expense by Category shows where your money goes.

Pro tip: Run these monthly. Don’t wait until tax season.

Basic Tax Strategies for ATM IADs (Not Tax Advice)

Here are the basics you’ll want to remember (and run by a CPA):

  • Separate accounts: Never mix personal and business.
  • Track mileage: Every trip to load or service an ATM can be deducted.
  • Depreciate machines: ATMs are 5-year assets. Depreciation saves you money.
  • Keep receipts: For supplies, wireless, repairs, and insurance.
  • Know your 1099-Ks: Your processor may issue them, but confirm income matches your books.
  • Quarterly taxes: If you’re profitable, set aside money and pay quarterly to avoid penalties.

Will you Outgrow Zoho Books?

The question is really whether you’ll want to upgrade or change when:

  • Your revenue is consistently over $50k (the Zoho Free version is limited to $50K)
  • You add employees or need payroll
  • You want more integrations with other apps
  • Your CPA insists on QuickBooks or other software for easier collaboration if you hire one

Options:

  • Upgrade Zoho to a paid plan (still cheaper than QuickBooks)
  • Switch to QuickBooks or Xero and import data
  • Export from Zoho before hitting limits

Final Thoughts

If you’re just starting your ATM business:

  • Don’t waste time with messy spreadsheets.
  • Don’t pay for QuickBooks before you need it.
  • Use Zoho Books Free Plan to track revenue, vault cash, and expenses.

You’ll learn good bookkeeping habits without spending a dime. And when you reach $50k revenue, congratulations — you’ll have other opportunities, such as deciding how to scale, rather than whether you can afford accounting software.

First Steps to Creating a Business—ATM-Style

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A quick Google search or AI prompt will provide you with a list of some general first steps to creating a business. These steps might vary slightly based on the type of business you want to start. However, you’ll find that even an ATM business fits the mold when it comes to basic business startup.

In this article, we’ll introduce some of the most basic, general first steps to creating a business and adapt them for the ATM industry. That way, you can see how similar starting an ATM business is to any other business. Then, we’ll cover some specifics that are unique to an ATM business. When it’s all said and done, you’ll know the first steps to take to get into business in the ATM industry.

First Steps to Creating a Business—Adapted for ATMs

Creating a business involves several critical steps to move from an idea to a functioning operation. Here’s a practical breakdown of the first steps for most businesses:

1. Define Your Idea

What’s your product or service? Clearly describe what you’re offering and the problem it solves. 

As an independent ATM deployer (IAD), you’re buying or leasing ATMs, placing them in high-traffic locations, and earning revenue from surcharges users pay per transaction. You offer customers access to their bank accounts. For stores and businesses, you enhance their customer service, increase foot traffic and impulse purchases, save them money on credit card processing fees, and possibly offer an extra revenue stream.

Who is your target customer? Identify your ideal market or audience. 

As an IAD, you’re looking for locations that have a need for ATM service. Small businesses, convenience stores, bars, salons, gas stations, or events without existing ATMs are good places to start.

What is your revenue model? 

As the owner and operator of an ATM machine, your revenue comes from the surcharge fee. This is the transaction fee for using your machine and is typically $2.50–$3.50 per use. You might also possibly profit-share with business owners hosting the machine

2. Conduct Market Research

Who are your competitors? Look at businesses doing similar work and see how yours can stand out. 

For an ATM business, you want to find gaps in the market. Installing an ATM machine in a location that already has convenient access nearby is going to affect your earning potential. If there are other ATMs nearby, you want to offer a competitive surcharge rate to pull more customers from other machines with higher fees. 

When searching for a location to operate your ATM from, you might find that a store or business is already working with an ATM service provider. This can be a good opportunity to discover whether or not they are happy with the service they are receiving. If they aren’t, explain how you can solve that pain point. 

Is there demand?

Find out the potential of a location by scoping out locations in person, having conversations with location owners, and conducting online research. Visiting locations can give you a sense of how busy a location is—the busier the better. Conversations with location owners can reveal their motivations or objections which can tell you a lot about a location’s potential. And online research can provide you with a map of potential competing locations and customer reviews. 

3. Create a Business Plan

A basic business plan should include a summary of what your business is and what it will do. It might also include market analysis, a marketing and sales strategy, organization and management structure, and financial projections like basic budget and expected revenue/costs. 

A simple business plan for an ATM business might look something like this:

  • Start-up costs (ATM purchase/lease, cash to stock the machine, installation, etc.)
  • Monthly operating expenses (maintenance, communication line, armored cash refill if outsourced)
  • Expected transactions per month and projected income
  • Growth strategy (e.g., 3 machines in Year 1, 5+ in Year 2)

4. Choose a Business Structure

There are three common types of business structures: sole proprietorship, limited liability company (LLC), and corporation (C-Corp or S-Corp). All can work for an ATM business, but the most common route is sole proprietorship. 

While a sole proprietorship is simple, there is no legal separation from you and your business. An LLC, on the other hand, protects personal assets. Choose LLC for liability protection, tax flexibility, and to separate your personal and business finances. Finally, corporations are more complex and are more appropriate for large businesses or raising capital.

5. Register Your Business

Choose a business name after checking its availability in your state. Register it with your state government. Apply for an Employer Identification Number (EIN) with the IRS for tax and payroll purposes. 

With a sole proprietorship, you can operate under your own name or a fictitious business name, a DBA—doing business as. You may not need an EIN under a sole proprietorship, but you will if you establish an LLC. Check out Forbes’s side-by-side comparison of the best LLC filing services.

Get required licenses or permits (varies by industry and location). Set up a business bank account. Consider business insurance (especially liability or workers’ comp if hiring). 

For an ATM business, you will need a business bank account. This is where ATM surcharge profits will be deposited and where your vault cash will be settled for you to withdraw to refill the machine. You may have two business bank accounts: one for your surcharge revenue and one for vault cash.

You will also need an ATM processor agreement. This is documentation of your partnership with an ATM processing company that will handle the communication between networks and transactions.

Insurance is optional unless the location owner requires it as part of the placement deal. However, it is a good idea to invest in general liability insurance to protect your equipment and liability.

7. Set Up Operations

Location: Decide whether you’ll operate online, from home, or at a physical location.

Website: Create a basic site or landing page.

Systems: Pick tools for accounting, invoicing, communication, etc. 

With an ATM, you will probably operate out of someone else’s store, business, or other location. However, you can also rent a space in a shopping center or similar area. 

There are many ways to establish an online presence as an ATM business owner. This can be a good way to get location owners coming to you to set up placements which saves you the time spent approaching them. You can create a website if you want, but sometimes a simple social media page can be effective. 

You can also get a custom web page designed and featured on an already high-ranking website in, say, an “ATM providers near me” web directory. Borrow their search engine optimization to increase your own visibility, credibility, and lead generation.

And tools and resources you can use to help manage your finances, track profits, and record expenses include accounting software tools like QuickBooks, Wave, or Xero. You will also have access to remote online monitoring that offers reporting tools you can use to monitor transaction reports for performance insights.

Unique First Steps to Creating a Business in the ATM Industry

There are some general first steps to creating a business. These apply to almost any business, ATMs not excluded. We’ve adapted them for your convenience so that you know exactly how to apply each step to starting an ATM business. Now, it’s time to get into some specifics those basic first steps to creating a business didn’t cover:

1. Purchase Your ATM(s)

To operate an ATM business, you need to purchase the equipment. You can buy new or refurbished machines (costs range $2,000–$4,000 each). Make sure you choose EMV-compliant and ADA-compliant models that support remote monitoring and cash alerts.

2. Secure Locations and Contracts

Most IADs secure locations and contracts with existing businesses. Approach business owners and offer free machine installation and maintenance for a monthly rent (flat fee) or revenue-sharing (e.g., 30% of fees). Be sure to draft, agree on, and sign a placement agreement with each location that outlines the responsibilities of each party.

3. Stock and Monitor Your Machines

You can load cash yourself to save on armored truck service. While this adds another $2,000 or so to your startup budget, it is typically more cost effective in the long run. Install remote monitoring software to track cash levels, errors, and transactions. That way, you can manage your business off-site.

3. Market and Scale

Create a simple web page to establish credibility, generate leads, and open lines of communication. Create business cards and/or flyers to leave with  more locations and leads. Consider adding more ATMs to your route as your revenue grows.

Now You Know the First Steps to Creating a Business ATM-Style

Now that you know the first steps to creating a business in the ATM industry, you can decide for yourself whether or not it’s really for you. If you’re still on the fence, remember that an ATM business offers benefits most other businesses do not: low overhead, little to no real estate costs, no employees, flexibility, and simplicity. What other job can you think of that makes you money while you’re doing something else altogether?

If you have questions or want to know more about the first steps to creating a business in the ATM industry, contact us today! With decades of experience, ATMDepot has worked with thousands of IADs just like you. It’s our mission to help anyone earn semi-passive income from operating ATM machines.

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.

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!

Are ATMs Always Open? How to Operate an ATM 24/7

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If you are thinking about starting an ATM business, you might be wondering, Are ATMs always open? The short answer is, Yes and no. You see, each ATM business is different. So, some ATMs are always open—others are not. 

If you want to make money with ATM machines, it is possible to operate an ATM 24/7. Here, we’ll provide an overview of what various business models look like. That way, you can decide for yourself how to proceed with your ATM business.

Are ATMs Always Open?—Not Always

Not all ATMs are always open. For instance, if you’ve ever passed by a store with an illuminated “ATM” sign whose doors were locked, you’ve experienced an ATM that was not open. 

Independent ATM deployers (IADs) have about three options when it comes to installing their ATM machine. They can install it in a business or store front they already own. They can rent space in a mall or plaza to operate their ATM from. Or, they can work in collaboration with an existing store or business that agrees to the installation in exchange for boosted customer service and sales.

So in that respect, an ATM’s availability depends on the location itself. If an ATM machine is installed behind the locked doors of another store or business, that ATM machine is not open 24/7—because customers can’t get to it to use it.

Then there are outdoor ATM machines. For example, ATM machines operated out of parking lots/garages, food truck parks, outlet malls and plazas, and the fronts of convenience stores can offer passers-by 24/7 access to cash and their accounts. However, just because an ATM is accessible doesn’t mean it is functional. An outdoor ATM machine still has to be connected to the networks, has to be stocked with cash, and has to not be out of order to be considered open 24/7.

Are ATMs Always Open?—They Can Be

If you want to operate ATMs 24/7, it’s totally possible. There are simply certain conditions that must be met.

24/7 Location

Although ATMs are technically designed to operate 24/7, the question of are ATMs always open depends on a number of other factors. Namely, it’s up to the owner/operator. If you want to operate your ATM 24/7, you have to find a location that facilitates that.

You can operate an ATM machine 24/7 if it is always physically accessible to customers. For example, you might install your machine in an outdoor location, through the wall of a store facing the street, or just inside the doors of a store that is also open 24/7.

ATMs are designed to operate without human supervision. They include secure cash dispensing and deposit mechanisms, card readers, PIN pads, and network connections to banks and processors. Modern ATMs have features like anti-skimming, surveillance cameras, and internal safes to operate securely 24/7. Basically, you don’t have to sit on site with your ATM to operate your ATM business.

Instead, you can use remote online monitoring to manage your machine. This management system allows you to track cash levels, detect malfunctions or tampering, and receive real-time alerts for any error codes.

Reliable Internet Connection

To operate your ATM 24/7, it needs to be reliably connected to the banking networks (Visa/Plus, Mastercard/Cirrus). This enables ATMs to validate transactions at any time, regardless of location or banking hours. So 24/7 operation requires secure internet connection. If your machine loses internet connection, it will be inoperable until it is reconnected. Until then, you’re out of business.

Little to No Downtime 

In order for your machine to always be open, it has to always be working. This means that if you want to operate your machine 24/7, there has to be no downtime. Your machine will require regular servicing like cash replenishment, error codes, and other preventative maintenance like cleaning and software updates.

Where Are ATMs Always Open? The Best 24/7 Locations

We’ve said a few times that 24/7 ATM operation depends on the location of the installation. But what are your options? If you are looking for a location that facilitates 24/7 ATM operation, you’ll need to find a location like one of the following:

Convenience Stores, Truck Stops, Gas Stations

Convenience stores, truck stops, and gas stations are at the top of the list. They’re often open 24/7, ensuring around-the-clock ATM access. They experience steady customer traffic, especially during off-hours.

Furthermore, these customers have a need for cash. Customers in these locations often make cash-based purchases and therefore have a high tendency of withdrawing cash to shop. 

Finally, indoor placement offers weather protection and enhanced security. It’s better to operate a 24/7 ATM indoors when possible for these reasons.

Hotels and Motels

Guests of hotels and motels (especially budget chains) often need quick access to cash for tips, transport, or nearby restaurants. Lobby ATMs benefit from indoor, secure placement, and front desk staff can monitor the machine and inform guests about the ATM, increasing usage.

Transportation Hubs

Transportation hubs like airports and bus or train stations are also good places to target travelers in need of cash. These locations often experience round-the-clock foot traffic, and the presence of security can deter theft and vandalism.

Liquor Stores and Smoke Shops

Liquor stores and smoke shops are businesses that prefer cash transactions. Customers who want their bad habits to go unnoticed tend to prefer spending cash in these locations, too. This increases the need for cash in these 24/7 locations making ATM service a lucrative opportunity on top of the added benefits of indoor operation.

Laundromats

Laundromats can make good locations, too, due to the need for cash to operate the machines. It is also easier to find gaps in the market—in a laundromat, there’s usually low competition for ATM services nearby.

Bars and Nightclubs

There is high cash usage for drinks, tips, and cover charges at bars and nightclubs. Plus, late-night crowds rely on ATM access when banks are closed. Even if the bar isn’t open 24/7, late-night operation equals strong transaction volume despite being open fewer hours than other locations.

Remember, the best 24/7 locations for ATM installation have high, consistent foot traffic, security, accessibility, and low downtime risk.

Are ATMs Always Open—Yes and No

When it comes to the question of are ATMs always open, the answer really depends on the owner and the location. An ATM cannot operate 24/7 if the owner does not want it to. It also cannot operate 24/7 if it is locked up in a store after hours and therefore inaccessible to customers. 

So, the bottom line is: if you don’t want to be on-call 24/7, don’t make your ATM machine operable after hours. However, if you want to maximize your revenue potential, think about investing in a 24/7 ATM machine that is always open for transactions. 

At the end of the day, the more time your machine is available, the more customers have an opportunity to use it, and the more potential you have to make money. If you’d like to know more about how to own ATMs that are always open, contact us today!