Tag Archive for: How to start an ATM business

Do You Need an LLC for ATM Business?

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Do you need an LLC for ATM business? This is a question commonly asked by new ATM entrepreneurs. It’s also asked by entrepreneurs who might have been in business for a while but are questioning whether or not they need to maintain their LLC. 

The short answer is, no; you do not need an LLC for an ATM business. You have other options. Each option has its own legal, tax, and operational considerations. Therefore, it’s important to research and consult with professionals to determine the best fit for your ATM business based on your goals, preferences, and circumstances.

Every business requires some documentation. While you don’t need a specific license to operate an ATM business, you will still need some sort of business name to complete the agreement with the ATM processor as your ATM vendor and to open a business bank account. Here, we’ll discuss what an LLC entails as well as a glimpse into some alternative options. 

What is an LLC?

LLC stands for limited liability company. It offers limited liability protection and more tax options which other alternatives do not. There are three main benefits an LLC offers.

Limited Liability Protection

One of the primary reasons for forming an LLC is to separate your personal assets from your business liabilities. If someone were to sue your ATM business, having an LLC can protect your personal assets from being at risk. This means your car, house, bank account, etc. are protected in the event your business is sued, is bankrupted, or defaults on a loan. 

There are a number of situations where you might find yourself at risk of liability. Limited liability ensures that, regardless of the outcome of the lawsuit, your personal assets are not threatened. And if you end up struggling to pay back a loan on time and accrue significant debt, your personal assets will remain safe regardless of whether your business pays back the debt as long as you didn’t personally guarantee the loan. 

Tax Considerations

Another benefit of an LLC is tax benefits and options. LLCs offer flexibility in how they’re taxed. By default, they are pass-through entities, meaning profits and losses pass through to your—the owner’s—personal tax returns. This can offer tax advantages depending on your situation. The business’s net income is then subject to income taxes (based on your tax bracket) and self-employment taxes.

A sole proprietorship or partnership is taxed in the same way, but an LLC offers the S-corporation (S-corp) option. An S-corp is an IRS tax status that an LLC can elect which allows business owners to be treated as employees of the business. This can lower self-employment taxes and will allow you to contribute pre-tax dollars to 401k or health insurance premiums.

Whether or not you think you might want this tax option depends on how much your business can/will pay you, the employee-owner. To really benefit from an S-corp, you should expect a reasonable salary of at least $10,000 in distributions a year for the work you perform.

Credibility

Finally, operating as an LLC can convey a sense of professionalism and legitimacy to potential customers, partners, and investors. This can be especially important when negotiating a placement agreement. In order for business owners to agree to share a space of their location with your ATM and to work with you, you’ll need to establish trust and credibility. 

So, do you need an LLC for ATM business? No, but it might be a good idea. It really depends on the scale of your operations, your risk tolerance, and your specific business goals. 

How Much Does an LLC Cost?

Setting up and maintaining an LLC involves some costs and administrative tasks, such as filing articles of organization, annual fees, and potentially more complex tax filings. In addition, with an S corp, your business might need to spend more on accounting, bookkeeping, and payroll services.

While the cost of starting an LLC varies by state, the average cost to form an LLC is $129, while the average annual cost to maintain one is $104. However, other optional LLC costs can range from just $35 to hundreds of dollars a year.

Formation Fees and Publication Requirements

When forming an LLC, you’ll typically need to pay a fee to the state where you’re registering your business. The fee amount varies depending on the state but can range from around $50 to several hundred dollars. 

In some states, newly formed LLCs are required to publish a notice of their formation in a local newspaper. This requirement can add several hundred dollars to the formation costs.

Registered Agent Fees

Most states require LLCs to designate a registered agent who is responsible for receiving legal documents on behalf of the LLC. You may choose to hire a registered agent service, which typically charges an annual fee ranging from $50 to $300 or more.

Operating Agreement

While not always required by law, it’s highly recommended to have an operating agreement in place for your LLC. This document outlines the ownership structure, management roles, profit distribution, and other important details of the business. You can draft the operating agreement yourself and save hundreds of dollars on hiring a lawyer for this. 

Annual Fees

Many states impose annual fees or franchise taxes on LLCs to maintain their active status. These fees can range from a nominal amount to several hundred dollars or more, depending on the state.

Business Licenses and Permits

Depending on your location and the nature of your ATM business, you may need to obtain various business licenses and permits. The costs vary widely depending on the type of licenses and permits required.

Tax Filings

LLCs are typically required to file an annual report with the state and may need to file additional tax returns depending on their tax classification (sole proprietorship, partnership, S-corp, or C-corp). You may choose to handle these filings yourself or hire an accountant, which can add to your expenses.

Ongoing Maintenance

LLCs have ongoing administrative requirements, such as holding annual meetings, maintaining accurate records, and filing necessary reports with the state. While these tasks can often be managed internally, they require time and attention.

While this sounds like a lot, it is important to remember that consulting with legal, financial, and ATM industry professionals can help you navigate the process and ensure compliance with applicable laws and regulations. The process of establishing and maintaining an LLC really depends on the complexity and scale of your business.  

Alternatives to an LLC

Sole Proprietorship

The most common way new independent ATM deployers (IADs) start their businesses is by creating a sole proprietorship and operating under a fictitious business name, or a DBA—doing business as. You will be able to open a business bank account with this as well as be able to set up the vendor relationship for your business with the ATM processor.

While an LLC automatically establishes some credibility, you can also gain this with a sole proprietorship by “borrowing” another company’s name, like your ATM processing company. Some companies will license you the right to use their name as part of your company name. This often requires additional paperwork and a fee for usage rights, but it is an option for making a good impression when you are just starting out.  

This is the simplest and most common form of business structure. In a sole proprietorship, there’s no legal distinction between the owner and the business. It is easy to set up and operate, but you have unlimited personal liability for the business’s debts and obligations. However, some common liabilities can be covered with general liability insurance.

Partnership

If you’re starting the ATM business with one or more partners, you could form a general partnership. Like a sole proprietorship, a general partnership doesn’t provide liability protection for the partners. However, there are also limited partnerships (LPs) and limited liability partnerships (LLPs) that offer some liability protection for certain partners.

Corporation (C-Corp or S-Corp)

Corporations are separate legal entities from their owners, providing limited liability protection. C-corps are taxed separately from their owners, while S-corps are pass-through entities for tax purposes, similar to LLCs. However, corporations have more formalities and administrative requirements than LLCs.

Do You Need an LLC for ATM Business?

If you want to know do you need an LLC for ATM business, think about your business goals. If you want to purchase and place multiple ATM machines and develop an extensive route, then an LLC may be worth your time and effort. 

The more machines you operate, the more you increase your business risk. The more people you work with, the more customers you serve, and the more opportunities there are for something to go wrong. If that happens, you’ll want to be protected by an LLC.

However, if you are just starting small and aren’t sure yet where your ATM entrepreneurship journey will take you, there’s not a huge need to establish an LLC. Keep it simple and start with a sole proprietorship. It’s easy, it’s common, and your business likely will have a relatively low level of risk.

If you want to know more about starting your own ATM business, check out ATMDepot.com’s ATM Business Road Map, or contact us with any questions you might have!

15 Questions to Ask When Starting a Business

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There are a number of questions to ask when starting a business to make sure you have a plan and clear expectations. You don’t want to go into business blind, so asking yourself the right questions can help you prepare for success.

Here, we have 15 questions to ask when starting a business. While these questions usually apply to conventional small businesses, they apply to ATM businesses too. 

An ATM business is unconventional in the sense that you aren’t selling a product, you don’t work directly with the public, and you don’t own your own location. But an ATM business owner has many of the same responsibilities as any other business owner. 

There are certain universal considerations, decisions, and liabilities that go into starting a business. We’ve tried to summarize them here so that you can go into business for yourself as an ATM owner with a clear direction and no surprises along the way.

1. What is my business idea and expectations?

The first of many questions to ask when starting a business is what your idea and expectations are. There are many ways to start a business in the ATM industry. So what aspects appeal to you the most? 

Do you want to own and place your own machine? Do you want to start a route of many machines? Would you rather sell machines to locations that want to operate the ATM themselves? Would you like to negotiate placements for other ATM owners? Do you just want to sell a service to other ATM owners like vaulting or technical support? Are you interested in getting into Bitcoin ATMs? 

Once you have a clear idea of your business goal, you can start taking the appropriate steps in the right direction. Managing your expectations early on can save you time and money you’d spend changing your mind mid-way through the start-up process.

2. Is there a market for my service?

Your business idea might (and should) depend on the market. Consider where you live and what opportunities are available to you. If you live in a small town, you might have better success operating your own machine than trying to manage others as there might not be many other independent ATM deployers (IADs) in your area.

You also want to consider the placement of an ATM machine. Are you able to identify a gap in the market? Is there an area with a clear need for ATM service? Are there ATMs in your area that are often out-of-order, outdated, or poorly managed? 

These are questions to ask when starting a business in the ATM industry so that once you have your machine, you know where to put it and how well you expect it to perform. An ATM machine with no transactions won’t make you any money.

3. What are the initial startup costs?

You want to think about the initial startup costs of starting your business so that you know how to budget for and fund your business. As an IAD, you’ll want to plan for the costs of ATM equipment, installation and programming, and vault cash.

4. What are the ongoing expenses?

After the startup costs, how much should you expect to deduct from your revenue in operational costs? This might include ongoing maintenance, wireless service, insurance, and any revenue you share with other parties like the location owner. 

Not every ATM business has the same ongoing expenses. Some you will want to budget for right away; others you can add once you start making money. You may or may not have a revenue share, but you’ll figure that out when you negotiate the placement. But it’s good to have some money set aside for maintenance costs like technical support, tampering or vandalism, and cleaning supplies. 

5. How will I fund my business?

Once you have a good idea of the initial costs of starting an ATM business, you’ll need to figure out how to fund it. If you already have a few thousand dollars saved up, you can fund the business yourself. Fortunately, ATM business startup costs are relatively low, so you should be able to fund the business with your own money, via credit card, or through a loan from a friend or family member.

You might need to decide whether to register as a sole proprietorship, partnership, LLC, corporation, etc., based on legal and tax implications. You will want to set up your business bank account under this entity. A simple route for IADs is to create a sole proprietorship or an LLC and get a fictitious business name, a “doing business as” (DBA), to avoid conducting business under your own name.

7. What technology and tools do I need?

Operating your ATM machine will require some technology and tools. Some are nice-to-have and others are need-to-have. For example, the installation will require certain drills and bits. But you don’t have to handle the installation yourself. If you hire this part out, you don’t have to worry about procuring the installation tools.

Technology that is nice-to-have might include cameras for surveillance or a wireless router to avoid relying on a location’s unpredictable internet service provider. 

Technology that is need-to-have is remote online monitoring. You will want to be able to track your ATM activity from anywhere 24/7. This will help you keep your assets safe as well as keep your machine up and running without any lapses in service.

8. How will I handle day-to-day operations?

Just like you can choose what role you want to play in the ATM industry (IAD, vaulter, technician, etc.), you can choose which aspects of your business to handle and which to hire out. It depends on your level of comfort, how much time you have/want to invest in your business, and how much profit you want to make. 

For example, you can hire someone to vault your machine for you, or you can do it yourself. Just weigh the costs of hiring someone else against the amount you are willing to “pay yourself” for taking the time to handle that aspect of the business.

9. What is my unique value proposition?

This question requires you to identify what sets your business apart from competitors and why customers should choose you. Now, as an ATM owner, there are two ways to look at this:

First, you want to consider the value you offer to the location where you will place your machine. Will your ATM bring in new business? Will it add a much needed service to existing customers? How will the location financially benefit from having an ATM on the premises? These are questions to ask when starting a business so that you know how to approach location owners with a proposal to place an ATM machine on-site.

Second, you want to consider the ATM users. Why should passersby use your machine rather than one a couple of blocks down or at the bank? Can you offer better security? A competitive surcharge fee? Coupons? Superior customer service? Ask yourself these questions, and then do it.

10. How will I handle customer service?

Again, you have two angles to consider here:

How will you ensure that the location owner does not have any problems working with your or your machine? Will you be available to handle any unexpected issues? Do you have a partner or someone you trust to act in your stead if you have to be away? How quickly will you be able to address any problems?

Do you have a process in place for handling customer complaints? What happens if there is a discrepancy with a withdrawal? What if there is a security concern? Is it clear who users should contact and how? Answering these questions early on will save time and money later.

11. What is my pricing strategy?

Really, as an IAD, the only pricing you need to worry about is the surcharge fee. You want your surcharge fee to be low enough to encourage transactions but high enough that you make a decent ROI and profit. There are a number of factors to consider when setting your surcharge fee including any preferences of the location owner and revenue share. 

Remember that your surcharge fee can change, too. You might start low to encourage traffic and then raise it once it’s steady. Or you might start high to reach your ROI quicker. Monitor the activity and trends and adjust the surcharge fee accordingly to find the “sweet spot” that satisfies both the customers and your own business goals.

12. What is my marketing strategy?

When you have your ATM installed and ready to go, you’ll want to think about advertising it. People can’t use your ATM if they don’t know it exists. So how will you encourage transactions? Thinking about this early can help you get a head start and budget extra features into your startup costs. 

For example, you might want to invest in a topper for your ATM machine, custom graphics, and/or a light-up ATM sign for the location window. Speak with the location owner as well to see about offering coupons to encourage transactions and increase in-store sales.

13. What is my growth strategy?

Depending on your business goals, you may or may not plan to grow your business. However, if you do, you will want to think about your growth strategy early to better manage your expectations and work toward that goal purposefully.

You could grow your business by offering additional services (vaulting, placement, technical support, etc.) or by adding more machines to your route. There is nothing wrong with managing just one machine. But the more machines you operate, the more profit you will earn.

14. How will I measure success?

It’s important to set goals for yourself in any endeavor, especially in business. Otherwise, how will you be motivated to keep going? Make a list of SMART goals so that you always know what success looks like, how to achieve it, and how to measure it. Then, you can make adjustments along the way as your business improves, you learn more, and your financial and other goals evolve.

15. What are the potential risks and how will I mitigate them?

Finally, one of the most important questions to ask when starting a business is how to mitigate potential risks. Predicting and planning for risks early not only helps to minimize disasters but also helps overcome obstacles that might be standing in your way of taking the next step. 

Having a plan for the worst case scenario can help put your mind at ease knowing that there’s nothing you can’t handle. Whether it’s a technical problem, a security issue, or a breach of contract, document a procedure you can use to address it. There’s a good chance you’ll never have to, but it’ll be worth it for peace of mind.   

Conclusion

Hopefully this extensive list of questions to ask yourself when starting a business makes the journey smoother for you. We’ve tried to think of everything so that you don’t have to. You don’t have to have any specialized knowledge or training to start an ATM business. But we know that not knowing what to expect can keep many people from taking that first step. And encountering unexpected barriers along the way can keep them from taking the next step.

If you work with ATMDepot, you will receive all of the support you need from choosing the right equipment to negotiating placements to ongoing technical support and business advice. What are you waiting for? Get your ATM business start-up kit today!

7 Reasons to Start an ATM Side Gig

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Side gig, side hustle, side business—whatever you call it, many people are looking for flexible ways to make extra money in addition to their regular jobs. As the cost of living continues to raise and salaries struggle to keep up, extra income streams are increasingly sought out and pursued.

But what side gigs are best? And how do you get started? Here, we’ll explain the best qualities to look for in a side gig and why an ATM side gig might be right for you.

What is a Side Gig?

A side gig is really anything you do to generate income in addition to your main source of income. Technological advancements, changes in consumer behavior, and economic factors have contributed greatly in recent years to what is now known as the “gig economy”. 

Technological advancements and a changing work environment spawned by the Covid-19 work-from-home movement have created more freelance, part-time, or short-term job opportunities facilitated by digital platforms. Side gig opportunities have diversified to include not only ridesharing, food delivery, and freelancing, but also virtual assistance, online teaching, and remote project-based work.

One of the key attractions of the gig economy is flexibility. People seek out side gigs that provide them with the ability to choose when and where they work, providing greater autonomy over their schedules. However, side gigs often lack the job security and benefits associated with traditional employment. This leads to financial stability and long-term sustainability concerns for those who come to rely on the income. 

But what if there was a flexible, financially stable, sustainable, and even scalable side gig opportunity? Would you be interested? If so, then an ATM side gig might be right for you!

7 Reasons to Start an ATM Side Gig

1. Flexibility

Like we said before, flexibility is probably the most important quality to look for in a side gig. It has to work around your schedule which might include a full-time job, family responsibilities, hobbies, etc. Rather than leave your full-time 9-5 to head to a part-time job from 6-10, a side gig should be something you do because you can not because you have to.

Flexibility means you aren’t devoted to a set schedule. You can set your own hours and work when you’re available. Not only does an ATM business provide you with this flexibility, it goes a step further by offering passive income.

2. Passive Income

Passive income is money that you generate even when you aren’t working. An ATM business can earn money while you work your regular job, travel, or even sleep! Once you set up your machine, it works for you. Aside from vaulting and periodic maintenance, there is really only a little time you need to devote to an ATM side gig compared to other hustles. There aren’t many side gigs that offer this kind of freedom.

3. Freedom

Freedom doesn’t just refer to the ability to set your own schedule or make money while you go out with your friends. It also means being your own boss. A part-time job comes with a set schedule, a boss, a dress code, etc. Freelance projects and gigs come with clients and deadlines constantly looming. And while there are many side gigs that allow you to work from the comfort of your home, an ATM business doesn’t restrict you to a computer screen for hours a day.

Operating an ATM machine isn’t just a side-gig; it’s a small business, and you are the owner. This puts a lot of power in your hands. You make all of the decisions. 

4. Low Overhead

Now, since your ATM side gig is really a small business, that does mean it will require some initial investment. The biggest costs will be the ATM equipment and vault cash, but other side gigs have their costs as well. Rideshare and delivery services come with fuel costs as well as general wear, tear, and mileage on your vehicle. Online teaching and other internet-based gigs might require extra computer equipment, software, or training.

Not only are ATM startup costs low, they also pay for themselves quickly and provide stability and sustainability. Again, these qualities are hard to find in a side gig.

5. Steady Demand

Have you ever heard the phrase, “Cash is king?” Well it is, and that’s good news for ATM owners. Despite the rise of digital currency and payment options, cash still has its place in society. It isn’t going anywhere anytime soon. 

There are still many situations where cash is necessary and/or preferred. And there are a number of benefits of using cash rather than card. This means that there is regular, predictable income to be made with an ATM machine as opposed to other side gigs that might require you to bid for jobs, sell yourself short to keep up with competition, or rely on seasonal opportunities. What could be better than steady demand? How about scalability.

6. Scalability

An ATM business is different from other side gigs because it is scalable. Want a raise? Increase your surcharge fee. Want to save up for a trip or new vehicle? Invest in another machine! Once you have one ATM machine up and running, there is nothing stopping you from owning more. 

In this way, you have full control over how much money you make. What’s more is your ATM business could even end up replacing your main source of income. You could quit your regular job to focus solely on making passive income with ATM machines!

The possibilities are endless, and you have the power to make your ATM side gig look however you want.

7. Diversification

There are lots of ways to make money in the ATM industry. Keep in mind that you don’t have to own and operate your own machine to make money in the ATM industry. You could negotiate locations for other ATM owners. You could just be the cash vaulter for someone else’s machine. Or, you could be an ATM salesperson and sell machines to businesses that want to operate one themselves.

Even if you do own your own ATM machine, you can still pick and choose which tasks you handle and which you outsource. Your ATM business is completely customizable.

How to Start an ATM Side Gig

Yet another benefit of starting an ATM side gig is that anyone can do it. It doesn’t require any specific certification, training, or education. Of course, training and education resources are available and valuable, but they are far from required. You can start an ATM side gig in just a few simple steps.

First, you will need to select and purchase your equipment. Then, you need to find a processing company to work with. This is how you will get your machine to communicate with the credit card networks. Many ATM processing companies like ATMDepot are also vendors, so you can take care of both of these tasks in one place.

Next, you need to find a bank that can supply you with regular vault cash. When opening an account, let the banker know about your ATM business and cash needs. This can help them prepare and let you know whether or not they are in a position to maintain an account for your ATM business.

You also need to find a place to operate your machine from. You want to find a place with a lot of foot traffic that’s not too close in proximity to a competing ATM machine. But basically, you just need to find a business that is interested in reaping the many benefits of an on-site ATM machine so that you can install your ATM there and generate surcharge revenue.

Once you find a location and order the equipment, the next step is installation and programming. After that, just advertise that your ATM machine exists and start making money.

Start an ATM Side Gig Today!

Convinced? ATMDepot.com offers a wealth of resources, both paid and free, to help you get started in the ATM industry. You can also expect continued support throughout the course of your business with ATMDepot as your ATM processing company. 

Whether you want to supplement your main source of income, own a business already and want to add another revenue stream, or are interested in replacing your regular job with ATMs, ATMDepot.com has everything you need. We have startup kits available for everyone from ATM entrepreneurs to store owners. 

For more information, join our ATM Entrepreneurs Facebook group, or contact us! If you are really serious about starting an ATM business, check out our Member’s Area where you’ll have access to negotiation scripts, videos, contract templates, and more.

If you’re looking for a simple way to make some extra money, start your ATM side gig today!

Becoming an Independent ATM Deployer: FAQs

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Becoming an independent ATM deployer (IAD) is a great way to generate passive income. It can also become your main source of income depending on your individual goals. But while becoming an IAD is quite simple, it isn’t necessarily easy. 

There are some industry ins and outs you will need to become familiar with before you really get going. So you will have to put a little work into getting started. Fortunately, there are a ton of resources and experienced IADs available to help you every step of the way (and there really aren’t that many steps). 

To help get you past any pre-business jitters you might be experiencing or any other obstacles that might be standing in your way, we’ve compiled a list of the most frequently asked questions from new IADs. Our hope is to remove as many hurdles as possible so that you feel confident going into business for yourself as an IAD.  

What is an Independent ATM Deployer?

An IAD is an individual (or a company) who owns and operates ATMs without being affiliated with any specific financial institution. A common misconception is that all ATMs are owned by banks. But ATMs can be deployed in various locations such as retail stores, gas stations, salons, and other public places. Just like bank-owned ATMs, independent ATMs offer cash withdrawal and sometimes additional services like balance inquiries and transfers.

An IAD works with an independent sales organization (ISO) that provides processing. This is how an independent ATM machine is able to communicate with users’ financial institutions to provide account information and approve or deny withdrawal requests. It is an IAD’s job to purchase ATM equipment, place it in a location that provides customers with convenient access to their accounts, and maintain the machine to keep it functional. 

How Can I Become an Independent ATM Deployer?

You can become an IAD in just a few simple steps. First, there is some documentation you need to prepare. You will need to prove your identity, pass a background check, and complete any agreement forms required by your ATM processing company. This documentation might include your ATM business bank account information so that the processing company knows where to send your settlement funds and surcharge income (more on this later).

You also need to find a bank that will work with your ATM business. This can be tricky, so keep reading for more information on finding a bank to work with. Next, you want to purchase your ATM equipment. This can include the machine and any upgrades or ad-ons you’d like. At the very minimum, you will need a machine. The rest can come later depending on your budget (cost estimates coming up next!).

Once you have the ATM machine, you can begin to learn the functions (most new ATM machines come preprogrammed). Review the manual, test it out, and practice operating it. The only thing that’s left to do is to find a location to place it.

When you find a location that can benefit from having an ATM onsite, and the location owner agrees to work with you, you can plug the machine in, connect it to the internet, load it with cash, and start making money! And THAT is how you become an independent ATM deployer.

How Much Does It Cost to Start an ATM Business?

There are some startup costs associated with starting an ATM business, just like there are with any business. However, compared to most other businesses, ATM business startup costs are fairly low. The biggest expenses will be the purchase of the machine itself and the cash you use to vault the machine.

ATM Equipment

We recommend that new IADs start with a new ATM machine. They are user-friendly, compliant, programmed, and typically experience fewer technical problems. New machines run from around $2,000-$3,000 depending on the size and manufacturer. Of course, you can find used and refurbished machines for a little less, but they also come with a modicum of risk.

Once you feel a little more comfortable and confident with ATM equipment, you can look into used and refurbished machines for future placements. But you will want to make sure that all faulty parts have been replaced or repaired, software has been updated, and that it is compliant.

Vault Cash

The other major startup cost is the vault cash. This is the cash that you load into the machine to be dispensed to your ATM users. Plan to start with about $2,000. 

At the end of each business day, your ATM processing company will deposit the sum of all cash withdrawn from your machine back to your settlement account, or your ATM business bank account. Then, you can withdraw the funds back from this account when you are ready to restock the machine, so on and so forth. Vault cash is yours at the end of the day, but it is tied up in your machine, so try not to think of it as cash you are able to use.

Other Costs

Other costs associated with operating an ATM business include receipt paper, any cleaning supplies you need to maintain your machine, travel to and from the machine, insurance if you have the budget to purchase it right away, and a wireless device.

It’s a good idea to just invest in your own internet connection from the start. That way you don’t have to rely on the location’s internet service. If their internet goes down, you will be at their mercy and that of their service provider to get back up and running. And the time that your machine isn’t operational is time that you aren’t making money.

How Can I Make Money as an Independent ATM Deployer?

You make money as an IAD from the surcharge fee. This is the fee that you set for each transaction made on your machine. It’s the price your customers pay for convenient access to their accounts. A standard surcharge fee is about $3 but can be as high as $8 and even more in some locations. It depends on the type of location, average withdrawal amount, and convenience of the ATM.

Before you can start to make a profit, you need to make back as much as you put into the business. Your surcharge fee and revenue split with the location owner will determine how quickly you make your ROI and can begin to profit.

You can expect to make a few hundred dollars a month, a few thousand a year, with one machine. But remember that this is passive income. Your machine makes money while you work your day job, travel, sleep…. Once you get the hang of the business, you can start adding more machines to your portfolio. Soon, that few thousand a year can turn into tens of thousands a year so that you are making full-time income.

How Do I Get a Bank Account for an ATM Business?

It can be tricky to get a bank to work with your ATM business. Because of the cash-heavy nature of the business, banks can be held liable for your business practices. Therefore, banks that handle ATM business accounts are subject to costly audits to help monitor and prevent money laundering. 

Our number one tip when it comes to finding a bank is to start where you already have a good relationship. If you already know your bank manager or tellers well or have had accounts with them for years, make an appointment to speak with someone about opening an account for your ATM business.

Some banks will flat out say no; some banks don’t handle these types of accounts at all. Others might use their discretion on a case-by-case basis. So if you are turned down from one financial institution, be polite, patient, and understanding, and move on. 

To make yourself a more appealing customer, offer to open multiple accounts. The more products and services you purchase, the more lucrative you will be as a customer and the less likely the bank will be to close your ATM business account. Your settlement account will often have a low balance as you withdraw the funds to vault your machine, and it will take extra time and money for the bank employees to order and count enough cash for your business needs. So prove to them that you’re worth their time.

Some IADs have success at banks that others don’t and vice versa. Our list of ATM business-friendly banks is a good place to start, but don’t rule out local, regional, community banks. Sometimes, they are under less scrutiny than tier 1 financial institutions and might be more likely to take on your business.

How Do I Find a Location for an ATM Deployment?

There are a few tips to keep in mind when it comes to looking for a location to place your ATM machine.

The first, again, is to start where you have good relationships. What are some businesses that you frequent and even know some of the employees? This could be a good way to get your foot in the door or even get a referral.

Look for gaps in service. Where do you see a need for an ATM where there currently isn’t one? Find out who owns the location or property and see if they wouldn’t mind a free ATM placement.

And obviously, look for places that experience a lot of foot traffic like shopping centers, event areas, or other attractions.  Statistically, the more people who pass by your machine, the more transactions you are likely to see. Cash-only locations are great spots as well as new businesses that haven’t been approached yet for ATM service.

Even if a location already has a machine, find out if they are happy with it. It doesn’t hurt to ask, and you could end up replacing someone else’s machine that’s been neglected.

What Are the Advantages of Becoming an Independent ATM Deployer?

There are many advantages to becoming an independent ATM deployer. First and foremost is being your own boss. Each ATM business looks different. There are a lot of decisions you get to make based on your own specific situation, needs, and goals. Your ATM business is yours to curate.

That includes curated responsibilities. As an IAD, you can outsource any aspects of the business you can’t or don’t want to handle, whether it be vaulting or cleaning or maintenance.

Which brings us to the most appealing advantage of becoming an independent ATM deployer: generating passive income. Your ATM machine works with very little onsite effort from you. Aside from loading the machine and regular cleaning and maintenance (all of which you can hire out if you want), you can go about your regular life and watch those revenue deposits hit your account.

Finally, the ATM business is scalable. Want to make a little more passive income? Place a second machine. Want to replace your 9-5 income? Invest in 10 or more machines. You’re in control. And you don’t even need any official business or entrepreneur education, training, certification, or experience to get started.

What Are the Challenges and Risks Associated with Being an Independent ATM Deployer?

Like any other business venture, there are some challenges and risks associated with being an IAD. But there are also ways to mitigate and handle them.

Challenges

The first challenge might be the initial funding. However, since good ATM machines are about $2,000-$3,000, you can sometimes find credit companies that offer little to no interest for 12-18 months. That gives you time to get your business up and running so that you can start to pay off your machine as soon as you start to generate income rather than purchasing the machine outright.

Another big challenge for IADs is finding and negotiating locations. But there are a couple of things to remember here: 

First, you don’t have to limit your search to locations without an ATM machine. You could be looking for machines that are old, unkempt, or frequently out of order. This could be a great opportunity to approach a location that clearly wants ATM service but can’t keep up with it on their own or is dissatisfied with their current provider.

Second, it helps instill confidence in new IADs to remember that they aren’t selling anything. As an IAD, you are offering a service—for free—that benefits the location and its customers. 

There are a number of objections you might encounter when approaching location owners to negotiate a placement. But with preparation, practice, and active listening skills, you can become better at addressing these. 

An obstacle that isn’t unique to the ATM business is imposter syndrome. It can be particularly daunting to try to negotiate a deal when you don’t have any experience under your belt. But you can also spin this in your favor by emphasizing your dedication to just ONE machine and your motivation to provide service that’s good enough for a referral or recommendation in the future.

Risks

As with any business, again, you risk not making money. But unlike other businesses, your ATM investment probably won’t bankrupt you, and you can always move your machine to a better-performing location. 

Actually, let us take that back. It’s really hard to lose money with an ATM business. As long as it’s up and running, if someone uses it, it will make money. However, it might not bring in enough quickly enough, and that is a potential risk that can be solved by relocating the machine or adjusting your signage, advertising, surcharge rate, and/or incentives.

Safety and security can be a risk as well. When it comes to the safety of your business, just make sure you protect yourself with contracts. There are templates you can use and industry experts you can borrow from without having to get a lawyer involved. 

When it comes to the safety and security of your machine, there are lots of things you can do to protect your assets. You can also prevent potential risks and unnecessary challenges by avoiding some of the most common small business mistakes. 

How Can I Ensure the Safety and Security of My ATMs?

The first thing you can do is to purchase general liability insurance. There are other, more comprehensive policies you can invest in, too, but general liability is pretty standard. While insurance isn’t preventative, it can provide you with peace of mind and protect you in the long run. 

Second, use common knowledge. Make sure that the machine is within eyesight of employees and/or security cameras (some machines come with a camera which is a great way to deter crime). Don’t place the machine in an area that is easy to breach like near doors or windows. If you want to, you can invest in your own surveillance system (cheap cameras can be purchased on Amazon, for example) or GPS tracker for your cash. And bolt down the machine. Don’t let a location owner talk you out of it.

Most of the time, a simple sign that announces that the machine is under constant surveillance is enough to deter criminals. But try to predict weaknesses or potential points of ingress and reinforce them. Blocking the machine against a wall or other furniture can prevent both external attacks and internal attacks like software hacking. 

Maintaining current software updates can help protect your customer data as well. And keeping up with compliance changes can help protect you and your customers. 

Finally, keep an irregular vaulting schedule. Don’t make it easy for someone to predict and plan when you and the machine will be vulnerable. It’s also a good idea to vault the machine outside of the location’s hours of operation so that there is less foot traffic during vaulting.

Is An ATM Business Worth It?

Only you can answer this question. We will say that an ATM business is worth it for thousands of IADs in the United States. If it works for them, it could work for you. You don’t need any official education, training, certification, or experience to get started in the ATM business. And once you get past those few initial steps, you can start making money immediately with little to no marketing efforts.

Your success as an independent ATM deployer is completely up to you. The process is simple, but don’t expect it to be easy. It will require some effort. You will need to plan, be organized, and make well-informed decisions. Fortunately, you don’t have to do any of it alone. 

If you work with an ATM processing company like ATMDepot.com, they will walk you through each step. Do your research, ask lots of questions, and start making passive income! How much is up to you. Ready to get started? Get your free ATM start-up kit today!

There Are Other Side Hustles, Then There’s The Ultimate Side Hustle

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Are you looking for side hustles that could make you a little extra money each month? Are you struggling to find something perfect? Something that doesn’t cause you extra stress and anxiety? Something that you can fit into your already busy schedule?

Here, we’ve got a list of some of the most common side hustles including what we consider to be the ultimate side hustle. Keep reading to find out which side hustle you can turn into a fully-fledged business that works—even when you don’t!

Other Side Hustles

There are so many things people are doing to earn extra cash, build savings, or create a legitimate small business. And it’s not surprising. In the United States, about 340 million people and 77% of households are in some kind of debt. About 40% of adults struggle to make ends meet each month (a 5.6% increase from 2022). Furthermore, 60% of adults live paycheck to paycheck. Finally, 6.3 million Americans are classified as “working poor”, people who actively work or spend time looking for work but whose incomes still fall below the official poverty level.

It’s unfortunate that so many Americans feel the need for side hustles to supplement their regular employment. But the internet and the rise of work-from-home opportunities make it easier than ever to make a little extra cash.

Driving/Delivery Side Hustles

Many people make driving and delivery service their full-time job. But there’s no reason why you can’t do a little on the side when you have some spare time. Most Uber drivers make between $15 and $25 an hour. But if you don’t like the small-talk aspect of rideshare service, don’t have a comfortable vehicle, or just don’t feel comfortable letting strangers in your car, you can consider food or grocery delivery.

Doordashers can also expect to make around $15 and $25 an hour. And you can make $200-$1,000 a week as a personal shopper with Instacart. Amazon Flex is a package delivery service that allows drivers to make $18-$25 an hour. However, you still need a reliable vehicle to make these side hustles work, not to mention the wear it will cost. And your income potential will depend on where you live, the busiest times of the day, and the size of the orders. 

Online Side Hustles

If you don’t have your own, reliable vehicle, there are a number of ways you can make money online from home. If you are a quick typer, you can look for online transcription jobs that pay by the project. You just listen to audio files and type scripts of them. However, these jobs typically require training and certification.

Websites like Fiverr, Upwork, and 99Designs allow you to market your writing, editing, photography, graphic design skills, etc. Create a profile with your experience, qualifications, and portfolio, set your price, and users can find you and your services. 

Or, you can create your own website or blog and sell ad space or become an Amazon affiliate. If you are crafty, Etsy is a very popular site for people to sell their handmade goods and personalized products. 

While you don’t necessarily need any special training or certification for these other online side hustles, you do need to have a marketable skill. If you don’t, you can still make money online by taking surveys, joining focus groups, or testing products.

In-Home Side Hustles

Maybe you have a more practical skill or just don’t want to bother with the internet. There are many in-home side hustles you can do from your home or a client’s home. All you have to do is get the word out that you are available for a price!

You can babysit, petsit, dog walk—we’ve even heard of plant sitters! You can clean homes, do hair and makeup, and even meal prep. People pay for services like HelloFresh, so if you like to cook, create a menu and start taking orders!

Labor Side Hustles

If you are strong and healthy, good with tools, or just enjoy working outdoors, you can make extra money doing yard work, washing and detailing vehicles, or moving furniture. Websites like TaskRabbit and Handy are great for Jacks- and Jills-of-all-trades to pick up jobs that other people can’t or don’t want to do themselves.

Teaching/Tutoring Side Hustles

Teaching and tutoring can be done in person or online. It just depends on what platforms or channels you use to get clients. You can offer in-home tutoring to students in your community. Or, you can apply with a website like Tutor.com to tutor online. Depending on the website, you might not even need a degree. Sometimes you just have to pass a content test to prove that you are proficient in a certain subject.

You especially don’t need a degree to teach English language online. Websites like VIPKid and Preply will accept almost any native English speaker to teach the English language to people all over the world.

You can even teach music or art in-home or online. It just depends on your preference and the preference of your clients.

The Ultimate Side Hustle: ATMs

Flexibility is the nature of any side hustle. All of the examples above can be done day or night on your own schedule. With a side hustle, you need to be able to pick and choose your own hours because you’ve got to make it work with your regular job. 

But do you really want to work when you aren’t working? Do you want to turn your hobby into work and risk compromising its enjoyment? If you have a regular job and a side hustle, do you have time for anything else? With the ultimate side hustle, you don’t have to sacrifice more of your time to make that extra cash.

How an ATM Business Works

Not all ATM machines are owned and operated by banks. If you’ve ever seen or used an ATM at a gas station, grocery store, pop-up market, cannabis dispensary, etc., someone owns it and makes money from it. Sometimes the store itself owns the machine. But other times, independent ATM deployers (IADs) own the machine in exchange for the store’s customers benefiting from the convenience.

So if there are places in your community where you see that people need access to cash and there is no ATM nearby, inquire with the business owners if they would be interested in having an ATM onsite. Alternatively, if you see ATMs that are in bad shape or that are often out of order, find out if the location owner wants you to take over! Maybe they own the machine and can’t keep up with the maintenance, or maybe they are unhappy with their current IAD. These are all great opportunities for you.

Once you get some good leads, work with the location owner to figure out a deal that works for you both. Maybe you share the surcharge revenue, maybe you share the responsibilities. Either way, you get paid a surcharge fee every time someone uses the machine. You can even negotiate how much time you spend on the business.

The only work you really have to do once the machine is up and running is make sure it stays stocked with cash and keep it maintained and functioning. You can use remote online monitoring to view all ATM activity on your phone from the comfort of your own home—and make money while you sleep!

What Makes an ATM Business the Ultimate Side Hustle

Passive income is the name of the game. With an ATM business, you make money without spending a ton of time and effort. Your ATM machine can make money while you sleep, spend time with your family, go on vacation…. 

In terms of starting a business, the upfront costs are minimal compared to other side hustles like buying and flipping or renting property, reselling thrifted items, operating a food truck, or buying or renting a storefront for a brick-and-mortar business. Plus, you are your own boss! 

Finally, it’s a completely customizable business. Depending on how much money you want or need to make, you can pick and choose which aspects of the business you want to handle and which you want to outsource or partner up for. You can operate one ATM machine for a little extra cash each month, or you can replace your full-time income with passive income from a fleet of ATM machines.

How to Start an ATM Business

You can start an ATM business in just a few steps. All you need to do is pass a background check, open an ATM business bank account, purchase an ATM machine, find a store or location willing to share its space with you, and install and program your machine. Then, you can start making money on each transaction made on your ATM!

Get Started!

There are a ton of resources available to new IADs. You can download a free guide about how to profit from an ATM business, purchase a more detailed book (the best selling ATM business book on Amazon…), join ATMDepot’s Members Area, and/or join our Facebook group. 

We won’t say that owning and operating an ATM business is easy. It will require some work up front. But after that, you can relax! Other side hustles are basically second jobs, and that can take away from your friends, family, and free time.

An ATM business is, however, simple. There are only a few steps to get started, and you don’t need any special business license, entrepreneurial experience, or certification. You also don’t have to spend a lot of time working with clients or customers, working on a computer all day, or worry about your job security. As an ATM owner and operator, you are your own boss! What could be better than that?

Let us help you master the ultimate side hustle today!