How to Start an ATM Business

Contents

1. How it Works
2. Paperwork and Documentation
3. Choosing Equipment
4. Determining Surcharge Fee
5. Cash Needs and Vaulting
6. Programming and Installation
7. Setting Up a Business Bank Account
8. Finding and Negotiating a Location
9. Ownership and Responsibilities
10. Revenue and Costs
11. Other Opportunities in the ATM Business
12. How to Start an ATM Business Startup Checklist
13. Glossary

1. How it Works

Benefits of Becoming an IAD

An independent ATM deployer (IAD) is someone who owns and operates at least one ATM machine. If you want to start an ATM business, IAD is the most lucrative position. In the simplest terms, as an IAD, you purchase an ATM machine, install it in a busy location, keep it functioning, and earn passive income from surcharge fees.

There are many benefits if you want to start an ATM business. First of all, you are your own boss. That means that you can set your own hours, control your own income, and outsource any parts of the business you don’t want to handle. 

Additionally, an ATM business has a relatively simple business model. It requires a comparably low initial investment, you make passive income, and you can easily scale the business by placing more machines. 

As an IAD, you make money every time someone uses your machine. Your return on investment (ROI) can happen in as quick as a few months depending on the location. You can monitor all activity remotely. And, there is an increasing need for ATM services. 

Making Money

As an IAD, you can expect to make an annualized return of 35% – 70% or more. Remember, you make money every time someone uses your machine to withdraw cash from their checking, savings, or other accounts. At, say, $3 per transaction, a location that sees 5 transactions a day can expect to make about $450 a month. 

And that’s just from one machine. Once you get familiar with the process, you can scale your business and add more machines to your route. A few machines create good supplemental income; 12 – 24 machines would be considered a full-time ATM business that only requires 10 or so hours of your time a week.

In just a few steps, you can learn how to start an ATM business. Before you can operate an ATM machine, you need to find a processor, ISO, or sub-ISO; a location, a bank, and a machine. In the upcoming sections, we’ll explain everything.  

2. Paperwork and Documentation

If you want to start an ATM business, you need to find an ATM processor. You can purchase an ATM machine from anywhere; but without a processing company, your machine won’t be able to communicate to the card networks and therefore will not work. You can find an ATM processor that also sells machines, or you can purchase a machine elsewhere and then find a processor to work with.

This processing company will help make sure your ATM machine is registered, legal, and compliant. This will require some paperwork. Here, we’ll tell you what to expect so that you’re prepared. This will alleviate some stress and make sure your business gets set up quickly and smoothly.

Verify Your Identity

The process for setting up an ATM business is similar to opening a bank account in the sense that you have to verify your identity. You will have to provide the ATM processor with a copy of your driver’s license, and you’ll have to pass a background check. 

The background check is mostly to make sure you haven’t been convicted of a felony or a financial crime. If so, you won’t be able to legally operate an ATM business. However, keep in mind that you can still register the business under a friend, family member, or business partner.

Equipment Order Form

You will also need to complete an equipment order. Often it’s a form on an online purchase.

Bank Account

You will need an ATM business bank account for cash that goes into the ATM and for the ATM processor to put the money back into. 

It can be tricky to find a bank, but we explain this at length in another article. If you want to learn about the best banks for the ATM business, read here. 

Once you have an ATM business bank account established, you can complete the ACH form and submit a voided check for your ATM processing so you can set up the ATM you purchased.

Other Forms

There is an ATM application form known as an ATM Operator Agreement. If you plan to operate ATMs in 3rd party retail locations, you’ll need to complete the IAD Operator Agreement .The agreements are the legal contracts between you and the ATM processor that list the rights and obligations of you as the IAD and ATM owner and those of the ATM processor.

The ATM processor is responsible for enabling transactions, moving funds, and providing you with remote online access to your ATM machine and its activity. This contract also confirms the details of your payment schedule.

And, as with any other income source, you will need to complete a W-9 form to report residuals for tax purposes.

A placement agreement, or site location agreement (SLA), is the contract between you and the merchant or owner of the location where you will place your ATM machine. It typically outlines the responsibilities of each party and the revenue split if applicable. You can work with a lawyer to draft this contract or use our customizable template in our member area.

3. Choosing Equipment

There are three types (smallest to largest) of ATM machines you want to check out: wall mount, free standing, and through-the-wall (TTW). The type you want will more than likely depend on how much space you have available to place the machine and how busy the location is. For example, since a wall mount ATM is smaller than a free standing ATM, it will hold less cash. 

ATM Manufacturers and Recommendations

Free standing machines can be installed anywhere there is a power supply which makes placement a little more convenient than TTW. The bulky part (the interface) of a TTW ATM extends from the front of the ATM (the chassis) which fits into or through the wall protruding into the next room. This can require some construction, but it is highly secure and can facilitate 24-hour access when facing outdoors.

The most well-known and trusted ATM manufacturers are Hyosung, Genmega, and Triton. Triton is the only ATM made in the USA.

If you have limited floor space, the Genmega Onyx-W is a space-saving option that can be mounted to a counter-top or vertical surface. Additionally, the free standing Hyosung Halo II (Hyosung Halo 2) is a very popular model that has a proven track record for longevity and few problems

The through-the-wall Genmega GT3000 is compact and weather-resistant. It’s a great option for outdoor space or where space is limited. The G2500 is comparable to the Halo II and is the latest option for a brand-new Genmega ATM machine. A little bit lower in cost, it’s our second most popular machine after the Halo II.

New vs. Refurbished

It doesn’t really matter whether you buy a new or refurbished ATM machine. The five main differences are lifespan, technology, usability, compliance, and total cost of ownership (TCO). You will need to find the right balance between these factors to choose the ATM that’s right for you.

For a first time ATM buyer, we recommend a new machine. Each new model becomes more user-friendly which can be helpful for someone just learning the mechanics of an ATM machine. Plus, new ATMs can be shipped pre-programmed, meaning they are ready to use upon arrival.

But there is nothing wrong with purchasing a refurbished machine. It can, however, limit your options as not all models will be available. So weigh your feature “wishlist” against your budget, and see what models and deals your ATM processing company can offer.

Most importantly, make sure that any used or refurbished machine you purchase is certified refurbished. A certified refurbishment should include specific standards checks, detailing, and upgrades, replaced decals, the newest software, and updated security. Otherwise, you risk spending any money you saved up front on repairs and maintenance costs down the line.

Also be careful not to purchase a discontinued model. Some heavily discounted machines can be so outdated that they no longer meet legal requirements or process transactions.

4. Determining Surcharge Fee and Additional Percentage Charges

The surcharge fee is the cornerstone of how to start an ATM business. It’s the fee that users pay for the convenience of accessing their accounts from your machine and serves as the primary source of your revenue. Surcharge fees can range from $1-$8, with a standard fee hovering around $3.

However, there’s another avenue for maximizing your revenue: charging an additional percentage on top of the surcharge fee. This allows you to charge more for higher cash withdrawals made by the customer. Popular percentage options range from 1.5% to 2%, with 1.75% being the industry average.

By implementing this strategy, you can raise the maximum amount that can be charged to at least $200-$300 or higher. Keep in mind that this approach may require more capital to ensure sufficient cash availability in the machine.

Balancing Competitiveness and Profit
When determining the surcharge fee and additional percentage, it’s crucial to strike a balance between competitiveness and profitability. You want your surcharge to be high enough to achieve a quick return on investment (ROI) but not so high that you deter potential customers.

Location-Specific Considerations
The right surcharge fee and additional percentage will depend heavily on the location. ATMs situated in event spaces, casinos, bars, and other high-traffic areas can command a higher surcharge and percentage. Conversely, ATMs in low-income areas should have a lower surcharge and percentage to better serve the local demographic.

Revenue Share with Location Owner
Another important consideration is your revenue-sharing agreement with the location owner. Your Service Level Agreement (SLA) should specify how much of the surcharge fee—and potentially the additional percentage—goes to the location owner. This is crucial for calculating how long it will take to reach your ROI.

Collaborate with Merchants
The location owner may also have insights into what would be a fair, competitive surcharge and percentage to charge their patrons. Collaborating with the merchant can help you set a fee structure that benefits both parties.

5. Cash Needs and Vaulting

Cassette Types

The amount of cash your machine will hold depends on the cassette you select. One cassette can hold from 700 notes to 2,000 notes, and the number of cassettes a machine can accommodate will vary. There are fixed cassettes and removable cassettes. 

Fixed cassettes must be refilled in place. Removable cassettes can be refilled in an alternate, secure location. Additionally, a multi-cassette dispenser gives you the option for more than one denomination.

Don’t worry about this too much when you are getting started. You can just use the cassette your machine comes with.

Denomination Options

The standard denomination for an ATM machine is 20s. It’s common, easy to obtain, and facilitates most withdrawal amounts (the national average being $80). However, if your ATM machine is located in a low-income neighborhood or by a laundromat or carwash, 5s or 10s might be more convenient for your customers’ particular needs.

Vault Cash

You can’t start an ATM business without vault cash. Load your machine with about $2,000-$3,000 in cash at first. Then monitor the activity to see if you need more or less to facilitate withdrawals in between vaulting. You can use your own money to vault the machine. (You can use less than $2,000 if that’s all you have and just refill the machine more frequently.) 

Factor this into your startup costs, and your ATM processing company will add the total withdrawal amount back to your account via ACH. When the machine runs low on cash, withdraw it from your ATM business bank account and load it again.

Alternatively, you can delegate vaulting to the location owner who could use funds from the store’s business account. This extra responsibility for the merchant might cost you a bigger share of the ATM revenue, though.

You can also hire a third party vaulting company to handle your cash needs. This is the most expensive option but can help you avoid vaulting hassles.

Vaulting frequency depends on how much cash you load and how much activity your ATM sees. Use real-time online ATM monitoring to identify trends such as withdrawal amounts and high-usage days (paydays, weekends, holidays…). Then you will be better able to predict how much cash to load and when. 

Although you’ll eventually be able to single out the best days to load cash, if you do the vaulting yourself, try to keep an irregular schedule. You don’t want someone to be able to predict when you and the cash will be vulnerable.

6. Programming and Installation

If you want to know how to start an ATM business, you need to know how an ATM works to some extent. However, there are many resources available to help.

Programming

Some ISOs, sub-ISOs and ATM resellers offer to have the ATM pre-programmed at the factory for a nominal fee. This makes it especially easy to just bolt it down, plug it in and use it when it arrives. 

You can opt to do the programming yourself using videos and instruction manuals and help from your ATM provider. You can also see if your ATM processing company offers call-in assistance where you can work with someone over the phone if you have questions during the process. Or, of course, you can hire a professional technician to handle the process for you.

If you opt for the latter, make sure you are present and take notes or ask if you can record the process. That way you can do it yourself a little easier the next time if you want to. 

Programming the machine involves setting up the home screen and distinguishing the denomination(s) to be dispensed. (If you ever want to change the denomination, you need to let your ATM company know.) 

The machine can be programmed after it arrives at the location. Or, you can pay to have it pre-programmed before the ATM company ships it. Many ATM providers require the ATM programming and master keys to be completed by a professional field technician. Otherwise, you can inquire about call-in or scheduled programming.

Installation

You can also install the ATM machine yourself or hire a professional. First, you need to make sure the space is ADA compliant. This means that people with disabilities should have equal access to the public service of your ATM machine. This is not just your responsibility but also the responsibility of the merchant. 

For example, the reachable buttons on a mounted machine cannot be higher than 48” from the ground so anyone can reach all controls. And to ensure wheelchair access, the minimum clear floor or ground space required is 30 x 48 inches (10 sq. ft.). So it is the responsibility of the merchant to ensure that this space remains clear rather than obscured by inventory or other furniture.

You will also need a power supply. Look for 110/115v 15a outlets that aren’t dedicated to other major appliances. Try to avoid glass doors and windows, too, to minimize break-in and theft temptations.

When installing the machine to the floor, it’s best to bolt it down on a flat, level surface to prevent damage and theft. You will need some equipment such as a center punch, hammer drill, concrete bit, and red head anchors. Wall mount ATM machines should come with all necessary mounting equipment.

Finally, you’ll want to connect your ATM machine to a wireless communication device. Having control of your own wireless communication device ensures that you never have to worry about dealing with the location’s ISP. This gives you more control and reliable service.

7. Setting Up a Business Bank Account

To start an ATM business, like any other business, you will need a business bank account. This can be tricky for an ATM business, unfortunately, because the cash-heavy nature poses certain money laundering risks for financial institutions. However, there are some best practices you can utilize to help find a bank to work with you.

Be a Profitable Customer

First, prove to the bank that you are worth their time. Banks make money off of customers’ account balances. This is the money that banks invest in loans and other opportunities that earn them interest payments; very little of customers’ account balances are actually held at the bank as cash. 

As you know, your ATM business bank account will frequently have a low balance because you will regularly withdraw it to vault your machine. So, to make up for this, offer to move or purchase other products. For example, start a line of credit, move loans, and/or open other accounts. This is the type of customer that banks profit from; this is the kind of customer you want to be.

Be Honest

Second, be open and honest with the bank. Start where you already have strong relationships, whether it’s at a tier 1 financial institution or a local, regional, or community bank. Both have their pros and cons. 

Tier 1 financial institutions are subject to more scrutiny and audits on ATM business accounts, so if you aren’t able to make yourself worth their time, they might turn you down. Smaller banks, on the other hand, might not be able to accommodate your cash or staffing needs. The only way to know whether a bank can or will work with you is if you let them know exactly what your banking needs are up front. 

Be Respectful

Finally, be respectful, polite, patient, and understanding. Banks are not obligated to take you on as a customer. Each account is a strategic business decision for them. If you are denied, the bank has its reasons. It’s not personal. It might just depend on the experiences they’ve had with ATM business bank accounts in the past. So respectfully move on.

Once you do find a bank to open your ATM business bank account, be sure to show your appreciation. ATM business accounts require a lot of work. Treat the bankers kindly, bring gifts, build relationships. Be a customer they want to keep around. 

There will be lots of documentation the bank will request to open your ATM business bank account. Be organized, prompt, and patient. Jump through whatever hoops you need to with a smile on your face. After all, the bank is doing you a favor.

8. Finding and Negotiating a Location

Finding a location to place an ATM machine can be a daunting task for some people learning how to start an ATM business because it requires some degree of negotiation. Unless you know someone with a business or starting a business where they will want an ATM on site, you will have to find potentially lucrative locations and convince the merchant to work with you. 

Some ATM vendors also offer locations via their website inquiry system, like ATMDepot.com. We receive requests for placements and work with our nationwide IAD network to fulfill the requests. Some vendors sell locations, some partner with their IADs, and some vendors offer location finder services. 

The cheapest way to get locations is with good old pounding the pavement. Go out, meet people, talk to them, tell them you’re giving out free ATMs, and strike up a conversation. There are many strategies you can employ to simplify this process.

The Best Locations

It’s a good idea to start where you are already a regular customer. You already know the business well and maybe even some of the employees. You can use this existing relationship to help you negotiate a placement. However, your ATM machine will only be profitable for you and the location if people use it. So more than looking at familiar places, you’ll want to find gaps in the market.

The best ATM locations are places where people need access to cash. Cash-only businesses (especially cannabis dispensaries); nail salons, barbershops, tattoo shops, and similar services where tipping is expected; new businesses not already approached; and locations that have liquor licenses are good places to start. 

Think of places in your city that experience high foot traffic. Then, scope out the area and see if you can find gaps in ATM access. This doesn’t necessarily mean places where there aren’t already ATM machines. Places where ATMs are old, worn, or out-of-order are good opportunities as well. 

If you see an ATM in one of these conditions, inquire with the location about their satisfaction with their ATM. Maybe they own it and are tired of the required upkeep. Or maybe their current IAD is unreliable and they’d be interested in changing partners. You can always add the prospect of a shiny, new ATM on the premises as a selling point. 

Negotiation Tips

Your number one goal when approaching locations for ATM placement is to get in touch with a decision maker, whether that’s a manager or the owner. You want to speak to or meet with someone who has the authority to approve ATM placement at that location. With these tips, you should have no problem starting an ATM business.

Make an Appointment

Whether you cold call or arrive in person for the first contact, make sure you end up with an appointment with or contact information for the person in charge. Then, the negotiating can begin. Although cold calling is a tried and true method of contacting leads with your offer, appearing in person can be more successful for a couple of reasons. 

Do Your Research

If you check out the location in person, you can get a better idea of the layout of the store and what business looks like at that location. This will be valuable information for you to refer to in your negotiations. For example, you can identify prime locations for an ATM machine and point out opportunities for the location to bring in more foot traffic and sales.

Leave Something Behind

Second, you can leave information behind. Whether it’s an ATM business card or an ATM business flier, leaving behind something tangible can help make sure that your offer doesn’t get overlooked. It also gives the decision-maker some information before calling you back; that way neither their time or yours is wasted. 

Offer Value

When you get a meeting, emphasize the benefits the location will experience from having an ATM on the premises. For example, it offers a convenient service for customers, can bring in new customers, and encourages cash transactions which save money on credit card transaction fees at the counter.

Offer value, listen to the objections your prospect might have, address them, and give them time to think. Leave information behind along with your contact information. If nothing else, maybe he or she knows someone interested in your offer.

Borrow Authority

It can be especially difficult to get your first placement without a portfolio under your belt. Just align yourself with your ATM provider using their name and credibility to back you up. Explain that you work with a reputable ATM company and therefore are serious and committed to providing reliable service.

Emphasize that as it is your first placement, you are particularly committed to creating a positive experience. After all, all future placements will rely heavily on your performance at this first location. You can also add that without other machines to manage, you are able to devote more time and attention to this initial placement.

If approaching location owners still makes you nervous, you can use scripts to help you know exactly what to say. As an ATMDepot.com member, you can use ours!

9. Ownership and Responsibilities

Once you secure a location, you are ready to start an ATM business. You now have a place to deliver, program, and install your machine for use. All that’s left is documenting the final details: ownership and responsibilities.

Site Location Agreement (SLA)

If you place your ATM machine in a location owned by someone else, you will need a site location agreement (SLA). This is the legal and binding documentation of the location owner’s approval to place your ATM in his or her store. This is also the contract that documents each party’s responsibilities.

For example, you will want a clause that clearly outlines ADA requirements, one that clarifies who is responsible for vaulting the machine, and one that defines the revenue share. The location owner might want a share of the surcharge revenue as a condition of allowing your ATM placement. This could be a percentage, a set amount, or even only after you make your ROI. 

Ownership and Responsibilities

Other processes and responsibilities include making sure the machine is clean and operable. You don’t make money if your machine isn’t working. And you don’t want to develop a reputation for being unreliable if your machine is frequently out of order. 

So someone needs to handle any error codes. These could result from jams, low cash, low receipt paper, or other maintenance issues. You also want to make sure the ATM and the area around it remain clean so that customers feel comfortable using it. 

You retain ownership of the ATM machine, even if you place it in someone else’s store, and even if you split the revenue. Your name is associated with the ATM machine and your ATM business. Any responsibilities you wish to delegate will be indicated on the associated contracts that detail the agreements.

Whatever terms you and the location owner agree upon regarding ATM operation should be documented in the SLA. You can work with a lawyer to create a personalized contract or agreement, or you can use one of our templates on ATMDepot.com if you are a member.

10. Revenue and Costs

Revenue is the money that your ATM machine brings in the form of transaction fees and advertising. Profit is what is left over after you earn back your initial investment and subtract any costs associated with operating your ATM business.

The point of learning how to start an ATM business is to make money. So how much can you make?

Surcharge Fees

The surcharge fee is the convenience fee ATM users pay for access to their bank accounts and cash. This is your number one source of revenue. You want to make your ROI as quickly as possible so that you can start to profit as soon as possible. So you might want to work backwards.

For instance, if your initial investment is $5,000 (ATM equipment + vault cash + other costs), it would take about 4-5 $3 transactions a day to make that back in a year (assuming the location is open 7 days a week). So determine a goal and work from that. 

Keep in mind that the money you put in the ATM is not really invested. Those funds are either in the ATM, in the bank, or on their way back to the bank. While that money is tied up, you can liquidate it or use it if needed in an emergency. So, only use your hard costs to calculate your ROI for each location.

Monitor the activity the first few months, too, and adjust as necessary. Because 6-7 transactions at $2.50 earns you more than 4-5 transactions at $3. So if you can increase your ATM traffic by setting a lower surcharge fee, that might work out in your favor in the long run. Then, you can always increase the surcharge fee after you make your ROI.

So if you want to make thousands of dollars, you will need more than one machine. One machine is plenty to start with to learn the ins and outs of the business. One machine can generate some extra passive income to help supplement your regular salary or fund a savings account or large purchase. But if you want to rely on ATM business income, plan to scale your business.

Ad Space

If the merchant is in agreement (you will want to cover this in your SLA), you can sell ad space to local businesses to display on your ATM screen. Your ATM can be programmed to display carousel (or rotating) ads on the welcome screen or transaction screen, whether it’s for your own ATM business, the location itself, or other local, small businesses. This can be a great extra source of revenue.

Costs

When you start an ATM business, there are some costs you’ll need to consider. So how much will you be subtracting from your revenue in the form of business costs? First, consider your initial investment, then look at regular costs you will need to factor into your income.

One-Time Costs

ATM equipment will be your biggest cost. ATM machines can range between $1,300 and $8,000 depending on size and age. However, you should realistically expect to pay about $2,200-$3,000 for the machine itself. 

Some costs you can avoid by putting in the work yourself. It just depends on your budget, time, and savvy. For example, ATM programming, installation, and custom screens can be done by you or a professional for a price.

You might want to factor in vault cash or not; that’s up to you. This is still your money at the end of the day, but it’s money that’s tied up in your ATM business operation that you won’t be able to use for anything else. 

Many new IADs start by purchasing an ATM on a credit card that offers 12 – 18 months interest free financing. This is a great way to reduce the one-time out of pocket costs and spread them out over time paying them from the surcharge revenue.

Additional Costs

You can get an ATM machine as it comes, or you can pay for extra features and upgrades like a topper, removable or multiple cassettes, eLock, etc. You also want to purchase a wireless device and service so that you don’t have to rely on the location’s ISP. 

Except for the wireless device, these are “nice-to-haves” that can be purchased later after you start making money. A wireless device is practically a necessity. If you use the merchant’s ISP and have even one communication issue that puts you out of business for a few days, you lose more than what having a wireless device costs.

You might also want to look into an ATM business insurance policy. It isn’t legally required, but it can provide you with some peace of mind knowing that you are covered in the case of an accident. You can purchase insurance at any time, and you can always adjust your policy. As you start making more money, you might spring for more coverage.

General liability is enough to start. General liability insurance is designed to protect your assets. It’s the most common and most important policy business owners purchase. It typically covers bodily injury, property damage, medical payments, and legal defense. You can expect to spend about $400-$700 a year for $1 million in general liability coverage.

General liability insurance, however, won’t cover your machine or the cash inside. So if you want more than general liability coverage, you will need to look for a more specialized insurance policy. Typically a policy to cover ATMs has a minimum of $2,500 per year, so it wouldn’t be worthwhile until you have a few ATMs to cover.

Regular Costs

Insurance premium and wireless service will be regular costs if you opt for them. But there are some costs that you can’t avoid. 

When looking for potential placement locations, consider transportation costs. If a location is farther than you normally travel or is out of the way of where you live or work, then transportation to and from the machine will technically cost your ATM business.

You will also have to regularly purchase receipt paper for your machine and any cleaning supplies necessary for keeping your ATM approachable and workable.

It’s a good idea to set a little money aside each month for maintenance costs. Hopefully you won’t regularly have to pay to handle maintenance or technical issues, but these things are unpredictable. So having some money set aside for this can put your mind at ease and make sure you are able to get back in business as soon as possible!

Finally, you might have placement costs. If your location does not require a share of the surcharge revenue, then it’s all yours! But you might need to factor in revenue share as a regular cost of your business. Or, you might have found a space to lease to place your machine. Factor in this rent cost when determining how much you need to charge to make a decent profit.

11. Other Opportunities in the ATM Business

Just because you want to start an ATM business does not mean you have to be an IAD. There are lots of other ways to make money in the ATM business.

For example, you can be an ATM site locator. This is someone who negotiates with location owners on behalf of ATM owners. So someone who wants to own and operate an ATM machine but doesn’t want to put in the effort of finding a location can hire a site locator.

A site locator typically does not own any machines but matches locations and ATM owners. In exchange, an ATM site locator can request a flat rate or negotiate for a share of the surcharge from the ATM owner. Keep in mind, you could potentially be a site locator as well as an IAD if you wanted to make extra money without managing more machines.

You could be an ATM vendor, or salesperson. There are business owners who want an ATM machine on site and want to operate it themselves rather than working with an IAD. You would explain ATM options and add your commission rate to the cost of the equipment.

You can also be an ATM vaulter. If you have access to cash you can partner with ATM providers to offer cash vaulting services. You travel to each ATM and make sure it’s stocked with cash. You could charge a flat rate or create a fee schedule based on distance and travel time.

12. How to Start an ATM Business Startup Checklist

To summarize, these are the steps involved in how to start an ATM business and the things you need.

1. Find

• ATM processing company
• Bank
• Location
• Equipment

2. Complete

• Background Check
• Documentation and Paperwork
• SLA and Other Contracts

3. Do

• Programming
• Installation
• Vaulting

4. Start Making Money

5. Scale Your Business

While we won’t say that owning an ATM business is easy, we will say that it is relatively simple. There is a set number of steps involved in getting started, minimal startup costs, and lots of industry professionals with years of experience you can draw upon.

Each ATM business looks different. It’s completely customizable. Do what works for you. Your business will be the most successful if you are happy with it, partner with the right people, and put in the work. After that, let your business work for you.

If you still have questions, contact us at ATMDepot.com today! Want more info or ready to start your ATM Business side hustle? Download our free quick start guide now.

13. Glossary

Americans with Disabilities Act (ADA) – A 1990 civil rights law that gives people with disabilities equal access to public services by mandating certain accommodations.

ATM Owner – The individual, group of individuals, or company that purchases an ATM machine, operates it, and receives the majority of the profits made through the machine.

Cassette – The box in an ATM machine that holds a specific denomination of cash.

Certified Refurbished – Used machines that have been cleaned, fixed, retrofitted with the newest software upgrades, and furnished with replacement decals, making it nicer than just a machine categorized as “used,” before being sold.

Cold Call – An unsolicited call to a lead you’ve never had contact with before in order to convince him or her to buy into a product or service.

E-lock – An electronic lock operated by an electric current.

Independent ATM Deployer (IAD) – An individual, group of individuals, or company that invests money in an ATM to generate income.

ISO – Independent Sales Organization; a third-party company that sells credit card processing services independently from a bank or financial firm to a business that wants to accept credit card payments.

Master Keys – Sets of binary numbers used by the ATM owner to access and program the ATM machine.

Placement – Arrangement where an ATM company or IAD places an ATM in a location and owns and operates all aspects of the ATM machine. The location owner receives a small percentage of the revenue generated from the ATM in return for letting the IAD place the ATM at the location.

Processing – Communication between an ATM machine and a processing network that communicates with the user’s bank in order to approve financial transactions.

Processor – ATM vendor—or company—that sells and provides support for ATM machines.

Profit – The net income collected after investment costs.

Real-Time Online ATM Monitoring – A system that provides updates regarding ATM functions and alerts such as low cash balance.

Return on Investment (ROI) – The ratio between net income and investment. A performance measure used to evaluate the efficiency of an investment.

Revenue – The gross income collected on an investment.

Revenue Share/Revenue Split – Compensation paid to a store owner in exchange for the space for the ATM machine.

Route – The locations where you own and/or operate ATM machines that you routinely and systematically travel to and from.

Site Location Agreement (SLA) – Also known as placement agreement, is the contract between you and the merchant or owner of the location where you will place your ATM machine that outlines the responsibilities of each party.

Site Locator – A person who finds locations interested in an ATM in or at their location.

Surcharge – The fee that you set for each cash withdrawal transaction made on your ATM.

Topper – A feature added to ATM machines to display ads and other graphics.

Vaulter – The person who loads the ATM with cash.

Vaulting – The process of loading the ATM with cash.

Vendor – Company that sells and provides support for ATM machines.

Wireless Communication Device – Also known as a wireless router, it provides 4G data connection from cellular networks, and will use 5G in the future, with major carriers such as AT&T, Sprint, Verizon, and T-Mobile.