Tag Archive for: portable ATM

ATM Placement: Top 13 Cash-Only Businesses

by

Cash-only businesses are prime locations for ATM placements. Why? Well because of the demand for cash of course! With the prevalence of debit and credit cards and other digital payment methods like ApplePay and GooglePay and even Bitcoin, it might seem like cash is dying out. We’re here to tell you that it’s not.

Cash will always have its place in society because it is tangible, it is traditional, and it is immediate. When goods and services are paid for in cash, the transaction is over. Done. There’s no hassle, no technology, no extra fees, no paper trail, no wait time, and no reversals.

So, if you find a business that is cash only, try to get an ATM placement there. Because many people no longer carry cash unless they plan ahead. And when customers visit cash-only businesses and they don’t have any, your ATM machine then gets that business. Want to know where to find cash-only businesses? Keep reading. 

Why Are There Still Cash-Only Businesses?

It might seem shocking (and maybe even a little inconvenient at times) that there are still cash-only businesses in this age of digital payments. However, don’t underestimate the power of the dollar bill. There are many reasons why some businesses in particular benefit from cash-only payments.

First of all, cash payment is immediate. There are no declined payments, invalid PIN issues, card swipe errors, etc. to deal with. There are also no fraud claims or chargebacks to handle (and pay for whether in time, fees, or lost product). 

Second of all, electronic payments require special equipment from the card reader to the network connection. Cash transactions can be processed rain or shine, with or without electricity or internet connection. This simplifies the transaction for many small businesses and minimizes extra equipment costs. It also ensures that transactions are processed smoothly without having to worry about technical issues.

Maybe most importantly, cash payments don’t cost the business anything to process. Every time a business processes a debit or credit card payment, it has to pay a processing fee. This is why you might see some businesses charge extra for debit and credit payments; it’s to help them cover these processing fees. 

So, not only are cash payments simpler for businesses, but they are then able to pass savings onto their customers by minimizing their operational costs. If you haven’t guessed already, small, local, “mom-and-pop” businesses benefit the most from cash-only payments. Many examples of these made our list of top 13 cash-only businesses.

Top 13 Cash-Only Businesses (In No Particular Order)

Food Truck Parks

Food truck parks make the list for a few reasons. They are trendy and popping up everywhere. If you can get an ATM placement in the vicinity of food trucks (where people gather to hang out, have fun, and spend money…), you are sure to see a reward. 

Food truck parks draw large crowds, especially on the weekends. This kind of regular, predictable business can make it easier for you to manage your own ATM business. 

Because each food truck vendor is its own small business, it’s common for some to accept cash only to simplify their business model and keep operational costs to a minimum. However, even if all food trucks aren’t cash-only, access to an ATM is still beneficial as cash can speed up transactions and reduce long lines and wait times. 

Small Local Gift Shops

Two keywords here: “small” and “local”. Again, small businesses benefit the most from cash payments because credit card processing fees cut too deep into their profits. Local shops and businesses are typically inherently small because their target audience is localized and limited. 

Furthermore, gift shop inventory is usually made up of tchotchke-like items. Cash-only payments make more sense for low-ticket sales because customers aren’t as concerned about paying off purchases over time.

Farmers Markets

Farmers markets are outdoor venues. This means that many booths don’t have access to power or strong, reliable internet connection for electronic payment processing. And while there are nifty workarounds like Square, farmers and other market vendors might not be tech savvy enough to bother. Add to this the simple, back-to-basics atmosphere of a farmer’s market, and you’ve got an increased demand for cash.

Laundromats

Not only are most laundromats still cash-only, it’s also a fairly reliable industry. Just like society won’t phase out cash any time soon, we also aren’t likely to phase out laundromats. There is more and more demand for laundromats as the population increases. 

There are also no large laundromat chains. This makes it easier to get an ATM placement since a small, local business isn’t likely to have the resources to partner with a bank for ATM service like a chain would. There are card-operated machines and even reloadable laundromat cards, but these often malfunction and are out of order. You want your ATM to be available when that happens.

Coffee Shops

With coffee shops, you’re again looking for small and local. Chains have the overhead and the reliable customer-base to be able to justify the credit card processing fees. Local coffee shops benefit more from cash-only payments and aren’t expected to offer a wide variety of payment options. 

Customers of small, local coffee shops go there for a simple, personalized experience. They know what to expect. And sometimes, that “cash only” sign even adds to the appeal.

Nail Salons

This is another booming industry. Nail technology is advancing, and “self-care” has become a term eagerly adopted by many and often applied to justify beauty services. 

The salon experience is enhanced by receiving services regularly. It isn’t enough to go once; you have to maintain your look. Therefore, regular salon-goers build relationships with salon employees over time. This increases their desire to pay with cash.

Some salons are cash-only because they are small businesses; nail salon chains are rare. But even if there’s a salon near you that does accept electronic payments, those employees are still encouraging their regulars to pay with cash because of the benefits. It’s an immediate payment, there are no payment processing fees, and it isn’t automatically taxed.

Cash payments are more personal, and when a nail technician gets comfortable with a customer, it becomes easier to request cash payments. That’s why nail salons make good ATM placements.

Barber Shops

Although your local barber shop or beauty parlor is probably not a chain, your payment isn’t always going directly to that shop itself. Many barbers and beauticians pay shops to rent a chair, space, equipment, etc. 

So while we might have you convinced that credit card processing fees hurt small business profits, think of what it can do to a freelancer or independent contractor’s already miniscule income. That processing fee is basically coming out of their paycheck. This is why you will find that many barber shops and beauty parlors are cash only. 

Mom-and-Pop Restaurants

Why are mom-and-pop restaurants often cash-only? You guessed it! They are small businesses that can’t always afford to have thousands of dollars of credit card processing fees cut out of their profit. Servers also rely heavily on tips for their income. Cash tips allow restaurant employees to take money home every night rather than waiting for a paycheck.

Additionally, depending on the age and/or location of the restaurant or business, it might not be set up for electronic payment processing. The technology in the location might be outdated, and businesses in rural areas might have troubles with weak, unreliable internet connection.

Or, the owners just might not have the savvy to handle the technical side of electronic payment processing. There is the traditional aspect to consider as well: “It’s the way we’ve always done it.” Sound familiar?  

Fairs/Carnivals

Fairs and carnivals are great opportunities for mobile ATMs. You can operate your ATM business seasonally or when these events are in town. Fairs and carnivals draw large crowds, and statistically, the more people who pass by your machine, the more transactions you’re likely to see. 

People also expect to spend money at fairs and carnivals. There’s food, drink, rides, games, vendors…. And one major convenience of cash for families is that it can easily be shared among members. When your kids want to do different things, just send them each off with a few bills to spend how they please. Would you be so giving of your card?

Flea Markets

Flea markets are good places to find a demand for cash because cash makes a good bargaining token. The price of most items at flea markets is negotiable, and the thought of an immediate cash payment is tempting to sellers. If a buyer can offer a cash payment, he or she can typically get a better deal. 

Craft/Art Shows

Vendors at craft and art shows don’t have the business resources to dedicate to payment processing equipment. Artists also make freelance-style, low income, so payment processing fees become an unfair burden. 

Marijuana Dispensaries

These opportunities are becoming harder to find because of the degree of necessity of cash at these locations. Because marijuana is still illegal at a federal level, marijuana dispensaries find it difficult to get payment processing companies (which are federal institutions) to work with them. Similarly, dispensaries are unable to operate their own ATM machines. 

This means that cash is the number one form of payment for marijuana dispensaries, and they are also top locations for independent ATM machines.

Christmas Tree Lots

A Christmas tree lot today, a fireworks stand tomorrow, these locations are great opportunities for mobile outdoor ATM machines. Due to the temporary, outdoor setting, electronic payment processing equipment can be an unnecessary hassle for these business owners. And, of course, Christmas Tree Lot Bob is in business for himself; he doesn’t want to pay credit card processing fees….

How to Find Cash-Only Businesses

Now you know what kinds of businesses are typically cash only, but how do you know which ones are near you without driving all over town?

Of course, you can check a business’s website to find out what forms of payment they accept. But this assumes that you already have an idea of a particular business or you’re just spending a ton of time online researching any business that comes to mind.

You can narrow your search by using online directories like Yelp and Yellow Pages and maybe even apply a “cash only” filter. Google Maps can provide you with business information, too, and can even go a step further by letting you know if there are already ATMs in the vicinity.

Other sources that can provide you with a business’s payment options include social media profiles and pages, personal experiences of family and friends, and review sites and forums like Reddit. But maybe the quickest, most efficient method is to simply conduct a web search: “cash-only businesses near me” or “cash-only businesses in (city) (zip code)”.

The most effective method is to call or visit a business in person. But again, for the sake of efficiency, you might do this in conjunction with another method above so that you only spend this time pursuing previously vetted leads.

How to Negotiate ATM Placement at Cash-Only Businesses

Negotiating ATM placement at cash-only businesses comes down to listing the benefits of cash payments. By placing an ATM at any small business, you encourage cash payments which minimizes credit card processing fees, pass the savings rather than the burden onto the customer, and avoid turning away cashless customers. 

Keep in mind, you don’t always have to look for strictly cash-only businesses for a good placement opportunity. You could find a small business that currently charges a fee for electronic payments. Or a small business that wants to move to cash only. All of these situations are good opportunities for ATM placement because of the demand for and benefits of cash. 

For more ATM machine placement and negotiation tips, check out ATMDepot.com’s Member’s Area where you can gain access to scripts and other helpful resources.

5 Opportunities for a Portable ATM

by

A portable ATM is a good way to generate passive income, especially if you live in or near a major city. This is because a portable ATM machine is quite versatile. If there’s a power source, you can operate a portable ATM at any indoor or outdoor event! 

Benefits of a Portable ATM

Benefits of a Portable ATM for an ATM Owner

If you are thinking about getting into the ATM business or have already started, it’s probably because you desire the flexibility. ATMs allow you to make passive income. That means that your machine makes money for you while you take care of other business or enjoy your freedom! And a portable ATM is even more flexible than a stationary one.

This flexibility means that you have more options and more control with a portable ATM. You can operate it at multiple events in a year, in a month, or even in a week. And new events arise all of the time! This ability to travel increases your exposure and reaches more and more potential customers.  Stationary ATMs, on the other hand, are only trafficked by the same locals, and only on an as-needed basis.

Another benefit of a portable ATM is that you can find opportunities that are particularly traffic heavy and cash-based. This increases your transaction potential because you are offering a necessary service at a temporary location. The alternative is placing your machine and hoping customers use it.

Competition can also be minimized by operating ATMs at events. Attendees are not likely to leave the event to hit their bank or a convenience store ATM. 

Benefits of an ATM for an Event Host

While a portable ATM machine can bring ATM owners passive income, it can also result in more success for the event hosts. There are event attendees who want to minimize the amount of cash they carry on themselves, especially at events with large crowds. This is typically a safety precaution. 

Instead, they might plan to visit an ATM for incremental cash as the need arises. Without this convenience, attendees are likely to spend less, either because they don’t have the cash necessary for purchases or because they have to go off-site to get cash. Leaving the event might produce opportunities for attendees to spend their money elsewhere along the way, which is business that the event loses out on.

Event hosts also want their vendors to do well. This keeps them coming back and ensuring that attendees have an enjoyable amount of options for food, beverage, goods, and entertainment.

5 Opportunities for a Portable ATM

Any multi-day event is a great opportunity for a portable ATM. Multi-day events bring in large crowds of people who need cash for food, drinks, and other vendors. The following 5 opportunities are particularly good ideas especially as the seasons change and outdoor activities return!

Farmers Market

Farmers markets are great locations for portable ATM machines. This is because most vendors accept cash only. There are some that now use Square or money transfer apps like CashApp to accept payments, but small business owners benefit more from cash payments.

Each digital card transaction costs small businesses 3% of the transaction. So even though you might pay full sticker price, and you might even tip, for every $1,000 in sales paid by card, that vendor loses $30 of their revenue to financial institutions!

Pop-Up Markets

Pop-up shops are forms of “flash retailing”. And they’re a relatively new trend. And you know that “trend” is synonymous with “popular”. There is some underlying novelty to a shop or product that is available to you only for a limited time! 

Pop-up markets are popular because they generate interest, create a sense of urgency, and get people to come pay various businesses a visit for a fun, limited time event. Visitors are compelled to make some sort of purchase even whether they visit intentionally or come across it by accident because of this “limited time” element. Ever heard of FOMO? The fear of missing out…?

Pop-up shops are particularly refreshing lately because of the overwhelming amount of online marketing consumers are constantly faced with. Pop-up markets put faces to small businesses and add a personal connection that is hard to duplicate online. Therefore, if you want to place your portable ATM where consumers are, pop-up markets are the place to be!

Fairs, Carnivals, and Festivals

Fairs, carnivals, and festivals are obviously great locations for portable ATM machines because of the size of the crowds they draw. However, if you want to break into an event that has a long history in your town or town adjacent, you will probably find that they already have an ATM hook-up. 

But don’t worry. You can always try to contact an event planner or manager to see if he or she is happy with the current provider. If not, you might be able to convince them to partner with you instead if you can solve a certain pain point they are experiencing. This applies as well if they operate their own ATMs. Maybe they are tired of the extra work and would be relieved to have someone in the industry take over the task!

Fairs, carnivals, and festivals are also great opportunities because these typically only operate for about a week to a month before they move on. That allows you to explore and participate in other events throughout the season or year so that you aren’t reliant upon one particular event or audience for your success. 

Furthermore, these types of events are less likely to experience “slow” days. Farmers markets and pop-up markets, on the other hand, might lose business on days when the weather is less than ideal.

Concerts

Concerts are also great opportunities for portable ATMs, especially concerts that are held outdoors. These types of concerts can vary in location depending on the occasion. 

For example, a bar or restaurant might host a concert or live music to celebrate an anniversary. Or a neighborhood might organize a summer event or series of events for their community. 

These are the best types of concert opportunities because they typically aren’t planned so far in advance that ATM services are pre-arranged. They also might not be traditional, meaning the planning committee might not already have an ATM operator who has approached them in anticipation of an annual event. However, if you are able to get your foot in the door, you might be able to become a trusted part of recurring events and secure your business for years to come!

Parades and Holidays

Parades, on the other hand, might be more difficult to break into because they typically are quite traditional. So arrangements for ATM machines might already be made. However, any upcoming holiday is a great opportunity to look into events where visitors will have a need for cash. Just try to plan ahead by making your inquiries off-season to beat any potential competition.

How to Place a Portable ATM

Most portable ATMs can transmit transaction information wirelessly, so you don’t need a phone line to operate one. They are usually self-contained units, so you don’t necessarily need to house one in a building or enclosure, though canopies can help encourage usage, especially on wet days. 

When placing your machine(s) at an event, there are a few things to keep in mind to ensure that they see maximum traffic. First, you’ll want your machine to be visible and obvious. Near the entrance(s) is a prime spot because everyone in attendance will pass by. Other good spots include food and beverage vendors, shops, and anywhere tipping is expected.

However, for security purposes, you also want to make sure that your machine is safe from damage, vandalism, and theft. So it should be well lit at all times and within view of security cameras or event staff. You might also consider bolting it down if the location accommodates it. These precautions also make users feel more comfortable using your machine knowing that they are visible to witnesses.

Conclusion

Whether you are already a seasoned ATM owner looking for more opportunities or if you are just starting out, a portable ATM machine can be a great source of extra income. If you live in or near a large city, obviously, your opportunities will increase, but a portable ATM can do well in small towns too, especially if you already have good connections.

If you want to know how to get started in the ATM business, ATM Depot can help! We have guides and resources available for both ATM entrepreneurs and for pre-existing business owners, including event hosts and planners! Have questions? Feel free to contact us today!