How to Start an ATM Business

Business Overview:

If you’re looking for a business with outstanding income potential that requires very little daily work, you should learn how to start an ATM business. ATMs—automated teller machines—allow banking customers to access cash from their checking, savings or credit card accounts at any time of day or night without having to interact directly with the bank. Most of these machines charge a service fee to withdraw cash. Part of this fee goes to the bank from which the cash is withdrawn; the rest of the fee goes to the operator of the ATM machine. With just ten transactions per day with a surcharge fee of $2, that’s $600 USD per month. Depending on the location, there can be dozens of transactions on a single machine adding up to thousands in profit each month. And that is just from a single machine. Imagine having several ATM machines placed around town in high traffic areas like hotels, bars, movie theaters and sporting arenas. It doesn’t take long to realize that owning ATMs is one of the most lucrative business ideas you can start. ATM business plans can be found online or you can get one professionally written. It’s important to have such a document in place before you go too far with this business as there are many options you will need to sort out. You can buy an ATM franchise or start your business from the ground up. A franchise comes with training and support but limits your freedom in choice of location and will cost at least $25,000 USD. Going it alone will cost less but you are responsible for machine maintenance yourself. Other decisions include whether to lease or buy ATM machines. Leasing will cost about $100 USD per month while purchasing a machine will cost somewhere between $3,000-6,000 USD depending on manufacturer and model. You will make more money if you own your own machines (a portion of the surcharges generated from leased machines go to the machine owners) but you are responsible for their repair. Next you must decide how you will stock your machines. Stocking with personal cash is the most profitable since borrowing from a bank comes with finance charges and other fees. The fees charged by banks pay for transporting of the cash in armored cars with armed security personnel. Depending on the location of your machines, having this type of security may be worth the extra cost. How often you visit your machines will also depend on their locations and how much cash you stocked them with. Some machines have online access available so you can monitor the cash level remotely. But if you the one actually stocking the machines with cash, you can expect to visit each machine about once a week. Finally you will need to insure your machines. This can be costly but it is essential to protect your machines and your investment.

A Day in the Life of an ATM Business Owner:

If your machines are already in place, you will travel to your ATM machines to check their supply and ensure they are working properly. If the cash supply is low, you will need to get more cash and take it to the necessary machine(s). If you are working with a bank to supply cash, you will contact your bank representative and have their security personnel deliver replenishment funds. You will check your bank statement regularly to see your profits being deposited.

About Your Customers:

Your customers will be individuals who use ATM machines in various locations to withdraw cash.

What You Need to Start:

• Business plan
• Location(s) for your machine(s)
• ATM machine(s)
• Plan for stocking the machine
• Relationship with bank (if not stocking machine with your own funds)
• Bank account tied to the ATM machines
• Computer with finance software

The Good:

• The potential for profit with this business is extremely high.
• Once in place, very little work needs to be done.
• You can purchase one or many machines depending on your investment ability.
• You can check and restock your machines anytime you like (depending on the hours of your locations).
• You can easily run this business part-time.

The Bad:

• Startup costs for this business are high.
• Without a high-traffic location, your profits will suffer.

Resources:

• ATM Industry Association
• National Association of ATM ISOs and Operators
• Wikipedia on Automated Teller Machines

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