Starting an ATM Machine Business

These days, it seems as if there is an ATM everywhere you look. Though once found only in banks, ATM machines are now in shopping malls, on college campuses and in convenience stores. In large cities, you can even find ATMs on street corners.
 
ATMs have become a large part of our society, and many people love the convenience they provide. With millions of people making withdrawals from ATMs every day, the ATM business is booming.

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Types of ATM Businesses

Many people can successfully start an ATM service. If you own your own business, you might consider investing in an ATM if:
  • you accept only cash
  • you have a minimum of 200 people in your store on a daily basis.

Of course, you don't have to own a business in order to start an ATM business. If there are merchants in your area who would like to add an ATM to their businesses, you could provide them with an ATM for a fee or for free.

Choosing an ATM Location
Whether you buy or lease your ATM machine, where you place the machine is the key to having a successful business. If you have an ATM in a place with little foot traffic, you will not make money. In addition, if your ATM machine is located in a place where people do not readily need money, your machine might not generate as much cash as you would like.

Picking your location carefully will make the difference between an OK business and a terrific business.

Co-Op ATMs

If you are considering starting an ATM machine service, you might want to look into co-op ATM machines. This option allows a business owner to take a less risky approach to having an ATM machine.

With co-op ATMs, you work with an ATM distributor or dealer. A co-op ATM allows you to split the costs of the ATM machine with the dealer. However, you will also split your profits with the dealer. With co-op ATMs, you get help with the:

  • cost of the ATM
  • maintenance costs
  • supply costs.

The costs and profits are usually split on a 50/50 basis.

Stocking Your ATM Machine
When starting an ATM business, many people want to know if they will be responsible for stocking the money in the ATM. While some people pay a fee to have a company stock the ATM with money, using your own money to supply your ATM is the most profitable option.

Free-Placement ATMs

If you are interested in a no-risk approach to the ATM business, you should consider free-placement ATMs. With this type of ATM service, you work with an ATM distributor who installs the ATM, maintains the ATM and provides ATM service. The business owner does not have to do anything except sign a contract to allow the ATM machine to be housed on the premises. In return, the ATM distributor will give the business owner a percentage of the ATM profits.

Not every business will be attractive to distributors who offer free-placement ATMs. Typically speaking, distributors want high-traffic locations for this type of agreement.

ATM Franchises
One ATM business option is to buy an ATM franchise. While a franchise may have strict rules that you will have to follow, the franchise may also offer more support than if you choose to start an ATM business on your own.

ATM franchises are expensive, however, and can cost more than $30,000 in initial costs.

ATM Sales: Buying or Leasing an ATM

Whether you are considering putting an ATM in your business or are looking at an ATM machine as a business, you will have the option to buy or lease an ATM.

When deciding whether to buy or lease an ATM, you need to consider your budget and all of the costs involved with an ATM. If you are thinking of buying your ATM machine, you can expect to pay approximately $3,000 for the machine alone. However, you will want to get quotes from several different companies before making your purchase.

If you choose to lease an ATM machine, you will likely receive more service options and support from the ATM distributor than a person who buys an ATM. People who lease ATMs will likely be able to receive:

  • ATM maintenance
  • ATM monitoring
  • installation help
  • setup help, including help with programming.

Leasing an ATM is a good option for many people. However, when leasing, pay close attention to the monthly fees and the included services.

The cost to lease an ATM will vary greatly, though you might be able to rent an ATM for as little as $100 a month. Be sure to shop around for the best price and the best service.

Resources

ATMexperts (n.d.). ATM Franchise & ATM Business Opportunities. Retrieved September 10, 2007, from the ATMexperts Web site: http://www.atmexperts.com/
atm_dealers.html.
 
BizQuoter (n.d.). ATM Business: How to Get in on the ATM Machine Business Phenomenon. Retrieved September 9, 2007, from the BizQuoter Web site: http://atm-machines.bizquoter
.com/buyersguide/atm_business.php.
 
BizQuoter (n.d.). ATM Machine Buyer's Guide. Retrieved September 10, 2007, from the BizQuoter Web site: http://www.bizquoter.com/atm-machines/buyersguide/
atm_machine_buyers_guide.php.
 
BizQuoter (n.d.). Free ATM Placement Programs: What Are the Benefits of a Free ATM Placement? Retrieved September 10, 2007, from the BizQuoter Web site: http://www.bizquoter.com/
atm-machines/buyersguide/free_atm_placement.php.