ATMs and Your Small Business

While ATM machines can benefit a small business, the machines can serve as a profitable small business venture themselves. For example, while some businesses find that having an in-store ATM increases their sales, others can make money off of these machines by collecting the fee charged for each transaction. In general, startup costs are minimal, and profit potential is continually increasing each year.

In fact, people in the United States spend over $4 billion a year in ATM fees. Despite the fact that most customers don’t like paying the fees associated with taking money out of a privately owned ATM, the convenience typically outweighs the fee in most cases, as many people would rather not drive to their bank to get cash.

Before investing in an ATM, potential business owners should:

  • anticipate the costs of buying or leasing an ATM machine
  • consider ATM locations
  • plan how and when to stock their ATM machine
  • think about getting insurance on the machine
  • understand and prepare themselves for maintenance costs.

Small businesses can benefit from having an ATM in their building whether or not they themselves own the machine. Not only are customers more likely to make purchases when they have easy access to their cash, but business owners can charge the ATM owner rent for the space his machine takes up.

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Our ATM section covers all aspects of ATMs, including the initial costs of ATMs, how to maintain an ATM and the future of ATM technology.

Business Models That Involve ATMs

ATMs can be a viable small business for those wanting to either branch out on their own or supplement their everyday income. Although ATM machines are costly, they are less expensive than the startup costs involved with most small businesses.
 
Existing businesses can also profit from ATMs by renting part of their store space to ATM owners. Customers will enjoy the added convenience of having an easy-to-access ATM, and business owners can benefit from the extra money gained from renting out their space. Unit cost, insurance, maintenance and more should be considered when thinking about business models that involve ATMs.

Initial Costs of an ATM

ATM machines can cost a few thousand dollars, depending on the type of unit you choose. In general, newer units with more recent technology will cost more than more basic units or used machines.
 
Along with the cost of the machine itself, potential ATM owners should also consider the costs of space rental, insurance and stocking the machine when planning out what they will spend on the initial costs of an ATM.

Maintaining an ATM

ATM maintenance doesn’t have to take up too much of an ATM owner’s time. Owners should plan out how often to visit and re-stock their ATM machine. While ATM owner’s themselves can take charge of stocking their machines, many ATM services also provide re-stocking services for a fee.
 
At first, an owner may need to visit their machine more often until a routine is established for maintaining an ATM.

The Future of ATMs

Like all technologies, ATM technology is continually progressing forward to make these machines more efficient and easier to use. Some of the latest advancements in ATM technology include the following features:
  • Envelope-free processes are being developed for customers to deposit money.
  • Fingerprint and retina scanning are starting to take the place of PIN numbers on ATM machines.
  • New technology allows customers to use their cell phones to request a withdrawal from an ATM.

All of this technology is aimed at improving customer convenience and avoiding ATM fraud. These and more technologies are the future of ATMs.

Resources

Billings Gazette (2007). New ATM saves time and money. Retrieved September 7, 2007 from the Billings Gazette Web site: http://www.billingsgazette.net/articles/
2007/08/26/news/business/61-atm.txt.

Hanke, Mark (2007). How to Profitably Own and Manage ATM Machines. Retrieved September 7, 2007 from the How To Advice Web site: http://www.howtoadvice.com/ATM.

Shah, Kushal (2001). ATM banking without a PIN. Retrieved September 7, 2007 from the Express Computer Web site: http://www.expresscomputeronline.com/20070903/
management03.shtml.