Starting an ATM Business: Initial Costs

If you are considering getting into the ATM machine business, it is important to review all of the costs involved. Not only do you need to factor the cost of the actual machine into your budget, but you also need to account for service fees, stocking fees and more.
 
While a person who chooses to lease an ATM may pay as little as $100 a month for both the ATM and ATM service, a person who opts to buy an ATM franchise might pay more than $30,000 in initial costs.

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ATM Machines: Free ATMs and Co-Op ATMS

The initial costs of your ATM machine will depend greatly on the type of ATM you have on your premises. While a person who buys his own ATM might spend several thousand dollars in initial costs, a person who is able to procure a free-placement ATM won't be responsible for any initial costs.

Here are a two ATM options:

  • Co-Op ATMs: 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 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.

  • Free-Placement ATMs: If you own a business that has a large amount of traffic, you may be able to get a free-placement ATM. In this arrangement, you will not have any financial risks. The ATM machine dealer or distributor will pay all of the costs associated with the ATM machine in return for free placement at your location. In return, you will receive a percentage of the returns from the machine.

Buying ATM Machines

Initial costs will likely be the highest for people who opt to buy their ATM machine. When making the decision to buy an ATM, make an effort to get quotes from as many dealers as possible. When getting these quotes, double check the warranties and what they cover, as well as what service options are offered.

In general, you can purchase a low-end ATM for approximately $3,000. However, a high-end ATM can cost more than $10,000. The more expensive models often feature additional security options, sturdier construction and the ability to hold large amounts of money.

When buying an ATM, you will need to consider installation and training costs. In general, you can have your machine installed and programmed and be trained on how to operate your ATM machine for approximately $350.00. However, some ATM distributors charge much more for these services.

If you cannot buy an ATM machine using your personal funds and must take out a loan to pay for the cost of the machine, make sure that you calculate interest into your monthly payments.
 
Buying an ATM Franchise
ATM franchise cost ranges vary greatly. Often, people investing in a franchise can pay more than $30,000 up front. When looking at ATM franchises, make sure that you will be able to operate within the franchises' rules and that you have a thorough understanding of the support that the ATM franchise offers.

Like buying an ATM, it is important to compare services when looking at quotes from ATM franchises. Some franchises require monthly maintenance fees of $100 to $400 per machine, while others offer optional maintenance insurance based on the number of transactions that each machine performs.

Leasing ATM Machines

Leasing ATM machines may offer you lower monthly payments than outright ATM machine purchases. However, make sure that you look at the total costs involved before you sign a lease contract, as you may be paying much more than you would if you financed an ATM purchase.

Some leasing companies offer easy upgrades if you find that you need a better ATM machine as time goes on, a benefit that is not available when purchasing an ATM machine. In addition, ATM leasing companies may offer free services to customers who lease. For example, many leasing companies will provide free maintenance and installation.

When leasing an ATM, be sure to get a number of quotes and compare the services provided in each contract. While the cost of leasing an ATM will vary greatly, you can typically lease an ATM for approximately $100 a month.

Additional ATM Costs
In addition to the cost of the ATM machine, you need to consider the following when trying to estimate your initial costs:
  • ATM cash services, if you do not want to replenish the machines yourself with your own money

  • insurance (Note that you may not have to buy a separate insurance policy for your ATM machine. The machine may be covered under your regular business liability policy.)

  • maintenance and setup fees
  • monthly telephone charges (about $40.00 per month).

  • supply costs (receipt paper, ink, etc.)

  • training fees.

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.
 
ATM Marketplace.com (2006). Cutting the Costs of ATM Cash. Retrieved September 11, 2007, from the ATM Marketplace Web site: http://www.atmmarketplace.com/article.php?
id=5322&na=1.
 
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.
 
Buyer Zone (n.d.). Best ATM Buying Tips. Retrieved September 10, 2007, from the Buyer Zone Web site: http://www.buyerzone
.com/finance/atm/buyers_guide7.html.
 
Hanke, Mark (n.d.). How to Profitably Own and Manage ATM Machines. Retrieved September 9, 2007, from the How-to Advice Web site: http://www.howtoadvice.com/ATM.