How profitable is an atm machine for business?

by Pathlie Lee Business consultant

Cash is still king when it comes to small daily purchases. The average cash transaction is $22, versus $112 for a non-cash transaction made with a credit or debit card. Moreover, whether a customer uses a card or cash is determined by the store type. Cash is a significant percentage of transactions in places such as discount stores, coffee shops and fast food restaurants, and gas stations. However, one of the biggest factors to cash flow in a business is the presence of an ATM.

 

ATMs as Profit Center

Having an ATM on the premises allows customers to withdraw and spend cash within the business, but there are also other ways to enhance revenue such as selling advertisements and through the ATM surcharge for withdrawal. When renting or leasing a machine, the majority of the surcharge goes to the rental company, with a small percentage going to the business. When a business owner purchases an ATM business for sale, the machine is wholly owned by the company though it may be serviced by someone else.

 

Starting Up

There are expenses associated with finding an ATM business for sale. Purchasing a machine can cost as much as $10,000 for one that’s brand-new. A used or refurbished machine costs less up front but may have additional expenses associated with wear and tear. While there are many inexpensive used machines on the market, they may not conform with current security standards, ADA standards, or accept the now standard chip and pin cards. It’s better to go with a refurbished machine from a reputable company than to get stuck with one that cannot or should not be used.

 

Service Please

Servicing your own machine - making repairs and upgrades, plus loading it with cash – can eliminate much of the expense associated with owning an ATM. However, there is a steep learning curve when it comes to doing so and loading it with your own cash ties up a large chunk of capital that would otherwise accrue to the bottom line. Purchasing a machine and then shopping ATM companies for a service contract can be a comfortable medium between DIY and a full-service contract that can be extremely expensive.

 

Getting the Word Out!

One of the benefits of working with an established ATM servicing company and processing network is being able to get the word out about your machine. One of the most popular searches is “ATM near me” for people seeking to withdraw cash or obtain a cash advance from their credit card. In a bustling location, you may even need more than one machine. Window signs advertising your ATM bring in street traffic and placing the machine in a prominent spot make sure that everyone can see it.

 

Get In Gear

Look for established companies with a good track record – those reviews online can be taken as gospel. Start talking to local companies, and get machine costs and servicing estimates before you sign on the dotted line. There is a machine out there for you!

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Created on Mar 26th 2019 12:01. Viewed 288 times.

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