The 6 Basics of Starting an ATM Business

by Pathlie Lee Business consultant

There are over 425,000 ATMs in the United States alone. Will it surprise you to know that fewer than half of those units are owned by banks? Running an ATM business is one way to generate passive income. The arrangement is ideal for many business owners since you don’t need to hire employees nor do you need to spend a lot of money on renting a space or storefront property. It’s also easy to manage one or two, even if you have a busy schedule. If you’re thinking about starting an ATM business, check out these six basic pointers.

Choose the Right Model

The first order in setting up an ATM business is finding the right model, the Small Business Trends says. You can choose between old units and newer ones with advanced features. However, while older units will be cheaper, prospective customers may be wary of using them. That’s because older units are more vulnerable to security attacks. Encourage more users by getting units with modern to advanced features.

Look for Maintenance Services

When you shop for units, find a distributor that offers installation and repair services. That way, you’ll know where to get help if issues come up—and they will. No matter how well-maintained your machines are, bugs and snafus will happen. It’s best to get ready for them. By paying for regular maintenance and care, your units will last longer, saving you from premature costs.

Determine Your Budget

You’ll need capital to buy ATM machines and take care of the associated expenses. From installation, delivery and import fees to the purchase price of the machine, you’ll need to shell out money for the startup cost. Work out how much all these will be.

Sort Out Your Finances

Will you take out a loan? Or do you have enough in your savings to cover the cost? You’ll also need several thousand dollars of cash to keep your units loaded on a weekly basis. Make sure your finances are ready before you dive into this business idea.

Do the Math
Find out how much you’ll earn from running ATMs. Will it be enough to get you a decent profit? Or will the fees eat up a large portion of your profits? If you own the venue and the machine, you’ll have a higher share of the earnings from your automatic teller machines.

Pick the Right Location

The key to earning big is to pick central locations for your ATMs, the Houston Chronicle says. Make sure they’re in spots where people are likely to use them. Imagine if five or ten people came in every day to use them. Will that generate more than enough profit for you? Now imagine if fifty or nearly a hundred people used them every day? You’ll earn a lot from the surcharges for every transaction.

Lastly, don’t forget to shop from a reputable distributor. A seller with a good reputation for delivering quality ATM solutions will provide units and services that you need to get your business off the ground.