4 Steps To Starting An ATM Machine Business

The common misconception is that only banks and financial institutions can run this type of business. Maybe in some countries, that is the case, but when it comes to the United States, you can make a decent profit by installing an ATM in a good location. In most cases, you are responsible for the amount of cash in the ATM, and the profit is made by getting fees from each transaction. On average, you will get around $3 whenever someone is using your ATM.

Moreover, you should learn more about these machines, and how to choose the right model. The selection is wide, and if you are interested in some of the most recent models, click here. Besides that, it is always important to learn more about the details and opportunities you can have with this type of business. We are going to introduce you to the steps that will help you start in the best way.

1. Legal Compliance

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Before you buy the machine and rent the space, it is crucial to find more details about the legality and required papers. Filling the right form is crucial so you can prove that you are eligible to run this model of business by following the current regulations and laws. The terms are strict because it is related to the financial sector.

When it comes to the form, you will need to prove your identity, share the bank account details where you will keep the money, and pass the verification process. Also, you will need a contract with the place where you will set the ATM to work. Besides that, it is recommended to buy a proper insurance premium.

2. Select the Right Location

After you pass the process of registration and fill all the papers, the most important thing is to determine the right place where you will keep the ATM. The best option is to choose a location where a lot of people are passing by every day. However, you should consider the number of existing machines in that area as well.

If you are planning to rent the space, be sure to consider the amount of money needed for that and how it might affect the profitability of this business. Some of the best options to consider for your location are nightclubs, bars, casinos, parking lots, gas stations, and more. These places are excellent in strategic terms because people are still using cash to buy drinks or gamble.

3. Set the Fees

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This is the most complicated part. You should determine the additional expenses you have from renting the place and how much money you have spent on the machine and license. On the other hand, you have to be sure that your service is competitive, which means that the prices should not be too high since people will avoid using the ATM.

As we already mentioned, the average fee is around $3. You should create a detailed calculation, consider the number of machines in the same area. If there is a lack of ATMs, you could try setting higher fees. The same case is when placing a machine near some hotel or casino. On the other side, keep in mind that many people would rather walk a few blocks away to find another machine if your fees are too high.

4. Create a Good Business Plan

Simply placing a machine in some random location is not enough. Keep in mind that many people will be suspicious about your service if you are unknown and there is no clear branding. Therefore, besides the processes related to legality and technical features, you must create a clear marketing plan as well.

First of all, there must be a website where you will present more details about your business, and provide potential clients with transparency. That means that it will be simple for them to read more about the banks and financial institutions that are your partners, the price of fees, potential conversions, are you offering exchange services and more.

The best solution is to create a banner on the machine, and include more details in the program so the people can find important information before they decide to place the credit card in your ATM. Besides the website, you should add a phone line, and be sure to offer proper customer support. The solution for customer support is to hire freelancers since you can secure that the line is working all the time. This is also quite affordable model.

Potential Mistakes To Avoid

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The biggest mistake is to have a machine that doesn’t have enough money to service enough people during the day. With the proper combination of fees and good service, you can make around $300 per month, which is great since the average price of an ATM is around $3,000, and operating it does not require a lot of effort.

There are used models available as well, but it can be risky to buy them unless you are sure that it is a newer model in good condition. Another mistake is related to rush decisions where you might decide to place it in some area only because you have found a place with cheaper rent while there are either plenty of existing machines or not enough people.

The Bottom Line

There are over 400,000 ATMs in the United States, and more than 200,000 are private. Considering that many people still prefer cash, starting this business can be a great way to secure an additional income. If you have found several places with an excellent flow of passengers and a great demand for cash, you can set this business on a higher level by buying several machines.

Depending on the model, you could start with only around $2,500. However, if you want to offer a service with some advanced model, the average amount of money needed for the starting investment is around $5,000. The processing is also important, and you should determine whether you want to offer only cashing out and depositing or to add some additional features like transactions, exchange, and more.