Making Money with ATM Machines

Answer 1

ATM machines can be owned and operated by private individuals. ATM machines found in most locations, such as stores, gas stations, and bars, are not generally owned by banks, but instead by private owners doing business as ATM machine operators. They are operationally similar to vending machines, and the business of operating ATM machines is much like the vending business. An ATM machine dispenses cash to people who insert an ATM card into the machine, and a fee is charged to the user for the service. That fee is the owner's income. The transaction fee is normally $1.50 per transaction or higher.

A first consideration when investigating the ATM machine business is the investment that will be required to start. That consists of two things, the cost of machines and the cash needed to stock them for withdrawals. ATM machines generally cost between $3,000 and $6,000 each. Some operators have enough start-up capital to buy a few or several machines outright, but some operators do not. For those who don't, financing will be needed, and that can come either from a bank or from a seller of ATM machines. In many cases, sellers of ATM machines offer financing and leasing to buyers. Financing and leasing offer the advantages of allowing for a low cost or even cash free acquisition of ATM machines. In some cases, financing and leasing are offered with deferred first payments.

Favorable interest rates may be available, and, of course, a buyer must qualify for financing based on credit and possibly time in business. An owner must also keep cash in an ATM machine for withdrawals. The amount of cash that must be kept in a machine depends on the volume of withdrawals made and the frequency with which the machine can be serviced by the owner. The average ATM withdrawal nationwide in the United States is $60. Therefore, if ten withdrawals are made per day, then $600 per day will need to be kept in the machine. If the machine is only serviced once every three days, then three times that amount will need to be kept in the machine. If, however, the machine is serviced daily or even twice daily, then only $600 or less will be needed.

Many owners simply stock machines themselves with cash, but operators of multiple machines or machines with a very high volume of transactions may want to use an armored car company. Armored car service may be available for as little as $15 per day per machine. An ATM machine needs a dedicated telephone line for processing of transactions. These are standard lines, and the cost should be low. No special features are needed. An operator will also need to contract with an Independent Sales Organization (ISO) that will process ATM transactions. The ISO handles all processing from initial order entry through collection of funds through the various financial networks representing ATM card issuers. After funds are collected by the ISO, they are deposited into the owner's bank, normally within 72 hours. The ATM machine business is profitable and very easy to operate. It does require capital to start, but for entrepreneurs who have the necessary capital, it can be a very appealing and successful business. Information is available online from various providers of ATM machines, who review machine costs and start-up procedures. It is possible for an ATM machine operator to be in business within a few short weeks.