Opening an ATM Business? 3 Pitfalls to Avoid

Author Justin Gilmore

Starting an ATM business has the potential to transform your life. Decent money, a flexible schedule, and short hours? No wonder so many people are drawn to this line of work! Even so, it’s important to remember that an ATM business isn’t a “get rich quick” scheme. Here are three of the most common pitfalls people encounter when starting an ATM business.

1. Cutting corners by purchasing used ATM equipment.

The initial start-up costs for an ATM business can feel a bit steep, which is why many new business owners find themselves curious about used ATMs on sites like ebay. We recommend against going this route. First and foremost, used ATMs may not be compliant with current rules and regulations for ATMs. While you can certainly update your ATM to meet these standards, it’s often more cost-efficient to just buy an entirely new ATM. Another reason to avoid used ATMs is because, unlike brand new ATMs, used ATMs are almost never protected by a warranty. Finally, there’s the issue of customer psychology. If your secondhand ATM is especially old and beaten up from years of use, potential customers may think it looks untrustworthy and avoid using it altogether.

2. Placing ATMs in inconvenient, low-traffic spaces.

When it comes to ATM businesses, geography will be your key to success. Obviously, you are going to want to find locations that are highly visible, safe, and receive ample foot traffic. This is a no-brainer. However, you also want to take into account the range of your ATM servicing route, too. The farther your ATMs are from each other and your home base, the more time you will need to spend driving between them.

3. Neglecting to properly protect your ATM business.

When you start an ATM business, it’s important to acknowledge that things can and do go wrong. All the time. That’s why it’s crucial to be prepared for anything that comes your way.

  • Install ATMs in safe locations with necessary security features. An ATM machine is a huge investment — especially when you’re just starting out. Make sure you’re doing everything in your power to protect that asset. In addition to placing your ATM in a safe, well-lit area, it’s also a good idea to equip your ATM with any necessary security and surveillance features.
  • Make your business partnerships official. This means getting signed contracts with any business owners that clearly spell out the terms of ATM placement. We recommend consulting with a lawyer on drawing up these kinds of documents.
  • Get ATM insurance. Any legitimate business should have insurance, and ATM businesses are not exempt from that. As with any type of insurance, it can pay to shop around.
  • Vet your employees. At a certain point, your ATM business may grow large enough to require employees. Since you’re working with such vast quantities of money, carefully vetting potential employees prior to hiring will prevent you from getting burned later.

Have more questions about starting your ATM business? Give AtmMachines.com, LLC a call at 1-866-295-2329.