A Beginner’s Guide to Vault Cash Management

An ATM is a profitable business venture. With earnings that average $3.08 per transaction, you can break even and gain a complete return on investment within 12-18 months. A well-placed ATM kiosk represents a viable passive income source for investors, store owners, and entrepreneurs.

But ATM ownership also involves some upfront work. From achieving compliance to setting up payment processing and maintenance schedules, there are existing overhead costs and preparation tasks you must tackle before you can generate revenue.

In an earlier blog, we outlined a few necessary steps regarding deal structures, paperwork, and setting a fee split with any business partners. This blog will focus on another crucial aspect of owning an ATM: cash vault management.

Read on to learn more about cash vault services, why you need to plan out your cash schedules, and the easiest ways to optimize your ATM cash processing operations.

What Is Vault Cash?

Vault cash is stored money used as a safety reserve for business operations. Since every ATM accepts and transfers large quantities of money, owners need to keep liquid reserves on-premise to handle the kiosks’ day-to-day supply.

Customers engage in many cash-based services through your ATM (withdrawals, money transfers, and bill payments) – without enough cash on hand, you might not be able to fulfill a customer request.

While partial ATMs do exist, most machines have attached vaults where you can store your cash float. In technical terms, “cash loading” refers to the act of filling your ATM Vault, while the money stored in the vault for safekeeping is considered “vault cash.”

Proper vault cash management is key to the success of your ATM. Numerous customer transactions deplete your supply, and without a safe and efficient way to source, deliver, and refill your vault, you could run into service disruptions or take on undue security risk, both of which hurt your profits.

Vault Cash Management and Customer Transactions

Let’s walk through typical customer transactions so you can better understand the necessity of vault cash.

  1. A customer will verify their details and use your ATM to withdraw cash. The machine then completes the request through a processor, a central ATM host that communicates with the customer’s bank and starts the electronic fund transfer (EFT). Once the host receives the money from the client’s bank, it approves the cash request at the kiosk, and the customer walks away with cash in hand.
  2. As the ATM owner, your vault cash supply decreased, so you will receive from the ATM host the electronic transfer amount taken from the customer. The funds will be transferred via ACH to your chequing account (plus any convenience fees) with a next-day turnaround. From there, it is your responsibility to refill the cash vault from your bank account and “settle” the transaction.

An ideal setup would involve two checking accounts: one for operating capital and vault cash and one for your surcharge fees. Surcharge fees are direct earnings, so it is best not to mix profits with your cash float. Plus, you might need to split fees between business partners or other accounts – it is best not to confuse withdrawals from your cash vault account with surcharge profits and business expenses.

How Much Vault Cash Does an ATM Need?

You need enough vault cash to manage the average demand of your ATM. Without enough supply, you can hurt your revenues and increase expenses.

For example, a reputation of extended service outages will deter customers and potentially lose their lifetime sales value. Multiple small trips to replenish the vault add to operational expenses that can hurt your return on investment and break-even timeline. They also extend your security risk, especially if you don’t have protected cash transfers.

Maintaining a proper cash vault balance is known as cash replenishment planning, and you need to set a schedule if you hope to scale your ATM route. Different ATMs require cash loads on different timetables dependent on transaction volume, average consumer withdrawal amounts, and machine access (i.e., store hours). Without proper planning, your efficiency could decrease as complexity grows.

To find the ideal cash load for a particular ATM and its planned delivery schedule, track about three to six months of customer transactions. Humans are creatures of habit, and you can use that data to understand the average amount of transactions and the average cash value that flows through your ATM.

Once you have an average daily withdrawal amount, times that number by nine, giving you a sum for nine days worth of cash. A nine days surplus is an ideal fit for a weekly refill schedule. There is enough money to handle possible withdrawal spikes without creating additional undue or unnecessary expenses.

Can You Outsource Your Cash Management?

Due to the setup time, liquidity requirements, and costs for delivery, many ATM business owners opt to use a vault cash management service. A third-party service offers you several advantages:

  • Frees up your finances: Many cash services will use their own money to maintain the cash vault. That means you no longer worry about settling your vault or chequing account, and it also frees up a significant sum of money that you could divert to business growth.
  • Seamless service: A vault cash service will maintain the ideal replenishment schedule, ensuring that you always have cash on hand and can fulfill every customer request at your ATM.
  • Lowers operation costs: Save on bank fees, delivery fees, and other expenses by outsourcing your cash management. Any costs incurred become your service partner’s responsibility, making your ATM an efficient, hands-off venture.
  • Increased security: With a service, you no longer risk your own money and limit any potential losses associated with security issues. You don’t have to pick up large sums of money and can avoid employee training by hiring a cash vault service.

For many ATM owners, outsourcing is a preferred method for managing their vault cash.

Partner With Us

At AtmMachines.com, LLC, we offer various service partnerships — including cash vault management. As your outsourced cash vaulter, we handle all responsibilities related to cash loading. We do the heavy lifting! Take advantage of our dependable supply of liquid cash, ensuring same-day withdrawals for deposited vault cash, optimized load amounts and schedules, and coordinated armored couriers with reputable transport services.

With us as your partner, you can take advantage of our industry relationships and business services. For example, If your ATM does not produce enough transactions to justify an armored vehicle, or if your ATM is in remote locations, we work with local, reputable ATM services to facilitate your needs.

A dependable vault cash supply is the linchpin of any thriving ATM program. That is why we offer you comprehensive and hassle-free solutions for cash access, vault supply, and armored carrier management.

Click here to learn more about our Vault Cash Program.

Alternatively, contact us today to request a consultation.

A Million Ways to Make a Deal – Pitching to New ATM Clients

There is plenty to consider when creating a profitable ATM business. From payment processing to organizing cash liquidity, ATM ownership does include some preparation before providing stable and consistent returns.

In particular, the relationship with your ATM clients has a significant impact on your kiosk’s earnings. Location is everything, so the business deals you make with the retailers and business owners for high foot-traffic real estate is crucial to the success of your ATM route.

If you have found the ideal location for placing a machine, read on to learn how you can create a high-quality ATM proposal. One well-devised sales pitch can entice physical store owners into a profitable business relationship. If you own real estate, use the following steps as vetting criteria for good ATM owners.

A Million Ways to Make a Deal Starts with Prep Work

The most efficient way to structure a win-win deal for you and your business clients starts with prep work. Due diligence not only shows the reliability of your proposed income source but also keeps all financial affairs in order. In a business with intensive compliance requirements and a need for good security, an in-depth proposition makes all the difference.

Use the following steps to best outline the terms of your ATM deal clearly and concisely:

Step 1. Set your flat-rate fee and fee split

As an ATM owner, you make money from surcharge fees applied to customers. For each transaction, you take either a flat rate, a percentage fee, a combination of both.

Surcharge fees vary based on several factors, such as geography, foot traffic volume, consumer clientele, business type, etc. And while some ATMs can command a higher surcharge fee, it is best to select a price point that matches market rates.

For example, Citizens Trust Bank in Georgia charges $2 per transaction, First Republic Bank in California is free for regional users, while Bank of America charges $2.50. Meanwhile, the average ATM surcharge for operators currently rests at $3.08. Selecting fees way higher than average will result in less customer usage which will hurt revenues.

Once you set a satisfactory surcharge fee rate, present a cut of that fee to the business owner in your proposal. The split fee is the “value add,” or the possibility of passive income that might interest someone in your ATM opportunity.

Attempt to create a fee structure that is lucrative for both parties. Whether that includes negotiations on total fees or a mixture of both transaction percentages and set customer charges, a good middle ground can leave you both happy. To most store owners, such a deal is quite attractive, as the ATM itself brings in more customers who spend more in addition to passive income.

Step 2:  Get your paperwork in order

Organize all supporting paperwork within your proposal. You need several different document types as an ATM owner, and having that paperwork on hand while making a pitch makes it far easier to entice new business clients.

For example, both you and your potential business partner will need to fill out Automated Clearing House (ACH) service agreements. For security reasons, all businesses must obtain authorization to exchange cash deposits and surcharge fees. Having detailed explanations about who is responsible for the cash float liquidity or how each party receives their share of funds also makes for a better partnership.

Another critical document to prepare for is an ATM Location Agreement (check out our AtmMachines.com Location Agreement template for an example). It is a simple way to lay out all the nuances associated with the proposed ATM placement deal, including maintenance schedules, how to proceed with repairs, insurance requirements, security, installation information, and any other potential legal definitions.

The more paperwork you provide, the more confident your business partner will be in your ATM opportunity. Be sure to collect and present Source of Funds documents, copies of personal identification, compliance forms, and processing agreements within your pitch.

Step 3: Pitching to a client

With the details in order, the next step is proposal delivery.

For any business pitch, leading with the benefits will help entice action. Make sure your potential new client understands the following benefits that an ATM placement can provide:

At first glance, a store owner might not know or understand just how profitable an ATM partnership is. Most businesses rely on customer engagement. An ATM increases total traffic, total cash spent, and total sales conversions, all with a reduction in customer exits (a customer who leaves a store to draw cash is less likely to return and make a purchase). Your pitch must outline how a partnership with you is a lucrative opportunity.

Lastly, don’t forget the importance of branding. A logo, a professional email, and a website are must-haves. Not only does good branding provide identity authenticity, but good marketing material can help drive more potential clients to your business.

Step 4: Structuring your deal

Even if conditions are perfect, a deal takes time to negotiate. For example, both you and your potential business client need to discuss how the fees split, create projections of revenue numbers, and prepare for overhead costs.

While negotiating, be sure to run the numbers yourself to ensure that your ATM placement will earn you stable returns. Request to view any merchant’s total foot traffic and expected transaction volume to help determine profits with the following formula:

  • [Surcharge fee] x [potential monthly transactions] – [fee split] x 12 months = Potential annual return

Once you can add up the annual rate of return, don’t forget to account for any additional expenses that could lower your earnings, such as kiosk purchases, payment processing fees, and installation costs. In general, a sound ATM investment would result in a 100% return on investment within a year or less.

Often, a good business deal requires a series of adjustments before it becomes mutually beneficial. For example, if the transaction volume of a particular location is less than ideal, that doesn’t mean the opportunity is dead in the water. Instead, see if you can set up a tiered system that rewards higher fees to the store owner if they reach certain transaction thresholds. In many cases, you can settle on a deal across several different scenarios.

There may be some initial effort to get your ATM business up and running, but it remains a profitable investment. And with an excellent pitch to an ideal business client, you can achieve a positive return in a short amount of time. For proof, check out Dan’s Story about how he got started with his own ATM business.

Want more information about owning an ATM? For additional insights into structuring and pitching ATM contracts and building partnerships with business owners and other ATM operators, enroll in our Online ATM Business Course

What’s The Difference Between ATM Placement and ATM Ownership?

An ATM is an excellent source of secondary income. The industry is booming — global machine installations resting at 51.66 kiosks per 100,000 persons, almost double the 27.2 recorded in 2008. As long as there is a need for cash, consumers will demand access to ATMs. And that offers profit opportunities for stand-alone entrepreneurs or vendors with physical store footprints.

But like any business, owning an ATM has upfront costs, involves time and capital investments, and has a heightened exposure to risk. Without the correct infrastructure or know-how, several barriers (kiosk purchase, setup, fees, warranty, payment processing, etc.) can cut into your investment returns, even within the profitable ATM business.

To help entrepreneurs enter the market and take advantage of the benefits ATMs provide, we created two turnkey service programs that make setting up a kiosk simple and easy. If you’re interested in starting an ATM business, read on to learn about our ATM Placement and ATM Ownership programs.

Free ATM Placement Program

The ATM Placement program is a set-it-and-forget-it solution: we complete every setup requirement involved with an ATM installation. It is the easiest way to enter the ATM market and offer cash dispensing services with the least amount of startup hassle. As a payment partnership, all profits are split, but since you do not own the ATM, you minimize security risk, maintenance costs, and liquidity vaulting. Just provide the location, and we will do the rest!

Who Can Benefit From the ATM Placement Program?

The ATM Placement program is ideal for current store owners or those with access to real estate. Having an ATM on-premise creates several secondary business improvements:

  • Increased organic foot traffic: An ATM can increase the total volume of customers that enter your store. Retailers claim they earned an additional $3000 in last-minute purchases upon introducing a standing BTM.
  • Improved customer payment convenience: Customers will make more purchases if they can pay with their preferred purchase method.
  • Access to new markets: Customers will enter your store to pull out cash, leading to better consumer engagement.
  • Increased in-store purchase volume: The average customer will spend 20-25% of all withdrawn cash from an ATM at your business.
  • Increase overall cart size: Consumer shopping cart sizes tend to increase the value of their shopping cart if they have easy access to bank services.

You earn each of these benefits in addition to the passive income gained from transaction fees. Plus, since the ATM is placed, not owned, there are no upkeep costs or time-consuming manual labor involved with kiosk operations.

Our ATM placement program is ideal for those who need limited risk exposure and have a brick and mortar store: gas stations, grocery stores, shop owners, etc.

What Are the Costs?

Under the ATM Placement Program, the kiosk and its service are delivered 100% free, and we can even supply initial liquidity. All profits work under a revenue-sharing model, depending on your level of involvement (i.e., those who do not bring liquidity to earn a percentage of each transaction, while full placement programs take 50% of each surcharge). You receive your shared earnings via ACH deposit after machine transactions are processed.

What Services Do You Receive?

We complete all tasks involved with owning an ATM for you, including:

  • Setup and Installation
  • Shipping
  • Maintenance
  • Security Monitoring
  • Cash Transportation
  • Payment Processing and Network Access
  • Signage

The ATM Ownership Program

The ATM Ownership program works along the same lines as the placement program but includes ownership of one or multiple kiosks. You take on more risk and service work, but you have complete control of your ATMs and their profits.

The Ownership Program is designed for those who want to manage a machine yet still desire a payment partner for all other service requirements. We can assist with the setup process of your ATM business in addition to processing payments (a necessity for each ATM transaction), but you own and operate the ATM itself.

Who Can Benefit From the ATM Ownership Program?

ATM Ownership is ideal for entrepreneurs who work with large-scale operations or wish to derive more profits from existing ATMs. You will gain all the same benefits as an ATM placement, except now you have complete control to optimize your business for further earnings.

Of course, your risk exposure increases and the total upkeep, but if you have the time, ability, and upfront capital to manage your own ATM kiosk, you can earn robust profits from transaction surcharges.

In particular, salespeople, entrepreneurs, investors, and ATM operators can benefit from the ownership program: the extra effort and investment can lead to higher returns.

What Are the Costs?

First and foremost, those who wish to own a kiosk must pay the upfront price for the ATM (ranging from $2,000-$5,000). Plus, costs related to maintenance and security will increase. For example, you will have to pay for armored vehicle transportation once your ATM cash supply fills, supply liquidity for your machine, fix and repair potential damage, and do extra work to keep your ATM safe and secure.

What Are the Perks?

The Ownership Program gives you complete control over your ATM, but as your partner, we can help streamline and assist any upkeep issues through several services:

  • Access to our armored vehicle partner with nationwide standard rates
  • Use of our dependable cash vaulting supply program for liquidity
  • Standard payment processing requirements
  • Use of our expert technicians for repairs
  • ATM Training programs for employees
  • Replacement parts and fast shipping
  • Help with installation

We also offer an online course that teaches you how to start an ATM business from scratch to generate a six-figure income with very little outlay. Click here to learn more about the course.

Owning an ATM is a profitable enterprise. For both vendors of new entrepreneurs, an ATM leads to tangible benefits and passive income. But there are costs and service requirements for running an ATM.

To help your kiosk earn a positive return on investment, we created our ATM Placement and Ownership programs. As your partner, we can help you install and maintain a well-run ATM.

Contact us to request a consultation about buying an ATM, or call us today at 1-866-295-2329 to discuss our ATM Placement Program.

Are ATMs a Dying Technology?

It seems that global business has embraced a cashless society. In 2022, the value of digital payments is expected to reach a massive $7,860,739 Million. A 2018 survey on payment type preferences for U.S. customers reports that only 7% of respondents use cash payments when shopping at a department store. On all fronts, it appears that the amount of consumers and businesses that use physical money is on a steep decline.

Digital payments put the value of ATMs into question — without cash, there is no need for physical payment stations. Yet, the total number of ATMs has grown, last recorded in 2020 at 51.66 kiosks per 100,000 people worldwide (up from 29.76 in 2010). The payments industry has changed due to digital transformation, but ATMs remain resilient.

So, is it really a dying technology? Let’s look into the current state of payment kiosks and how the future of the ATM continues to show positive growth.

Is ATM Ownership Still a Profitable Business?

As long as there is cash, there is a need for ATMs. But those who warn about the imminent demise of the standard ATM state that consumers no longer require convenient access to cash. With digital payments, e-transfers, and smartphone wallets as the now-common money transaction method, people might no longer need a cash dispensing machine (money dispensation accounts for 95% of ATM use).

Plus, more data about the decline of physical branches within the banking industry offer no support for the continued use of ATMs. Banks closed more physical locations in the past ten years than opened: JP Morgan shuttered 334 branches, while Deutsche slipped from its high of 3083 locations in 2010 to 1891 in 2020.

With fewer brick-and-mortar stores and less consumer demand for direct cash access, those who argue against ATMs appear wise and prophetic.

But while digital transformation has altered the landscape, it poses no threat to the use of ATMs.

Digital forms of payment continue to grow, but the use of cash remains relatively stable, with close to 20% of all payments in the U.S. still made with physical fiat currency. The ATM is more than a single piece of hardware — it is an endpoint device that delivers a series of benefits to a consumer, such as convenience, brand awareness, access to service, and contactless function.

Digital payments did not delete the ATM: they just changed its purpose as a cash dispensing machine. A kiosk now functions as a multi-purpose service opportunity. Digital transformation only helped the ATM by forcing it to evolve.

The Internet of Things and ATMs

In fact, the Automated Teller Machine is one of the first hardware applications to leverage advancements in digital technology, notably with the Internet of Things (IoT).

IoT is an umbrella term that refers to the digital network that connects physical devices. Through sensors, cameras, and artificial intelligence technology, IoT connects every device to the central network. Across the information highway, any object can help exchange data that help provide better service to real-world applications.

The ATM is the perfect example of how a physical device can integrate with digital IoT properties for improved function:

  • On-Demand Services: With an increase in smart touch technology, an ATM can provide a friendly and simple method for consumers to locate unified services across entire countries for heightened convenience. Ease of use and access to improved services will increase user engagement.
  • Fraud Reduction: The upgrades in digital security via multi-factor authentication, better software, and physical hardware such as cameras and keypad skimmers provide enhanced safety that can reduce total fraud (Losses from ATM attacks have decreased in Europe).
  • Enhanced Data: ATMs connected to the IoT network can analyze customer behavior and give bank leaders actionable insights on ATM usage and service offerings. Real-time intelligence will further increase customer retention through personalized upsell.
  • Wearables: As a more direct example, ATMs can connect with customer wearables, helping notify users of payments or requested cash dispensation through personal smartwatches and another haptic tech.

An ATM is a touchpoint for consumers; it represents the perfect method for banks to interact with their modern clients when married with digital tools.

The Future of ATMs – What Is the Outlook?

ATMs will become a core component of the smart cities that IoT will help facilitate. The ATM has moved away from a simple cash kiosk and is now a branding opportunity, a means to collect service data, and a way to interact with consumers who demand more from their banks.

The new concept of ATM usage is called ATM 2.0, a reference to the switch from simple cash kiosks attached to physical branches to machines that leverage digital transformation for continued profitability.

ATM 2.0

For example, the continued integration with mobile applications will heighten customer service opportunities. You can already request cash withdrawals from your phone, all with cardless access, helping remote and unbanked locations. Some ATMs will also create an online wallet, allowing users to connect to other fintech applications and digital payments methods offered by PayPal or Square.

Of course, digital tokens and hot wallets connected to cryptocurrencies will also help change how money transfers. Case in point: Bitcoin ATM installations have exploded in growth with over 14,000 kiosks placements worldwide.

New security features such as biometrics and facial recognition will protect users, allowing banks to create smart ATMs that offer most standard branch service requests. Mckinsey even stated that the new concept kiosks could improve branch effectiveness by 60-70%.

ATMs Are Innovative and Profitable

At first glance, digital tools appeared to have rendered standard ATM kiosks obsolete. With the rapid changes in the payments industry, many skeptics declared the end of ATMs.

Yet, while the introduction of digital transformation certainly changed how consumers demanded access to their banks, it has not affected ATM usage. Instead, it has forced ATMs and banks to innovate, allowing for new IoT integrations and the creation of ATM 2.0. Kiosks now function as primary customer touchpoints that use digital tools for better service. The ATM remains a prominent and profitable technology.

Are you looking to start your business journey as an ATM entrepreneur? Get in touch with ATMMachines to discover how you can own a kiosk through our ATM placement and ownership programs.

Top 3 Challenges of Setting Up a Bitcoin ATM Company

Entrepreneurs and business owners are rapidly entering the Bitcoin ATM (BTM) market. Global installations of cryptocurrency ATMs have increased by more than 70% in 2021, continuing the 120% growth rate demand set in 2020. As a form of investment, people are taking advantage of the lucrative profits available from a well-run Bitcoin ATM company.

While a Bitcoin ATM placement might seem like a straightforward process, several challenges can hamper your kiosk’s profits. Bitcoin legal issues, administration costs, and Bitcoin ATM processing all require effort and preparation, and that resource expense can hurt your total return on investment.

To help make your Bitcoin ATM business opportunity a success and to prepare you for any start-up pitfalls, read on to learn about the three primary challenges associated with your cryptocurrency kiosk.

Challenge #1: Time

When tackled on your own, the entire BTM company process can take an average of four to six months. Since a Bitcoin ATM is a Money Service Business (MSB), you must obtain several compliance and business licenses to operate in your state, all of which require extra time. Plus, the legal requirements are complex, and you must source and hire a compliance officer to help prevent any undue risk. The various regulatory hurdles can stretch the start-up time of what looked like a simple ATM placement.

Beyond government requirements, there are also additional tasks involved with your kiosk setup. You will need to:

  • Source reliable software to handle your Bitcoin ATM processing
  • Register with a cryptocurrency exchange
  • Arrange for armored vehicle pickups to transport your fiat cash
  • Rent suitable real estate
  • And install your cryptocurrency ATM in your rented spot

While each of these start-up procedures is crucial to the overall success of your Bitcoin ATM, it does involve a lengthy time expense and a lot of additional effort.

Challenge #2: Costs

A series of overhead costs are necessary for any new Bitcoin ATM business.

  • Kiosk Purchases: You need to buy your physical kiosk itself, and prices can range from $3000 to upwards of $10,000.
  • Software Expenses: If your BTM kiosk does not include programming, you also need to pay for the internal software and any additional payment processing fees that facilitate all transactions.
  • Liquidity: Since a Bitcoin ATM transfers both Bitcoin and fiat currencies, it is required that you hold a certain amount of liquidity to ensure that every customer exchange request occurs without issue. For fiat transfers, you need a Bitcoin-friendly bank, and for crypto assets, you must purchase a hot wallet. The amount of liquidity you hold in each account depends on your Bitcoin ATMs transaction volume, but it often involves a sizeable amount of capital.

Beyond the overhead costs, you must also prepare for monthly expenses ($200-$300 a month) related to maintenance, repairs, and operational costs, along with setting fees for your armored vehicle transports.

Challenge #3: Security

Like any ATM, security is a critical element in the success of a Bitcoin kiosk, and there are some factors you must address to keep your machine safe.

  • Physical Location: You want to place your Bitcoin ATM along paths, malls, or public walkways that gain a lot of foot traffic. While open locations increase your machine’s total transaction volume and profits, it exposes you to potential theft. Most operators need to set up closed-circuit cameras and abundant lighting to deter bad actors.
  • Physical Machine Security: Each kiosk should have high-quality locks and reinforced steel to protect cash floats held within the machine.
  • Faulty Software: A Cryptocurrency exchange is only accessed online, and your machine uses applications to locate customer identification information. Unprotected software can fall victim to malware or phishing scams, and you might need to foot the bill for that fraudulent activity. Moreover, your applications have to connect with your payment processing partner for each transaction, and faulty software can cause costly errors.
  • Admin Security Codes: Many BTMs supply QR codes to represent the exchanged Bitcoins, and each machine uses an Admin password for kiosk management. While a single admin code is helpful, it becomes a critical weak point — if the top-level access is compromised, the entire machine becomes vulnerable. Owners often need support from a security partner to remedy this issue.

How ATMMachines Can Help

Even though setting up a Bitcoin ATM company has its own set of challenges, it remains a profitable venture, and most owners announce a break-even point after six months of operation.

To make the entire process of Bitcoin ATM ownership even easier for you, ATMMachines started a unique Bitcoin ATM Ownership program. It is a partnership program where all you have to do is secure a location and purchase a kiosk — ATMMachines handles all the rest!

In exchange for payment processing fees, you receive the following benefits:

  • Access to our compliance program and compliance officers for easy regulatory approval
  • Free shipping, set up, and installation of your kiosk
  • Use of our software for all simple payment processing and high-level admin security
  • Use of our Bitcoin supply. No need for a hot wallet, the purchase of bitcoin, fiat liquidity requirements. Plus, reduce your risk exposure for each customer transaction.
  • Piggyback on our armored carriers with company-specific locks and preferred freight rates

As your partner, all the hassle and challenges that would threaten the success of your Bitcoin ATM diminish, and you can enjoy better profits. Best of all, you maintain full ownership over your kiosk!

Wrap Up

While it may seem like a simple kiosk placement, starting a Bitcoin ATM business does come with a set of challenges that can increase your overhead costs and extend your break-even point. If you want to start your venture in Bitcoin ATM entrepreneurship with less difficulty and better scalability, a partnership with AtmMachines.com, LLC can turn your kiosk start-up into a simple process with an enhanced ROI.

Do you want more information? Check out our Bitcoin ATM services page to learn more about our Bitcoin ATM Ownership Program.

How to Start an ATM Business

Whether you launch a side business to supplement your income or engage in business full-time, it’s always possible to generate good profits when starting an ATM business.

Consumers are constantly in need of cash, especially for brick-and-mortar retail stores, bars, restaurants, convenience stores and other types of small businesses. ATMs are fairly easy to set up, and when placed strategically, they provide an excellent source of passive income.

ATM Business Online Course

If you are serious about starting your own ATM business, you’re in luck. We offer a comprehensive online course that goes into extensive detail about everything you need to know before starting your own ATM business:

Online ATM Business Course — Start Your ATM Empire Today!

For now, if you’re considering placing an ATM in your existing business or starting a standalone ATM business for yourself, here are a few basic steps to get you started.

To Own or Not to Own?

One of the first questions you’ll want to ask when starting an ATM business is whether or buy one or more machines outright or whether to let a third-party company place and manage your ATMs for you.

There are a number of reasons to consider purchasing your ATMs, not the least of which is that as an ATM owner you get to decide the surcharge and keep all the profits, and you’ll make more money per machine as a result.

The “downside” is that there’s more work involved in owning and managing your own machine, and you’ll need to learn a bit about ATM processing.

For this reason, some business owners find it more convenient to work with a turnkey ATM provider like National ATM. While the amount of profit per machine is less, it’s also a lot less work because the ATM company takes care of managing the machines and tracking the transactions. It allows you to enjoy the business benefits of ATM ownership without actually buying it — plus, it’s basically passive income for you since there’s little or no work involved.

Choosing the Right Type of ATM Machine for Your Business

Triton ATMThe next step is to decide which ATM machines would work best for your business. This decision hinges largely on where and how the machines will be placed.

ATM machines can be standalone, table-top, or permanently installed in the wall. They can be placed for outdoor use, and nowadays there are even wireless ATM machines available for locations where running a phone or data line would be inconvenient.

You may choose from a variety of models and types, depending on where the machines would best be placed. Our experts can help you make these decisions, as well.

Choosing the Right Locations for Your ATM Machines

When it comes to being a successful ATM operator, placing your machines is all about location, location, location. The better the location, the more ATM transactions you can generate, and the more money you can make. If people need cash and they can’t find or get to your machines easily, they will take their business elsewhere — usually to another ATM nearby.

Gas stations are a reliable place to find an ATM.
Gas stations are a reliable place for people to find an ATM.

You always want your machine to be situated in the easiest, most convenient place in the area to get to. When scouting locations, look for businesses with high foot traffic where people spend cash readily. For example, gas stations, convenience stores, bars, restaurants, and cash-only businesses are always great candidates for ATM placement.

In addition, choose ATM locations that are open to the public for as long as possible. A convenience store that is open 24 hours, for instance, is preferable to a gift shop that is open only part-time. (You can’t make money if customers can’t get to your machines.)

Of course, choosing the right business is just part of the equation; you also want to find the optimal location inside those businesses. Try to place each machine in a well-lit, high traffic area within each business, preferably near the checkout area or along a major walkway. You’ll need electrical access, and depending on the type of machine, you may also need access to a phone line. Here’s where you’ll want to develop good negotiating skills with business owners as to where and how you place the machines, perhaps offering them a percentage of the surcharge fee as a tradeoff for making room in a high-profile area of their store.

Big festivals often need mobile ATMs.
Music festivals and other big events often need mobile ATMs.

Another excellent business strategy for ATM placement is to place mobile ATMs in high traffic areas of large events — for example, trade shows, expos, fairs, music festivals, etc. Attendees of these events often need cash for vending, rides, merchandise tables, and so on, and they are more than eager to use the nearest ATM. (Some ATM operators find they can generate enough surcharge revenue from a handful of these events to carry them through the rest of the year.)

Deciding Transaction Fees

One of the biggest decisions you’ll make as an ATM business owner is the amount of your surcharge fee. While this might not seem like a huge decision, setting your transaction fees can be a real balancing act. Set them too high, and you could discourage people from using your machine, but set them too low, and you could cut into your own profits too deeply.

There is no set rule for how to decide the amount of your surcharge (and it may differ according to location), but the following factors may come into play:

  • The average transaction fees for your particular area (i.e., what ATM users are accustomed to paying)
  • What your competition is charging
  • Your own overhead costs (e.g., ATM insurance, ATM processing fees, etc.)
  • How many parties are getting a “cut” of the fee (for example, if you’re sharing a percentage with host businesses)

In the end, you want to set transaction fees at a “sweet spot” where they are attractive to potential customers while still helping you generate an acceptable amount of passive income.

Create a Business Plan

Every business startup should have a well-crafted business plan. As you make these and other decisions, make sure you put them down in a business plan that outlines the key strategies regarding your company: How you will be structured, why you are going into this business, how you plan to make a profit, and so on. This plan will not only serve as a compass to guide your future decisions — it will help potential investors understand how they will get a return on their investment.

Security Concerns

Because ATM machines are basically portable banks with cash inside, when considering how to start an ATM business, you always want to be proactive when it comes to security and preventing theft. For these reasons, we recommend the following safeguards, among others:

  • Place your ATMs in locations that are easy to monitor, either visually or by security cameras.
  • Use ATM machines that are equipped with EMV chip readers to give users added security.
  • Invest in ATM insurance to protect you against loss from direct theft, vandalism, or liability issues.
  • Choose an ATM from among the more reputable brands like HyosungTriton, or Genmega. We can also provide insights on the most secure ATM models so you can rest assured your investment is kept safe.

AtmMachines.com, LLC is ready to partner with you to help ensure your ATM business is a success, which is why we’ve developed a complete ATM business course that provides all the instruction you need to develop a 6-figure passive income with no capital outlay.

Click here to learn more about the course and to enroll. For more information, call us 1-866-295-2329.

How to Get Into the ATM Business

When it comes to creating passive income, few business endeavors do so more efficiently and easily than operating automated teller machines. Everyone uses ATM machines because everyone needs cash — and a single well-placed ATM can generate thousands of dollars in revenue each year with very little effort. If you’re thinking about getting into the ATM machine business, here are some basic steps to get you started in the right direction.

Figure Out Your ATM Business Strategy

There are a number of different approaches to running a successful ATM business, and the first step is deciding which type of niche you want to fill — specifically, when, where and how you plan to place your ATM machines.

ATM business owners must ask themselves the following questions:

  • Are you planning to negotiate deals with large and small business owners for local ATM placements in their stores?
  • Do you plan to try and place ATMs in larger public areas like malls, shopping centers or event venues?
  • Do you want to focus on placements in certain types of businesses with heavy foot traffic (e.g., bars, gas stations, or convenience stores)?
  • Are you more interested in event-based ATM placement — i.e., placing temporary ATMs at trade shows, expos and festivals?
  • Is there a particular number of ATMs you want to oversee?

Answering these questions will help you determine which strategies for ATM placement interest you most. They’ll also help you decide what type of machines you need to get.

Who Owns the ATM Machines?

One of the biggest questions you’ll need to answer is whether you plan to own and operate your ATM machines outright, or whether you’ll simply provide the space and work with a third-party company to run the machines with an ATM placement program. There are pros and cons to each approach. Obviously, you stand to make greater profits with surcharge revenue if you own your own ATM machines outright and place them in high-traffic areas, but ATM owners are responsible for all the typical ATM operator duties, including maintenance, security, and vault cash stocking of the machines — all of which can be time-intensive. If you work with a third-party company and use only a partial ATM placement model, the income itself will be more passive because the company handles all the details, but the downside is that you’ll generate less surcharge fee revenue because you’ll receive only a commission on transactions. Deciding which approach to take will depend on how much time, energy and money you wish to invest in exchange for higher profit margins.

Make an ATM Business Plan

Every successful business has a business plan, and an ATM business is no exception. Take some time to write down a basic structure for your business, outlining your mission goals, financial expectations and anticipated earnings over time. Your business plan is a living document and you may make changes over time, but having a business plan helps you stay focused on your goals. It also lets potential investors know you’re a good investment.

Work with a Reputable ATM Company

One of the best ways to start your own ATM business is to work with a company that offers turnkey programs to help you get started. As a leader in the ATM industry, AtmMachines.com, LLC offers great prices on high-quality new ATM machines to own — including Hyosung, Genmega, and Triton ATMs. We also offer free ATM placement, ATM processing, and ATM route management services that allow you to earn passive income immediately with very little effort. To learn more about your options and which type of ATM business is right for you, call us today at 1-866-295-2329.

How Much Money Can You Make Owning an ATM Machine?

Installing an automated teller machine at your place of business — or maintaining your own ATM business as a side hustle — can be an excellent source of passive income through surcharge revenue. But we commonly get the question, “How much money can I make owning an ATM machine?”

Of course, there’s no one-size-fits-all answer to this question. The cost of stocking and maintaining machines is fairly uniform, but beyond that, how much you make will depend on many different factors, such as location, foot traffic, demand, etc. However, knowing how to work these factors to your benefit can definitely increase your bottom line and make sure you get a solid return on investment. Let’s discuss some of the common factors that figure into your profit margin when you invest in your own ATM machine.

An ATM Business is All About Location, Location, Location

By far, the largest variable that determines how much passive income you’ll make with an ATM machine is where you place the machine itself. If you place your ATM in a dark corner with very little foot traffic, you’ll make considerably less than you would if the machine were placed in a highly visible area with lots of people. An ATM in a high-traffic area can make an average of 800 transactions per month, and in some cases even more.

Some tips for ATM placement to maximize your profits:

  • Place the ATM in a visible location that is easy to access.
  • Place colorful, visible signage around the machine to make it easy for customers to identify.
  • Place ATMs along routes of high foot traffic (e.g., the main walkway of your store, a mall kiosk or near a food court).

How Accessible is Your ATM?

Another factor that can affect your profits is how many hours per day your ATM is accessible. If you have an ATM in your brick-and-mortar store and your hours are 9am-6pm, those are the only hours where you can expect transactions to occur. By contrast, a 24-hour convenience store in a high-traffic location can see 3000 or more ATM transactions per month.

Setting Surcharge Fees

As an ATM owner, you generate revenue from the service charge assigned per transaction, minus any fees you pay for your ATM processing. You get to pick the service charge, but you should be aware of your local area and what customers expect to pay. The average surcharge fee is between $2 and $3 per transaction depending on where you live. Theoretically, if you charge $3, you’re making 1/3 more per transaction than if you charged $2. However, if customers figure out the business across the street charges $2 while you’re charging $3, you’re apt to get fewer transactions per month. Pay attention to the average ATM surcharge fees for the market in your area and price accordingly for the best results.

Demand for Vault Cash

Another factor weighing into your revenues is to what extent a customer uses cash in a specific location. If your business is cash-only, or if you offer a discount for cash sales, you’ll likely see more ATM transactions. If the machine is in a place that sees lots of credit card or Apple Pay sales, you’ll see fewer transactions.

More Than Passive Income: Secondary Revenue Boosts for ATMs

It’s not all about surcharge revenue. Another consideration, and one that might be difficult to measure, is how much the presence of an ATM boosts your other sales. If you have an ATM machine in your bar, for example, 75 percent of your ATM customers will buy drinks with that money. Additionally, people spend about 20 percent more in a convenience store or gas station if they use the ATM first. These profit boosts may be difficult to attribute to your ATM machine directly, but they certainly add to your overall bottom line — especially for a small business.

When you utilize all these factors to your advantage, there’s really no upper limit to how much money you can make owning an ATM machine. AtmMachines.com, LLC offers a wide range of new ATM machines for sale — including Hyosung, Genmega, and Triton ATMs. We can offer excellent advice to business owners on how and where to place them for the best results. To learn more about our ATM processor services and ATM placement program, give us a call at 1-866-295-2329 to learn more.

Putting Together an ATM Business Plan

Every good new business requires a well-written business plan, and an ATM business is no exception. Even though automated teller machines essentially provide passive income through surcharge fees, if you invest in one or more machines without a clear strategy for how you’ll leverage them for income, you could still be wasting your investment dollars. Fortunately, putting together an ATM business plan is a relatively simple endeavor that articulates the value of the business opportunity you’re putting together, and it will go a long way toward helping you stay focused on your goals.

Purpose of Your Business Plan

Regardless of the type of business you have, a business plan is generally written with one of two audiences in mind, and possibly both:

  • Lenders and investors. If you plan to raise capital to start your ATM business, banks and potential investors will want to know what your company is about and how you plan to make money.
  • You and your team (if applicable). Your business plan helps to galvanize your strategy in writing so you can refer back to it, remember your objectives and track your progress.

Basic Elements of a Business Plan

Business plans can follow a number of different structures, but most tend to contain the following elements:

  • Executive Summary: A brief description of your company for the sake of possible investors (think of this as your elevator pitch). The Executive Summary typically includes your business name, mission statement, bio, what you’re selling (in this case, ATM services), projected growth, and current financial assets.
  • Company Description: More details about how the business will be structured (e.g., sole proprietorship, partnership, LLC or corporation), as well as information on the services you’re offering and your target market. (For an ATM business, this would include the number of ATM machines you plan to buy and where you plan to place them.)
  • Market Analysis: Why is this business needed? Who will use your ATM machines and why? What ATM locations will you focus on? Here you’ll outline any research you’ve conducted about ATM use in your area, best strategies for placement in areas with ample foot traffic, advantages you offer business owners over your competition, etc.
  • Management Structure: If you plan to work with a leadership team or a team of ATM operators, describe who they are and what they bring to the table. If it’s just you, a brief bio will suffice.
  • Financial Projections: Detailed documentation of your bank accounts’ financial outlook and projected profit from surcharges and loss over the next several years.

Additional Tips for Creating a Good ATM Business Plan

  • Make Conservative Projections. Don’t inflate your numbers to impress investors—they can usually see through it, and you don’t want to make promises you can’t reasonably keep. Keep your numbers realistic and believable.
  • Use Visuals when Possible. A picture (or graph) is worth a thousand words.
  • Be Professional and Concise. This document may be used to bring lenders or investors on board, but mostly it’s a guiding document to help chart a course for your ATM business. Avoid fluff and sales-pitchiness. Be enthusiastic, but real.

Looking to become an ATM owner or start your own ATM business? AtmMachines.com, LLC can help you navigate the ATM industry and implement many details of your ATM business plan, including new ATM machines, ATM placement, management/placement services and much more. Give us a call at 1-866-295-2329 to discuss how we can work together to build your ATM company.

Starting an ATM Business: 3 Things I Wish I Had Known

When I started AtmMachines.com, LLC in 2006, I had no prior experience with the ATM industry and very little money. We’ve built a successful ATM company in the 14 years since, but most of what I’ve learned about the business has been through experience, trial-and-error, and a few hard knocks. If I can help small business owners just starting out to avoid some of the mistakes I made, then the hard knocks were worth it. When it comes to starting up an ATM business in the United States, here are three things I wish I had known at the beginning.

1. Always Run the Numbers.

Automated teller machines are great for passive income, but that doesn’t mean you don’t need to make sure the math adds up every time you place a machine. When you’re just starting out, you can be easily tempted to place a machine anywhere someone lets you, magically thinking that machine will bring in plenty of surcharge revenue. If this new location has low foot traffic or low visibility, or if the contract makes you give up too much of the surcharge split with the owner of the location, you could spend a lot of time servicing and stocking that machine for very little profit. Always analyze which are the most high traffic areas (convenience stores and gas stations are great locations, but they’re not the only ones!) and carefully review contracts so can properly do the math to make sure your machine will be profitable enough to keep it in that space.

2. Plan Your ATM Machine Route Wisely.

Anytime you have more than one ATM machine in operation, you effectively have a route. You’re going to visit those machines regularly in a particular order to service them and keep them stocked with cash. When choosing locations, ATM owners don’t just need to consider foot traffic and visibility at one location — they also need to consider how ATM locations are situated in relation to each other. It’s a common mistake to space machines too far apart or to place them in businesses with limited hours that restrict the time of day in which you can service them. If you don’t plan your route strategically, you could be working all hours of the day and night just keeping up with the machines, and not generating enough revenue to make it worth all those hours. Consider where you put the machines in relation to each other, and plan your service route to make the most of your time.

3. Make a Plan for Cash Stocking

ATMs run on cash, and one of the most common mistakes new ATM business owners make is not keeping their machines well stocked. An ATM that runs out of money can’t generate revenue, and if it happens more than once, customers will stop coming to the machine. Make sure you have enough access to cash so your machines can keep up with the foot traffic.

The good news is, when you start your ATM business, you don’t have to go it alone like I did. With an ATM provider and ATM placement servicer like ATM National Wholesale, you have the tools and the partner you need to make your new ATM business plan a success and avoid many of the mistakes I made starting out. Give us a call at 1-866-295-2329 to learn more about how to start your own ATM business.