Do I have to be a bank to own an ATM?
Not anymore. Actually it’s been over 20 years since independent ATM operators have been permitted to place ATMs in retail locations and are not associated with a specific bank. There is still a bank sponsoring the transaction behind the scenes, but the ATM is not specifically branded by a specific bank meaning that all users are charged a surcharge, which is where the revenue is generated from the ATM transaction.
How much does an ATM cost to buy?
ATMs for the independent “retail” ATM business range anywhere from $2200 to $5000 depending on a number of factors. The most common ATM is a standard free standing ATM with a 1000 note cassette which is in the $2400 range. If you have a high volume location, you can upgrade to a 2000 note cassette all the way up to three 2000-note cassettes in the ATM, which is where you’d be on the higher end of the range. There are also wall mounted, through-the-wall atms and transactional kiosks that start in that range and go up from there.
How much does the customer pay to withdraw cash at the ATM?
The transaction fee is called the surcharge, sometimes referred to as a convenience fee. When you own and operate your own ATM, you can decide what to charge for that surcharge. The typical ATM surcharge is in the $2.50 to $3.50 range, but some businesses choose to only charge $1 or $2 and some even choose not to charge any surcharge at all! On the flip side, some ATMs charge much higher surcharges from $5 to even $15!
What is Vault Cash?
We refer to ATM cash loading as the vaulting of the ATM so the Vault Cash is the money in the ATM safe or “vault”. We like to think of $20 bills as inventory. An ATM is similar to a vending machine, but instead of drinks or snacks, the cash is the product being vended from the machine.
Who loads the cash in the ATM?
You can load your own cash in your ATM or you can outsource the cash loading operations a number of ways including contracting with an armored courier service or partnering with a local independent atm company to provide the cash loading on a per transaction fee basis. The amount you’d pay per transaction would vary depending on a number of factors including the location, volume, frequency of the cash loads.
I’m starting an ATM business. Do you help us find locations to place ATMs?
This is a very common question that people ask when researching starting an ATM business or ATM route. My response is “finding the atm location IS the business”. The logistics of who owns the ATM and who operates the atm and the transaction processing are the easy part to figure out. The hard part is finding quality ATM locations to place and operate ATMs. So to answer the question about if we will help find you ATM locations, the answer is we are not an ATM locator service. Depending on where you are in the country, we might occasionally have a lead for you or an opportunity for you to cash load an ATM in your area for us, but if you aren’t able to do the marketing and sales necessary to find ATM locations, this might not be the ideal business for you.
What is EMV and what do I need to do?
Back in 2016 and 2017 as chip cards began to be introduced. Most ATMs manufactured in 2014 and later were EMV ready and we just needed to activate the service. All new atms, of course, are already set up to accept chip cards so you should be fine. If you’re looking at purchasing a used atm older than 2014, it might still need to be upgraded with a new chip-enabled card reader.
Is it safe to own and operate an ATM?
Obviously an ATM is a potential target so you’ll want to take some precautions to protect yourself and your equipment and cash. Most ATMs can be bolted to the floor and there are security enclosures that you can install to deter thieves, but if someone really wants your ATM, they are going to find a way to take it. Some ways we suggest protecting yourself include removing cash each night if that is feasible and loading your ATM often to minimize the amount in your ATM if stolen. Ultimately, if you feel uncomfortable with the risk, choosing a full service ATM placement might be the best solution for you.
How much money do I need to load in the ATM?
This is a very common question and there is no way to answer this question for a new ATM location because we have no idea how much volume the ATM will do. The basic ATM has a 1000-note cassette, which means it can hold up to $20,000 in $20 bills (but you never want to completely fill a cassette because a stuffed cassette can lead to bill jams). If you can load the ATM often, you might want to load it with only $600 to $800, but if you want to only load the ATM twice a month, after a few months
How do I know how much money is in the ATM? When does the ATM need to be loaded?
The ATM processor has a website that you can log into to see transactions in real time and the balance remaining in the machine. There is also a mobile app and we can set up text or email alerts to notify you when the atm cash balance drops below the amount we specify.
How does the ATM communicate?
Current ATMs can communicate through the internet or wirelessly connected to cellular data. The ideal setup would be to connect to the location’s existing internet connection with an ethernet/cat5 cable, but if you don’t have the ability to do that, you can install a cellular/wireless modem which communicates independently. The direct connection to the internet is preferred because there are no additional monthly fees, but a cellular connection is definitely an option for a monthly fee ranging from $9.95 to $19.95 per month.
What are the most common repair needs for an ATM?
The high touch points like the ATM card reader and the ATM pinpad are two of the most common ATM problems that would lead to a repair. Pinpads are usually able to be refurbished and many parts companies offer a program where they will swap a refurbished pinpad for your broken pinpad, which will save you money. At ATM Machine USA, we don’t sell parts, but we can walk you through what you need to order and assist with the repair. Card readers, for example, are simple to replace and we could walk you through it over the phone.
What happens to the money that is dispensed from the ATM?
The processor handles the ATM transaction from the point of verifying that the customer has available funds in their account to the point where the funds are settled back to our account. The funds dispensed to the customer from the ATM is deposited via ACH to the bank account associated with the ATM on the next business day.
Didn’t answer your question? Feel free to call us to ask as many questions as you’d like! We love talking about the ATM industry.