Regardless of the business that you run, as an owner, you need to always be on the lookout for ways to increase your company’s profits. Many companies seek out automated teller machines (ATMs) to bring in a secondary or passive income. Installing an ATM in your business has the potential to draw in more customers, but it’s essential that you understand how it works.
Types of Businesses That Make the Most from an ATM
While it is possible to have an ATM in the majority of businesses, it doesn’t make sense to include them in all. Brick-and-mortar companies tend to attract more customers and earn more of a profit. These businesses include:
- Grocery and convenience stores
- Gas stations
- Restaurants, cafes, bars and nightclubs
- Retail stores
- Banks and credit unions
Making Money with ATM Machines
When using an ATM, especially at brick-and-mortar stores, there is typically a fee that’s associated with withdrawing the money. That fee is where the business makes their passive income. Primarily, they earn a commission each time the machine gets used.
There is more to it than just earning a commission. The owners of the business where the ATM is located usually don’t receive the entire amount that gets charged. If the ATM is rented by a company that installs it, fills it with money, and repairs it, they receive a portion of the machine’s surcharge. The amount of surcharge percentage varies between company to company.
Recently, some businesses have been including advertisements on top of the ATMs and selling them to run on the machine. This option provides business owners with the chance to earn more money.
Automated Teller Machine Expenses
Whether you rent or own your ATM, there are fees associated with running them. However, you do earn a higher commission on each transaction when you own and operate the machine yourself.
- Purchasing ATMs: Depending on whether or not you buy a used ATM or a new one, it can cost you anywhere from $1,000 to $10,000. While purchasing a used ATM is less expensive, they typically look older, aren’t equipped with updated software, and run slower. They can also appear untrustworthy to your clientele which can prevent you from gaining more customers.
- Owning ATM Expenses: When purchasing an ATM, you come into other fees because you do need to maintain the machine and load the ATM with cash from your own business. That does reduce the cost of having to use a third party, but it can also cost valuable time to ensure it’s loaded. Owning your own ATM can bring in an additional $20,000 or more with as few as 30 transactions.
- Types of ATMs: The kind of ATM that you decide to put in your business is going to determine other costs. Freestanding models are more common than countertop models, so they are generally less expensive than those with the newest technology.
- Full-Service Programs: If purchasing your own ATM isn’t for you, there are multiple full-service programs that you can look into. When using a full-service program, the company maintains and loads the cash. The most significant cost that you are going to encounter is the fee associated with renting the machine from the retailer and paying them a small commission fee.
The amount of money that you earn from your ATM is going to depend significantly on the type of business that you own, as well as the location. It’s always suggested that you install the machine somewhere visible, and even use a sign that lets your customers know that there is an ATM on the premises. If you are looking for a secondary income, an ATM might be the perfect solution. Keep in mind that you need to do your research and ask questions before making a final purchasing decision. Anything that involves cash needs to get investigated and updated thoroughly.