This article was co-authored by wikiHow staff writer, Dan Hickey. Dan Hickey is a Writer and Humorist based in Chicago, Illinois. He has published pieces on a variety of online satire sites and has been a member of the wikiHow team since 2022. A former teaching artist at a community music school, Dan enjoys helping people learn new skills they never thought they could master. He graduated with a BM in Clarinet Performance from DePauw University in 2015 and an MM from DePaul University in 2017.
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Owning an ATM is a great way to earn passive income, but how do you go about buying one? Once you’ve determined an ATM is the right investment for you and established what your profit goals are, there are a ton of viable options for machines, retailers, and services that make owning and operating an ATM a breeze. We’ve put together a thorough guide to buying an ATM, including a breakdown of costs and profits, what features to look for in machines and services, and tips on expanding your ATM business. If you’re ready to start raking in the dough, read on!
Things You Should Know
- Purchasing an ATM is a high cost upfront that pays for itself over time. Leasing an ATM is less expensive upfront but brings in smaller profits.
- Purchase a machine that meets your needs from a reputable retailer. You’ll also need insurance, a business checking account, and an ATM processor.
- Register your ATM as a business entity and invest in branding if you wish to expand into a multi-ATM business.
Steps
Buying Your First ATM
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1Buy a machine from a reputable local retailer that fits your needs. Consider a company’s location, reputation, and product offerings. Choose a retailer that’s based or has personnel in your geographic area and can get to you quickly for repairs. Look at their Better Business Bureau rating and ask others in your field whether they’d recommend that company or not.[9]
- Select a company that offers insurance and a simple, fair agreement or contract in addition to fair pricing and competitive features.
- Some prominent ATM sellers include ATM Money Machine, ATM Brokerage, Mobile Money, and ATM Mega Store.[10]
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2Install your ATM in a high-traffic location to get the most transactions. If you’re purchasing a machine for your business, place it near an entryway, cash register, or restroom to grab attention. If you’re purchasing an ATM independently, negotiate a contract with a convenience store or drug store location (these are the most popular spots for ATMs).[11]
- Other popular locations could be gas stations, clubs and bars, hotels, office buildings, and cash-only businesses.
- Consider wiring needs, accessibility, outlets, and door clearance when choosing the exact spot where your ATM will stand.
- Test your location for 3 months and relocate the ATM if its performance is low.
- If you’re placing an ATM at another business, be upfront about your intentions and keep your initial contract flexible in case the location isn’t profitable.
- Most ATM retailers will install the ATM for you (for free or for a cost, depending on your agreement). Self-installation isn't recommended unless you have training as an ATM technician.
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3Connect your machine to an ATM processor. Processors facilitate transactions between the ATM and payment networks. Some also provide other services like repairs, software updates, and cash refills. Consider pricing, support, and services offered before settling on a processor. Choose a full-service processor that offers installation, maintenance, and refills if you prefer a one-stop-shop for all your ATM needs.[12]
- Some processors take a cut of your surcharge fees for their services, while others do not.
- Reputable ATM processors include Prineta, ATMs America, ATM Depot, and Cord Financial.
- Payment networks are associations of member banks that facilitate transactions between merchants and issuers (for example, VISA, Mastercard, or NYCE).
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4Open a business checking account to receive the surcharge fees. Opening an account for an ATM business is a rigorous process—independent ATM ownership is viewed as a possible risk for money laundering, so prepare to be highly scrutinized by the bank you apply to. Consult a legal advisor about federal, state, and local regulations surrounding ATM ownership, such as the federal Regulation E or the Bank Secrecy Act.[13]
- The Bank Secrecy Act (BSA) requires banks to monitor your ATM account activity to identify and halt suspected money laundering acts.
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5Get ATM insurance to protect your expensive equipment and cash. ATM insurance covers damage to the machine and loss of the cash inside due to theft, malfunctions, and other causes. Reach out to companies directly for pricing, since few list their rates on their websites.[14]
- Some prominent ATM insurance providers include American Special Risk, Marshall & Sterling, and Marsh.
- Additionally, consider general liability coverage for your ATM. It runs up to $700 per year for $1 million in coverage.
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6Update your business listing or website to show you host an ATM. Mention your ATM on your website and edit your Google Business Profile to take advantage of searches like “ATM near me.” With an up-to-date listing, you can potentially increase traffic to your ATM (and raise your profits).[15]
Expanding Your ATM Business
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1Form a legal business entity and brand. Decide on a name for your business—you can use your own name or create an original one. Then register your business name and entity with your state to ensure you follow the proper legal and tax obligations of an ATM business. Consult a legal expert for assistance, especially if you’re forming a corporation or starting an LLC.[16]
- Invest in an original logo and website to identify your business. Branding will help third party businesses recognize and reach out to you to install machines at their locations.
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2Purchase additional machines to grow your business. Buy machines one by one to gradually expand, or purchase an existing network of ATMs (a route). Research routes with good locations that turn a profit—online business listings will provide the price, income, and other metrics to help you determine whether you want to make the purchase or not.[17]
- Some platforms offering ATM routes for sale include Bizbuysell, Dealstream, ATM Brokerage, and Vending Connection.
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3Hire a cash refill company to load up your machines for you. Refilling the ATM is the most labor-intensive aspect of ownership—servicing 1 or 2 machines in safe locations is not very draining, but if you expand your business, it will become a harder task. Thankfully there are plenty of companies that will do this for you, from ATM processors or retailers to armored truck services.[18]
- Most independent ATM operators refill their machine once a week. The frequency depends on the machine’s capacity and the number of withdrawals.
- Hiring a refill service also eliminates the safety risk that’s posed when you’re transporting large quantities of cash yourself.
- The cost depends on your purchase or leasing agreement, but often outweighs the burden of doing it yourself.
References
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://bizfluent.com/about-5635466-profitable-atm-machine-.html
- ↑ https://www.costowl.com/b2b/atm-machines/atm-machine-cost/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://smallbiztrends.com/2019/05/how-to-get-an-atm.html
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/
- ↑ https://roadlesstraveledfinance.com/atms-as-passive-income/