Step-by-Step Guide to Start an ATM Business

1. Secure the Capital

Most people who want to start an ATM business want to know how much capital they need. The answer varies, but it’s a very inexpensive business to get into. 

With an ATM business, you need no employees or a storefront, so startup costs are lower. An ATM machine costs a few thousand dollars new, and buying used machines is even more affordable.

Then, stock your ATM with as little as $500 or as much as $16,000 or more. There are no ongoing franchise fees, so you can buy outright or pay off your machine and keep everything from then on as profit. There’s no minimum purchase required, so you can start with a single machine — or as many as you’d like — and build your business from there!

2. Find the Right Location

The first and most important step when launching an ATM business is finding a great location. Many people ask if they have to own the business to place an ATM there. You do not! All you have to do is approach the business owner and see if they’re interested in having an ATM.

You can help persuade them by sharing some reasons why installing a machine in their business benefits them:

• Save thousands by reducing credit card processing fees: Credit card processing fees for businesses average between 1.5% and 3.5%. Add PCI compliance fees and per-transaction costs, and expenses mount. An ATM encourages more cash use, reducing fees and saving business owners thousands each year.
• Boost customer spending: Businesses with ATMs often see higher average transaction values and more impulse buys, as consumers with cash in hand frequently spend more.
• Attract more customers and increase foot traffic: An on-premise ATM draws people to the business, increasing foot traffic and the potential for additional purchases. Strategic placement can also capture attention to turn passersby into new customers who may otherwise not have entered.

They have no responsibility for the ATM, yet they reap all of the advantages!

Many people ask what type of location will do well. There’s no concrete answer, but foot traffic is the main aspect to assess when considering a location. An average of 4-6% of people walking through the door each day will use the machine. So, if there are 100 people coming in, that machine will average five uses a day.

We recommend finding a business that averages 200-plus people a day, which translates into an average of 300 transactions monthly — and you keep 100% of the surcharge income, less any commission agreements you make with the owner.

3. Negotiate the Location Owner’s Commission

When placing an ATM in a business, be aware that some owners expect to capture part of the surcharge from you. You have some room to negotiate the lowest possible rate, since the business owner benefits from more cash being spent and lower credit card costs. Other business owners may simply want the machine there without any commission.

If an owner expects a commission, we recommend paying on a sliding scale based on monthly transaction volume. For example, you can offer:

• $0.25 for up to 200 transactions
• $0.45 for 201 to 400 transactions
• $0.50 for 401 to 700 transactions
• $0.75 for 701 transactions or more

This way, you’re protected regardless of how many transactions the ATM does.

4. Research ATM Connection Options at the Location

All ATMs must connect to the processing server, and there are different connectivity options. 

Most businesses have internet that the machines can connect to, saving you any monthly fees. You will need an Ethernet jack close to the machine or an open port on the modem with the cable line run to the machine’s location. Phone lines are another option if there’s a jack within 3 feet of the ATM.

If a phone line or internet connection isn’t available, you can purchase a wireless router that creates its own wireless internet. All three options work the same. The phone line or internet line must be run before scheduling installation, as the ATM technicians do not run lines.

5. Complete and Submit All Required Paperwork

Once you have your location and are ready to purchase your machine, there is some paperwork to complete and submit. The documents establish your unique merchant ID, which allows you to access the processing server. We also need a copy of a voided check for the account you want to use for your deposits.

After you’re in the processing network, you can own as many machines as you’d like! Just call us with details about the new location, and we’ll forward the required paperwork with completion instructions.

6. Work With ATM Money Machine to Find and Purchase Your Ideal ATM

Once you have completed the first five steps, you’re ready to get an ATM machine. You must have your location before purchasing the machine, and the lease option does not apply when you are starting an ATM business.

There are numerous different machine options, with varying aesthetics, including stand-alone ATMs and countertop or wall-mount models from Genmega. We recommend choosing the machine that will best fit in with the business where you’re installing it. Typically, a stand-alone machine is the ideal choice.

At ATM Money Machine, we carry all the major brands and can suggest a good fit for a specific installation site. Choosing the same manufacturer for all your locations will make things easier for you — browse our options online or call for an email with brochures and pricing.

7. Install Your Machine

We offer plug-and-play ATMs to make installation fast and easy for you. Your machine arrives preprogrammed and ready to start earning on arrival — just follow the instructions and videos in the step-by-step guide included with every purchase. Our technicians are available via video call for free if you need help troubleshooting.

Prefer professional installation instead? If available in your area, we’ll provide a local service technician who will program, install, and train you on how to work your new ATM machine, including how to stock it with cash and replace receipt paper. The technician also programs the ATM with all your banking information, plus helps you customize screen displays, receipts, and surcharges.

Professional installation and training typically take 1-3 hours, and pricing will vary depending on the location of the business.

8. Stock the Machine With Cash

Many people want to know how much to stock the machine with, and there is no single correct answer. Most machines hold between $16,000-$20,000 in 20-dollar bills. However, most people don’t put nearly this much into the machine. We usually suggest a minimum of $1,000. The more money you put in the machine, the less you have to go back to refill it.

How the cash works is that as it’s taken out of the machine, it’s automatically wired back into the bank account you set up with our company. If it’s taken out before 3 p.m., it will post the following morning — after 3 p.m., it’s the second business day. So cash is always cycling through. Therefore, the less you stock the machine with, the more often you’ll have to take that cash back out of your bank account to restock the machine.

We set you up with a website where you can monitor the machine, so you can track how much cash is left to ensure that you never let your machine run out.

9. Monitor Transaction Activity

Once the machine is up and running, next comes the easy part! You can sit back, relax, and monitor your machine from home. When the machine gets low, simply restock it. You can also monitor your surcharge from your website, so you know how much you are making off of your machine! Your next step is keeping your eye out for a new location, so you can build your business up even more!

FAQs About Owning and Operating an ATM Business

What Are Some Good Questions to Ask About Starting an ATM Business?

• What are the key benefits of starting an ATM business?
• Do I need prior experience in the finance industry to start an ATM business?
• How much capital do I need to start an ATM business?
• What are the typical operating costs associated with running ATMs?
• How do I choose the right locations for my ATMs?
• What are the legal and regulatory requirements for operating ATMs?
• What are the risks and challenges involved in the ATM business?
• Can I operate ATMs in multiple cities or states?
• What is the average revenue potential for an ATM machine?
• How can I ensure the security of my ATMs and cash holdings?
• Are there any recommended resources or organizations for ATM business owners?

Results related to your ATM may vary.

What Are the Benefits of Owning an ATM Business?

There are many advantages to starting or buying an ATM business:

• Smart and low-risk investment: Unlike many riskier ventures with high startup and operational costs, the ATM business offers an affordable way to generate passive income.
• Adaptable to your schedule: You can own an ATM business while still working part-time or full-time, since it requires so little time. Plus, you can manage your ATM business from home, and you may only have to go to the machine once or twice a month, depending on usage and the amount of money you stock.
• Fast return on investment: You can pay back your investment in the ATM in less than six months, since every transaction earns you surcharge revenue and creates consistent cash flow.
• Easily scalable business model: Once you understand the ATM business, expanding your portfolio with more machines is fast and easy!
• Long-term passive revenue stream: Machines can last seven years or more, allowing you to build long-term passive income potential.

With ATM Money Machine’s support, you can learn how to start an ATM business with ease using our step-by-step guide. 

What Are the Common Mistakes to Avoid When Starting an ATM Business?

Some common mistakes when starting an ATM business include: 

• Not choosing a busy, high-traffic location
• Underestimating the capital needed for initial setup and cash loading
• Jumping into an ATM business for sale without proper guidance
• Missing out on critical tools and support

Partnering with a reliable provider like ATM Money Machine ensures you have the resources and expert advice needed to avoid costly errors and achieve long-term success. With the right strategy and support, you can maximize your profits and grow your business effectively.

What Should I Consider When Buying an Existing ATM Business?

When evaluating an ATM business for sale, there are key factors to keep in mind:

• Assess the locations of the machines—high-traffic areas are essential for maximizing transaction volume. 
• Review the financial history, including surcharge revenue and operational costs, to ensure profitability. 
• Confirm that the machines are compliant with the latest technology and security standards. 
• Consider the level of support offered by the seller, such as contracts or maintenance agreements. 

Working with a trusted provider like ATM Money Machine ensures you’re set up for success when purchasing an ATM business.

What Is the Cost to Start an ATM Business?

The cost to start an ATM business is surprisingly low compared to other ventures. Initial expenses typically include purchasing the ATM, stocking it with cash, and minor operational costs such as maintenance and internet connectivity. With no need for large overheads like rent or employees, the startup costs are minimal, and the earning potential is significant.

Choosing high-traffic locations is key to maximizing returns. ATM Money Machine offers affordable solutions and expert guidance to help you launch successfully. Start your journey today and enjoy the benefits of this lucrative business opportunity!

Is an ATM Business Right for Me?

An ATM business can be a highly profitable and low-risk venture, especially for those seeking a passive income stream. If you’re considering the cost to start an ATM business, you’ll find it relatively affordable compared to other opportunities. It offers flexibility and the potential for steady revenue, making it an appealing choice for entrepreneurs.

Whether you decide to buy an ATM business or start from scratch, the key to success lies in choosing prime locations and proper management. With the right tools and guidance, this could be the ideal business opportunity for you.

Why Partner With ATM Money Machine to Launch My ATM Business?

With almost 30 years of industry experience and expertise, we’re a leading ATM partner uniquely qualified to support your new business venture every step of the way. When you work with us, you get:

• Access to our proven program for starting an ATM portfolio, including sample contracts to present to business owners for installation and marketing tools to help you grow.
• Technical support from our people, not call centers, whether it’s troubleshooting over the phone or on-site ATM installation, maintenance, and repair.
• Expert in-house processing with no hidden fees, and you keep 100% of your transaction income.
• Digital tools to monitor your volumes, cash levels, and ATM health.
• Nationwide reach to support installations and machine upkeep across the country.
• Exceptional customer service throughout your ownership, no matter how many machines make up your portfolio.

Start strong today and scale with us tomorrow!

Unleash Your Earning Potential With ATM Money Machine

Let’s get started launching your ATM business together! Download the step-by-step guide, connect with us online, or call us at 609-641-7300 to discuss your needs and goals with our experts.