What Are the Benefits of Owning My Own ATM Machine?
When a business owner determines that an ATM machine will benefit his customers, he can either lease the machine from a bank or other provider or own and operate the ATM himself, which can have certain advantages.
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Interchange Revenue
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Each ATM transaction generates an interchange fee that is paid by the credit or debit network to the ATM owner. This fee is usually about 50 cents per transaction.
Surcharge Revenue
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ATMs usually charge the customer a fee for using the machine, known as a surcharge. The ATM owner sets the amount of the surcharge and keeps that money. Be aware that the customer's bank often charges a fee as well and that this fee belongs to the bank.
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Vendor Cost Reduction
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Because ATM owners often use cash from the register to stock their machines, they do not have to borrow additional cash from a bank and pay interest. Also, because ATM owners often take on the responsibility of physically stocking the cash and changing consumable items like receipt paper, they don't need to pay a third party for these services.
Flexibility
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The ATM owner decides what denomination of currency to stock, how high (or low) to set the surcharge, when to restock the machine, where to put it in the store and what kind of signage to post.
Expense Considerations
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Those considering ATM ownership should remember that they will have expenses such as purchase or rental of the machine, purchase of supplies such as receipt paper and the cost of paying a transaction processor.
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References
- Photo Credit atm image by Franc Podgor...¡ek from Fotolia.com
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Comments
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Maggie, I own an operate a Small ATM business and I also sell a course called ATM Business Blueprint where I teach other folks how to create a lifetime of passive income by owning their own ATM machines. I wanted to touch on something in your article that may have a lot of folks very disappointed when it comes to being in the REAL world ATM business. The interchange fee does NOT automatically go to the ATM owner. It generally goes to the ISO/Processor and then SOME of those ISO/Processors will pass along some or all of the interchange fee to the ATM owner. I don't know any that gives all of the interchange fee to the ATM owner. So realistically, an ATM owner can expect anywhere from 0 to maybe.10 or so of interchange fee and that's if they can negotiate it with their ISO/Processor. Some companies want the ATM owner to have a bunch of machines before they will share the interchange fee with them. Also, keep in mind that the interchange fee should not be the reason someone is getting into the business to own their own ATM machines (or for a store owner to get an ATM.) The interchange fee has been dwindling overtime and a lot of industry experts think it will be completely non-existent at some point in the future.
