How to Start an ATM Machine Business
Starting an ATM business is an easy way to earn "passive income." This means that after you set up the business and put all the pieces in place, the business basically runs itself, and you earn money without much effort. It's an easy way to earn a guaranteed, fixed profit on each transaction, with no need to stock inventory or hire employees.
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Instructions
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1
Brainstorm locations where you can place an ATM machine that will generate the most profit for you, such as arcades, movie theaters, bowling alleys and convenience stores. Think of places that attract a lot of people who need money on the spot. Write a list of these places.
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2
Acquire theft insurance in case someone steals your ATM machine. Be sure to take a policy that will cover the maximum amount of money your ATM machine can hold.
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3
Decide on the access fee you will charge each person who uses your ATM machine. This fee usually ranges from $1-4 for each transaction.
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4
Select an independent sales organization (ISO) to process your machine's transactions. Search online to get a list of ISO's, then choose one.
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5
Choose who will stock the ATM with cash. You can do this yourself with your own cash, or borrow cash to replenish your machine. Apply for a loan at your bank if you need to borrow the money to stock your ATM machine.
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6
Buy an ATM machine. A new machine with good security features costs between $3,500 and $6,000. Lease a machine for about $70-110 per month if you don't have the capital to invest in buying one. Ask the company which sells or leases you the machine to install it. They also can teach you and the business owner at the location how to use it.
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Hire a security guard if it is required for your insurance coverage. You also can install a cash-recording device in the machine to know how much cash is in it at any given time, especially in the event of a robbery.
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8
Contact the managers or owners of the locations you listed in Step 1. Ask if they are interested in having an ATM in their store or business. Give the business owner a sales pitch, telling him that 30 percent of money withdrawn from an ATM is spent in the store. Emphasize that an ATM machine offers a tremendous service to his customers. Let him know that the ATM will bring in new customers, since people come in to use the machine and end up spending money in his store.
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9
Prepare a contract to sign with the business owners who agree to put your ATM machine in their location. Include the length of time the ATM will operate in that business, who is responsible for any damages to the machine, and all technical information, such as who the owner should contact if there's a problem with the machine.
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Tips & Warnings
When thinking of new locations to put your ATM machines, think of the type of places where the longer people stay there, the more money they want to spend. For example, bars and clubs are good locations for ATM machines.
Place a sticker with your customer service phone number on the ATM machine in a visible place so a client can call you if there is a problem with the machine.
References
- Photo Credit atm keypad image by Alison Grippo from Fotolia.com
