Last Updated on November 29, 2022 by Mamoona Mushtaq
One of the more popular businesses of this day and age is the ATM business. As banks reduce their budgets for branch maintenance, an increasing number of ATMs are being installed in various places such as supermarkets, train stations, concerts halls, etc. This provides new opportunities to start an ATM company.
So, you want to start an atm business?
First, let me ask you a few questions: do you know how the ATMs work, what your customers will need from you, and how much it’ll cost? If not, I would recommend a quick google search on starting a business. Search something along the lines of ‘how to start a business step by step,’ or ‘what is needed to start a business’ etc, so that there’s no confusion between this article and the articles they quote as the source. This article does not cover specifics such as location requirements, licenses, permits, etc. Just the basics of setting up an ATM business.
A summary list of findings follows below. You can skip results if they don’t interest you and go straight to the corresponding section.
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What is an ATM business?
An atm business is a company that provides machines where people can take out or deposit money, typically referred to as ‘ATMs.’ This business usually operates in high-traffic areas such as grocery stores, shopping malls, and other people’s workplaces. (so they don’t have to travel far if they want to make money out)
An ATM business would be an establishment that uses automated teller machines for customers to withdraw money, usually with a small fee.
How much does it cost?
Regarding the cost of putting up an atm business, this depends on location. However, you may need to spend around $20,000 to start one. This would cover paying for equipment and maintenance costs and legal fees involved in setting up the shop. You may also want to look into hiring employees or temporary staff if your ATM is expected to have extended hours of operation. Allow around $500 additional monthly for training expenses not only will you send new hires out to learn how other ATMs work, but you might also have to teach them how your 6,132 Several factors go into the price of an ATM, including location and expenses.
However, you can expect to pay around $22,000 for a primary machine, this amount includes all equipment costs and legal fees involved in setting up shop. Your monthly expenses may include training new employees or temporary staff members; add about $500 to cover this expense alone.
How do you get started for ATM business?
The first thing you must do is choose a place to set up the ATM. Remember that it all comes down to location, so try and put it somewhere with heavy foot traffic or near an area where people might need money urgently (such as a grocery store).
You’ll also need to acquire permits from local authorities, for this start, download free guide starting an ATM Business. Once you have those documents in order, work with payment processors such as Euro-next Worldwide Inc., Fiserv Inc., and Cardtronics Plc to hook up your machine and test it before opening the store.
Transfer money into your new ATM bank account, draw up business cards and order forms for customers who want to deposit money.
The advantages of starting an ATM business can be summarized in the following points:
- Due to the nature of its services, an ATM company needs little or no investment.
- Many companies are willing to provide all the required hardware for free on a revenue-sharing basis.
- Banks are increasingly installing ATMs outside their branches which ensures that there will be plenty of demand for your services in the future.
- An ATM company is not affected by economic recessions and provides a steady source of income.
- Since most clients prefer cash payments in exchange for goods and services, it is possible to take advantage of credit card fees. This means that you can profit even if card transactions only cover transaction costs and nothing more.
The ATM business has many disadvantages, which include.
- Workforce issues
- Return on investment (ROI) and acquisition costs.
- Staffing is an issue with any business that requires the service of employees. The higher the number of transactions needed to be completed by employees in a given period, the more they will cost an owner per hour.
- People who run ATMs expect it to free them from hiring extra staff members for their company because it would replace their regular cashier’s position or bank teller’s role. However, this can be costly for owners due to transaction fees and other factors. For example, if customers need personal assistance when using the machine, there might be added labor costs.