This is indeed one business decision you don’t rush into. Although the ATM business is renowned to possess a low barrier to entry, it is something you have to take due consideration before investing your resources.
While it is not a get-rich-quick business, have it in mind that due to certain factors attributed to technology and ease of doing business, it has become a lucrative enterprise to consider.
Automatic teller machines (ATMs) are online banking locations that make it possible for clients to carry out transactions without going physically to a bank branch.
Note that a good proportion of bank operations, such as check deposits, balance transfers, and bill payments, are attainable with certain ATMs, while others are configured to carry out only cash dispensing. Reports have it that there are that there over 2 million ATMs in the world today, helping customers achieve different banking purposes.
ATMs also relieve bank tellers of certain customer service duties, and this in turn helps banks save on payroll expenses. You might want to look into installing an ATM on-site if you operate a bar, grocery store, convenience store, casino, gas station, or cash-only restaurant.
It will help you boost profits, enhance the convenience you offer customers, and lower your credit card processing fees. It is also possible to sell or rent ATMs to businesses looking to use them.
Things to Know When Buying an ATM Machine
If you’re considering obtaining an ATM, below are a few things to take into account before investing.
1. Type of ATM
You have to understand that ATMs come in two primary types. Clients mostly get access to cash withdrawals and account balance updates in basic units.
However, there are also more modern machines that make it possible for clients to carry out other lines of credit payments and transfers, receive deposits, and access account data.
Future ATMs are most definitely going to be full-service machines, either in place of or in addition to conventional bank tellers.
2. Cost of the Machines
The expense associated with purchasing an ATM machine will depend on the sort of machine you intend to purchase and its capabilities. According to reports, a basic ATM machine will cost around $1,000 to $5,000. ATM machines with more modern capabilities can cost around $20,000 or more.
Also have it in mind that there are other expenses that come with setting up and running an ATM business, such as installation, maintenance, and cash supply costs. It is necessary to take into account the features you need as well as your budget when making a purchase decision.
3. Understand The Fees
Just as it was noted above, there are fees that come with the usage of ATMs. Users are charged a fee each time they withdraw cash. Understanding these fees can make it easier for you to predict your income.
4. The Right Supplier
To find very good and durable ATMs, you will want to work with the right supplier. You would want to purchase a unit that is in very good working condition.
ATM processing companies often sell or lease machines for convenience. If you are looking for the most compatibility and support, you might want to go with an ATM processor that can provide the necessary equipment.
5. Where to Put ATM Machines
This is indeed another important factor to consider as it will most often depend on the type of machine you have and the intended use.
On-premise ATMs are usually situated at banks and other financial institutions, while off-premise ATMs are usually mounted in a wide range of locations, such as retail outlets, shopping centers, airports, and other public places.
It is pertinent you take this into account prior to making your purchase. Also consider factors like foot traffic, security, and the cost of installation.
Questions to Ask When Purchasing an ATM Machine
1. Does your company provide both leasing and purchasing options?
It is possible that you don’t have the resources to out rightly purchase the ATM. As such, you might want to consider leasing an ATM rather than purchasing it outright. A good working ATM company will make available both options to ensure that customers leverage any route they find viable.
2. What is included in your ATM purchase or lease options?
The right supplier or processor to work with would be one that makes available a vast array of options and services for customers.
3. What capabilities and security precautions do each of your ATM models offer?
You will what to take utmost precautions when evaluating the security of the ATM you intend to purchase.
4. What is the payment agreement?
A good number of ATM companies reimburse at the end of the month, some for the previous month, and some will pay you within 24-48 hours. Getting clarification regarding when you will be paid will ensure you build the right level of expectation.
5. Who is tasked with the machine repairs and regular maintenance? If you have technicians available for service calls, what hours and days are they available?
You will want to work with a supplier or processor who offers 24/7 service if your ATM has an issue.
6. What other features do your ATMs offer?
There are many other services an ATM can offer and in this modern age, you will want an ATM that offers debit or credit card services, as well as take deposits. Verify from your ATM provider the sort of attributes your ATM comes with and its capabilities.
7. Are your ATMs ADA, EMV, and PCI compliant?
This question is very necessary since you will find ATM providers who don’t mind selling older ATMS just to increase profits. These ATMS may not be compliant with today’s regulations and standards.
8. Have any of your ATMs ever been stolen? What processes and procedures do you possess in the event one of my ATMs is stolen?
ATM security is not something to take lightly. Well-to-do ATM companies will have established plans to handle such issues in case they come up.
9. Are there any hidden fees after the initial investment of buying an ATM? Will additional surcharges be added at the end of the month?
You will want to verify that the ATM company you intend to work with is being upfront with their fees and surcharges.
Conclusion
Automatic teller machines (ATMs) are online banking locations that make it possible for clients to carry out transactions without going physically to a bank branch.
However, prior to purchasing an ATM machine, it is very necessary to take into account factors like the type of machine, features, cost, and location.
Aside from that, there are other expenses that come with setting up and running an ATM business. With the right preparation and knowledge, anyone can start their own ATM business.