Making The Most Money From Your ATM
Many bars and restaurants have an ATM sitting in the corner that has been there since the beginning of time. An ATM can be a profitable addition to your establishment but like anything, it needs attention!
There are several areas to focus on with ATMs:
- Is your machine consistently full of cash?
- How does the surcharge charged to customer compare with market rates? If a third party fills your machines, what is your commission?
- What extra charges are being passed on by your ISO/processing company?
- Is your machine compliant with all laws and regulations?
Is Your Machine Full?
Many bars and restaurant owners choose to cash fill machines and capture the surcharge. This is a great idea as long as the machine is kept full all the time. We hear stories of owners being gone for the weekend and machines going empty during busy times. An empty ATM machine means customers leave to get cash but may not come back. The lesson learned is lost revenue from a customer that cannot get cash far exceeds the extra few bucks made from surcharge revenue. Recently, our company took over cash filling from a customer. Immediately, transaction volume went up 40% and the customer still made a nice commission. If this sounds like you, consider a third party loading cash and maintaining your ATM.
Surcharges and Commissions
The average surcharge in the metro area is $3.00, with higher numbers in bars and nightclubs. If your surcharge is below this amount, you are leaving money on the table. The customer that does not want to pay a fee will go to their bank before they get to your bar. Most do not even look. Consider raising your surcharge ASAP.
Commissions paid by third parties vary. Make sure you are aware of the correct rate and when you are supposed to be paid. Additionally, a lower commission with someone that takes good care of your machine and keeps it full is better than Uncle Joe’s ATM who can never be reached for service, has 1,000 excuses, but pays a higher commission rate.
Extra Charges
When VISA and MasterCard were capped on what they can charge on debit card transactions, they added fees to ATM processors or ISO’s. Your ISO is the company that sends you monthly statements and handles any issues with your machine. Many ISO’s passed on those fees and the way they charged are complicated and hard to figure out. Take a close look at your statement – how much are you really making after fees? We offer a free evaluation of your statement. Call us at 952-887-5303.
Compliance
The ATM industry always seems to have a new thing to worry about – Triple Des, ADA, stickers. The latest is EMV. As of October 2016, the ATM owner is responsible for any fraud committed through MasterCard. As of October 2017, VISA had similar requirements. Given what happened at Target and other retailers, is it worth the risk not to comply? There are EMV kits available for most machines, although older ones may be better off being upgraded to a brand new ATM machine.
Reputable ATM Company
At Lieberman Companies, our goal is to make you successful in the ATM industry. While some providers have hidden fees or lack consistency in their efforts, Lieberman is proud of our 113-year track record of outstanding service and honesty with our customers. We also have an A+ rating with the BBB. Call us today at 952-887-5303 for more information or simply fill out the form below.