Are ATM Machines Profitable?
Is it Worth it to Get an ATM in Your Business?
Thinking about buying or placing an ATM at your site? The biggest question most people have is, “Are ATM Machines Profitable?” In most cases, the answer is always “Yes!” However, there are a few key questions to consider:
- Should I own an ATM machine or consider ATM placement?
- Is there a demand for an ATM in the store or business?
- Is there enough foot traffic within the business?
- How much of your business is cash vs. credit/debit?
ATM Income Potential When Owning an ATM Machine
One of the benefits of owning an ATM is that you are able to keep 100% (less ISO fees) of the ATM surcharge fees. Currently, the average surcharge fee for an ATM is $3.00, with some specialized or high-demand locations (think casinos, public festivals with ATMs on site, concert venues, sporting arenas, etc.) charging even more.
It is estimated that nearly one-third of U.S. consumers use an ATM once per week. The average ATM in a retail environment does about 6-10 transactions per day. So let’s say you net $2.50 (after ISO fees) per ATM transaction. At 6-10 transactions per day, that is a daily gross profit of $15-$25 per day. Therefore, the income potential of one ATM machine in a retail business could be around $450-$750 per month. (This assuming, of course, the business is open and the ATM is accessible 7 days per week.) At that rate, an ATM will pay back in 6 months or less.
You will want to research what the ATM surcharges in your area average. Smaller, more rural towns may have surcharge fees on the lower end of the average, whereas larger cities and suburbs may tend to lean towards the higher end of the average, if not above. Remember, ATM machines are about convenience and consumers will pay the fee within reason. Therefore, do not sell yourself short by charging too low of a surcharge fee.
The profitability of owning your ATM depends on these variables:
- Location and visibility of the ATM
- Number of days your business is open per year
- Average number of customers per day
- Whether or not you accept other forms of payment besides cash
- Surcharge fee
When to Consider ATM Placement
Your location may be great for an ATM but maybe you don’t feel like dealing with another piece of equipment or do not have the cash to invest. In this case, Lieberman Companies can find you a qualified ATM operator to place the ATM. The company will own the ATM, load it with cash, and handle any repairs. Sometimes you may make a commission as well.
Most importantly, you and your customers still have all the advantages of an ATM on site:
- Immediate access to cash (80% of cash withdrawn from ATMs are spent on the premises).
- Reduce credit card fees – no charges to you and you may even make a commission.
- Customers do not have to leave to get cash. Often times, if the customer leaves, they will not return.
Start an ATM Business – How Much Profit?
If you are not a business owner but are looking to start an ATM business, what kind of profits can you expect? To get started in the ATM business, you will need approximately $5,000 to purchase an ATM machine and load it with cash. As mentioned above, in a retail establishment with good foot traffic, income potential of one ATM could be as high as over $700/mo. However, not all of your ATMs might be placed in areas such as these, which could mean higher or lower net profits per month.
When deciding where to place your ATM machines, be mindful not place your ATM machines too far from “home base” or far away from each other. The farther you have to travel, the more you will incur in service costs and your time. It is better to have a close knit area, especially when starting out.
Also, be sure to set up agreements/contracts with your merchants (businesses where you place your ATMs) and don’t sell yourself short on the surcharge fees and what you plan to pay in commissions to the merchants. You may be able to negotiate a slightly higher surcharge fee (again, check area averages), still pay a commission, and be able to net a decent amount.
And also, if looking to start your own ATM business, a great way to save some upfront money so that the net profits of the ATM business are realized sooner is to start with buying a few quality used ATM machines. Lieberman Companies offers deals on both new and used ATM machines, and our friendly, knowledgeable staff will be more than happy to answer any questions you may have.
Make Money with ATM Machines
Whether you are a business owner looking for additional revenue or convenience for your customers (remember, cash withdrawn from an ATM in a retail business is usually spent at that establishment) or looking to start your own ATM business, we can help.
Lieberman Companies is a 4th generation family-owned business with an A+ rating from the BBB (their highest). We sell, service, and process ATM machines to several different location types including retail stores, dispensaries, bars, hotels, barber shops, nail salons, bowling alleys, tattoo shops, and more. Our ATMs are competitively priced and come equipped with all the latest upgrades.
Learn how to make money with ATMs today. Contact us at 952-887-5303 or simply fill out the form below to get started.