The basics of ATM business revenue model

ATM business is profitable and you need minimum guts to invest on it. Still many house owners think otherwise. The reason is, how does ATM machine work is still a mystery to many of them.

Yes, there is no magic. It is very much similar to vending business with only one difference that vending machine dispenses cash and deals with the banking regulations.

ATM business is straight forward. This post will disclose the revenue model of this ATM business.

• First, you need to have a good ATM machine from the best ATM Company
• A good location is essential. Let it be anywhere like retail store, restaurant, parking lot, condo complex, office building, hospital, medical building, airport etc.
• You need to refill the ATM with cash. A location manager or an armored car company can do it for you
• A reputable ATM company is the must. They must provide you all technical support. The company will have contracts with ATM processor, sponsoring bank etc. They can move your money between banks, arrange statements and do online reporting.
• If load cash yourself, you need a bank account
• The final step is your income from the whole process. Customers will pay a surcharge fees for using the ATM service. Then the network fees that banks pay to the ATM network and processor. You will get a commission of the network fees.

If all these steps seem interesting to you, the next step is to identify whether your ATM Company is good enough to make things simple for you. Many ATM companies will try to make you realize that the process is really complicated, which is not. They will claim to sell you locations or help you find ATM spots. Don’t just blindly go by them, Listen to your gut feeling and decide of your own.

ATM business functions much similar to credit card processing deals. ATM charges the cardholder a convenience fee which you the ATM owner will fix up. You will receive most or all of these fees and also interchange fees depending on the contract you have signed with the ATM company.  Interchange money is the amount that bank pays to ATM networks for connecting card holder to the bank. 100% surcharge and $.15 of the interchange – these are the portions that come into your share.

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