Are you starting an ATM machine business and are considering the best place to put the ATM machines? If YES, here are the best places to put your ATM machines. Owners of ATMs understand the numerous benefits ATM machines bring. Having a conveniently located ATM doesn’t just help the consumers that use it – it also helps the businesses that provide it.
Have it in mind that when a business lets you place an ATM in its location, it also gains the benefit of being able to keep its customers inside. For customers that come with an ATM card and either don’t have a debit card or are unwilling to use it at a swipe terminal, the only way to complete a transaction is with cash. But with an ATM in their location, the business prevents the customer from leaving and potentially not returning.
Note that the business doesn’t just hold on to the customer, it also increases his average spending level. Moreover, if he is making a withdrawal from an ATM at a business, it is probably to spend money in the same business location.
And when an ATM is in a publicly accessible location like a hotel lobby or a convenience store, it can also generate traffic. When a business has someone come in to use the ATM, it gains the opportunity to convert them into a customer for other goods or services.
Therefore strategically positioning the ATM to draw the customer into the store can increase the success rate of this strategy. Also note that when a customer uses an ATM, it doesn’t cost you or anything. ATMs don’t charge you a swipe fee or a transaction fee – they charge the person withdrawing the money.
If you are an ATM owner or running your own ATM business, choosing the right location(s) for your ATM machine is one of the most important and strategic decisions you will make. ATM fees can be an excellent source of passive income, but ATM machines rely on foot traffic to be profitable. Mounting your machines in the path of people who need cash is key to your success.
What are the Best Places to Put an ATM Machine in 2021?
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Banks, credit unions, and other financial institutions are indeed the first places people reach out to for an ATM. The majority of people who have a checking account or another type of bank account will visit their local bank at all hours to make a cash withdrawal.
Most people will pay for expensive meals at restaurants with a credit card so they don’t have much need for cash. But for more casual places where the check is likely to be a little lower, ATMs will have some use. Certain eateries and restaurants are likely to have a lot of cash transactions. Plus, these locations get plenty of foot traffic even if people don’t need the cash to pay for their meal.
Nightclubs and Bars
Nightclub and bar owners who have an ATM machine available more or less see significant extra income — both from surcharge fees and the fact that customers spend more money in the bar when they have access to cash.
Whether they’re purchasing food or souvenirs, people are going to spend a lot of money when visiting any kind of entertainment venue. Note that aside from all the foot traffic, prices at an arena are often way higher than outside, forcing people to visit the ATM to get more cash. Putting an ATM in an arena also gives you a little more flexibility when it comes to raising the surcharge to use it, which can help you make a little more money.
Hotel guests almost always need cash for various reasons. Placing an on-site ATM is a wonderful way for hotel business owners to generate extra income from transaction fees and encourage guests to spend more money in the hotel itself.
Few businesses get more foot traffic than hotels, and this fact alone makes it the perfect spot for an ATM. Note that individuals who are far from home won’t be able to visit their bank to pick up extra cash, so they’ll visit the nearest ATM, which is likely in the hotel lobby. In fact, larger hotels may even have an ATM on every floor, so there’s definitely a high need for ATMs inside hotels.
Many customers prefer paying cash for groceries rather than using a credit card or debit card. Others like the convenience of grocery stores being a “one-stop-shop” for their needs. Providing an on-site ATM at a grocery store satisfies both needs and improves most store owners’ profit margins.
Gas Station/Convenience Store
Gas stations and convenience stores are among the most common places where people look for ATMs. These two businesses are cut from the same cloth and are filled with people paying with cash, making it ideal for an ATM, if not two. Have it in mind that some gas stations are starting to offer cheaper prices for those paying in cash, which makes an ATM necessary.
Festivals and Events Centers
Also note that in very large events and festivals, attendees are always in need of extra cash. By providing ATM access, you will encourage them to spend more money on vendors while keeping them on the premises longer.
Reports have it that the longer you keep customers in the casino, the more money they spend. Therefore, giving them quick access to more cash is one of the best ways to do this.
The burgeoning legal cannabis industry tends to depend heavily on cash transactions due to banking regulations. Providing an ATM on-site almost ensures increased sales and profits.
ATM machines are known to be quite profitable at bingo halls for the same reasons they work at casinos — they keep customers playing for longer.
Operating an ATM fleet costs time and resources, so it is important to be strategic when selecting where to place your terminal(s). It is imperative to understand the geography of the potential ATM site prior to committing a terminal to a location. Research the market and strategically determine the most lucrative option(s). And, as always, be on the lookout for competition. When a location sees one successful ATM, competitors will follow.
Frequently Asked Questions
Where Are The Best Places To Place An ATM Machine?
- Banks, Credit Unions, and Other Financial Institutions
- Nightclubs and Bars
- Grocery Stores
- Gas Stations
- Festivals and Events
- Cannabis Dispensaries
- Colleges and Universities
- Market Square
What’s The Most Effective Way To Find Locations For Your ATM Business?
The most effective way to find locations for your ATM business is to first carry out market survey and feasibility studies and make sure you locate the ATM in places where financial activities is on the high side; a place where people go to spend money.
What Are The Costs Involved In Opening An ATM Business?
The cost involved in opening an ATM business include the cost of registering the business, the cost of securing the needed licenses and permits, the cost of purchasing and installing ATM machines at different locations, the cost of securing and equipping and office facility, the cost of hiring employees, the initial amount needed to load the ATM machines and of course the cost of transportation and logistics et al.
What Happens During A Typical Day At An ATM Business?
During a typical day at a ATM business, the office is open for the day, the book is checked and open for the day, available cash are counted, ATMs are loaded with cash, the various ATMs are monitored from the office, once cash is exhausted from any ATM they are reloaded. At the end of the working day, accounts are balanced and the office is closed of the day.
Is It Profitable To Own An ATM Machine?
Yes, owning an ATM machine is indeed profitable, but you must be ready to install the ATM machines in the right locations. Trust me, ATMs are very profitable businesses because there is very little to no overhead expenses. You don’t need employees. No store front or rental space is needed, and there is a low start up investment.
Besides, the average ATM in a retail environment does about 6-10 transactions per day. 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.
6. What Is EMV And How Does It Work?
EMV stands for Europay, MasterCard® and Visa® and refers to the increased security of payment card transactions through the use of a chip embedded in credit, debit, and prepaid cards. Chip cards work with payment acceptance devices that are certified to be compliant with EMV chip-and-PIN standards. During a transaction, the customer inserts the payment card into the terminal. The chip and the card reader communicate to authenticate the transaction.
What Are Some Skills And Experiences That Will Help You Build A Successful Atm Business?
- Interpersonal skills, with strong written and oral communication skills.
- Good analytical and numerical skills.
- Accuracy and attention to detail.
- The ability to use initiative.
- Excellent organizational skills.
- Business awareness.
- Creativity and problem-solving skills.
- Teamwork and negotiation skills.
- Project management skills
How Do Banks Decide On The Locations For ATMs?
While the primary criterion that influences banks decisions on the locations for ATMa is potential footfall, other factors such as rent, adequate power supply, connectivity, availability of parking space for customers’ vehicles, security risk profile of the location and nearest cash feeder branch, too, are taken into account.
How Much Does It Cost To Put An ATM In Your Business?
A single ATM will usually cost somewhere between $3,000 and $10,000; however, prices can greatly vary depending on what style of machine you get.
How Do ATM Owners Get Paid?
ATM owners make money off the transaction fees added to the ATM withdrawal. That fee ranges anywhere from $1 up to $8 dollars. The fee often depends on the amount of traffic and demand in the location. The fee is split several ways, with a portion remaining as profit for the ATM owner.
What Other Fees Are Associated With ATM Transactions?
Bank ATM fees can vary from as low as $2.50 per transaction to as high as $5 or more, depending on whether the ATM you use is out-of-network or even international. Banks charge non-customers $1.50 to $3.50 at their ATMs, but non-bank ATM operators often charge more, up to $10 per transaction.
What Are ATM Fees and Why would an ATM transaction Have A Fee?
The standard ATM fee definition is the set of charges customers pay for using ATMs. These fees largely result from out-of-network transactions and excessive withdrawals. A bank considers “in-network” ATMs to be the machines they own and/or the ones owned by a third-party ATM network to which they subscribe.
How Much Does It Cost To Run An ATM Business?
Most customers stock their ATM machines with between $1,000-3,000. Therefore, you can get started with your first ATM machine for about $3,000. There are no franchise fees! You can pay off your ATM machine in the first six months or less, and everything from then on is a profit.
What Are Some Insider Tips For Jump Starting An Atm Business?
- Choose a good location to install your ATMs
- Be deliberate with your marketing sales approach
- Encourage the use of work of mouth to promote your ATM business
- Leverage on all available online and offline platforms to promote your ATM business.
What Is Good ATM Placement?
Good ATM Placement is the difference between a Machine that produces revenue and one that does not. Many business owners enjoy having an automated teller machine on their premises, but they may not want to purchase an atm machine themselves.
Who Fills Money In ATM Machines?
ATMs at banks will be refilled by the bank itself. However, for standalone ATMs, there are a few different options when it comes to the responsibility of refilling the machine. If a business is the outright owner of its ATM, they have the option of refilling the machine on their own.
What Is The Average Fee of An ATM?
It depends because banks charge non-customers $1.50 to $3.50 at their ATMs, but non-bank ATM operators often charge more, up to $10 per transaction. Casinos in Las Vegas, for instance, are notorious for setting high fees on ATM cash withdrawals.
How Much Money Can You Withdraw From An ATM At One Time?
A specific answer to this question will depend on who you bank with. But, generally, ATM cash withdrawal limits can range from $300 to $5,000 per day. Individual banks and credit unions set their own limits. Your personal ATM withdrawal limit also may depend on the type of accounts you have and your banking history.
Is The ATM Business Dying?
For now, I will say that ATM business is not dying, but please note that ATMs and bank branches will be extinct by 2041. This is so because recent research from Expert Market foresees the complete disappearance of all ATMs between 2037 and 2014, while bank branches, at this rate, have just over 22 years left.