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What is the Startup Cost of Opening my ATM business? 

The average cost to purchase a new ATM is between $1,800 and $3,000 dollars. You may purchase a used or refurbished ATM, but you want to ensure that it is Triple DES compliant. We typically suggest purchasing a new machine. This takes the guessing game out of compliancy. A compliant used or refurbished ATM will usually start at $1,000 or more. However, bringing it up to current security compliance regulations can end up costing more than a brand-new machine.

The machines are typically an upfront cash purchase; therefore, the machine is the main start-up cost.  Theoretically, the cost of the ATM would be recovered within 6 months or half a year. However, in an effort to be conservative, assume that it’ll take 2 years to conservatively recoup your investment.

ATM processor setup fees are rarely charged or billed. Most ATM processors will not charge startup fees. They realize they recoup their costs through the life of the contract with the fees they charge per transaction. It is common for ATM processors to require multi-year contracts ranging from 2 to 5 years to ensure they recoup any setup costs.

Cash upfront to fund the ATM machine is necessary. This is a one-time investment. Every dollar that is withdrawn will be returned to you straight from the customer’s bank account. View this as a deposit. You do not lose these dollars. This money is literally working for you. Additionally, you can and should insure the money you deposit into the ATM to protect against the possibility of theft and loss.

Other than the machine itself, the other potential expenses are: any tools needed to install the machine if you do it yourself, service fee if you hire someone to install, and any gas or travel expenses to meet potential venue owners that would allow you to place your ATM. Remember this is a business and these expenses will be used as a business expense and important for tax write-offs so keep excellent records.

A benefit to starting an ATM business is that you can grow you new venture as slowly or quickly as you like. Obviously, the more start-up funds you have the more ATM machines you can purchase up front. This will lead to a higher monthly income as you have more machines out there for use. It may take a year or two to grow your business to develop a higher than average monthly income. Anyone hoping to get rich quick on the ATM business may be disappointed. However, if you have money to put towards the initial investment it may be a lucrative side hustle that turns into the main hustle. Cultivate and nurture something and it may grow to be you cash cow!