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Why an ATM Business?

Everyone is looking for a way to generate passive income. This leads to people chasing the (something here) What this teaches us is that there is no truly passive income business venture. Everything that is successful takes work.

More than likely, you have seen automated teller machines (ATMs) everywhere but have you ever thought about the entrepreneur behind the machine? There is an entire industry built around ATM machines. The convenience fees that the person pays average from $1-$8. What does this mean for the earning potential of the ATM owner.

How much will you make with ATM fees? 

ATM fees are split between the main players in the ATM ecosystem. The three main players in every ATM business are the ATM owner, the venue owner and the ATM processor. The ATM owner purchases the machine and places it in a specific place. The venue owner is the person you’ve negotiated with to place your ATM machine. Lastly, the ATM processor is the company that handles the processing, which allows the ATM to function. These three parties share the convenience fee that everyone pays.  

ATM processor contracts will typically provide terms in the form of a “surcharge rebate of X% and a fee between $0.10 to $0.50 per transaction.” What does this mean? A surcharge is the “ATM fee” you charge to use your ATM to withdraw cash. The surcharge rebate is the ATM processor referring to how much of your “ATM fee” is returned to you. You should expect a 100% surcharge rebate or a full return of your ATM fees charged. ATM processors may attempt to eat into your profits by providing a percentage less than 100% or by adding “network accessing fees.” These fees can range from $0.10-$0.75.

The amount the venue owner receives is based on negotiation so the cost for each transaction may vary considerably. If the venue is highly desirable and has heavy foot traffic, you may be willing to offer up to 50% of the ATM fee or surcharge fee because it would generate a significant amount of fees. With all of that being said, the typical fee share is $0.50 per transaction.