Automated teller machines (ATMs) are essential devices that serve as convenient withdrawal and deposit stations for customers who own eligible debit cards. You can find one almost everywhere in large cities, and in travel stops in rural areas. These include convenience stores, gas stations, malls, pubs, and even large conventions — places where people are likely to need some cash.
As a result, depending on its location, an ATM business can be very profitable. If you already own a shop, then setting-up an ATM inside or within its vicinity is an easy way to earn supplementary income. But even if you do not own a store to put a machine in, many prospective places would be happy to work with you, as an ATM can attract a consumer base.
If you are interested in starting an ATM business, here are some things you need to know, from understanding how it can generate income to choosing an ATM repair company to work with long-term.
Generating A Passive Income
ATMs can be very profitable, depending on how strategically you place them. On average, they can earn between $2-$3 per transaction. Depending on the number of transactions your machine can make a day, this venture can earn about $700 a month.
Your start-up fee depends on whether you rent or purchase a new or refurbished ATM, but it can cost anywhere between $1000-$10,000 on average. That means you can start earning an income after the 6th month or so. It is a great way to make a passive income on top of your main job or business.
Routine Maintenance and Repairs
To generate an income from this venture, you need to ensure that it works every day. The average monthly profit of $700 per machine only counts if it is available every day, after all.
There are many ways an ATM can fail from time to time, including a broken card reader or a dysfunctional keypad. These can cause issues for both you and your customers. Therefore, it is crucial to address any signs of breakage as soon as possible. Customers are likely to alert you of any problems with the provided number on your machine, so you can quickly relay concerns to the repair company.
When choosing an ATM repair company, ensure that they can service your machine’s broken parts, which you can find out by letting them know the name of its manufacturer. It is also essential to take preventative measures against any damages in the first place. You can do so by conducting routine maintenance procedures, such as cleaning and checking for any parts that have gotten stuck.
It is vital to choose a reputable repair company, as they can offer lasting business relationships.
Choosing the Right Location
Perhaps one of the most important aspects of starting an ATM business involves choosing the right location. If you already own a store, then adding a machine within the vicinity can help increase your profits, as about 50-80% of cash withdrawn from an ATM within an establishment is used on-site.
Otherwise, choose an area that bustles with the energy of people out-and-about, such as shopping districts or malls. Travel stops such as convenience stores and gas stations are also great options, as there is often a consistent flow of people passing through and may need to make a withdrawal.
An ATM is an excellent source of additional income, but do remember to keep it well-maintained, address any broken parts immediately, and choose an optimal location to maximize your profit.