Starting an ATM business?

[redliine]

Before I start my topic I just wanted to say how useful this site is. There is so much info on here and I just wanted to say thanks for having such an informative site.

I was wondering if anyone has considered starting an ATM (or ABM) business. I know that you can partner up with companies like MonexGroup but I was wondering how difficult it would be to persue something like this on your own without giving away your profits to companies like monexgroup.

You would need to buy an ATM ($3-$5,000)
Have money inside the machine
Find a busy location
Get approval for that location from the business or property it is on

There are obviously more steps involved but I am just listing general steps. This is somethign that has always interested me because of the low start up costs (assuming under $10k) and it seems fairly easy to run (no employees).

Some guy is selling a book on ebay on how to startup and run your ATM business but im gonna assume its something stupid - but wondering if you guys had any experience on the subject.

Thanks.

[Newton]

Wouldn't you need a license to provide financial services or something like that?

I'm not sure but anything finance related can be a pretty tricky legal minefield.

[The Stealthy One]

I was looking into this last summer, as it's a lucrative area. I passed after learning about how much I'd have to put up (about $10k) to set everything up - do not forget, you'll have to lease the telecom lines as well! This may be an area I look at again in the future, but right now I just don't know enough about it to offer you any good advice. If you'd like to go ahead, though, and you're able, I say go for it!

[redliine]

Hey guys thanks for the replies.

I actually just purchased that book. It will be emailed so I saved on shipping lol (it was only like $10). The guy had good feedback in regards to his book so what the heck. (btw still waiting for it in my inbox).

He says depending on location, you can have the ATM machine paid off between 6 months and a year. That seems somewhat reasonable. Also depends how much you are charging per transaction I guess.

If you had say 5 machines and were able to generate only 10 transactions per day at $1.50 you could be making over $2,200 / month.

Anyone else have any input on this subject?

[nicangeli]

In the UK here, people practically boycotted the atm's that charged a fee. we now use a system where the store that the atm or the bank that the atm is operated from pay all fees, as an innsentive to shop there.

So, my advice would be not to go into this business,


Nicangeli

[The Stealthy One]

^^ Interesting insight, indeed. I know folks here in the U.S. are ticked off at ATM fees (though I do not know why - creeping communism!). Anyway, that's definitely a big risk I had overlooked, if I ever do choose to pursue this again.

[redliine]

I think the ATM is more of an convenience/emergency type thing. If I have the opportunity to take cash out of my own bank at my bank obviously I will. But if I am out and I am nowhere near my bank, or a place does not take a bank card for a transaction, then the ATM is needed and you pay a small fee. I personally don't find the fee too big of a deal but I can understand how some ppl do. The bottome line is that you are paying for convenience.

I still think it is a good idea but maybe I should look at the trends from overseas. I wonder if I can dig up some ATM statistics over the last 5 years.

EDIT: Here are some statistics from 1996-2003
http://www.atmwarehouse.com/ATMstatistics.htm

[bizman]

I always thought that ATM's would be an interesting business, but obviously there are the associated costs with intial start-up and operating the system. Keep in mind if you are investing 10k and charging $1.50 a transaction you will need 7500 users to generate a profit, and that is before operating expenses. As well, I almost feel like this may be a dying industry in the coming years, consumers are annoyed by fees as mentioned and there has got to be a better way to do this. This brings me to my next point. I always thought it would be awesome to set up an online e-wallet with a debit card that could be used at retail locations worldwide. I know this is done for primarily online industries by companies such as paypal, neteller, click2pay, etc, but there has yet to be one to really catch on with the majority of consumers. Obviously this would require a much larger investment than ATM's and I am just suggesting it as a potential trend for the future. Do some research on smart cards and you will see the immense opportunities they can offer for us as consumers. Anyways sorry for going off topic and if you do decide to proceed with this project please let everyone here now how it goes for you as I am sure we would all be interested to hear.

[Newton]

Aussies are ticked off about fees but the banks keep screwing us over

[MiFES]

I'd gladly use an ATM over driving 5+ minutes to my bank. Fees are an annoyance but nothing to prevent me from using it. One experience I had was pretty irritating but from the standpoint of owner, quite clever.

<rant>
Went to pick up a keg of beer for a holiday party I was throwing. When I got there I noticed sign reading CASH ONLY. Figuring I'd have to pull cash out of the machine, I did not mind. So get to ATM and I notice that the maximum transaction is $150. Now normally we are talking $200-400 however this was not the case. I assume the owner of the ATM got smart and realizing that it was a cash only facility, that they would drop the max output below the total amount used to pay for keg+deposit. Hitting you up with $2 fee each time. So right there he snagged $4 from me.
</rant>

[redliine]

haha that is a clever move, but yea annoying i must say. Usually they are around $400 max withdrawl.

[billking74]

I bought a book atmglobal.net about a year ago. Found it pretty useful then bought a machine and placed it at a local bar. I've done pretty well from it, I just wish it were easier to find more good locations.

[Woodcs82]

Your better off starting a soda/snack vending business. Save yourself the headache..

Check out this thread..

Food Vendor

[askpolly]

Before I start my topic I just wanted to say how useful this site is. There is so much info on here and I just wanted to say thanks for having such an informative site.

I was wondering if anyone has considered starting an ATM (or ABM) business. I know that you can partner up with companies like MonexGroup but I was wondering how difficult it would be to persue something like this on your own without giving away your profits to companies like monexgroup.

You would need to buy an ATM ($3-$5,000)
Have money inside the machine
Find a busy location
Get approval for that location from the business or property it is on

There are obviously more steps involved but I am just listing general steps. This is somethign that has always interested me because of the low start up costs (assuming under $10k) and it seems fairly easy to run (no employees).

Some guy is selling a book on ebay on how to startup and run your ATM business but im gonna assume its something stupid - but wondering if you guys had any experience on the subject.

Thanks.

Hi: Five years later after this post, i truly hope that you can respond to my question. Could you please give me details on the book you bought on ebay (title, name of author etc). I'm interested in pursuing this kind of business in the very near future.

[ibcnet]

I am an experienced businessman and author and have been fortunate to have entered the finance market particularly in the business loan and debit and credit card industry. I have done much research on the subject of ATM businesses and have client who started a successful business. That said I suggest your start with a business plan that outlines the process of building your ATM business from the ground up.

Yes it can cost you if you opt for state of the art machines and enter a franchise. But there is always a way to get around putting out tens of thousands of dollars. Lease machines, start small in a modest location and gradually grow your business. Perhaps setting up at clubs, bars and churches as well as other small groups that take regular donations.

Invest the gains and buy a machine or two. Then cater to larger venues. Download the ATM business plan for more details.
Download Complete ATM Machine Terminal Business Plan