Earn More MoneyOctober 26, 2020November 22, 2020

Want To Earn Money? Try An ATM Business!

There are many business ideas and opportunities that exist. However, many of them are unknown. Take an ATM machine business for example. Everyone knows that they exist but don’t think to make a business out of it. For example, whenever I saw an ATM machine, I assumed that the company placed them there. However, this is not always the case. Often times, people purchase a multitude of ATM machines and place them in businesses. Sounds familiar? It should because this is exactly what people do with vending machines. However, there are some obvious parallels between businesses.

Regardless, they both operate under the same premise. You can purchase either one, place them in a business, and make money. However, each has their respective costs. Therefore, we’ll go through how an ATM machine works, where you can acquire them, and how much money you can potentially earn. This will give anyone who reads this article a better understanding of the business. Furthermore, if you’re looking to start your own business that’s similar to vending machines, this option may be just what you’re looking for.

How Do ATM Machines Work?

ATM machines and the business behind it is relatively simple. You purchase a machine, find a vendor, negotiate terms, and place it there. From there, the ATM is loaded with cash. You can choose the amount of money you want to load in. However, the amount of money you load onto the machine can depend on a few factors. First, if it’s a high traffic area, you’d probably want to load as much money as possible. This reduces the need to constantly refill. Furthermore, it reduces the possibility of the ATM running out of cash. This will cause you to miss out on multiple transactions.

Not all ATM machines are the same. However, Some of the key differences will depend on the rules you set. For example, some machines have a lower limit than others on how much you can take out. You, as the owner, can mold this limit as you see fit. Furthermore, contrary to what many people think, ATM machines aren’t unattended. In fact, more often than not, you will have an app or way of monitoring your ATM machine(s). The app will tell you if anything is wrong with your machine. Furthermore, it’ll inform you when you’re running low. Therefore, you can be more efficient.

How Do You Acquire An ATM Machine?

Acquiring an ATM machine is quite easy. However, there are a few things you need to do before you purchase an ATM machine. First, you need to research the different types of ATM machines, their prices, and where you can put them. For example, you may find an ATM machine for $4,000. However, there are always the possibilities you’ll be able to find an ATM that has the same features for a cheaper price.

Next, you want to find ATM machines that are in good condition. Buying a used machine can be tricky. However, if you know what to look for, you can easily mitigate the risk of buying a broken machine. If you’re worried about purchasing a broken machine, you can google what to look for when buying an ATM machine. That’ll help you stay away from anything thing misleading or negative.

If you’re worried about finding a good vendor, Google will also have your solution. However, we’ll take a look at a few companies that can provide ATM machines and their varying costs.

When it comes to companies that provide ATM machines, you’ll have a few options. A quick Google search brought two immediate results. Capital Funds ATM, and First National ATM. Both of these companies are different in their own respects. However, they both do not outwardly display the price of their machines. If you want to know, you have to call or email. However, companies like First National ATM will allow you to lease an ATM machine instead of purchasing it. This means that companies allow various payment options as appose to outright purchases.

Since we couldn’t find an ATM machine displayed with its outright price, above are some found on local marketplaces. As you can see, they can get quite expensive. However, many people might have expected them to be significantly more expensive. I, for one, thought they’d cost more. However, I found relief when I learned that they’re relatively inexpensive compared to other businesses. Therefore, the barrier to entry will be relatively low.

The hardest part will be finding a good area to place your ATM. However, to do this you can walk into your local convenience stores, and/or small businesses. Ask to speak to the owner and try to negotiate your terms. Of course, you make money off the transaction fees. Therefore, the less money you’re able to give in commissions, the more money you’ll be able to take home at the end of the day.

ATM Machine Earnings And Possibilities

Now, the amount of money you can make from an ATM machine will greatly vary. This depends on the list of factors said before. Namely, the amount you charge as a transaction fee and how high the traffic is in your area. Therefore, let’s run some numbers that should be relatively realistic. Often times you’ll find people saying that you can make $100 per day from one machine. This is most likely false. In reality, your ATM may garner approximately 3 – 7 transactions per day. For the sake of this argument, let’s say that your ATM brings in 5 transactions per day. Furthermore, we can assume that you’ll charge $2.50 per transaction. This means that your machine will be earning $12.50 per day. If we multiply this number by 30, you get $375.

If you want a more anecdotal example, there is a Reddit AMA where the owner of an ATM machine answers any questions that are asked. Here, he answers a few questions pertaining to fees, commissions, problems, and how much he earns.

The picture above displays a multitude of questions and answers from the previously mentioned AMA. Here, you can see that he charges $3 on all his machines. However, he pays anywhere from $.25 to $1 per transaction. Keeping all of this information in mind, it appears that this business owner earns approximately $250 per month from each of his machines. Although this is how much money he makes, the amount you earn can vary. You may earn more or less. Furthermore, the amount in this AMA is in USD. Therefore, if you live in Canada, you can convert the amount to get a better understanding or perspective.

One interesting feature that is discussed is insurance. Many people are afraid that their machines may get damaged, stolen, or vandalized. While these things do happen, insurance exists to help secure you against this risk. An example of this insurance is at atmmarketplace.com. Here, they have insurance for your ATM machines for presumably $10 per month. This insurance will cover your machine for any damages or cash lost up to $10,000 dollars. This is quite a large amount covered. While many people may think that insurances are unnecessary, they will definitely help protect you, even though it may cut into your profits.

ATM businesses can be profitable. However, you have to find a quality machine and a good location. Once you’ve acquired a few machines and locations, you can expect to see a noticeable increase in your monthly income.

Shameed Chris Khan

Shameed is just a man on a mission to help those around him gain financial success. Obsessed with writing about all things finance, this GTA native is constantly learning and sharing his experiences with others.