ATM Placement Company

My goal in business is to have one which makes money while I’m sleeping – a business with a service which makes money without continual attention. An ATM placement company makes money every time someone makes a withdrawal – a portion of the transaction fee and then a portion of the settlement fees between banks as the money is transferred.

ATM machines are placed anywhere people use cash to conduct business: gas stations, grocery stores, coffee shops, restaurants, bars, casinos, malls, outlet stores. An ATM machine dispenses cash for a fee (usually $1-3 per withdrawal). Banks place a lot of ATM machines for their customers and charge a fee to non-customers. Additionally, many companies provide ATM machines at retail outlets and charge a fee to all customers.

There are several options for this business:

  • You can offer “free” placement, sharing the transaction fee (e.g. the $1.50 the machine charges) with the business owner you placed the ATM in.
  • Have them purchase/lease the ATM machine and take a smaller share of the transaction fee
  • Take the settlement fee and pass on the entire transaction fee to the business owner.

All of these options are viable business strategies to pursue when you own an Automated Teller Machine (ATM) Business.

What You Need to Know:

Most ATM companies place ATMs at no cost to retail store or outlet (such as a gas station). The ATM transaction is divided into several fees:

  • A point of cash dispensing fee to the card user (typically $1-3 per withdrawal).
  • A settlement fee that the customer’s bank pays to the “network” which processes the transaction. This fee ranges, but is much smaller than the dispensing fee.

As an ATM network owner, you will contract with a Automated Clearing House (ACH) company which processes the electronic fund transfer from the bank to your bank account. These transactions clear in 2-3 days and the ACH company takes a cut of the settlement fee and provides you a portion of this fee.

This enables you to offer the entire dispensing fee to the retail merchant and make money off of the settlement fee provided by the ACH firm.

Most ATM companies provide these services to the retail merchant:

  • An ATM machine ($2,000-12,000).
  • Free supplies (paper, ink).
  • Free maintenance and repair of the machine.
  • Cash for the machine vault.

The retail merchant provides a telephone line for processing the transaction, though cellular enabled ATM machines are available for out of the way ATM machines. Additionally, the retail merchant provides power and insurance coverage for theft or damage to the ATM machine.

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