By Zach Lazzari Updated August 19, 2018
ATM machines offer a low maintenance, semi-passive income for a business. The machines are ideal as a side business, and they also have the potential for full-time business opportunities. ATM owners make money off the transaction fees added to the ATM withdrawal. Each time a customer makes a withdrawal from the ATM, the customer agrees to a predetermined fee for the service; the customer is then charged for this amount, either at the time or as an item on the customer's bank statement. That fee ranges anywhere from $1 up to $8 dollars. The fee often depends on the amount of traffic and demand in the location. The fee is split several ways, with a portion remaining as profit for the ATM owner.
Capital and Startup Requirements
The ATM itself has a high initial startup cost. Buying an ATM machine that's used is an option for cost reduction, but new machines are compatible with the latest technology, and they often come with several years of warranty against defective parts. Expect to pay anywhere from $2,000 dollars to $8,000 dollars for the ATM itself. You will need to learn how the ATM works, keep it stocked with bills and maintain the machine. It only provides income when it's functioning and delivering cash to customers. You will also need several thousand dollars of cash on hand for each ATM to keep it loaded on a weekly basis.
Operating Requirements and Business Model
The ATM business model is simple and works on a split between the ATM owner, the processor and the vendor location. The processor or bank, charges a fee for each transaction. The fee varies significantly by institution and a range of 20- to 50-cents is not uncommon. The vendor location also takes a cut in most cases. You will negotiate with location owners to place your ATM in their space for a percentage of the revenue. The fee is entirely dependent on your negotiating and the contractual agreement you put in place with the specific location. A 50-cent per transaction rate works as a common starting point, but the amount can increase or decrease, depending on foot traffic to the location and the machine's overall revenue potential. The amount remaining after you pay the processing fee and the vendor is gross profit. Any operating costs will work against your margins, and the remainder after subtracting that overhead determines the net profit.
ROI Potential
The return on investment varies, based on the traffic each machine receives. The number of machines in place also makes a big difference. It's not uncommon for a machine to work for eight to 12 months before the machine itself is paid off, and it becomes profitable. Machines earning several hundred dollars on average are common, while high-traffic locations have a much greater earning potential, and a single machine can deliver more than $500 dollars a month in profits. When the machine itself is paid off, it provides a nice stream of profits, and requires only restocking and maintenance.
FAQs
As an owner of an ATM machine you make money each time a customer uses your ATM to take out cash. A convenience fee or charge is placed on the machine and you collect that fee and are paid on a daily basis.
How do free ATM machines make money? ›
Promoted Stories. But with thousands and thousands of machines run by independent cash machine operators, that fee goes instead to the business or shop where the ATM is based, or the people supplying it. Put simply, the more often a cash machine is used, the more money the machine operator makes.
Are ATMs a good side hustle? ›
Similar to a vending machine business, you can earn income by setting up a route of ATMs. When patrons pull out cash, they pay a surcharge to use the machine, and you get a cut of that fee. One ATM location that gets 80–100 transactions per month produces about a 40%–70% annual return on investment.
How much profit does one ATM make? ›
The average ATM in a retail environment does about 6-10 transactions per day. So let's say you net $2.50 (after ISO fees) per ATM transaction. At 6-10 transactions per day, that is a daily gross profit of $15-$25 per day.
How much can you make a month owning an ATM machine? ›
If your ATM falls in the average usage of 6 – 7 per day, and you charged $2.50 you would earn between $15 – $17.5 per day, at $3.00 you would earn over $20 per day or between $360 – $600 per month.
How much does an ATM machine profit per month? ›
By processing 5-12 transactions a day, you can bring in $15-$25 of gross profit each day. So if your retail business has just one ATM, it could yield an income potential of approximately $450 to $750 per month!
Who fills money in ATM machines? ›
Obviously, ATMs at banks will be refilled by the bank itself. However, for standalone ATMs, there are a few different options when it comes to the responsibility of refilling the machine. If a business is the outright owner of its ATM, they have the option of refilling the machine on their own.
Are ATMs a good investment? ›
ATMs are an attractive investment because they generate consistent cash flow through transaction fees, and this cash flow remains stable even during economic downturns. ATMs are largely used by individuals without credit cards, those using prepaid cards, and others who rely on physical transactions.
Are ATMs actually profitable? ›
Yes, owning an ATM machine business can be profitable because there is a consistently high demand for ATMs. Not only do people need them for personal transactions, but businesses also rely on ATMs. Additionally, the cost to maintain an ATM machine is relatively low, which can help keep profits high.
Where do ATMs make the most money? ›
Some of our best (most profitable) ATM locations are locations you never would have expected. Bars, restaurants, nail salons & barber shops have been huge money makers for us. They typically have lower transaction counts, and dispense less cash – but have higher surcharges and low revenue shares with the store owners.
IADs that own and operate 5-10 ATMs make about $1,500-$2,000 monthly in profit. So if you're looking to make thousands of dollars with ATMs, you will need more than one. However, in terms of one single location, you can expect 40%-70% annual ROI from any location that warrants 80-100 transactions monthly.
Is ATM business worth it? ›
Owning ATMs can potentially be a good business as they can create a relatively passive income stream (work a couple of hours a week) and can be run from home (low overhead). However it can also be a bad choice if you make bad decisions.
Where is the best place to put an ATM? ›
Best Locations for an ATM
- Banks. Banks, credit unions, and other financial institutions are among the first places people look for an ATM. ...
- Nightclubs and Bars. ...
- Hotels. ...
- Grocery Stores. ...
- Gas Stations. ...
- Festivals and Events. ...
- Casinos. ...
- Cannabis Dispensaries.
Bankrate's study found the average combined cost of an out-of-network ATM transaction to be $4.66, the highest amount since 2019. The average ATM surcharge levied on non-customers hit a record high of $3.14 per transaction.
Are ATMs good passive income? ›
ATM investments provide a steady stream of hands-off passive income and great tax benefits. The depreciation from these machines is all passed to investors and ATMs are eligible for accelerated tax benefits using Bonus Depreciation.
Do ATMs make more than vending machines? ›
A deluxe snack and soda machine with a bill acceptor can actually cost more than a typical retail ATM Machine. The main difference between an ATM and a snack machine is that the ATM can make more than triple the income and has a lot less overhead.
