How Much Money Can I Make?
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.
The sellers of these types of businesses tell you how much money you can make, $50,000 a year traveling the world while your machines do all the work.
The reality is that some investors have been very successful, but there have been casualties in the industry as well. The industry and our financial system are going through a lot of changes as well that an ATM business buyer needs to consider.
 | Three options for starting an ATM business are: 1. Buy An Existing Route 2. Start A Business From Scratch By Purchasing & Placing Machines Yourself 3. Buy An ATM Franchise. If you have the money, buying an existing route is the easiest way to go as the machines are already placed. Finding good locations is 99% of the business's success, so if you have the money buying an ATM route is the quickest way to get set up. |
If we look at some of the current listings for ATM businesses on the market at the top end we see $900K for a huge route with over 150 locations that generate about $360K a year in earnings. Keep in mind servicing 150 machines will be a full-time job, not like a smaller route.
When we look at smaller routes, we see listings examples such as a 7 machine ATM business selling for $100K, with sales revenue about $40K a year. You can also find single ATM locations for sale at about $12,500. Before you invest, keep in mind you also need the cash to put in the machines above your initial investment, larger locations with multiple machines will need a significant amount of cash. That amount varies depending on how busy the location is likely to be, but $2,000-$3,000 should be a safe estimate. If your machine runs out, you don't make any money, so always keep it stocked.
If you buy a route, make sure of the length remaining on the contracts.If location contracts are expiring soon and ask you to take the machines out, you might as well have started from scratch. | Starting on your own, you can find used ATMs (usually from people who failed!) relatively cheap, ranging from about $1000 and up.Keep in mind some ancient pre 2012 machines may not be compliant. |
Need Help Finding A Franchise?
Any ATM that is not ADA compliant can result in penalties up to $55,000, so make sure your machines are to code. You'll also need to learn how to install the ATM, who can repair them when they break, how to replace the receipt paper and more.
Contracts - is your contract worded correctly? Placement - do you know what locations are good, and do you have the credibility to get your machines into a premium location? A super busy airport for example, isn't taking your ratty 10-year-old ATM you just paid $400 for. A franchise, in this case, has an advantage with existing relationships with major national organizations that can help you get your foot in the door. You'll pay a franchise fee and a premium, but ideally, you should make that back through better placements.
3rd OptionBuying an ATM franchise can help you with placement, negotiating the best rates, and training on the business in general. You should have about $60,000 minimum to start the franchise as your franchise fee is $25,000, you'll need a minimum of 2 machines, and at least $7,000 in cash to load your ATM's. Again, you'll pay a franchise fee and ongoing fees in a franchise situation, but some buyers have found it helped them build their business much fast and to a larger scale than going solo. |  |
So how much can you make with an ATM?
The money from each transaction is split 3 ways, and this amount may vary based on your negotiations. The location where you placed the machine gets a cut, the company processing the transactions gets a cut, and whatever remains, you get to keep.
The companies that sell the machines tell you if you get an incredible location that does 50 transactions a day, with a $3 fee per transaction, that's $150 a day. You pay the location just 50 cents per transaction (and that can be more) and that leaves you with $125, take off 20 cents for processing, (and that can be more) leaving you with $115 a day for a single machine! Multiple $115 dollars a day times 10 machines and you are making a fortune. Right?
The reality is any location that you find is more likely to have between 5-10 transactions a day, A reasonable expectation for an average location is is $150 - $300 per month profit per machine. If you find an amazing location, which is very hard to do because almost every great location has been taken by someone else, but great locations can do much more.
From a high-level perspective, is owning an ATM business still a good investment? There is no question cash transactions are declining. Today cash accounts for only 22% of all transactions, and it is possible over the next 20 years that cash machines will disappear entirely. During the pandemic cash transactions also dropped, as people prefer to swipe, and some companies only accept debit and touchless payment. That said, if you get a good price on an existing ATM route, or good locations, there is still money to be made over the coming decade.
Need Help Finding A Franchise?
