The Smart ATM Could Mean More Business for ATM Owners

Although ATM machines will be part of the financial industry for a long time, they can’t stay the same forever. ATMs need to evolve to meet the demands and expectations of the modern consumer.

Whether we like it or not, ATM machines are in the category of “technology.” And, people expect technological devices to do more than ever. Essentially, that means that people will continue to expect more services from ATMs.

And that’s the whole reason smart ATMs were created in the first place. So, what is a smart ATM? What does it do? And—most importantly—how will these new ATMs affect you, as an ATM machine owner (or future ATM owner)?

What is a Smart ATM?Happy Woman Using Smart ATM

Smart ATM machines aren’t new. They’ve been around for a while. But, they’ve been fairly uncommon for many years, because there hasn’t been a huge demand for them. And, they demand more capable banking and ATM processing networks.

As such, smart ATM machines have been slow to take off because the supporting infrastructure and consumer demand was a bit behind the smart ATM technology.

A smart ATM is just an ATM machine that’s capable of doing more than dispensing cash. Banking customers can use one to deposit funds, open accounts, transfer money, and other things that can usually only be done at a bank branch.

Smart ATM machines that offer all these services are called “microbranches” or “branch-in-a-box.”

Now, not all smart ATM machines offer complete branch-in-a-box functionality. Some only offer an additional service or two beyond dispensing cash. But, it’s possible for ATM machines to provide almost all the services that a physical bank branch offers.

More powerful ATMs bring us one step closer to true 24-hour, self-service banking.

If you own a smart ATM machine, offering additional services increases your opportunities for transactions, since people have more reasons to use your machine. And, that’s always a good thing.

Smart ATM Technology

An ATM needs slightly more advanced technology to achieve all the functionality that smart ATM machines require. The hardware and user interface on traditional keypad ATMs isn’t quite enough to perform more in depth financial transactions.

So, smart ATM machines must be equipped with a few key capabilities to deliver microbranch capabilities.

Touchscreens

Touchscreen ATMs can do a lot more than keypad ATM machines. And, the ubiquity of touchscreens on smartphones, tablets, and laptops means that customers are much more comfortable using a touchscreen ATM than in decades past.

A touchscreen also makes it possible to perform banking functions that require a signature, which is a requirement for true branch-in-a-box ATM service.

Cash Recycling

Cash recycling is a vital capability for smart ATM machines, since they enable users to make deposits.

In short, cash recycling is using deposited bills for dispensing cash for ATM withdrawals. It’s just common sense to do this if your ATM accepts deposits. However, there’s an additional benefit: the ATM owner doesn’t need to restock their ATM machine as often.

Intelligent Deposit

Intelligent deposit sounds fancy. However, intelligent deposit just means that customers can make cash or check deposits through an ATM.

ATMs that offer intelligent deposit usually make digital copies of checks. And, the ATM owner has no control over when the funds are available. That’s up to the bank.

Network Connectivity

All the additional services require that your ATM machines have solid connectivity with banks. If you run smart ATMs, that means that you need to choose your ATM processor carefully. There’s a lot more data transfer involved with bank-in-a-box functionality, and your ATM processor needs to support that connectivity.

Happy Older Couple Using ATMHow Smart ATMs Will Change the Banking Industry

Smart ATM machines aren’t going to cause some massive disruption. But, they’re creating a new channel for customers to access banking services.

A significant percentage of consumers already use ATM machines as their only method of interaction with their bank. And, better ATM machines will likely cause that number to increase, because there will be fewer and fewer services that are not offered through an ATM.

So, banks will want smart ATMs. These machines help them make more money (though, not necessarily through ATM fees). And, many banks will outsource their ATM services to avoid the upfront costs of purchasing new machines.

This presents new opportunities for third parties—ATM machine owners—to provide the software and infrastructure to support services through this expanding channel. At the end of the day, more capable ATM machines mean a larger, more profitable ATM industry, and more potential for ATM owners.

Do You Need a Smart ATM?

We’re all about owning ATM machines here. So, the important question to answer here is whether or not smart ATMs are a good idea for ATM business owners.

First, you don’t need to start transitioning to smart ATM machines or start with one as your first machine. Cash dispensing ATM machines will make plenty of money for ATM machine owners for decades to come.

However, smart ATM machines offer a lot of banking functionality that makes them attractive to banks. If you want to partner with banks to provide branded off-site ATM machines, being able to provide more banking services through your ATM makes your offer more attractive to the bank.

So, the viability of smart ATMs in your business depends on where you want to place your ATM machines. Most traditional locations don’t have a huge demand for branch-in-a-box services.

In the long-term, it may be wise to buy ATM machines with the core capabilities of a microbranch ATM, like touchscreens and cash recycling. But, there’s no hurry.

If you’re a new ATM business owner or looking to expand your fleet of ATMs, you can safely continue to use cash dispensing ATM machines.

ATM Security Update: How To Enable TLS 1.2 Protocol

The Announcement

The PCI Security Standards Council has mandated that the use of SSL and Early TLS (i.e. TLS 1.0 or 1.1) protocols be discontinued effective June 30, 2019. All network providers and processors are making preparations to ensure they are compliant by the June 30, 2019 deadline. To prevent any downtime, make sure your ATM terminals have been updated with the latest software and security certificates.

After this date, ALL ATMs using SSL or Early TLS (i.e. TLS 1.0 or 1.1) communications protocol will stop communicating to the Host and fail to process any transactions.

What Does This Mean?

    • Network providers are already handling the TLS 1.2 communications protocol. Therefore, as soon as possible, set the communication protocol on your ATMs to use TLS 1.2 communication protocol.

  • Anytime you visit a direct connect TCP/IP communicating ATM verify that it is set to TLS 1.2.

In order to continue processing transactions …

  • TLS 1.2 Protocol MUST be enabled on your ATM Machine

Do I Need to Enable TLS 1.2?

You NEED to Enable TLS 1.2 if …

  • Your ATM is communicating via Hardwired Internet connection (TCP/IP)

You DO NOT need to Enable TLS 1.2 if …

  • Your ATM uses a phone line or wireless modem. Your machine will not be impacted if it is communicating via a phone line or cellular wireless device box already on TLS 1.2.
    • How do I know if my wireless box is TLS 1.2?
      • The chances of you having a wireless box that is not already on TLS 1.2 are low. If you are having trouble with your wireless device please call ATMDepot.com at 888.959.2269, or your Wireless Provider, with your device’s serial number. Remember, It is best to make the request while at the location where the device is in service. Our wireless department can update your device remotely.

How to Enable TLS 1.2 Protocol

Hyosung

Customer Setup > Select Processor > TCP/IP Type

  1. SLS/TLS = Enable
  2. SLS/TLS Version = Up to TLS v1.2

Genmega/Hantle/Tranax

Customer Setup > Change Processor > SSL Pass Through > SSL > SSL Version = TLS 1.2


If you do not see these options, please check that you have the required software version that supports TLS 1.2 protocol for each manufacturer.

Recommendations

  • Keep Your Software Up-to-Date

    Keep your ATMs updated with the latest software to be compliant. Listed below are the latest software versions:

    Hyosung

    – WinCE 5.0:  V01.01.34
    – WinCE 6.0:  V06.01.34

    Genmega/Hantle/Tranax

    – V05.00.34

  • Confirm EMV Enabled

    While you are updating the software on your terminal, it is important to also check that EMV is Enabled.

    The MasterCard EMV Liability Shift occurred on Friday, October 21, 2016. ATM owners are liable for fraudulent MasterCard transactions if machines are not EMV compliant.

    Hyosung

    Operator Functions > Customer Setup > Optional Function 1 > EMV > Enable

    Genmega/Hantle/Tranax

    Operator Functions > Customer Setup > Option Function > EMV – Enable

How to Enable TLS 1.2 – Infographic

Investing in an ATM for Business or Profit

Custom Branded ATM Machine for a BusinessInvesting in an ATM

Do you have customers asking you for the nearest ATM location? If you answered yes, then it is time to consider buying or investing in an ATM machine for your business. Instead of sending your customers around the corner or down the block to the nearest ATM machine, wouldn’t you rather offer them the convenience of never having to leave your store? Plus, you get to keep the great profits of owning your own machine. Investing in an ATM can generate surprising amounts of revenue.

Up until now, you’ve been sending this revenue around the corner and down the block, but it is time to take this reliable source of constant income, and make it yours. From now on, when somebody asks you where the nearest ATM is, you can direct them to the one located right in your store. Your customer benefits from the convenience and so do you. After all, when a customer leaves your store, even if they are headed to grab some quick cash for their purchase, there is no guarantee that they will return. This can potentially result in a loss of sales and is easily prevented. The majority of start up ATM business owners earn their entire investment back inside of six months or so. After that they earn profits month after month, year after year. The ATM revenue you can potentially earn comes from the ATM surcharge. When you own your own machine the surcharge is 100% yours. Read more

Can I Rent an ATM or the Space?

ATM Placements or Rent an ATM?

Getting in on theATM for Rent Sign thriving business of owning an ATM is a great opportunity, but what if you’re not ready to invest $2,000 to $5,000 in your own machine? Maybe you just need an ATM for special event or you want to get a taste for the business without making a big commitment. Perhaps the flexibility of a month to month investment  or a partnership would be much easier for you to commit to. If this sounds like you, then renting an ATM machine might be the way to go. Read more

How to Plan for an ATM Business Boom During the Holidays

ATM Business Booms During the Holidays

Like any business, ATM businesses go through highs and lows throughout the year. Depending on your ATM’s location you could see significant increases during the holidays.

The average shopper spends just under $1,000 on holiday gifts. Naturally, ATMs located in shopping malls verses gas stations are going to see more action due to the foot traffic. Stores draw an average of 150 or more people a day on a regular basis. This number will represent a slow day when the Holiday’s roll around.

If you’ve been in the ATM business for a little while now, hopefully you have an idea of the cash needs and volume of your ATM machines. This information is going to help you determine your work load during the busy holiday months. Obviously, you know that if your machine isn’t loaded with cash it is not going to make you money. It’s also not going to make you money if it’s out of order. Since it’s going to be processing a lot of transactions, it needs to be in tip top shape so that it can do its job.

Location, location, location; you’ve heard it a million times. Location cannot be stressed enough. Location is everything. It is part of the equation of your ATM business and it’s a very big part, at that. Your location determines your ATM business success. No matter where you are, you will see the benefits of the holiday season; whether you’re in the shopping mall or in the gas station. People will be buzzing all over the place. With that said, you want to be where the shoppers are. You want to be right in the middle of all of the activity. This also holds true after the holidays when shoppers are out to hit the post-holiday clearance sales. Read more