ATM Placements or Rent an ATM?
Getting in on the 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.
What Do I Need to Know to get Started?
There are a few things new ATM machine operators need to know before getting started. First, a location has to be chosen. The location is most likely a permanent one through an agreement with a store owner. If you are the business owner and want to Rent an ATM instead of purchase you can also make arrangements for a placement program instead. Next, it’s time to go shopping for a machine. ATM machines can run between $2,000 and $5,000 or more, and come in a variety of designs. After the machine is chosen a contract must be signed with an ISO, IAD, or ESO (if also a processing provider). ISOs are independent sales organizations, IAD are Independent ATM Deployers, and ESO are Encrypting Service Organizations that typically program ATMs but many times have relationships with ATM processing providers. Lastly, if necessary, insurance may be purchased to cover the machine and the cash inside. Set up costs for your new ATM business don’t have to break the bank. There will always be costs that come with owning a business, but before diving in it’s always smartest to test the waters. After all, Donald Trump didn’t start off owning his famous skyscrapers in New York. He started small and gradually made his way to the top. Imagine your ATM machine as a piece of real estate, the transaction processor as your store, and the money as your merchandise. Sometimes it’s best to start your new store by renting the retail space, or the real estate. Instead of being responsible for finding ISOs, IAD, or ESO, and restocking schedules, there are number of ATM rental businesses or IAD that will do the work for you. Some of these companies will even set up and maintain the machine at no cost to you. Your profits are based on your involvement. With some companies if you take the responsibility of installation they will give you a larger percentage of the profits. If however, they do all the work for you, you will receive a smaller percentage. This is the case with most rental companies, but each of them has varied rental options.
What other Purposes Would I Use to Rent an ATM?
ATM rentals are also great for events. Maybe you’re not looking to put an ATM in a store or shopping area such as a mall. Instead, you are interested in something more temporary. There are a number of events that take place every year that are in need of the convenience of an onsite ATM. This is a perfect opportunity to provide shoppers with convenience and also make yourself some extra income at the same time. The majority of vendors at a craft fair, flea market, farmers market, or antique show, for example, are either unable to accept credit cards or costs to accept other payment methods are too expensive. Without an ATM available, buyers will be limited on their purchases. Having an ATM onsite for buyers will help increase sales. This is beneficial for everyone; you, the vendors, and the shoppers. On average 75% of money dispensed from ATM’s is spent at the actual events. Events like craft fairs are weekend occasions, making ATM rentals a better investment for short term events like this. It’s not uncommon that renting a machine can turn into a purchase. If you’re not sure you want to invest in purchasing an ATM to get started, but you know that you want to purchase one in the future, many companies will accommodate you. After a rental trial period, companies will often offer the machine for sale at a discounted price. In the end everybody wins, you started your business with little start-up costs, you tested the waters, and, when you are ready, you invest in your own machine and the rental company makes a sale. Renting is the ideal short term investment. While there is not a lot to learn about owning an ATM and experience is the best teacher. Shop around until you find the rental company that meets all of your needs. Before making any commitment, be clear on what your responsibilities are and what the rental company’s responsibilities are. Invest in the proper insurance, pick out a great location, and you’ll be all set to start your new venture.