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Setting Up an ATM Business

Network Transaction Fees + Customer Service

Setting Up an ATM BusinessWith the rising cost of bank fees for various services, bank customers welcome any opportunity they can find to save a few dollars. Whether those savings are with their monthly service fees or through ATM transaction fees, any cost savings they can readily see and reap do add up quickly.

It’s no secret to customers that they think their ATM fees are outrageous, and it seems to them that the fees increase almost every time they make an ATM withdrawal. While that may seem a bit of an exaggeration, what is real is the cost of doing business and how that cost is sometimes passed on to the customer.

Frequent ATM Users

Customers who frequently travel for business or leisure may find that they’re always on the lookout for an ATM machine, especially if they’re not in the habit of carrying large amounts of cash on them at once. These individuals want and need to find ATM machines that they have easy access to, can withdraw the amount of money they need, and those machines that don’t have such exorbitant fees charged to customers. After all, it is their money, and while they don’t mind paying for the ATM convenience, they just want the amount charged to at least be reasonable.

ATM owners also know that these customers need their services from time to time. Some may need it more often than others, but ATM owners also know that there may be another ATM machine further down the road where the customer can take their business if they don’t like the service that’s offered. This can be anything from broken machines, to insufficient cash in the machines or machines that don’t give them their bank balances after the transaction.

The ATM business is a very lucrative and competitive type of business overall. Owners and operators of the lucrative ATM business can often expect almost 100% of their ROI within months or an average annual return of 50% or more when the ATM business is properly Run. The investment far outweighs just keeping your cash in a money market account.  To the owners, that’s the best part of being in this type of business. But, to the customers, those fees and surcharges are very much their frustrations.

Flexibility and Convenience

ATM owners provide a convenient and flexible service to users who need to access the money in their bank accounts, but may not be at or near the bank where their accounts are held. So, instead of that customer searching and looking for “their” bank, the ATM machine provides instant service that saves them time and frustration.

Convenience does come with a cost.

Individuals often have to pay usage fees or transaction fees to withdraw money from their accounts, if they’re not making the transaction at their branded ATM machine. So that means if John Doe wants to withdraw $100 from ABC Bank, but he banks with XYZ bank, he may have to pay a surcharge anywhere from ~ $1.00 to $3.00 for the convenient service.

For the ATM owner, it’s a win-win situation, and they can also make it easier for the customer too.

Keep It Profitable

keep it profitableATM owners determine their own surcharge “convenience” fees when they setup the machines, therefore they can set the limit accordingly, based on their desired profits, cost of doing business, location of the ATM, traffic, visibility, etc. Here are some things to implement with the ATM business that can keep it profitable for the owner and hassle-free for the customers:

  • Clearly display on the machine what the withdrawal fees are per transaction (this is a network regulation and all ATM Owners must display this). If your ATM is missing the fee notice contact your ATM provider, if they don’t offer this decal, shop for another ATM provider. Not only does this decal cut down on misunderstandings or disputes and possible charge-backs, it keeps your ATM and your ATM business compliant.
  • Maintain the ATM machines in proper working order. If the machines are inoperable, that ATM business traffic will go elsewhere and the place of business will find another ATM Provider.
  • Keep the ATM machine visible and in the open. Sometimes, people are leery about transacting with an ATM machine that is “away” from heavy foot traffic or is in a secluded or hidden spot. Think safety. Don’t put the ATM in a dark hallway or other “inconspicuous area”.
  • Ensure that the ATM machine is always stocked with cash. Running out of funds is frustrating, both for customers and the owner. Make a habit to check and stock the machines frequently. Your ATM provider should offer online access so you can check your ATM machines in real time for cash balances to ensure they have enough funds.
  • While compliance requires the ATM have the processors phone number prominently displayed, be sure to place your contact information in a visible area on the ATM machine, just in case your customers need to contact you with problems. There shouldn’t really be any problems with ATM machines because they require very little support, but customers often feel more secure knowing that there is a way to contact someone in case there is a problem.

Just a few simple things in the beginning of setting up an ATM business can help it run smoothly and efficiently at all times. Customers always have other options, and they will use those options if they don’t have a choice. By setting up the business to be as self-automated as possible and with minimal maintenance, makes both customers and ATM owners satisfied all around.

If you need helping setting up your ATM business to be successful, be sure to contact us.

ATM Models to Consider for Your ATM Business

For an ATM business to run successfully you need a reliable machine that is up to date and ready to serve all your customers at all times. Selecting any of these ATMs you’ll be up to date on the latest features and also be able to update your machine with the newest software when needed.

Hyosung Halo ATM

Halo Nautilus Hyosung ATM machine for sale -888-959-2269The Halo is set apart by (and named for) the circle of light that surrounds the recessed pin pad and illuminates it with a constantly changing spectrum of colors. This is an attention getting machine and the numbers speak for themselves.

Owners with the new+ Halo are reporting increased usage as the machine is very noticeable as it comes standard with a large 10-inch LCD screen (about the size of an ipad) using Microsoft Windows as the operating system so adding custom graphics to that incredible screen is made simple. The Halo is also available with an optional high gloss white finish. Read more

ATM Placement

Where Should I Place My ATM?

Where Should I Place My ATM

To really maximize the profits you earn from your business’s automatic teller machine, you need to place that machine in the right location. ATM placement is an art, not a science, however, even experts on the topic can sometimes disagree about ATM placement strategies. So consider the following an introduction to the factors that go into this important decision.

First and foremost, your customers won’t want to use your ATM unless they feel safe doing so. Therefore, install your ATM someplace in your business that’s lit brightly, somewhere under the watchful eye of a security camera, perhaps with a visible alarm system within arm’s reach.

You also have to decide whether to install your ATM indoors or outdoors. Outdoor ATM’s can be accessed twenty-four hours a day, of course, but they’re more vulnerable to vandals and thieves. You’ll have to invest in a first-rate (in other words, expensive) security system. There might even be specific safety/security laws in your state and municipality dictating the kinds of security measures you’re required to have in place for an outdoor ATM. In addition, during the day many customers prefer using indoor rather than outdoor ATM’s, as they feel safer doing so. In that regard, you might actually lose some ATM business if you place your automatic teller machine outside.

If you manage a large complex, such as a shopping mall or a resort hotel, then choosing the spot in which to install your ATM becomes significantly more challenging. Many such facilities set up an ATM in the lobby, believing that customers expect to find ATM’s there, and also believing that a lobby is a safe place because it receives so much traffic all day long. And many hotels, malls and even hospitals decide to maintain more than one on-site ATM. For instance, a hotel might find it worth the investment to put an ATM on every floor. If you decide to go this route, it probably makes sense to put the ATM at the same location on each floor – just to the left of the elevator, for instance.

You don’t have to run a business with multiple floors in order to derive benefit from multiple ATM’s, though. Even if you own, for example, a fairly large, one-story convenience store, you might find that if you purchase more than one ATM, and place those ATM’s in opposite sections of your store, those ATM’s will increase your profit margins each month.

One of the longest-running debates when it comes to the placement of ATM’s is this: Should you put an ATM right next to the front door of your establishment? There are passionate advocates on both sides of this argument. Those who say that an ATM should go beside the front door can site statistics indicating that putting an ATM here greatly increases the usage that ATM will get over time. Some studies have even said that an ATM beside the front door gets twice as many transactions as an ATM placed in, say, one of the far corners of a business’s interior.

On the other hand, the case against putting an ATM by the front door is also convincing. First, if you attract lots of customers each day, an ATM next to the door could cause congestion around that door. People lining up here might even block the entrance. And if potential customers walking by on the street see this commotion, they might be discouraged from entering your establishment, thus costing you business. Even worse, a line of customers near your front door might constitute a minor fire hazard, should that line be thick enough. And if your front door is glass, it might be tempting for drug addicts and other amateur robbers to break the glass at night, step inside and try to loot your ATM.

If you have no idea how many ATM’s to buy, or where to place them, you can always contact experts at an ATM consulting service. They’ll be able to analyze your floor plan and your flow of traffic and tell you the best place to put your machine(s).

Protecting Your ATM

Why You Should Know About Protecting Your ATM

Protecting Your ATM

Customers know that protecting your ATM pin and the card are the most important things to know concerning their bank accounts and their money or investments. There are several scams that thieves devise to try and separate the customer from his money and the customer should always be on the lookout for anything that seems out of the ordinary or different from the norm.

Banks and ATM companies continually warn its customers to not ever give their PIN’s out to anyone. These financial institutions warn customers through mass mailings, over email and sometimes even offer tips and advice on things they can do to protect their ATM cards. Customers are also advised continuously that it’s not ever a good idea to write their PIN number down anywhere. Their advised as well to select a PIN that’s hard to decipher, one that’s not associated with anything that can easily be hiked. This includes associating it with things like an important birthdate, an anniversary date, an address or even using a consistent, traceable number that is used in other PIN numbers. For instance, some customers will often consistently use a number across the board for all of their PIN’s that they use for any important material. Therefore, if they use a number like 1234 with voice messages retrieval or for their post office box, they may also use that same number in establishing a PIN. Thieves will more than likely use that same method of thinking when they trying to determine what a PIN might be.

Protecting Your ATM – a customers pov

Customers should always be wary of any “helpful” strangers who want to help them if they experience any problems at an ATM station. These “Good Samaritans” are often a setup for customers, pretending to come to their aid while the customer is experiencing frustration with ATM problems. After the customer has entered their PIN several times, or the machine has taken the card, the customer gives up and says he’ll call the bank tomorrow. After the customer leaves, the thief retrieves the card, enters the PIN that he watched the customer enter and then takes cash out of the customer’s account. This is all done without the customer’s knowledge, and even with the customer’s assistance.

In addition to some of the tips that financial institutions give customers concerning their PIN’s and how to protect them, they also advise customers of some deceptive practices that thieves will try to use to gain access to their accounts. While the obvious signals are related to customers over and over, there are other types of scams and deceitful practices of which customers should also be aware.

In all circumstances, no matter in what condition, the customer should always shield the keypad when they’re entering their PIN’s into an ATM to protect it from anyone who may be looking. The person doesn’t necessarily need to be extremely close to the customer to see what they’re entering because the thief may also be able to tell just from watching where the person’s fingers are landing on the keypad. If the customer shield the keypad by cupping his hand over the area, any nosey onlookers would have difficulty in figuring out what numbers have been pressed.

While the vast majority of ATM business owners are honest businesspeople, there are always going to be a segment of that business population who deal unscrupulously. To that end, customers should always protect themselves by going with any instinctive feelings that may get when visiting an ATM business point. This means that if something is out of the ordinary regarding the machine, the customer should avoid using that machine and even contact the business owner for extreme cases. Customers should not use machines that instruct them to enter their PIN’s twice for no apparently good reason. This is a phishing scam that many thieves use to gain a customer’s PIN and access to their accounts.

Banks and ATM businesses warn customers that if something doesn’t look or feel right, it usually isn’t and it’s best to trust that feeling instead of ignoring it. Always contact the proper personnel in case of any errors or problems and always take measureable steps to protect your ATM and bank account from any potential issues.

Is the ATM Business a Bad Idea?

Is the ATM Business a Bad Idea?

Aspiring entrepreneurs who are looking to “get-rich-quick” always turn to ideas where they think they can put in the minimal amount of work, yet yield the maximum (and sometimes most ludicrous sounding) amount of money in a short amount of time. Sadly, they’re also the ones who are more likely to buy or invest in anything that “sounds” good without really researching and fully investigating the idea.

There is absolutely nothing wrong with buying or starting new businesses with the sole goal of making lots of money. But what IS wrong is when the idea of making large amount of money overshadows the amount of initial work and commitment that it will really take before any budding new business takes off the ground.

The ATM business is a very good entrepreneurial endeavor and does yield a lot of revenue for ATM owners. However, going into business as an ATM entrepreneur is just not right for some people and their mode of thinking, and can quickly turn into the worst thing they’ve ever done.

No Money

As an aspiring ATM entrepreneur, if you don’t have any reserved money to invest into this business, then it may be a bad idea for you. Although getting into the business only requires a nominal amount of money, you do have to and need to be prepared to spend something to get the business set up. This is not a cookie-cutter business or a “business-in-a-box” and you will see that you’re going to need to treat the investment as a serious endeavor and be prepared to spend a few thousand dollars. Whether you obtain a small business loan or borrow the money, you will need to have something to get started.

No Business Plan

If you don’t have a plan of action or a comprehensive business plan, it’s not a good idea to go full force into this business. However, without a business plan, it WILL be difficult for you to be successful in this business. Too often, new entrepreneurs think they can perhaps install a few ATM’s at random locations and just rake in the cash without planning or forecasting. A solid business plan will help guide you through setting up the business, establishing contacts, understanding and signing legal contracts, planning for business changes, including profitable times and when there’s a loss of revenue due to unforeseen circumstances. A good business plan will also guide you on how to effectively market your ATM business and even what type(s) of software products you’ll need to have for your ATM’s, depending on their locations.

No Legal Agreements

Speaking of legal issues, contracts that are properly signed and worded are of the utmost importance for this kind of business. Verbal agreements are certainly great to have, but in the ATM business, you need to have comprehensive agreement contracts that cover each area and responsibility of the business as well as ensuring that you are covered as a businessperson.

No Mentor

With those legal issues, marketing issues, finding good ATM locations and even locating ATM investors for your business can best be covered with the help of a business mentor. This would, of course, preferably be someone who has or is currently in the ATM business world. They can help guide you and offer suggestions on your ATM business journey. However, if you are planning to simply dive into the business without any mentoring or guidance, you may be taking on much more than you can handle. Yes, you can certainly have success without a mentor, but you’ll have that success much sooner and without as many hiccups if you secure a mentor to help you along the way.

So, Is the ATM Business a Bad Idea?

With the aid of a good mentor, solid business information and an acute awareness of what you can expect out of the ATM business, you certainly can find great success and form a profitable business. Regardless of the length of time it may take, which can be shorter or longer for each person, your goal should be to build a solid, profitable, sustaining ATM business that will reap monetary rewards and personal satisfaction.