ATM Machines: The Second Income You Never Thought Of

  Posted on 4/15/2011
ATM Machines: The Second Income You Never Thought Of

At one time, ATM machines were owned by major financial institutions. Since the cost of owning one of these machines has dropped drastically, it is becoming possible for small businesses and even individuals to buy an ATM machine to call their own. Owning a cash point is an opportunity most people don’t even know about because they still believe banks own them. Yet other savvy entrepreneurs have realized that an ATM machine is a great chance to make a healthy second income. It is an investment that will require a reasonable amount of capital but provided you place the machine in a good location, it is an almost foolproof way of making money. This is because people are forever getting stuck without cash and with 70% of Americans having either a debit or credit card that works with an ATM, there are seemingly limitless opportunities to make money.

Why You Should Own An ATM Machine

The advantages of owning an ATM machines are numerous:

  • Once it is installed, you will not need employees to look after it
  • Small business owners don’t need to rent space because the machine can be displayed within their store
  • It is possible to see how your ATM machine is performing online
  • Your investment can be recouped within a few months
  • It can be managed according to your schedule

Getting Started

Before purchasing an ATM machine, ensure that you have read as much literature pertaining to the industry as possible. Then you must start to look for suitable locations. As already mentioned, small business owners will have no difficulties with this. Other prospective ATM owners should ask local companies if they would hold an ATM machine. The answer will usually be positive because all businesses benefit from having a cash point on their premises. The next step is to check your finances to decide whether you wish to lease the machine or buy it outright. In general, you will be looking at between $3,000 and $6,000 for a new machine though they cost $35,000 about 15 years ago! Leasing may be a better option for the moment as it can cost less than $100 a month.


The next important step is to choose an Independent Sales Organization (ISO) as they are responsible for processing all ATM transactions. Do not choose the first attractive ISO you come across. Shop around and seek out an organization that gives you the best value for money services. Occasionally, small businesses in busy locations may be approached by an ISO and offered a free ATM machine. It would be wise to accept because you can take a piece of the profit for doing nothing. You will then need to think of how much you will charge customers. The average fee is around $1.75-$2.75 with each state imposing a limit on the amount you can charge per transaction. Rules also state that you must set the maximum withdrawal limit to at least $200 when charging a transaction fee. Although the national average per withdrawal is about $60, you must still set a high maximum limit to make your machine a more attractive proposition.

Most ISO's look to pocket $1.75 per transaction for themselves so you need to set the fee at $2.25 to make a $0.50 profit per withdrawal for example. Make sure you are not forced to pay extra fees to the ISO per month because there are dozens of organizations that have no hidden fees. In fact, your only extra charges should be an increased electricity bill and a new phone line. Otherwise, additional materials such as receipt paper should come free. You can also use your own personal cash to keep the machine stocked but it is safer and more prudent to allow the ISO to invest. You may receive less of a cut, but at least it is not your money at risk.

Make $750 Every Month!

While $0.50 profit per transaction may not seem like a lot, it can quickly add up, especially if your ATM machine is in a high traffic location. It is estimated that between 3-5% of people who pass an ATM machine will use it. Therefore, if you are paying $100 a month for rental, you would only need 200 transactions to cover it, a rate of approximately 6-7 people a day. Even if only 3% of passers-by used your machine, you would only need to have a daily traffic of 200 people in your machine’s location. A busy location will have at least 1,000 passers by day. At a 5% rate of usage, you will be looking at $750 a month.

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