1: ATM Business Introduction

2: Set Up Your Corporation

3: Find and Secure Locations

4: Buy and Install ATM Machines

5: Manage Your ATMs

Are you thinking of starting an ATM business? If so, you’re in luck. This playbook will provide you with all the information you need to get started in 2022.

We’ll go over everything from setting up your corporation to finding and managing locations. So whether you’re a new entrepreneur or just looking to expand your portfolio, read on for all the info you need to know about starting an ATM businesses.

1: ATM Business Introduction

Before you get started on creating your ATM business, it’s important to understand how the industry works. Business owners in the ATM industry are able to generate revenue through the surcharge and processing fees that customers pay when withdrawing money. Through purchasing and placing ATMs within different high-traffic businesses in your area that are filled with your cash, you’re able to generate a steady stream of passive income.

Now you might be wondering, just how much money are you able to make from each machine? Well, with an average ATM surcharge of $3 per transaction and an average of 180 transactions per month, your ATMs have the potential to generate over $540 per month in gross revenue or around $6,500 per year.

With most ATM machines costing around $3,000, that means that the average ATM owner is able to make their investment back in just under six months! Now there are obviously other costs to account for such as maintenance and rev shares with store owners, however, even if you cut the income you receive in half, that’s a yearly return of over 100%, try doing that with real estate.

2: Set Up Your Corporation

Now that you’ve learned the ins and outs of the ATM industry, it’s time to get started. In order to start an ATM business, you first need to create a legal entity. Whether you’re looking to create an LLC, S-Corp, Partnership, or any other type of company, you’re going to need to file the appropriate paperwork.

You can hire a lawyer to help you do this or use one of the many online tools available like Zenbusiness. This is a great platform that will allow you to quickly and easily get your business off the ground without having to deal with a mountain of paperwork or the fees of a lawyer.

Once you’ve finished this step, we recommend that you create an official business plan to help you organize your thoughts into an actionable roadmap. Make sure to include your sales process, budget, target market, competition, pricing strategy, and operational plans.

Now that you have a legal entity and a business plan, it’s time to get a bank account. While this may seem like a fairly simple step, as a result of the Bank Secrecy Act (BSA), which is a law that requires banks to adopt certain procedures to prevent money laundering, you may run into some difficulties. While some large banks may have an aversion to opening bank accounts for ATM businesses, smaller community banks are often more willing to do so, so make sure to try both.

Finally, you can start working on marketing materials like a logo, website, and social media profiles to ensure that potential customers can find you online. Tools like Squarespace can help you quickly create great looking websites and other tools like Canva can help you design your logo, business cards, and more with easy to use, plug and play templates.

3: Find and Secure Locations

Once you’re done setting up your company, it’s time for the fun part, making money. To do this you’re going to have to start finding locations that you can place ATMs. Often times this is one of the most difficult steps for people because it involves calling or visiting businesses in-person and selling them on the idea of letting you place an ATM in their location.

To streamline this process, we recommend creating a simple sales pitch outline that you can give to the owners of the businesses that you visit. Once you’ve created a pitch that you’re comfortable with, call around to locations in your area to see if they have an ATM. Some of the most profitable location types include bars, nightclubs, dispensaries, convenience stores, and really any cash only business that you can find.

Now that you know which businesses in your area don’t have an ATM, you can visit those locations and give your pitch. If they’re interested in letting you place an ATM in their business, you can then get them signed up and get the ATM delivered.

Make sure you create a lawyer approved contract that details the commitments of the agreement and have the business owner either sign it in person or send it to them online via a tool like Pandadoc.

4: Buy and Install ATM Machines

So now that you have locations that have agreed to let you place an ATM in their businesses, you’re going to need to purchase and install those ATMs. There are many different ATM machines for you to choose from but we highly recommend that you purchase something like the Hyosung Halo II. This ATM is arguably the most reliable ATM on the market and is relatively affordable coming in at only $2,310 on the Legacy ATM marketplace.

Additionally, if you order from Legacy ATM, we’ll ship the ATM directly to you or your target location at no cost (If you’re in the United States).

Once you’ve taken delivery of your ATM, it’s time to install it. In order to do this you’re going to need several tools including a dolly, scissors, hammer drill, and respective drill bit for the floor type. Start by taking the ATM out of the packaging and placing it in the spot that you and the business owner have agreed upon. You’re then going to want to drill four holes 2-3/4″ deep using a 1/2″ drill bit before hammering in your anchors and tightening them with a 3/4″ wrench.

Once your ATM has been secured to the ground, you’re going to need to plug it into the nearest AC power outlet and connect it to the internet via the ethernet wires provided or an ATM wifi router package.

Now that you have power and internet, you can start programming the ATM. In order to do so you’re going to need to partner with a reputable ATM processor that will serve as the critical link between your machines and the various payment networks including Visa, Mastercard, Discover, American Express, etc. This will ensure that customers can make secure transactions at your ATM and all surcharge is directed towards the correct account(s).

Should you choose to process with Legacy ATM, we can walk you step-by-step through the entire programming process while providing you with lightning fast processing, simplified fees, and automated reports and notifications to help keep you informed about your ATMs.

5: Manage Your ATMs

Now that you’ve found locations and installed your ATMs, it’s time to monitor your machines and ensure that they’re all running properly. It’s important to routinely check each ATM to make sure that they aren’t having any issues and that they are stocked with a sufficient amount of cash. Legacy ATM Processing provides you with automated notifications and reports so that you’re able to quickly respond to any issues regarding low cash balances or errors (We also provide 24/7 phone support should you run into any issues with your ATM).

While a large portion of this business model is passive, you still need to make sure that you’re properly maintaining the ATMs in your fleet. Put aside a few hundred dollars per year for each machine to make sure that you have the budget to replace any broken parts or hire a technician if needed. Every second your ATM is down is time that it isn’t making you money so it’s essential that you stay on top of any issues that pop up.

Final Thoughts

So, there you have it. Everything you need to know in order to start your own ATM business. Of course, this is just a basic overview and there are many details that we can’t cover in a single blog post. But, if you want more information or have any questions, please don’t hesitate to contact us.

We would be happy to help get you started on your new venture. And remember, when it comes to ATMs, the sky is the limit!

P.S. You can also click here to browse our selection of ATM machines and find the perfect one for your business. Thanks for reading and good luck with your future endeavors.