How Profitable Is an ATM? (2024)

FAQs

How profitable is an ATM machine? ›

Buying your own ATM is very profitable, Daniel said, and between 15 and 30 transactions a month can yield a high return. “[It's] a great secondary source of income that could equal anywhere between $20,000 and $30,000 extra per year,” he said.

As an owner of an ATM machine you make money each time a customer uses your ATM to take out cash. A convenience fee or charge is placed on the machine and you collect that fee and are paid on a daily basis. Here is a complete starter guide of how to make money and build your ATM Business.

Owning an ATM (short for automated teller machine) can be an excellent low maintenance, mostly-passive way to make solid income. These machines offer a perfect side hustle that can be done by just about anyone. In addition, if you run enough ATMs, they can be a full-time business providing more substantial money.

According to statistics, the global ATM market size reached USD 20.18 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.9% within the next few years. Undeniably, now is the best time to capitalize on this money-making opportunity.

In some instances, a machine may need to be refilled daily. In other cases, a machine will only need to be refilled weekly or monthly. Regardless of the exact needs, the cash management service will have enough information about a particular ATM to develop a schedule for how often it needs to be refilled.

Plus, an ATM business is scalable. Once you get the hang of owning and operating one machine, purchase and place another! You could be making thousands of dollars a year with five to ten machines. Even with ten machines, you still get to enjoy a fairly flexible schedule.

If your ATM falls in the average usage of 6 – 7 per day, and you charged $2.50 you would earn between $15 – $17.5 per day, at $3.00 you would earn over $20 per day or between $360 – $600 per month.

Yes, owning an ATM machine business can be profitable because there is a consistently high demand for ATMs. Not only do people need them for personal transactions, but businesses also rely on ATMs. Additionally, the cost to maintain an ATM machine is relatively low, which can help keep profits high.

Obviously, ATMs at banks will be refilled by the bank itself. However, for standalone ATMs, there are a few different options when it comes to the responsibility of refilling the machine. If a business is the outright owner of its ATM, they have the option of refilling the machine on their own.

ATM Market size is valued at USD 20.9 Billion in 2021, and it is anticipated to attain a value of USD 28.98 Billion by 2028, at a CAGR of 4.7% over the forecast period (2022-2028).

Where are ATMs most profitable? ›

Nightclub and bar owners who have an ATM machine available typically see significant extra income — both from surcharge fees and the fact that customers spend more money in the bar when they have access to cash.

Total investment will be defined by how many machines you plan to start with. Each machine will cost between $3,000 and $10,000, depending upon the style you purchase. Each machine should have at least $2,000 in cash on a rotating basis.

That might lead you to think ATMs are becoming obsolete, at least in developed countries. But you'd be wrong. True to their roots as cutting-edge technologies, ATMs are evolving to meet the needs of today's financial institutions and their customers.

There is now a broad swath of terms that financial institutions and fintechs coined to describe new self-service banking technologies: ITMs, video tellers, IBKs, PTMs, VTMs, self-service kiosks, self-service technologies.

ATMs will become more, and less complex

The ability to accelerate transaction automation, increase customer satisfaction, and offload employee expense is the holy grail for many financial institutions. At the other end, smaller banks and credit unions are moving towards economical, cash dispensing ATMs.

The return on investment varies, based on the traffic each machine receives. The number of machines in place also makes a big difference. It's not uncommon for a machine to work for eight to 12 months before the machine itself is paid off, and it becomes profitable.

While buying a used machine is cheaper, they're usually slower and look older, and because of that, many people might not use it. Buying your own ATM can be a very profitable endeavor depending upon how many ATMs you manage and operate and how many transactions each one processes each day.

Your ATM max withdrawal limit depends on who you bank with, as each bank or credit union establishes its own policies. Most often, ATM cash withdrawal limits range from $300 to $1,000 per day. Again, this is determined by the bank or credit union—there is no standard daily ATM withdrawal limit.

How much does it cost to own 1 ATM? ›

ATM Machine

ATM machines can range in cost from $1,000 to $8,000. This is a wide range, but it depends on the size of the machine and the age. Realistically, however, you should probably expect to pay around $2,000-$3,000. That is the range for the most common, free standing ATM machines.

The average retail ATM that you would see at a convenience store, gas station, or hotel would typically be stocked with a maximum of $20,000. Most ATM operators use a machine with a cash cassette with a 1000 note capacity and they typically load the ATM with $20 bills. $20 x 1000 notes = $20,000 maximum.

Your bank's non-network fee: Your own bank may also charge you a "non-network" ATM fee for using an ATM operated by another bank or institution. These charges will typically cost between $2.00 and $3.50, depending on your bank and the tier of service you're enrolled in.

The Bottom Line: If you're considering an ATM Machine or want to get into the ATM business as a side hustle to earn some extra cash or as a passive income, you need at least 3-4 people per day to use your ATM (if available 7 days per week) to pay for the machine and make a few bucks.

The ATM Replenishment Process

Therefore, the terminal must go through an ATM replenishment cycle. Replenishment is where a third party hired by the bank removes the leftover money in the machine and replaces it with a fresh load. The bank notes go into cassettes based on their denomination.

The busier the location, the more withdrawals from the ATM, and the more money you make. Typically, you invest in the machine and place it in a merchant's business with an agreement to share a portion of the surcharge fee. This is one way to increase the business owner's interest in the machine.

Leasing an ATM

Casinos that don't currently have purchasing an ATM within their business plan have the option to lease an ATM. By leasing an ATM instead of purchasing, casinos will earn transaction fees while they're making payments on the machine.

Conclusion. All ATMs are equipped with an electronic sensing eye and other scanning devices in order to detect bogus money. Besides, they record transaction details, personal activity and the user's face using in-built cameras.

The drawbacks of ATMs include: ATM use fees. The inability to withdraw cash if an ATM is broken.

The huge adoption of digital payments - such as contactless cards or using smartphones on EFTPOS terminals - has seen a dramatic reduction in the number of customers accessing ATMs to withdraw cash.

Who is the largest owner of ATMs? ›

The largest non-bank ATM provider in the U.S. is Cardtronics, with in excess of 100,000 ATMs deployed in America, and the second largest U.S. independent ATM provider is Payment Alliance International, with over 70,000 ATMs in service.

Mount Everest's peak is the highest altitude above mean sea level at 29,029 feet [8,848 meters].

The Asia-Pacific region accounts for the highest ATM usage across the globe in the ATM market. As per ATM statistics and trends for 2021, ATM transactions across the globe grew up to $12.6 trillion in 2021.

Free-standing ATMs, such as the kind you might see in grocery stores or malls, may be easier for criminals to tamper with than an ATM that's located at your bank. For example, criminals may be able to attach devices that can steal your personal identification number (PIN) or account number.

ATMs and bank branches will be extinct by 2041

Recent research from Expert Market foresees the complete disappearance of all ATMs by 2037, while bank branches, at this rate, have just over 22 years left.

Roles slated to disappear include branch managers, call center employees and tellers. Artificial intelligence, cloud computing and robots will play a larger role in daily banking functions like taking payments, approving loans and detecting fraud.

The bank refills it. Banks have a periodic refilling schedule to ensure ATMs are loaded with sufficient cash.

If an ATM doesn't have enough money, what happens? While this is not the same as an ATM failing to dispense, there may be times when the ATM doesn't have enough cash left to fulfill your request. In that case, the ATM will let you know that it has insufficient funds and will deny the transaction.

Here's a list of some things you can do at the counter but not at ATMs: Withdraw coins or low-value denominations. ATMs give out cash rather than coins – so if you need to withdraw odd or a small amount of money, it's best to visit the Money Services counter in your local Kroger Family of Stores.

How much is the ATM industry worth? ›

ATM Market size is valued at USD 20.9 Billion in 2021, and it is anticipated to attain a value of USD 28.98 Billion by 2028, at a CAGR of 4.7% over the forecast period (2022-2028).

Most banks and credit unions have a network of ATMs that offer free access to your money. But if you go outside of the network, a fee may be imposed, including: ATM operator fee. Also known as the surcharge, an operator fee is charged by the ATM owner to noncustomers using its ATMs.

ATM Fees at Non-Chase ATMs — $3 to $5.

While this type of business venture does not require an office space or a lot of supplies, there are a few things you will need to purchase. Total investment will be defined by how many machines you plan to start with. Each machine will cost between $3,000 and $10,000, depending upon the style you purchase.

Owning ATMs can potentially be a good business as they can create a relatively passive income stream (work a couple of hours a week) and can be run from home (low overhead). However it can also be a bad choice if you make bad decisions.

Yes, owning an ATM machine business can be profitable because there is a consistently high demand for ATMs. Not only do people need them for personal transactions, but businesses also rely on ATMs. Additionally, the cost to maintain an ATM machine is relatively low, which can help keep profits high.

Nightclubs and Bars

Nightclub and bar owners who have an ATM machine available typically see significant extra income — both from surcharge fees and the fact that customers spend more money in the bar when they have access to cash. Learn more about ATMs for bars and nightclubs.

The American Bankers Association puts the number at an even lower one crime for every 3.5 million transactions, or about 3,000 a year1. With consumers becoming more dependent on ATMs and the proliferation of ATM debit cards, computer crime in this area is more likely to increase.