How to Start an ATM Business

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Quick Reference

With Americans increasingly relying on convenience and accessibility when it comes to banking, ATMs are becoming more popular than ever. By starting an ATM business, you can take advantage of this trend and help business owners to offer ATM services right on their properties. Running an ATM business offers plenty of flexibility in terms of your business hours and locations, giving you financial independence and full control of your business structure.

Business Overview

ATM businesses own and supply ATMs for public use, making their money off the ATM fees that customers pay. According to Forbes, this business model involves three parties: The ATM owner, the owner of the venue where the ATM is installed, and the ATM processor, which processes the paperwork that keeps the ATM functioning. Those three parties share the ATM processing fees. ATM processors may have network accessing fees per transaction, while venue owners usually receive $0.50 per transaction. With ATM fees ranging from $1 to $8 per transaction, the ATM business/ATM owner receives the rest of the ATM transaction fee.

An ATM business will first locate a good location for an ATM and will negotiate with the property owner. Once an agreement is reached, the ATM business will buy and install an ATM and load the machine with cash. Most ATM businesses load additional cash into the machines daily.

Industry Summary

According to Allied Market Research, the global ATM industry held a valuation of $20.58 billion in 2019. It’s predicted that the industry will experience a 5.2% growth from 2020 to 2027, reaching a valuation of $30.50 billion in 2027. Current key players in the industry include Euronet Worldwide Corporation, Hess Cash Systems, Source Technologies, Triton Systems of Delarae LLC, and more.

Many factors are driving the predicted growth in the ATM industry. The 24/7 availability of banking services that ATMs facilitate is a major advantage that drives their popularity. ATMs are no longer cash dispensers but instead have more features and capabilities, including deposit and bill transfer capabilities, allowing banks to provide more comprehensive services at all hours.

Industry Trends

Many trends are affecting the ATM industry. According to ATM Depot, many old ATMs are currently being replaced with new models. These new models have greater capabilities, including mobile pre-staging, dynamic branching, video banking, and contactless transactions. Equipped with touchscreens, new ATM models appeal to a younger demographic.

These newer ATMs also offer ATM owners the chance to personalize the ATM with marketing messages. Personalized messages and season-based marketing mean that ATM owners can potentially increase their profits by selling products and services to ATM users.

Smart ATMs are also on the horizon. These ATMs are capable of an even greater range of services, including multi-currency cash dispensing, loan repayment, bill pay, ticket dispensing, and account opening. These services can reduce staff costs for banks, delivering customers with unparalleled convenience and new options. As they become more popular, having a smart ATM could help a bank to win business over a competitor without this smart technology.

Other technological improvements will make ATMs more practical and safer. Solar and wireless machines will be able to operate in locations that aren’t currently ATM-accessible. Security features like cardless transactions will also help to protect customers and banks.

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Target Market

An ATM business’s target market is the venues that allow the business to install an ATM. These venues may be banks, malls, convenience stores, restaurants, and any other locations that would benefit from having an ATM available.

Skills, experience, and education useful in running an ATM business

Starting an ATM business doesn’t require a business degree, but certain skills and experiences will be helpful.

Technology background. A background in technology will allow a business owner to better understand, use, and represent their ATMs to venue owners.

Troubleshooting and repair skills. Some basic troubleshooting and repair skills can help an ATM owner to keep the machines operating. An owner who can do some maintenance and repair themselves can save money over frequently calling in a professional.

Attention to detail. Attention to detail is essential when dealing with the large amounts of money used to stock ATMs.

Familiarity with the area. An ATM owner familiar with a certain area can better identify sites that are likely to generate a high volume of ATM usage.

Security experience. Some experience working in or training in the security industry is valuable. Knowing and following security best practices can help to minimize the risk of an ATM owner being robbed while servicing the machines.

Negotiation skills. Experience negotiating contracts can help a business owner to reach agreements with venue owners.

Networking talents. Building relationships with venue owners is an important element of running an ATM business. Strong interpersonal skills and networking talents will be an advantage.


Financial Overview

Even when starting a smaller ATM business, the owner needs to ensure that they have enough disposable cash to keep the machines reliably stocked. Startup costs will vary depending on the number and quality of the ATMs to be purchased.

According to Lieberman Companies, ATM prices can range from $2,000 to $8,000. Typical freestanding ATMs range from $2,300 to $3,000, while used ATMs average $1,200 to $1,800. Installation fees can range from $200 to $300 per machine. ATMs fgo through an average of $6,000 to $8,000 in cash per month, requiring between $1,500 and $3,000 in cash per week.

Common startup costs for an ATM business include:

  • ATM machines

  • Inventory of cash

  • Repair, cleaning, and maintenance supplies

  • Company vehicle

Steps to Starting an ATM Business

Step 1: Write Your Business Plan

The first step in starting your new business is to write a business plan. Your business plan will need to outline all elements of your business in detail, including your target market, what factors will give you an advantage over competing businesses, and your financial plan for funding the business and making a profit. You’ll need this business plan if you want to apply for financing from a bank or an investor. Multiple sources have also found that taking the time to develop a business plan increases the chance of success.

How to write a business plan
Free sample business plans

Step 2: Form a Business Entity

When it’s time to start your business, you’ll need to decide which type of business entity is right for your needs. The business entity (also called a legal entity or business structure) will define how your business is legally organized and operates. You can choose from four main business entity types – a sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each business entity type has different pros and cons regarding liability, costs, and administrative requirements. A business lawyer is a good resource when deciding which type of entity is right for your business.

Related: Comparison of Business Entities

Step 3: Name the Business

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a

Step 4: Select Your Location

ATM businesses aren’t tied down to one specific address, but you’ll want to create a route of ATMs that are close together, so they are easy to stock and service. The priority for ATM placement should be areas that are open to the public for long hours and lots of foot traffic, such as gas stations, convenience stores, retail stores, bars, etc., to maximize daily transactions.

For an ATM to work, a connection to a phone line, internet, or cellular connection will be required.

Related: Choosing a business location

Step 5: Apply for Business Licenses and Permits

Your ATM business will need to hold any local, state, and federal registrations required for businesses. Most businesses need to have a sales tax permit, Employer Identification Number, and Occupancy Permit, among others. Some states may require specific ATM vendor permits in addition to these standard permits and licenses.

Related: Common business licenses, permits, and registrations by state

Step 6: Find Financing

Starting an ATM business can require significant startup costs, including access to plenty of cash to stock the machines. Finding financing can help with those startup costs. To get a business loan, a business owner will need to have good credit and personally invest 15-25% of the total start-up costs.

Related: Finding the money to start a business

Step 7: Open a Business Bank Account

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the business’s income and expenses.

Step 8: Get Your Marketing Plan in Place

Strong marketing can help you to connect with venue owners and secure locations for your ATMs. Online advertising, email marketing, direct mail, and in-person visits, and phone calls can all be valuable marketing techniques to help you secure new spaces.

Related: Low-cost ideas to market a new business

Step 9: Get Business Insurance

An ATM business needs several types of insurance for full coverage. In addition to standard insurance policies, there are some ATM-specific policies available:

  • General liability insurance protects the business if a vendor or ATM customer is ever injured while using the machine.

  • Commercial property insurance protects the business from damage that could occur to the ATM in an event like a fire.

  • Worker’s compensation insurance helps to cover expenses like medical bills and lawyer fees that can result if an employee were ever injured while on the job.

  • Commercial auto insurance covers a business-owned vehicle, offering protection against expenses a business might face if the vehicle were in an accident.

  • ATM insurance covers risks like loss or damage to the ATM or loss or damage to the cash inside the ATM.

  • Cash and valuables in transit insurance help protect the business against loss of money that could occur while being transported, processed, or stored.

Insurance policy costs will depend on factors like the value of the business’ ATMs and the amount of cash that the business keeps on hand. To get an accurate idea of what to budget for insurance, request quotes from multiple providers. When comparing the quotes, consider the differences between the premiums, coverage exclusions, coverage, limits, deductibles, and other important elements of each policy.

Related: Types of insurance your business may need

Step 10: Hire Employees

A business owner may be able to service and maintain a smaller route of ATMs, but to increase profits, the business will need to install more ATMs. Hiring staff can help with this. According to, an ATM manager responsible for service and operations earns an average salary of $85,585 per year. Salaries can range from $63,151 to $110,062.

Besides covering staff salaries, a business’ budget will also need to include related expenses like paid time off and worker’s comp insurance.

Related: Hiring your first employee

Step 11: Set up an Accounting System

Setting up an accounting system for your ATM business is critical to the long-term success of your business.

Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up accounting for your business

How Much Can You Potentially Make Owning an ATM Business

An ATM business’s income will vary depending on the number of ATMs in business, the number of transactions completed each month, surcharge revenue, and transaction fee that the ATM business earns. ATM Brokerage notes that monthly income per ATM can be $150 to $200 on the low side and $250 to $300 on the high side.

Things to consider before starting an ATM business

Owning your own ATM business is often promoted as a passive income opportunity; however, there is still work to be done as you will have to load cash and ensure the machine is working properly. That said, the time spent on the business is very flexible, and commitment isn’t high provided there isn’t much travel time between machines. This is easily a business that can be owned while still working a full-time or part-time job. Nurturing relationships with venue owners can be a long-term process, so don’t get frustrated if you don’t quickly reach agreements when you’re starting.

Purchasing a used ATM machine may cost less, some people may be hesitant to use it as the machine looks older, not to mention the potential for costly repairs.

Once you strike an agreement with a venue owner, having a detailed, sound contract can help to protect this agreement and ensure you receive the income that you’ve negotiated. Be sure to budget money for a business lawyer who can help you draw up an appropriate contract and review any modifications you may need to make.

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