Not every business has enough of a need for an ATM, but for those who do, it can provide a low-effort revenue stream when smartly implemented. If you’re considering adding an ATM to your business, answer these questions to help determine if it would be the right financial decision.
#1 Do you have a good location?
Heavily trafficked areas like downtowns, convenience stores, or hotels are particularly ideal for an ATM. And not only is it helpful to have a lot of foot traffic, but it’s also advantageous if there seems to be a particular need in your neighborhood. If your area is busy and no nearby businesses have an ATM, but you frequently encounter people asking for one, then the demand likely exists.
#2 Is your business cash-heavy?
If tips are a large part of your business like they are in restaurants, bars, or salons, then incorporating an ATM could be a good choice, as many consumers prefer to tip in cash. An ATM is especially useful if you operate a cash-only business. The average person doesn’t tend to have much, if any, cash on hand and you don’t want to send them out of your doors to find it elsewhere or you could easily lose their business to a nearby competitor. Notably, customers tend to spend more at establishments when using cash pulled from an ATM, typically 15-25% more.
#3 Do shoppers frequently use the cashback debit option?
Instead of paying transaction fees for customers to pull out cash, ATMs will bring in funds. If this is a common occurrence with your clientele, then an ATM is a viable option to balance these unwanted costs.
#3 Do you have the budget?
The initial expenses will vary, but so will the returns. You can buy an ATM outright or lease one if you believe your area is busy enough to offset the original purchase, plus the ongoing maintenance and restocking costs. You will receive the highest commission off of surcharge fees when you buy, although leasing may give you the option to lessen some of the cost and effort needed for maintenance and restocking.
You can also try to see if your business qualifies with a placement service. They will take care of a larger portion of the upfront and maintenance costs, although you will earn a smaller percentage of the collected service fees. And though you won’t collect much from the ATM in this situation, it will still generate more foot traffic and increase the amount of customers who are more likely to buy other products once they are in your door.
ATM options vary based on your preferred aesthetic, security needs, desired size, and vault type. If an ATM will be located in your business and will only be accessible during business hours, then the cost will likely be lower than those that need 24-hour, higher security measures; though this may mean missing out on profits if your area experiences a lot of foot traffic after hours. All this said, the costs can vary substantially, but you will likely be able to find an option that fits both your business needs and budget.
Still aren’t sure if an ATM is right for you? Talk to us, a trusted Merchant Service Provider, about whether or not an ATM would be a good fit for your business. We’ll work with you to balance your desired features with your budget and arrange all the processing services so you can reap the rewards of an ATM without the stress.