| An Automated Teller Machine (ATM) is a secured | | | | investor you may arrange to split this cost with |
| computerized kiosk that permits bank debit card | | | | the location owner, or absorb this cost yourself. |
| holders to access their accounts, usually for | | | | Most machines now permit the owner to access |
| purpose of withdrawing cash. Originally located | | | | the machine's transaction online, and even receive |
| outside banks, these machines are now found in | | | | alerts by email or text message, such as when |
| retail locations everywhere and may be owned by | | | | cash is running low. |
| the owner of the retail location or they may be | | | | Cash is loaded into a cassette (that may be |
| owned by an investor who places a machine and | | | | removable) and is usually single-denomination ($20 |
| splits revenue with the location owner. This article | | | | bills). Whatever cash is dispensed from the |
| will discuss both methods of enjoying profits. | | | | machine today will be refunded to the machine |
| Machine revenue results from a 'surcharge" a | | | | owner's bank account every day via ACH direct |
| machine user pays when they perform a | | | | deposit. The average location may be adequately |
| withdrawal or other transaction (such as a balance | | | | stocked with $5,000 in cash and replenished daily. |
| inquiry) at the ATM. Surcharges range from | | | | An owner may possess extra cash cassettes in |
| 99¢ to $3.00, commonly. The average | | | | order to quickly visit each owned ATM and simply |
| surcharge is $2.00. This surcharge revenue is paid | | | | swap out the half-empty cassettes for full |
| to the machine owner, usually on a monthly basis. | | | | cassettes. Removable cassettes also reduce time |
| Ten transactions daily would yield $750 per month | | | | that the ATM is unlocked and open and vulnerable |
| revenue if the surcharge was $2.50. As may be | | | | to theft or robbery. |
| seen, the up-front investment can be quickly | | | | For an investor with many placed machines, use |
| regained, within a matter of months. | | | | of an armored courier service is an option. The |
| As a retailer with an ATM, you have an additional | | | | service will perform all machine cash reloading for |
| profit stream: statistically, 35% of cash withdrawn | | | | you. |
| from the ATM machine in your store will be spent | | | | You will want to insure your machine. If you are |
| with you in your store. So you have increased | | | | the retail location owner, this usually involves a |
| sales, and the profit from those sold items, to | | | | telephone call to your business insurance agent to |
| add to your pocket. As an investor, this is a | | | | add the machine to your current business policy. |
| benefit you will want to point out to potential retail | | | | If you are going to be an investor with machines |
| location partners when you approach them. | | | | in different locations, policies are available to cover |
| The initial investment for an ATM is around | | | | theft, vandalism or robbery. Different insurance |
| $2,500. Installation by a qualified technician is | | | | companies will require some security procedures |
| another $350. Those are the one-time fixed costs. | | | | to be in place, usually regarding secure installation; |
| There will be some sort of monthly cost to | | | | this will be handled by the certified installation |
| access the ATM network, whether by dial-up | | | | contractor when machine is first delivered and |
| phone line, cellular or broadband wireless. As an | | | | installed. |