$750 Per Month? Start an ATM Business for Passive Income

Times are changing and as inflation rates start to peak, starting a viable side hustle may just be the best option for sustaining a good lifestyle. You can go for an ATM business to counter the inflation prices. Here’s how you can start an ATM business:

  1. Allocate the capital for ATM machines.
  2. Find the perfect spot for ATM machine installation.
  3. Negotiate commission rates with land owners.
  4. Select the appropriate ATM connection.
  5. Complete the paperwork.
  6. Purchase the ATM machine and install it.

Starting an ATM business is similar to vending machines business and pretty straightforward if you’re following in the right footsteps. And that is what I going to teach in this article.

Let’s get started!

What Is an ATM Business?

An ATM business provides electronic banking outlets for customers for transactions, withdrawals, and check deposits. As an ATM business owner, you fill in the cash and make money each time a customer uses your ATM machine for withdrawals.

An ATM is an automated teller machine that allows customers to make multiple exchanges and withdrawals sometimes for bills, as well. The reason these are so convenient is that it only takes less than a minute and requires no branch representative. 

Now the way these machines serve as a way to make an income is through the fees they charge. These machines charge a general fee. This fee is what generates your income. 

The fee can range anywhere from $1.5 — $3.5 and may go up to $10 for some transactions. 

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How is the ATM Fee Split Among Owners?

Fees from ATMs are shared among numerous companies or partners in the ATM ecosystem. The ATM owner, the venue owner, and the ATM processor are the three key parties in any ATM business. among which the ATM fee is split.

  • The ATM owner is the one who purchases the machine and places it in a certain location.
  • The venue owner is the individual you contacted and worked with to get your ATM machine installed. 
  • The ATM processor is the entity in charge of the processing or documentation required to document and operate the ATM.

The fee that everyone pays will be split among these three parties. 

ATM Fee Split Calculation

Common ATM processor contracts include a surcharge rebate of X percent and a fee between $0.10 and $0.50 per transaction.  

The ATM fee you charge to use your ATM to withdraw cash is known as a surcharge. 

The surcharge rebate refers to how much of your ATM fee is returned to you by the ATM processor. 

You should receive a 100 percent surcharge refund of your ATM fees. 

By offering a lower percentage or charging network accessing costs, ATM processors may try to slice into your profits.

In most cases, the venue owner will receive $0.50 for each transaction. However, this is a negotiated fee between you and the location, so the cost per transaction may vary significantly. 

If the location is extremely attractive, you might be willing to pay up to 50% of the ATM cost or surcharge fee if it will result in a considerable amount of fees. However, the typical charge share for each transaction is $0.50.

Finally, after paying the ATM processor and the venue owner, you will receive the remaining balance of the ATM costs. The ATM processor is always the first person to be paid, followed by the venue owner.

You, as an ATM owner, are always the last to be paid, and you get whatever is left over from the fees.

How Much Do ATM Machines Make? 

Time PeriodATM Owner Earnings
Per Day$15 — $27
Per Week$110 — $190
Per Month$450 — $750
Per Year$5400 — $9,000
Per Transaction$0.10 — $0.50

This table shows the average earnings of an ATM owner per day, per week, per year, and per transaction.

ATM machines can make around $450-$750 monthly (assuming the ATM is working and accessible seven days a week), which goes up to an average of $6,600 annually in profit. The more ATM machines you own, the more profit you can make per month.

If we were to work on mean rates, the average American withdraws a minimum of around $60 per transaction.

Now if your machine is located in a busy neighborhood or market, you can expect around 10-14 transactions per day. 

Now let’s say the fee is $0.20 per transaction. According to these stats, after all the division between stakeholders, you can make up to $18.40 as gross profit per day.

Multiply this by 30 and your monthly revenue is easy $522. So my estimate is close to what experts have to say.

So, after doing the math your yearly revenue can range to around $6,624. 

How to Start Your Own ATM Business — A Step-by-Step Guide

As I mentioned before, a lot of factors come into play when designing your business plan for a good ATM business. While it may seem like a piece of cake, when dealt with, it isn’t usually the case. 

Here’s a stepwise breakdown of what you need to consider when establishing your business. 

#1 Allocate the Capital For ATM Machines

Of course, as a newly entered individual in the vast industry, everyone has concerns about how much the investment costs are. Truth is that these machines don’t cost much and so, the overall capital you may need isn’t off the roof. 

How Much Money Do You Need to Start an ATM Business?

You need a very small start-up capital of around $3000 to start an ATM business. Your major investment is the ATM itself which costs as little as $2,200 and can be easily paid back in less than a year. You’ll also need $1000-$2000 to stock your ATM machine with money.

An ATM business’ plus point is you need no employees to hire and give a monthly stipend to. So you save your costs over there.

Then when it comes to stocking the machine, you can keep an amount as minimal as $500 or as much as $16,000, too. Most people keep around $1000 in one machine. 

Another great feature of this business is that there’s no franchise fee in most cases. That way, your only active cost at once is the machine which, as I mentioned, can be paid back in around 6 months.  

» You can also read my post: 13 Reasons to Start Saving: The Importance of Saving Money

#2 Find the Perfect Spot For ATM Machine Installation

After you’ve bought your first machine you now have to figure out where to keep the machine. The location you pick is crucial for the revenue you’ll make. If it’s a busy market or neighborhood then you can expect your profits to skyrocket.

However, if the location is run down and barren then there won’t be as many transactions made per day. 

A great perk about finding your location is you do need to own the venue to place your machine. You can negotiate with the owner of a fixed rate they’ll receive from the profit. In return, you get to keep your machine in its location. 

An important thing to remember is that foot traffic matters when searching for the perfect location. The more passersby the more chances of making a transaction. 

Here are some locations to put an ATM:

  • Restaurant
  • Stadiums
  • Shopping Center
  • Hotel
  • Banks
  • Gas Stations
  • Universities and Colleges
  • Parking Lots
  • Salons

How Does an ATM Machine Benefit the Retailer? 

You may be wondering why any business would allow that but this helps them more than it does you. With an ATM in close vicinity, people are more likely to use cash while making payments, increasing their cash inflow and reducing debit inflow. 

This way they’d earn more liquid revenue as opposed to online transactions. It also attracts customers because they can easily withdraw cash from nearby. 

These owners have no liability over the machine but benefit from it anyway. 

#3 Negotiate Commission Rates With Land Owners 

Once you decide upon your location, the most important thing to set is the ratio you and the venue owner will share. Oftentimes, some businesses would like to get a percentage out of the machine.

Since the owner already has the benefit of lower credit cost and more cash inflow, you can make sure the ratio demanded is the lowest in line with their pre consisting benefits. 

Others, however, want nothing to do with joint profit and are content with just having the ATM there so it’s important to make this clear before setting a deal.

#4 Select the Appropriate ATM Connection 

Most ATMs need to be connected to a processing server. You can either have internet for this that saves you from any sort of monthly fee. Another option is also a phone line or a wireless router.

All three of these options run the same way and depend completely on personal choice and convenience. 

#5 Complete the Paperwork

At this stage, you must have a confirmed location along with a decided ATM you’re going to purchase. This is when you should take care of all the legalization. 

You would also need a merchant’s ID that would allow you to purchase the machine.

Along with that, organizing where you want the funds to be recycled is another legal work you should take care of before purchasing the machine. 

Make sure to read all rules and regulations regarding ATM placements.

#6 Purchase the ATM Machine and Install It 

Once you’re smoothly done with steps 1-5 then that means you’re now ready to finally purchase your machine. The type of machine you purchase should depend on your budget and aesthetics. There are two kinds of ATMs: 

  • Basic machines — these machines only allow withdrawal of cash and receive their account balance.  
  • Complex machines — these are a bit more advanced and accept deposits, facilitate line of end payments and transfers along with access to account info.  

What experts have advised is getting a machine that best suits your business and location. 

#7 Cashing the Profit 

Now that you’ve bought the machine, installed it, and stocked it to the top with the cash you can sit back and watch as the money starts decreasing in the machine. And when the money finishes, just restock it. 

This is now in its full profitable form which requires minimal effort and maximum revenue.

All you have to do now is maintain the machine and keep records of the surcharge you’re making. 

Is an ATM Business Passive? 

It is possible to earn passively from ATMs. ATMs will continue to serve customers and make transactions day and night, making passive income for you regardless of what you’re doing.

However, you do have to take care of the processor and venue fee but other than that having an ATM is the same as making money in your sleep.

 All you have to do is actively restock the machine with cash and printer paper and you’re good to go. 

» Read my blog post about: The #1 Easiest Way to Make Passive Crypto Income For Free!

Benefits of Owning an ATM Machine Business 

All this talk of ATM businesses makes you wonder if these are as beneficial as it seems. What use does indulging oneself in this bring? I’m about to tell you exactly what makes it such a good option. 

#1 Additional Stream of Income 

First and foremost the biggest pro this gig can have is the extra cash it generates. As a smart individual, you should always be looking for ways to increase your revenue. 

You should look for ways to enhance your growth and by investing in such sure businesses you can expect to multiply your income.

Because you earn a commission for each transaction, the more transactions the more you earn. 

#2 Simple Business Model 

If you go back to see my step-by-step breakdown, you’ll find that starting an ATM business isn’t as hard. At max, you’d have a fully functional set-up in just 5-7 steps. What’s greater than that? After your 7th step, you’re eligible to make cash revenue. 

This is one of the greatest benefits of an ATM business; you can immediately start making cash. Since this is a service-based business, you don’t have to run around finding clients. Instead, your customers come to you. 

#3 Longevity

It’s as simple as this, as long as cash remains the common medium of exchange, your ATM will never go to waste. The idea of becoming obsolete is far-fetched because cash will always be in flow. As long as that happens your profit won’t stop. 

Plus, if you feel endangered by people’s money preferences you can switch to a bitcoin ATM. This is the same as a regular machine but is converted to exchange and withdraw bitcoins.

So running out of business isn’t something you’ll face in a long time.

Disadvantages of Owning an ATM Business 

#1 Partially Passive

At the end of the day, this is still something you invest money in and is a fully functional business. There is a large extent to which you’d have to do some sort of work. The work may be finding a location and negotiating the ratios between parties — making it not 100% passive income

None of these tasks is easy. You have to strategically think of the perfect position that would give you the most income flow. There’s no other responsibility besides these but it’s still something to look after. 

ATMs work seven days a week regardless if it’s a business day or a weekend.

#2 Financial Risks

Like any business, there are going to be start-up costs. With every startup cost, you’re going to think if this will give you your profit return.

Even though it’s pretty impossible to lose money with ATMs, there’s still no guarantee of getting paid back. 

You could always reposition your machine where there’s greater foot traffic but that also requires further analysis.

Further on you’ll also need to invest in insurance, the ATM equipment, and the rent given to the venue owner. All these add up as your initial cost which can be quite jarring for most people. 

» I have also written this post, about: $50,000 Per Month! Here’s How Much Car Wash Owners Make

ATM Machine Business — FAQS

Is Owning an ATM a Good Investment?

Owning an ATM business is a very good investment. Not only does it yield sufficient revenue to keep you moving but it’s also easy to set up. It takes as less as $3,000 to start an ATM business and the ROI can go up to 100% per year.

Everyone can reach this target. You just have to keep yourself motivated in the process.

How Much Money Can I Make Owning an ATM Business? 

For an average of 6-10 transactions per day, your daily surcharge profit would range from around $15-$25 after the payments are made. Since this is per day your monthly profit can be $450-$750/month easily.

This statistic is measured on the condition that your ATM is accessible 7 days a week 24 hours a day. 

About topworklife.com

Hi’ my name is Simon. I am the owner of Top Work Life.

Together with a my team, I write content about income generating ideas, entreprenurship and growth as a person

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