How Profitable Are ATM Machines?
To business owners, an ATM might seem like a relatively small convenience for their patrons to have. But in addition to the convenience, it is an untapped source of revenue. The question, though, is how profitable are atm machines​ and what role can they take in growing your bottom line?
Overlooked, however, in the right location is an excellent source of passive income to boost your bottom line! This guide will walk you through the profitability of an ATM, things that affect return, and how choosing the right partner is the most important aspect in getting the most out of your investment.
Understanding ATM Profitability
ATMs mostly make money off surcharge fees: the small charges people pay after they use a machine to pull money. The surcharges are divided between the owner of the ATM and the processing company. The average surcharge in the U.S., for instance, is about $2.50 – $3.50 per transaction, which, multiplied by frequent usage of such services, can easily become a hefty sum.
As an example, consider an ATM that completes 300 transactions per month with an average $3.00 surcharge, generating $900 in gross surcharge income. Those minimal operating costs are still a good profit margin once you subtract the cost of communication fees, paper receipts, and refilling the cash, the group says.
So, how much money can you make with an ATM really boils down to three main factors:
- Transaction Volume – More people in the store means more withdrawals.
- Surcharge Rate – Revenue is directly impacted by the fee charged per transaction.
- Operating Expense – Less overhead and higher profit margins.
Factors That Determine Profitability
Location is Everything
Like real estate, profitability in the ATM business comes down to location, location, location. Simply put, ATMs that are in busy locations — convenience stores, bars, gas stations, busy retail centers, and the like — are used more often. Places with heavy cash-based transactions, such as nightclubs or mom-and-pop restaurants, tend to be especially heavy users.
Customer Demographics
If people are in the habit of spending cash at your business — they need it for tipping and small purchases, or if your business is cash-only — your ATM will be used more often. Conversely, areas with high technology usage, card-swiping customers may experience less such activity.
Surcharge Fee Strategy
And set it too high, and customers might bypass your machine. Set it too high and you reduce profitability. It’s a balancing act that will really depend on location, competition, and guest expectations.
Maintenance and Uptime
Downtime equals lost revenue. Working with a provider such as Atlantic Processing assures your machine will be maintained, watched over, and serviced fast should an issue arise.
Breaking Down the Numbers
Let’s run a realistic example:
- Monthly Transactions: 400
- Average Surcharge: $3.00
- Gross Revenue: $1,200/month
- Processing/Communication Costs: $50
- Net Profit: ~$1,150/month
Over time, you have closer to $14,000 of passive income from one ATM. Now multiply that by a few machines, and you can see why lots of business owners and investors make an enterprise out of running ATMs.
This is an example of why there isn’t a one-size-fits-all answer to the question of how profitable are ATM machines—because it depends largely on where you put your machine, who you work with, and how well they are managed.
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Benefits of Owning an ATM
Additional Revenue Stream
ATMs generate passive income in the form of surcharges. Unlike in many investments, overseeing the system once it’s installed doesn’t take much time at all.
Increased Foot Traffic
And an ATM is not only for your current customers, it can draw in new ones. Customers who come to withdraw cash make impulse buys, bolstering your main sales.
Customer Convenience
By providing an ATM, you eliminate the chances of losing a sale as the customer leaves to find cash somewhere else.
Competitive Advantage
In neighborhoods where cash is still king, an in-store ATM grants businesses a competitive advantage over those who don’t have one.
Why Partner With Atlantic Processing?
The reason for the revenue potential is clear, but getting the maximum profit out of an ATM really depends on the ATM company you partner with. At Atlantic Processing, we offer full-service ATM packages that eliminate the hassle of machine ownership and maximize your investment.
Here’s what sets them apart:
Turnkey ATM Solutions
At Atlantic Processing, we take care of it all – installation, programming, monitoring, servicing – so you won’t have to.
Reliable Cash Loading & Monitoring
It is paramount to keep your ATM active and loaded. You can be confident that real-time monitoring and secure cash management at the casinos will keep you online and in the game.
Transparent Revenue Sharing
Never question how much you’re making with easy-to-understand reporting and commission splits that give you the most you in your pocket.
Compliance & Security
Atlantic Processing includes compliance with machines and modern fraud and skimming protection.
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The Long-Term Profitability Outlook
And unlike fashionable investments that can be fleeting, ATMs are an ongoing boon — cash isn’t about to disappear anytime soon. And in our age of digital wallets and credit cards, cash is still essential for small purchases, for tips, and for emergencies.
And companies in cash-intensive industries — bars, food trucks, salons, convenience stores — will depend on ATMs for years to come. Therefore, ATM businesses offer a stable, passive income opportunity with surprisingly little maintenance.
So if you had any thoughts on “How profitable are ATMs,” look at it as a consistent and reliable source of income, nothing too risky.
Common Misconceptions About ATM Profitability
“Everyone uses cards now.” — As card spending rises, research suggests cash continues to be relied on for the smaller, everyday buys.
“The ATMs are too expensive to maintain.” – With a partner like Atlantic Processing, most maintenance and monitoring is taken care of at low cost.
“ATMs only benefit banks.” – There is big money in operating a stand-alone ATM and running it outside of parenthood with a bank.
Final Thoughts
To this day, ATMs are still one of the most underutilized sources of income for business owners. In the perfect location and with the right service provider, an ATM can provide a consistent passive income stream, in addition to enhancing customer convenience and overall sales.
So when you ask, how profitable are atm machines​, the simple answer is: very profitable if you run them correctly. When you have Atlantic Processing as your partner, you get more than just a machine… You get a full-service system specifically designed to help increase your revenue while decreasing your frustration.
Ready to make your business a cash machine? Contact us today, and let’s learn together how we will provide your business with a custom-tailored ATM solution to get you started.
