If the rising hustle culture has motivated you to look for a passive source of income, then have you ever thought about starting an ATM business?
So is ATM business profitable? How much can you make from it?
In spite of the increase in digitalization, people still require cash and will continue to do, and this is perhaps the reason why the ATM industry is still growing.
According to Globe Newswire, the ATM market is expected to grow to $28.82 billion in 2026 at a CAGR of 6.9%.
As tempting as it may seem, here is everything you must know before investing in an ATM business.
How Much Does It Cost to Start an ATM Business?
Since you are interested in investing in an ATM business, you might be wondering how much does it cost to start an ATM Business?
So to start an ATM business in the U.S., you need between $3,500 to $11,000, with the average being $7,300.
Most of the money in starting an ATM goes towards acquiring an ATM machine that could range between $3,000 to $10,000 each, as per its functionality.
You can also buy a second-hand ATM machine to save some money, but it is not ideal in the long run.
Additionally, you may also require some equipment and tools to install your first ATM. This could include a toolbox, dolly, lockbox, truck, etc.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| ATM | $3,000 – $10,000 | $6,500 |
| LLC or other entity fees | $100 – $200 | $150 |
| Licenses and permits | $150 – $300 | $225 |
| Insurance | $200 – $400 | $300 |
| Marketing costs | $100 – $200 | $150 |
| Total | $3,550 – $11,100 | $7,325 |
Ongoing Expenses For an ATM Business
Most ATM machines require maintenance of a minimum of $2,000 a week. So make sure you have enough cash to be loaded on a rotating basis.
Another thing to keep in mind is that most merchants charge commission or monthly rent, and banks charge a surcharge for running an ATM.
So it is advised for you to conduct a thorough search and be clear on margins right from the beginning to help you set the profit margin accordingly.
How Do You Make Money With an ATM Business?
When people use an ATM machine, they pay a processing fee that usually lies between $1 and $8, with the average being $3 in the U.S.
This processing fee is the main source of income for ATM Owners. So each time a transaction is made, the ATM owner, ATM processor, and business owner all get a part of this processing charge.
If you own the machine as well as the venue, then you can make more money from an ATM.
Is ATM Business Profitable?
Yes, the ATM business is profitable, and its business owners make $500-$600 a month on average from this business.
Although the amount may not seem like a lot, you can increase your revenue by increasing the processing fee of your ATM.
However, if you do this, people might be reluctant to use your ATM in the future.
So your best bet is to charge a competitive processing fee. And to make $25,000-$35,000 in annual revenue, you can instead open 4-5 ATMs in different areas.
Calculating Profit Earned From an ATM Business
As you already know, ATM owners make money from the processing charge people pay while making a transaction on ATM. So on average, the processing charge for ATMs is $2.50 per transaction.
Also, ATM averages 6-10 transactions in a day. So at $2.50, you would make $20 in daily revenue per ATM or $500 – $600 a month.
Meaning that your first ATM machine that is functional 24×7 would pay for itself in a year.
Moving on, if you install five ATMs in a year, then you can easily take your annual revenue to $36,000, assuming 8 transactions a day. And even if you give your local business $0.50 per transaction, then your annual profit would be approximately $29,000.
This number could increase if the number of daily transactions in your ATM increases or if you decide to install more ATMs.
Pros And Cons of ATM Business
Pros of ATM business
- Passive income source that requires minimal effort
- High retention rate
- Recession proof to some extent
- ATM companies offer flexible plans
- Less credit card processing fees
- Simple business model
Cons of ATM business
- High insurance rate
- Risk of theft
- Background check
- Repetitive work
- Equipment damage can be expensive
- Rise in digital payment might affect your earnings
How to Start an ATM Business?
What are the barriers to entry in starting an ATM business?
Here are some barriers to entry in starting an ATM business:
- Digital transactions: As people are using more towards using digital modes of payments, the use of ATMs might get severely affected in the future.
- Competition: Chances are there might be a lot of ATMs around your area already. So you must prepare yourself for tough competition.
- Security: You have to maintain cash in your ATM machine, so transporting huge amounts of money poses risks.
Mistakes to Avoid When Starting an ATM Business
Here are some common mistakes that you should avoid when starting an ATM business:
- Invest in new machines: Purchasing a second-hand ATM machine might seem tempting to save money on an initial investment. However, machine breakdowns can lead you to lose customers. Hence, you should buy a new ATM machine instead, as it will also get you a two-year warranty.
- Set low margins: Customers will always prefer other ATMs that charge a lower processing fee than those that don’t. So make sure you keep your processing fee less or competitive.
- Do not overlook EMV: Make sure you do your research and find out which EMV models can be upgraded. This will help you save costs and troubles down the line.
- Get a signed contract: Ensure you get a signed contract from all your merchants in case you plan on selling your ATM in the future or defending your location. This will help you in getting a good valuation for your ATM at the time of selling it.
Wrap Up
So to conclude this article on is ATM business is profitable, we think that an ATM business is profitable and can be a good source of passive income for you.
You can earn between $500-$600 a month or even more depending on the number of transactions and processing fee.
An ATM business will not make you rich, however, so if that’s your goal and expectation from this business, then you should look for something else.
FAQ
How much should I charge for an ATM transaction?
You can only have so much control as to how much you should charge for ATM transactions.
This is because fee levels are determined by federal laws and regulations.
However, the standard processing fee for a domestic transaction is ideally $2-3 per transaction, and for international transactions, it is $5 plus 3% of the transaction value.
Is starting an ATM business worth it?
ATM business requires an average investment of $7,325, and you can recover your initial investment amount from your ATM business within a year on average.
So an ATM business might be worth it for you if you are looking for a passive source of income.
How to Make More Money From Your ATM Business?
Three good ways to make more money from your ATM business are:
- Place your machine in a location that could receive more footfall.
- Open more ATMs in your city.
- Start franchising once you learn the ins and outs of this business.
What kind of businesses should also provide ATMs?
Here are some businesses that keep ATMs on their site:
- Casinos
- Gas stations
- Bars
- Convenience stores
- Grocery stores
- Cash-only restaurants
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.