If you’re looking for a business venture that has great potential in today’s market, becoming an ATM owner may be what you’re looking for. When you own an ATM you can passively earn money around the clock, regardless of what you’re doing. If you choose a location that has a large amount of traffic the potential for profits could be substantial. While it will take some work on your part to get everything up and running it is one of the more rewarding small businesses available.
Understanding Bank Sponsorship Rules
In the independently owned ATM industry it is a requirement that a bank sponsors your ATMs. A sponsoring bank will assist you with the rules that must be followed in order to become and maintain status as an ATM ISO (Independent Sales Organization). This means that you will have to engage in quarterly reporting of your terminals and provide the FFIEC (Federal Financial Institutions Examination Counsel) reports, annually. Other requirements include maintaining owner/operator agreements, having your paperwork audited every year and attending Visa training every three (3) years.
Responsibilities of the Owner
The owner of the ATM is responsible for securing a good location for placing the ATM. They are then responsible for working out an agreement with the location owner to keep the ATM at that location and making sure that the machine has access to electricity and to a phone line or data network. Once the ATM has a location the owner is responsible for refilling the cash and maintaining the ATM which can be easily accomplished if processing with Switch Commerce. Using Switch Commerce’s terminal management system you will have the tools to easily maintain your ATMs from any location through your smartphone or computer.
Understanding the Costs
When running an ATM business, you also have to have a good understanding of the costs involved. Along with purchasing or the leasing the equipment initially you will be responsible for network registration and annual renewal fees, maintenance and processor costs, ATM cash loading costs and day to day administrative tasks. You may do these items yourself or decide to hire someone to take care of some of these for you.
How to Obtain ATM Equipment
Now that you know your responsibilities, the rules and the costs you will need to obtain the right equipment for the job. There are a number of different ATM suppliers out there that can sell you the ATM and the necessary ATM equipment needed to get started. ATMs are also available for lease from certain companies if you would prefer not to have a large initial out-of-pocket investment.
In 2012, the government passed new legislation for ATMs under the Americans with Disabilities Act (ADA). Some of the required regulations for an ATM are audio or voice recognition, Braille capabilities, height and reach specifications and a clear floor space with an accessible route. This legislation will require you to be cautious with the type of ATM you place in a location so ensure when buying or leasing an ATM that it is ADA compliant.