Automated Teller Machines Continued…

As the ATM market expanded, two networks provided the means for banks to run and operate ATM machines: Cirrus and Plus. In 1996 these two large networks gave the go-ahead for ATM owners to charge fees. This development, combined with the new availability of data transfer via a standard (inexpensive) phone line, has paved the way for entrepreneurs to enter the ATM market.

The Benefits

Consumers value quick and easy access to their money. They are willing to pay modest fees for the convenience of using an ATM instead of driving across town to their bank to get cash. The benefits to a business owner looking to acquire an ATM include:

Increased walk-in and foot traffic -- an ATM inside or near your place of business will attract customers who need cash. A portion of these customers will spend that cash in your business or on your services.

Higher visibility -- an ATM provides you with a great opportunity to market yourself, your products or your service via on-screen advertising and coupons.

Good will -- customers return to places where they know the services they need are easily attainable. Having an ATM on premises is a way to subtly tell your customers you value their business.

Tax break -- if you lease the ATM, the payment can be deducted as an operating expense in most cases (consult your accountant or lawyer for complete information).

Increased revenue -- surcharges from ATM use will add to your monthly profit. However, those surcharges will drive away customers if they are set too high.

Collateral sales -- ATMs have expanded from cash deposit and withdrawal vehicles to multipurpose kiosks. Today you can sell stamps, money order, phone cards and other items via the ATM. ATM product diversity should expand well into the future.

How to Get an Automated Teller Machine

Buying or leasing an Automated Teller Machine is a lot like buying a new car. You will need to do some research on the ATMs that are available, shop around to find the best deal, go through a credit and background check and then break out your wallet. There are many retailers available via the Internet and we list a few below.

Placement

Maybe you feel ownership of an ATM is too much work to take on in addition to running your business. Yet, you would still like to reap some of the benefits of having a machine. Placement companies will put an ATM in your location as long the location meets certain criteria. You will need lots of foot traffic, a dedicated phone line or TCP/IP wireless or wired connection and in most cases, insurance to cover the machine and the cash. The cost to you will vary per contract and supplier, so shop around and get the best deal you can. Generally you will make a percentage of the surcharge fee paid by customers who use the ATM.

One final note: before you lease, purchase or place an ATM, check with your lawyer to make sure you can meet any State or Federal regulations concerning the operation of cash machines.

By MS Kauffman