Don’t Make These 8 Mistakes Starting in the ATM Business!
Enjoy the revenue from setting up an ATM business. Avoid these eight cash machine mistakes.
Investing in ATMs can help you generate tremendous additional revenue for your business. Before you start, you’ll need to learn a few things to ensure your cash machines’ smooth, trouble-free operation. Here are seven mistakes to keep in mind. By avoiding these pitfalls, your business can go off without a hitch.
Not Doing the Math
Installing an ATM brings in additional profit. But make sure you do the math first. How much will you earn from every transaction? How many customers will use the ATM? Knowing these things will help you determine how successful your cash machine may be.
Setting the Wrong Amount
One way ATM owners generate revenue is through surcharge fees. But have you set yours too low? If you have, that could be why your profits are shockingly low. You’ll want to adjust until you get the right amount. Don’t go overboard with the fees, too, though. Users will take note of that and may start giving your ATMs a wide berth if they think you charge unfairly high surcharge fees.
Buying the Wrong Unit
When you invest in ATMs, find mid-range options well within your price range. It’s tempting to buy old models if you’re shopping while on a budget. However, old models often have poor security features and are more likely to go obsolete in only a matter of years. If you want your ATMs to keep running for longer, get mid-range options. Units with advanced models and the latest technology will also work.
Underestimating Capital Requirements
You need to load the machine with cash. That means you need to have bills to rotate into the machine. Some terminals use about $2,000 a week. Use that as a reference to ensure you have more than enough funds ready. If you have ten terminals, you’ll need at least $20,000 to service the units and ensure they will always have money.
Forgetting About EMV
When you shop for ATMs, don’t forget to look for EMV features. It costs a lot to upgrade an ATM model without EMV capabilities. Save yourself time and trouble. Look for options that already have EMV, so upgrading your units won’t be such a headache in the future.
Not Talking to the Bank
Before you install an ATM, talk to banks. Think about which banks can provide the support that your ATM network requires. That will make your life easier. By establishing a relationship with the bank first, you can prevent a few other issues, too.
Not Signing a Contract
If you want to place your ATMs at several places of business, make sure to sign a contract with the business owner or merchant. The signed agreement will protect you if the business owner decides to remove the machine.
Choosing the Wrong Location
Start small. Place your ATMs at nearby locations so it’s easy for you to monitor the machines and keep an eye on them. That can also make for a convenient route, allowing you to cover all the machines in one trip if you want to visit them regularly.