ATM Machines - Are They Good for Business?

by VENDIREX on 02/26/2015 - 02:21 pm |

Tag: ATM Machines

ATM MachinesNot too many years ago, a bank lobby or drive through was the only place an ATM could be found. Gas stations and convenience stores were next, and grocery stores soon followed. These days ATM Machines can be found in many retail stores, office buildings, hotels and motels, bars and restaurants, and government departments. Just about any facility that takes payments will have an ATM handy.


One plus for setting up an ATM inside of your business is that it precludes your having to keep more cash on hand to dispense when customers want change back from their card transactions. They are also said to increase the yearly sales of a store located in close proximity to one by up to twenty-five percent.


In restaurants and bars, people will tend to stay longer if they realize they can access more cash if needed. Some ATM vendors also pay rental to occupy a space within your establishment.

The History of ATMs


The automated teller machine (ATM) is a blend of innovations by a few different inventors. American businessman Luther Simjian developed the Bankograph - first used in 1960 at a few NYC banks - which accepted checks and cash 24/7 and contained a camera which gave customers a copy of their picture instead of a receipt.


Not until 1967, when John Shepherd-Barron installed the first cash dispensing machine at Barclays bank in London, did the idea catch on (though paper vouchers were used instead of cards). The first U.S. automated banking machine using plastic cards with magnetic strips was installed in 1969 at a Long Island Chemical Bank, and were created by former pro baseball player Donald Wetzel (also an engineer).


Considerations to Buying an ATM


Carefully review upfront costs as well as ongoing expenses. The initial price of these automated tellers can run from $1500 to $15k. There are other costs as well, such as supplies maintenance and upkeep to make sure the machine is always operating properly, to avoid losing money from downtime.


As an ATM owner, you must also stay updated on all regulatory compliance to avoid any penalty. There is always the risk of theft; however placement and bolting down the machine can affect this possible outcome. Investigate the profit potential vs. accepting payments by credit card. The owner of the machine will make a profit in fees charged per transaction, for providing cash as a convenience to customers.  




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