The Second Life of ATMs (2024)

FAQs

What is the lifespan of an ATM machine? ›

It is this background that is causing many financial institutions to keep older ATMs running far beyond their natural five-year life span—in some cases ATMs can be in the field for fifteen years or more. However, to deliver services more successfully, it's important to modernise your ATM fleet.

Increasingly ATM manufacturers are developing multi-functional ATMs that can help patrons pay bills, fund transfers, exchange currencies – even charge a mobile phone – and video conference with a live teller as needed. Such ATMs are future driven and transformational for both banks and customers.

That might lead you to think ATMs are becoming obsolete, at least in developed countries. But you'd be wrong. True to their roots as cutting-edge technologies, ATMs are evolving to meet the needs of today's financial institutions and their customers.

The first ATMs were designed to dispense a fixed amount of cash when a user inserted a specially coded card. A Chemical Bank advertisem*nt boasted "On Sept. 2 our bank will open at 9:00 and never close again." Chemical's ATM, initially known as a Docuteller was designed by Donald Wetzel and his company Docutel.

Buying an old machines to comply with 3DES is likely cost prohibitive, so I would suggest purchasing a machine that is always compliant. A compliant used or refurbished ATM will usually start at $1,000 or more. The machines may be purchased outright in cash or it may be financed over time.

Potential Income from Owning an ATM Machine

On average, ATM surcharge fees range from $2.50 to $3.00 per transaction. Assuming an average of 6 daily transactions, you could earn $15 to $18 daily, or $450 to $540 monthly, from a single ATM machine.

Now, the banking industry seems to be undergoing another upheaval with the introduction of interactive teller machines. ITMs combines the traditional functionality of an ATM while offering greater self-service transaction and the ability to speak with a live teller to complete your transaction.

“[It's] a great secondary source of income that could equal anywhere between $20,000 and $30,000 extra per year,” he said. Did You Know? In some cases, your ATM can be profitable even if it results in only 15 customer transactions per month.

The huge adoption of digital payments - such as contactless cards or using smartphones on EFTPOS terminals - has seen a dramatic reduction in the number of customers accessing ATMs to withdraw cash.

There are many sources online which tell you that you can make $500 per month or more from each ATM. Most of the time, these estimates are much too high. My recommendation is to do your homework and count on $250-$300 of income on the higher side. $150-$200 on the low side is a safe bet.

Do ATMs ever give too much money? ›

Dispensed too much: It might feel like your lucky day if the ATM dispenses an extra $20 by accident, but this mistake could get you into legal trouble once the bank realizes the mistake if you do nothing.

Yes, owning an ATM machine business can be profitable because there is a consistently high demand for ATMs. Not only do people need them for personal transactions, but businesses also rely on ATMs. Additionally, the cost to maintain an ATM machine is relatively low, which can help keep profits high.

The machine was initially known as a Docuteller because it was manufactured by the firm Docutel and, like most early ATMs, its use was limited only to customers of the bank.

Obviously, ATMs at banks will be refilled by the bank itself. However, for standalone ATMs, there are a few different options when it comes to the responsibility of refilling the machine. If a business is the outright owner of its ATM, they have the option of refilling the machine on their own.

However, it is a good idea to budget around $200-300 per year for ATM maintenance or repairs to be on the safe side.

One major contributing factor to those numbers is the affordability of the ATM machine itself. While the machines were once considered to be too expensive for many business owners, prices these days typically range from $2,000 to $2,500, depending on the specific make and model.

ATM Machine

ATM machines can range in cost from $1,000 to $8,000. This is a wide range, but it depends on the size of the machine and the age. Realistically, however, you should probably expect to pay around $2,000-$3,000. That is the range for the most common, free standing ATM machines.

Now, if you consider that an ATM machine plus the vault cash is around $3,000-$4,000, you'll have that paid off plus more in the first year with the above numbers. So yes, an ATM business is a profitable business. It is very easy to make your return on investment (ROI) very quickly and therefore begin to profit.