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F.A.Q.
Here are some of the most common questions that we have been asked about ATM businesses. A detailed account of these questions, along with case studies, data and reports can be found in the ATM Business Owner Guidebook.

For a complete review and analysis of start up cost (along with financing options), download the ATM Business Owner Guidebook here.

 




How much does it cost to start an ATM business?

 

This is probably the most common question that we get asked about the ATM business.

Starting an ATM business is much less expensive than many other small businesses.

Besides the cost of the ATM itself ($2500 - $4000), there are several things that you will need to get started.

For a complete review and analysis of start up cost (along with financing options), download the ATM Business Owner Guidebook here.

Item
Low Cost
High Cost
ATM
$2500
$4500
Location
$0 (through Franklin ATM Service Training)
$800 (via a professional locator)
Telephone line
$0
$200 (for a phone line and jack)
Installation & programming
$0 (through Franklin ATM Service training)
$400
total
$2500
$5500 - $6000

 


How does the money get transferred?

When a customer uses an ATM and requests a cash withdrawal, a series of events occurs very quickly:

> Customer uses an ATM/debit card with valid PIN

> Customer request a cash withdrawal

> ATM contacts the host processor and initiates a transaction

> ATM informs host processor of customer account, PIN entered and requested amount

> Host processor contacts customer bank and verifies PIN and submits withdrawal request

> Customer bank receives information and sends approval for cash withdrawal to Host processor

> Host processor sends approval for withdrawal to ATM

> ATM receives approval and dispenses cash

> Customer receives cash and leaves

 

A number of other events also occur:

> After completion of transaction, ATM communicates with host processor to indicate amount of cash dispensed

> Host processor consolidates all daily transactions each night for a single deposit into the ATM owner account. ATM owner will receive a deposit of the dispensed cash (also called the vault cash) and a deposit of the surcharge income.  For credit card processing and merchant services, the card will be processed on one of the more popular platforms we support.  Credit card merchant service platforms we support include:  IBI MerchantHigh Risk Merchants,  and Merchant Processors. As the ATM owner, you may choose to have the surcharge income deposited into the same or different accounts. Franklin ATM Service can discuss the benefits of both arrangements. For more information, read the ATM Business Owner Guidebook.

 

 


Can you help me find locations for an ATM?

Franklin ATM Service will work closely with you and a professional locator to identify suitable locations for your ATMs. We will review the location, demographics and use our Location Scoring process to evaluate the potential of each location. After our consultation and analysis, you will visit each location personally. After review and a site visit, then you will be in a position to approve or disapprove of any location. If you approve of the location, then we will proceed to purchase a machine and schedule installation.

 


How much can I charge for a withdrawal?

You can set the surcharge amount to any amount. You will want your surcharge to be competitive with local ATMs and be reasonable to your potential customers. Most ATMs are set at $2.00 - $2.50 per transaction. Here is a pareto chart showing the distribution of a sample of ATMs in our network:

ATM Surcharge Pareto

 

 


What is the best ATM to buy?

This is a loaded question! As you may have learned, there are many ATM manufacturers on the market. How can someone decide which ATM is best? The "specs" from manufacturer websites are very similar.

Franklin ATM Service will be glad to help you sift through the confusion. We've had considerable experience with nearly every make and model of ATM on the market.

The answer to the question is...."it depends on the location". That alone is a pretty vague answer, so here is our reasoning and how we can provide a better answer to you.

1. Basic cash dispensers: There are several basic cash dispensers on the market. These machines are only expected to dispense cash to customers at a very low cost point. The internal components (cash dispenser, card reader, printer, CPU) will be the most basic models offered by the manufacturer. Consider the Minibank 1500 and the RL2000 to be leading ATMs in this category.

2. Upscale ATMs: At some locations (nice hotels, trendy nightclubs, etc), a nicer ATM is needed. These location owners will not be satisfied with the same ATM that is in every gas station. They are looking for an ATM that is appropriate for the decor. These ATMs will typically have a nicer cabinet and a color monitor. Consider the Minibank 1800 and the Minibank C4000.

3. Workhorse ATMs: Busy locations (shopping malls, airports, casinos, etc) will need an ATM that conduct many transactions for extended periods of time. Some of these units may need multiple cassettes to hold additional cash or different denominations. These machines need to be extremely reliable and secure. Consider the RL5000 or the Minibank c4000.

4. ATMs with expanded services: Some locations have a customer base that will use additional services such as check cashing, wire transfer, coin changers, etc. There are only a few ATMs with these additional capabilities on the market. Consider the Minibank x4000 as the leading machine in this category.

So, a long answer to a short question. What is the best ATM for you and your location? Call us. We can discuss the advantages of the different ATMs on the market.

 

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