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How
do ATMs work?
Click
and know
How much is the surcharge
fee?
The amount varies
depending on the type of location and also by state regulations. The
average fee is $2.00, but locations such as nightclubs/bars and
restaurants can charge a higher fee. Some states have a limit as to
what can be charged. Recently, a large national bank has raised
the surcharge on their ATMs to $3.00. This large increase has
actually benefited the independent ATM owner.
How steady is ATM
income?
ATM income is dependent on several factors: Location,
traffic, credit card service (not) available, etc.
Click here to see some
actual performance data from ATMs placed in the field.
What is a realistic ATM
income?
A big question! Clearly, high
quality locations can earn significant amounts of money. The reports
on our website are great locations. Slower locations can certainly
be profitable and earn steady income.
One thing that we want all potential
entrepreneurs to realize is that the ATM business is competitive and
to assess what realistic return on investment is reasonable for you.
Consider alternative investment choices:
Consider the hypothetical case
below:
A person has $12,000 that he is interested in using for a
business or investments. What are some choices that are available to
him and what are reasonable rates of return:
| Investment |
Risks |
Rates of return |
Value after 5 years |
| Bank account, money
market account |
Almost no risk |
3%-6% per year |
@3%: about $13,900
@5%: about $15,300 |
| Stocks |
risk of loss |
long term: 7-8% per
year |
@8%: about $17,600 |
| (3) ATMs |
risk of loss |
Using the following
assumptions:
cash loading by ATM owner
$2.50 surcharge
$0.50
back to location per transaction
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$18,000 - $42,000
click here for details
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What are the "hidden costs" associated
with ATMs?
There are no hidden
costs at Franklin ATM Service. When Franklin ATM Service quotes a
price it will include processing, shipping, installation and
training at your location.
Should I use my own cash or lease the
cash?
Leasing the cash can be
costly. The charge for this service is anywhere from $80.00 -
$250.00 to fill the machine every time your ATM needs money. This
can drain your profits in a hurry. We encourage independent ATM
owners to stock their own machines. As an independent ATM owner, you
will have a much lower break even cost. This will allow you to place
an ATM in locations that would cause a bank ATM to be unprofitable.
Will my machine accept ELECTRONIC
BENEFIT CARDS? YES!!!
Electronic Benefit cards are accepted through QUEST and working for
almost all state programs.
What is the average cash load in the
ATMs?
The amount of cash that
the retailer loads into the ATM depends on the transaction volume.
If the average withdrawal is $60 and the ATM does 750 transactions
per month (25 per day) the ATM would dispense $1,500 per day. Based
on this information, the retailer could load the ATM once per week
with $10,500 or $1,500 per day or $4,500 every three days. You will
be able to decide what is best for your location.
What kind of Telephone Line do I
order?
In order to have an ATM
Telephone Line installed, you need to call your local telephone
company and have them install a Dedicated Phone Line.
Advise them that you would like to have a telephone line installed
with touch tone for an ATM machine location. This
usually takes about one week. Ask for a phone line for the
BASIC CALLER PLAN. The ATM will be calling out on an
800 line, so there will be NO LONG DISTANCE CALLS.
This will reduce the monthly bill.
Service Questions:
What if the ATM has problems?
Don’t worry! Tech support is available
and we will help you determine the problem and take the necessary
steps for a speedy solution. In most cases, the problem is minor and
can be fixed over the phone. We understand it is imperative that
your ATM remains operational at all times to ensure maximum
transactions.
Processing Questions:
What forms of cards are accepted?
We process with all networks:
Visa, MasterCard, American Express, Cirrus, Plus, NYCE, Pulse,
Maestro, Discover, AFFN, Star, and Quest. Our network is also
on-line for EBT (Electronics Benefits Transfer). In short, all ATM
and credit cards are accepted at our ATMs.
How does the withdrawal process work?
Your ATM will dial an 800 number to
access the networks. Once communication is established, the ATM will
access the customer’s account and debit the amount requested plus
the surcharge fee. When authorization is received, it is returned to
the ATM for dispensing. The customer will receive their cash and a
receipt. The customer’s money and the fee will be deposited into
your checking account the next business day.
How will I be able to monitor my
ATM?
You will be able to
monitor your ATM with access to a real time website. Transactions
and cash balances are available immediately for all your
machines.
What forms of cards are accepted?
Your machine will accept all major credit and debit cards:
Interac; Plus; VISA; MasterCard; Maestro; Cirrus and American Express.
What is encryption?
Encryption is the translation of data into a secret code. It is the most effective way to achieve data security. Information sent across a phone line during an
transaction is encrypted, and the code is changed regularly to ensure integrity.
How do I safeguard against card fraud?
It is the responsibility of the cardholder and the cardholder's bank to ensure fraudulent cards are not used.
machines rely on a Personal Identification Number (PIN), and, as you know, it is up to the cardholder to keep their PIN a secret. The cardholder's bank authorizes all transactions that are done at the
ATM.
Can my ATM "eat" a customer's card?
No, ATMs have a swipe card reader. The customer simply slides the card in the slot and removes it. The card never leaves the customer's hands.
Can my ATM process Smart Cards?
Yes. machines can be upgraded with a Smart Card reader.
How is the ATM secured to the floor?
The ATM is bolted to the floor with 4-inch concrete wedge bolts that can withstand 12,000 lbs. of pressure.
Can I install an alarm on my ATM?
Yes. Your machine can be ordered from the factory with a generic alarm system. It can also be alarmed independently.
How do we know that the dispensing technology is reliable?
There are several security mechanisms in place to ensure your ATM dispenses the correct amount. The ATM must receive an authorization code from the cardholder's bank prior to dispensing. The machine itself will have up to five sensors that each bill must pass through. Each ATM is balanced every time the money is loaded. And
monitors your ATM to ensure transactions are being processed properly. Therefore any variances in dispensing are extremely rare.
What is the meaning of UL291 hour safe and UL291 Level 1?
UL291 is a rating for business hour safes (UL means Underwriters Laboratory) and is the standard for non-financial bank machines. The rating refers to how long the system has to withstand an attack and what type of tools may be used in the attack. The UL291 Level 1 rating indicates the machine complies with established electrical and safety standards.
How does a withdrawal transaction work?
When a customer carries out an withdrawal transaction, the machine dials a toll-free number to a central transaction-processing computer. This processor adds the surcharge amount and obtains authorization from the cardholder's financial institution.
How do I get paid from the transaction?
The withdrawal amount and the surcharge are deposited directly into your account. Typically this happens on the business day following the transaction.
What transactions can the surcharge be levied against?
A surcharge can be levied against all transactions that are
conducted against US based bank accounts. Surcharging cannot be applied to certain international MasterCard, Visa, Cirrus, or any other
non-Interac Network cards.
What additional supplies will I need?
Your ATM will require thermal printer paper for receipts. Each roll lasts for approximately
six months.
Do I require training for my staff and myself?
You will need some training on the operation and balancing of your
ATM. We provide it. Typically training takes two to four hours. The cost of training is included in the price of the ATM.
Who services the ATM if a maintenance contract is not entered into?
You can pay for the services factory trained technicians. Parts can be purchased from one of our warehouses.
We can provide detailed training for you as the ATM owner. We have
many detailed guides to help you program and manage your ATM.
Are there any costs for standard software upgrades? Hardware upgrades?
If software upgrades are required, they are provided by . Hardware upgrades can be quoted on a case-by-case basis.
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