How to Start an ATM Business: Costs, Placement, and Profits
- 1 day ago
- 6 min read
Starting an ATM business can be an appealing way to create a steady source of income without opening a traditional storefront. The biggest questions most new owners ask are simple: How much does it cost to get started, where should you place your ATMs, and can you actually make a profit?
The good news is that learning how to start an ATM business is straightforward if you understand the basics. Like any small business, success depends on smart planning, choosing the right locations, maintaining your equipment, and protecting your investment with the right insurance coverage.
How to Start an ATM Business
If you're looking for the short answer, here's how to start an ATM business:
Create a business plan.
Register your business and obtain any required licenses.
Purchase or lease ATM machines.
Partner with a payment processor.
Open a business bank account.
Find high-traffic ATM locations.
Install, stock, and maintain your machines.
Purchase business insurance to protect your equipment and operations.
Monitor performance and expand strategically.
While the process sounds simple, every step plays a role in your long-term success.
What Is an ATM Business?
An ATM business involves owning automated teller machines that allow customers to withdraw cash, check balances, or complete other banking transactions. As the ATM owner, you generally earn revenue through transaction surcharge fees and, in some cases, revenue-sharing agreements with the property owner.
Many entrepreneurs begin with one or two machines before expanding into multiple locations.
Popular ATM placement locations include:
Convenience stores
Gas stations
Bars and restaurants
Hotels
Shopping centers
Laundromats
Cannabis dispensaries (where permitted)
Entertainment venues
Car washes
Small retail businesses
The better the location, the more transactions your ATM may process.
Startup Costs for an ATM Business
One of the reasons many entrepreneurs choose the ATM industry is that startup costs are often lower than many other businesses.
Common startup expenses may include:
Purchasing or leasing ATM machines
Installation costs
Business registration fees
Payment processor setup
Cash loading
Internet or wireless connectivity
Security equipment
Insurance
Maintenance and repairs
Costs vary widely depending on the number of machines, whether you buy new or used equipment, your state, and your chosen processor. Purchasing multiple machines requires a larger upfront investment but may increase your earning potential over time.
Before buying equipment, create a detailed budget that includes both startup and ongoing operating expenses.
Choosing the Right ATM Locations
Location is often the biggest factor that determines whether an ATM business succeeds.
Look for businesses that have:
High customer traffic
Frequent cash purchases
Limited nearby banking options
Long operating hours
Safe, visible entrances
Reliable internet access
Businesses that regularly serve customers who prefer cash often produce more ATM transactions.
When approaching business owners, explain how an ATM benefits their customers while potentially increasing in-store spending. Many property owners receive a percentage of surcharge revenue as part of the agreement.
How ATM Businesses Make Money
Most ATM owners earn income through transaction surcharge fees.
For example, when a customer uses your ATM, they may pay a fee for the convenience of accessing cash. Depending on your agreement, you may keep all or part of that surcharge.
Additional income opportunities may include:
Revenue-sharing agreements
Branding or advertising partnerships
Operating multiple high-performing machines
Selling or leasing ATM services to businesses
Actual profits depend on many factors, including transaction volume, operating expenses, maintenance costs, and cash management.
How Profitable Is an ATM Business?
An ATM business can become profitable when machines are placed in locations with consistent customer traffic and managed efficiently.
Profitability depends on factors such as:
Number of daily transactions
Surcharge pricing
Equipment costs
Cash replenishment expenses
Maintenance
Processor fees
Revenue-sharing agreements
Some machines generate very little activity, while others in busy locations process a high volume of transactions every day. Researching locations before installation is often more important than buying the newest machine.
Legal and Business Considerations
Like any business, you'll need to handle the legal side before installing your first ATM.
Your checklist may include:
Registering your business entity
Obtaining an Employer Identification Number (EIN)
Opening a business bank account
Signing placement agreements
Following payment processor requirements
Meeting local or state regulations where applicable
Requirements vary by state and may change over time. Review guidance from the Federal Trade Commission (FTC) (https://www.ftc.gov) and the U.S. Small Business Administration (SBA) (https://www.sba.gov) for current business information, and speak with qualified professionals about your specific situation.
Risks Every ATM Owner Should Consider
Owning ATM machines comes with risks beyond normal business operations.
Potential risks include:
Theft
Vandalism
Property damage
Cybersecurity incidents
Equipment breakdown
Cash shortages
Liability claims if someone is injured near your machine
Vehicle damage during cash transport
Planning for these risks can help reduce unexpected financial losses.
What Insurance Does an ATM Business Need?
Insurance is an important part of protecting your investment. The right coverage depends on your business model, the number of machines you own, and how your operations are managed.
Common policies may include the following.
General liability insurance may help cover third-party claims involving bodily injury, property damage, or certain legal expenses if someone claims your business caused harm.
For example, if a customer trips near your ATM installation and files a claim, this policy may provide coverage depending on the circumstances and your policy terms.
If you own ATM equipment, commercial property insurance may help protect your machines from covered events such as fire, theft, vandalism, or certain weather-related damage.
Coverage depends on where your machines are located and the specific policy purchased.
Inland Marine Insurance
Despite the name, inland marine insurance has nothing to do with boats. It helps protect valuable equipment while it is being transported or located away from your primary business location.
For ATM operators who regularly move machines or transport equipment between sites, this coverage may be worth discussing with a licensed insurance agent.
Commercial Auto Insurance
If you use company-owned vehicles to transport equipment or replenish cash, commercial auto insurance may provide protection beyond what a personal auto policy typically offers.
Coverage varies depending on your vehicle, business activities, and policy.
Cyber Liability Insurance
Modern ATMs rely on digital networks and payment systems.
Cyber liability insurance may help with certain expenses related to data breaches, cyberattacks, or network security incidents, depending on the policy.
If you hire employees, your state may require workers' compensation insurance. This coverage may help with medical expenses and lost wages for employees who experience work-related injuries or illnesses.
Requirements vary by state, so verify current rules with your state agency or licensed insurance professional.
Tips for Growing Your ATM Business
Once your first machines are performing well, growth often comes from careful expansion rather than rapid purchasing.
Successful operators often:
Track transaction activity regularly.
Remove underperforming machines.
Build relationships with business owners.
Maintain machines promptly.
Keep sufficient cash available.
Negotiate better placement agreements.
Add locations gradually.
Review insurance annually as the business grows.
Growing steadily can help reduce financial risk while improving long-term profitability.
Common Mistakes New ATM Owners Make
Many first-time ATM operators make avoidable mistakes that reduce profits.
These include:
Choosing low-traffic locations
Underestimating maintenance costs
Ignoring security risks
Failing to budget for repairs
Not reviewing contracts carefully
Operating without adequate insurance
Expanding too quickly
Taking time to research each decision can save significant money later.
Why Insurance Matters as Your Business Grows
Many entrepreneurs focus on buying machines but overlook the importance of protecting them.
As your business expands, so does your financial exposure. One theft, lawsuit, or equipment loss could interrupt operations and create unexpected expenses.
Working with an independent insurance agency allows you to compare coverage options from multiple insurance companies and build a policy package that fits your business. A licensed agent can explain which coverages may make sense based on your locations, equipment, employees, and operations.
Frequently Asked Questions
How much money do I need to start an ATM business?
Startup costs vary depending on the number of machines, equipment purchased, installation costs, and your operating plan. Some entrepreneurs begin with a single machine and expand gradually.
Can I own an ATM without owning a store?
Yes. Many ATM business owners place machines inside businesses owned by others through written agreements with the property owner.
Is an ATM business passive income?
An ATM business can generate recurring income, but it is not completely passive. Machines require maintenance, cash replenishment, monitoring, and customer support.
What insurance does an ATM business need?
Many ATM businesses consider general liability insurance, commercial property insurance, commercial auto insurance, cyber liability insurance, and other coverages based on their operations. A licensed insurance agent can recommend coverage that fits your business.
Is an ATM business profitable?
It can be, but profitability depends on factors such as transaction volume, operating costs, equipment expenses, placement quality, and ongoing maintenance. Every business is different, and results vary.
Protect Your ATM Business with Wexford Insurance
Starting an ATM business requires more than purchasing equipment. Protecting your investment is just as important as finding profitable locations. Whether you're launching your first ATM or expanding into multiple locations, Wexford Insurance can help you understand the commercial insurance options that may fit your business.
Contact Wexford Insurance today to request a free, no-obligation quote and speak with a licensed agent about coverage designed for your ATM business.
