Archive for January, 2009

The Interchange Game

Interchange is a funny thing within the atm business. Many companies dont want to give it away. Reason being, its easy money. For each transaction, your buy rate determines what you’re getting. I remember one of my models consisted of being a middle man between store owner and atm owner. I would ask for part of the interechange. Many didnt want to do it, but the alternative of paying an upfront fee is much worse.

In the end, interchange is a small portion of the picture. It comes down to what your giving out (interest rate cost, store owners cut, tech calls) and what your bringing in (surcharge to atm owner and interchange to atm owner). You have to use EACH variable to increase your bottom line.

Cut Throat ATM Business

Many atm companies are seeing many agreements being broken. You have an atm company, and a store owner. The ATM placement agreement is important, but VERY few of them are enforceable. Why you ask? Many atm companies just use a standard template. A hand me down from one atm company to another. This unfortunately gives you a false sense of security. A store owner can very easily break 99% of any atm placement agreement out there.

If you want to do it right, make sure you cover ALL your basis. Make sure services and performances are written carefully…. its notmally the easiest way for store owners to get out of atm contracts.

Contact the author: ATM Business Author

Getting into the ATM Business is Easier Than Ever!

For all those entrpreneurial individuals that are looking to get into the atm business, the time is now! The cost of an atm machine, a new one,  is less than a 2,000 (and thats for a good quality one). Interest rates are extremely low. If you’d rather not layout the capital to buy a machine, there are many companies that will allow you to lease it for less than $75 a month.

ATM Service
From a service side, there are many techs that are always looking for work (especially if you are in or near a major city). You can contact them at any time if and when an atm goes down. Their costs are significantly lower than going through a major organization.

Money for ATM Machines
Now, this is the main aspect. If you’re able to be on top of your cash flow, you can flourish in this business. In some instances, its worth tapping into your line of credit to use it as cash for the atms.

Quick Math:

250 transactions @ $2 = $500
.50 transaction paid to store owner = $100

One tech call a month 
(which I divided by 2,
since its really once
every 2 months)    =    $50

That leaves you with a profit of $350 (not including interest charges if you are borrowing money).
That means you get the cost back of the atm machine is less than 6 months.

If you are having trouble finding atm locations, there are business out there that will secure them for you (this will of course come at a cost, and normally a hefty one). Might be something worth looking into the first atm you get.

Remember, if you build the ecosystem around you properly, you can flourish in this business

Contact the author: ATM Business Author

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