Posts Tagged ‘atm owner’

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.

Competition is Getting Fierce

The atm industry is getting tight. The independant owner needs to be careful. With many atm contracts up for renewal, you are seeing a trend of store owners breaking out of contracts to get a better deal. This brings up a critical point. Relationships Count!

Make sure you have a good relationship with the store owner. Not just some monthly statement and check being sent out. A vendor will come in to sway that store owner with better payouts, fancier signs, and additional promises. It’s imperative that you have a good relationship with the owner. Period

Strong Relationships Win – ATM Owner and Store Owner

In many cut throat markets such as Manhattan, there will always be another atm company that will promise to give the store owner a higher cut. This of course can squeeze the atm owner. Many times, regardless how good you think your contract is, there generally is a gray area that the store owner will be able to get out of it. Even if he can not, the legal headache involved may not be worth it for many atm companies.

This brings me to a very important point that is generally overlooked. The key aspect to Keeping and GROWING your atm business is the ability to keep a strong relationship with the store. If that store owner has your trust, and believes in you, there is a great chance that he would not leave you to get a different provider.

With that strong relationship, comes the ability to cross sell him additional products. The easiest part here is credit card processing.. Once he has trust in you, you can get him to convert is credit card processing to you as well. Now its not how much can you make per atm, its how much can you make per location as a whole.

If you are using your own funds within the atm machines, there are many Short Term Cash Loans that can benefit you.

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