Is owning an ATM machine always profitable? The answer is probably yes, but we need to ask a few questions regarding the location you plan on placing your new ATM machine.

Are customers asking you for an ATM?

Are there at least 140 people that visit your store daily?

If you answered yes to both of these ATM related questions. Then you should get an ATM because it will increase your store’s overall revenue and profit.

The most important part of owning an ATM is knowing if the location is good. Surcharges, which are one of the benefits of ATMs, depend on volume, so the more people visiting your store, the easier it is to generate a profit. There is a formula that most ATM companies use to determine whether a location is profitable, and you should be able to apply it to your situation as well.

The general rules of ATMs is that 3% – 5% of the foot traffic that sees the ATM machine will use the ATM. So if you have a total of 300 people a day that see the ATM and you are charging a $3.00 surcharge per valid withdrawal, then your new ATM will get you at least 360 transactions at a $3.00 rate per valid withdrawal. That comes out to a total of $12,960 per year or $1,080 per month. Simply from adding an ATM to your location.

But since ATMs are not free, you have to factor in initial costs and possible monthly fees. There are so many ATM machine options, so cost varies wildly. Indoor ATM machines like the line from Tranax, Triton, and Hyosung all offer great machines. 75% of the ATM machines used in non-bank locations are non-armored ATM machines so even low cost ATMs will generate a good profit.

So if you notice that customers need an ATM throughout your weeks, or if you have a lot of traffic stopping by, then owning an ATM is going to generate a good profit for simply adding a machine.