Businesses with physical locations that sell products and/or services to consumers should seriously consider installing an ATM. Businesses that don’t have an on-site ATM are letting thousands of dollars of revenue go to their competitors.
In fact, the global ATM market is expected to reach nearly $22 billion in annual revenue from ATM transaction fees in 2020. That’s because many people still like to pay for things using cash, since this gives them more direct physical control over their spending, which is easier for most people to manage.
Businesses Without an ATM May Lose Money
An ATM is more than a cash-dispensing machine. Smart ATMs can now perform many other transactions, such as bill paying for utilities or selling postage stamps in some areas. A business that does not have an on-site ATM has these losses to consider:
- ATM transaction fees.
- Revenue from other purchases made after customers get cash from an ATM.
- Repeat business that comes from ATM use by those customers.
- Revenue possible from drawing in new customers that want to use an ATM.
When to Get an ATM for Your Business
One of the best reasons to install an ATM is if a business is located in an area that attracts high levels of foot traffic. Advertising “ATM Inside” using attractive signs in the windows is a terrific away to encourage people who walk by to enter the store.
Another good reason to have an on-site ATM is if part of the business requires or typically uses cash payments. For example, in California state law requires the purchase of lottery tickets and scratchers to be made using cash. Having an ATM at businesses that sell these items is a perfect idea.
Some other high traffic areas that would benefit from an ATM include:
- Gas Stations and Convenience Stores: The National Association of Convenience Stores(NACS) reports that an average convenience store that sells fuel has about 1,100 customers per day or the equivalent of 400,000 customers per year.
- Supermarkets and Grocery Stores: A small, successful grocery store may have 2,000 customers per day. A larger supermarket may easily double this daily amount and have over 1.5 million customers per year.
- Restaurants: Many businesses will see foot traffic during peak business hours of 300-1,000 pedestrians per hour.
- Hotels and Motels: The hospitality properties that cater to foreign visitors are a good place for on-site ATMs because the guests need to get local currency using their bank cards.
- Hospitals: Hospitals have hundreds to thousands of patients pass through each day, not even counting those who accompany them.
- Shopping Malls: The food courts in shopping malls are very good locations for ATMs, as people congregate in that area and expect to find conveniences like restrooms and ATMs.
Benefits of Having an On-Site ATM
Besides the increased revenue from ATM transaction fees and the extra sales made to the ATM users, business owners enjoy added bonuses, such as:
Fewer Credit Card Processing Fees
By having an ATM, you encourage customers to pay in cash, which results in lower credit card processing fees. Cash is king, and cutting your total card transactions means you’re able to keep more of your overall revenue. With an ATM on site, you can almost just sit back and watch your business grow.
Better Customer Retention
Business owners that install an ATM reduce the chances of losing customers to other businesses that do offer the convenience of an ATM. They may leave and never come back. Instead, retain customers and draw in new ones by promoting that you have an ATM inside. Having an on-site ATM also encourages repeat customers—even if they don’t use it on that particular visit, just knowing an ATM is there can help bring them back when they need it.
How to Get an ATM for Your Business
As part of BankCard Services’ excellent and comprehensive client support, you have three different options for ATM payment solutions:
If you have a high-traffic establishment, the ATM Placement Program requires ZERO investment on your part. BankCard Services will provide an ATM free-of-charge and take care of everything. Then, earn a percentage of the ATM fees generated. This no-risk option requires a minimum for the foot traffic count, so contact BankCard Services to find out if your location qualifies for this program.
If you commit to loading the ATM with cash, then BankCard Services will provide the ATM and split the ATM fees earned. This provides a chance for added business and higher earnings potential with minimal work to keep the ATM filled with the appropriate cash levels for dispensing.
Buy an ATM from BankCard Services and you handle the cash loading while we take care of all the transaction processing. If you choose this option, you keep 100% of ATM fees earned, which usually covers the cost of your ATM equipment purchase in three to six months. After the ATM is paid for, it becomes the proverbial “cash cow” from then on, continuously earning money while requiring minimal maintenance.
If you don’t already have an ATM in every high-traffic area that you control, what are you waiting for? Contact BankCard Services to learn more about how having an ATM on-site can benefit your business.
Mickael is an entrepreneur and the Co-founder of Bankcard Services. He is a family man and loves technology, innovation, and soccer.