How to start an ATM Business

"How to start an ATM business"—it’s a question I never thought I’d seriously consider. But once I stumbled on the idea, it felt like the perfect side hustle: low-maintenance, scalable, and—let’s be honest—a bit of a mystery. The thought of a single machine quietly generating $500 to $1,000 per month in passive income was too intriguing to ignore.

If you’re someone who values flexibility and independence (and who doesn’t want to deal with constant social interaction), this business model might be exactly what you’re looking for. ATMs run 24/7, don’t require employees, and can be scaled at your own pace. Plus, they work quietly in the background—perfect for anyone who prefers a "set-it-and-forget-it" approach to making money.

In this guide, I’m breaking down every step of the process, from crafting a business plan to choosing the best locations and scaling your operations. Whether you’re just exploring the idea or ready to dive in, this is your roadmap to starting an ATM business that fits your life and goals. Let’s get started.

12 Steps to Successfully Start an ATM Business

Step 1: Create a Business Plan for Your ATM Business

Starting an ATM business sounded exciting when I first came across it, but let’s be real—it’s not something you can jump into blindly. When I realized startup costs could range anywhere from $10,000 to $50,000, depending on how ambitious you get, it became clear that a solid plan wasn’t just helpful—it was non-negotiable. If you want to make sure every dollar you put in works for you, a detailed business plan is the first step.

What Your ATM Business Plan Should Include:

A great business plan isn’t just a bunch of paperwork—it’s your guide to success. Here are the essentials:

✅ Executive Summary: Capture the big picture—what your business is about, who you’ll serve, and your goals for growth.

✅ Market Analysis: Research cash-heavy businesses like gas stations and bars, which are ideal for ATMs. Fun fact: locations like convenience stores and casinos consistently rank as top-performing spots for ATMs

✅ SWOT Analysis: Understanding your strengths and weaknesses, along with opportunities and threats, helps you stay prepared.

✅ Financial Projections: Include startup costs, monthly expenses, and expected revenue. Pro tip: The average ATM transaction fee is $2.50–$3.50—plan your projections based on realistic transaction volumes.

✅ Services Offered: Decide whether your ATMs will provide cash-only services or additional features like digital advertising screens.

One of the great things about crafting a business plan is that it’s a structured, independent task—perfect for those who prefer quiet, focused work. You can tackle it entirely on your own, using online tools and virtual consultations to avoid in-person meetings. This lets you take your time and plan without interruptions or unnecessary pressure.

Step 2: Form a Legal Entity

Protecting your personal assets is crucial when starting an ATM business, and forming a legal entity like an LLC (Limited Liability Company) is the best way to do it. Not only does it safeguard your personal finances from business liabilities, but it also gives your business a professional edge when opening bank accounts or negotiating contracts.

Steps to Form an LLC:

✅ Choose a Unique Business Name: Make sure the name is available in your state by checking online registries.

✅ File Articles of Organization: Submit these documents to your state’s Secretary of State office

✅ Create an Operating Agreement: Outline the rules for running your business, even if you’re the only owner.

✅ Obtain an EIN (Employer Identification Number): This is like a Social Security number for your business, and it’s required for tax purposes.

✅ Register for State and Local Taxes: Stay compliant by filing any necessary tax registrations.

What makes this process even better? You can handle everything online, which means no long lines at government offices or face-to-face meetings. Platforms like LegalZoom and Rocket Lawyer simplify the process, allowing you to form your LLC with just a few clicks.

Step 3: Obtain Necessary Licenses and Permits

Running an ATM business involves more than just placing machines in high-traffic locations—you’ll need the proper licenses and permits to operate legally. These requirements vary by state, but skipping this step could lead to hefty fines or even shutdowns, so it’s worth getting it right from the start.

Licenses and Permits You May Need:

✅ Employer Identification Number (EIN): You’ll need this to file taxes and open a business bank account.

✅ State-Specific Business Licenses: Some states require additional permits for businesses handling cash transactions.

✅ Local Zoning Permits: Check local regulations to ensure your ATMs comply with zoning laws.

✅ Money Transmitter License: Required in certain states if you’re handling financial transactions directly.

The good news? Most licensing requirements can be handled online, meaning you can avoid in-person visits to government offices. State websites often have digital portals for submitting applications, making the process smoother and faster.

For introverts, the quiet, self-paced nature of this step is a plus. You can tackle licensing from the comfort of your home, with minimal interaction required. If questions arise, most government offices now offer email or chat support to assist you.

Step 4: Open a Business Bank Account

A dedicated business bank account is essential for managing your ATM business finances. Not only does it help you keep personal and business transactions separate, but it also makes tracking expenses, processing payments, and preparing taxes much easier.

How to Open a Business Bank Account:

✅ Gather the Necessary Documents: Most banks require the following:

• LLC formation documents

• EIN (Employer Identification Number)

• Personal identification (e.g., driver’s license)

• Initial deposit

✅ Find an ATM-Friendly Bank: Not all banks are open to working with ATM businesses due to perceived risks. However, banks like Bank of America, Wells Fargo, and Citibank are known to accommodate ATM operators.

✅ Consider Smaller Banks or Credit Unions: These often provide personalized service and may be more open to working with small businesses.

The best part? You can often open a business account without visiting a branch. Many banks allow you to start the process online or schedule video calls to finalize details. This eliminates the need for face-to-face interactions and lets you work at your own pace.

Step 5: Secure Funding

Starting an ATM business can cost anywhere from $10,000 to $50,000 depending on the number of machines you plan to deploy and the locations you secure. Whether you’re starting small or diving into a larger operation, having a clear plan for funding is key to getting your business off the ground.

Funding Options for Your ATM Business:

✅ Personal Savings: The simplest option, especially if you want to avoid debt.

✅ Business Loans: Small Business Administration (SBA) loans are a popular choice due to their favorable terms.

✅ Equipment Financing: Many ATM suppliers offer financing options to help you purchase machines without upfront costs.

✅ Angel Investors: If you plan to scale quickly, consider pitching your business to investors who specialize in passive income ventures.

✅ Reinvestment Strategy: Start with one or two machines, reinvest profits, and gradually expand your network.

Tips for a Low-Stress Funding Process:

For introverts, funding can feel overwhelming, especially if it involves pitching to investors. Focus on options that allow you to work independently:

✅ Use online platforms like Fundera or Kabbage to compare loan options without the need for in-person meetings.

✅ If you’re self-funding, create a simple budget to calculate how much you can allocate upfront.

Step 6: Choose ATM Equipment

Choosing the right equipment is a critical part of learning how to start an ATM business. The type of machine you select can impact your cash capacity, maintenance needs, and overall user experience. Whether you’re buying new or refurbished machines, understanding the options available will help you make a smart investment.

Factors to Consider When Choosing an ATM:

✅ Cash Capacity: Higher-capacity machines mean fewer cash reloads, saving you time in the long run.

✅ Transaction Speed: Faster transactions improve customer satisfaction and encourage repeat usage.

✅ User Interface: Modern machines with larger screens and easy navigation are more appealing to customers.

✅ Security Features: Look for machines with anti-skimming technology and EMV compliance to protect customer data.

✅ Compliance: Ensure the machine meets ADA (Americans with Disabilities Act) standards to avoid legal issues.

Top 10 ATM Brands:

1. Nautilus Hyosung
   

2. NCR (National Cash Register)
   

3. Diebold Nixdorf
   

4. Genmega
   

5. Triton
   

6. Hantle (formerly Tranax)
   

7. Puloon
   

8. Hitachi-Omron Terminal Solutions
   

9. GRGBanking
   

10. OKI Electric Industry

These brands are well-known for reliability and have options for both new and refurbished machines, catering to a range of budgets.

Step 7: Find Locations

Finding the right locations is the backbone of a successful ATM business. High-traffic, cash-intensive areas can mean the difference between an underperforming machine and a reliable source of income. The good news? Securing prime spots is more about strategy than luck.

Best Locations for ATMs:

✅ Convenience Stores: Frequent foot traffic and cash-heavy transactions make these a top choice.

✅ Gas Stations: These are reliable, consistent stops for drivers needing quick cash.

✅ Bars and Nightclubs: Patrons often prefer cash for tipping and purchases.

✅ Casinos and Hotels: These draw tourists and customers who typically spend cash on-site.

✅ Restaurants and Cafes: Smaller establishments, especially those operating on cash-only models, can benefit from an ATM.

Approaching business owners can feel daunting, but there are ways to make it easier. Start by researching potential locations using Google Maps, focusing on businesses that rely heavily on cash transactions. Sending a polished email proposal is often more effective than cold calling, and many property management companies can help negotiate placement across multiple businesses. Offering referral incentives to existing partners can also make the process smoother.

Once you’ve secured a location, ensure the placement is optimal. ATMs should be easily accessible, well-lit, and visible to customers. These details not only boost usage but also enhance the business’s appeal.

Step 8: Negotiate Contracts

Once you’ve identified prime locations for your ATMs, the next step in learning how to start an ATM business is negotiating agreements with business owners. These contracts outline revenue sharing, maintenance responsibilities, and placement terms—ensuring a smooth partnership for both parties.

Key Elements of an ATM Contract:

✅ Revenue Sharing: Typically, transaction fees are split 50/50 between the ATM owner and the host business. Some owners offer tiered models to incentivize higher transaction volumes.

✅ Contract Duration: Most agreements range from 1–3 years, giving both parties flexibility.

✅ Maintenance Responsibilities: Clearly outline who handles repairs, cash replenishment, and operational issues.

✅ Liability Clauses: Specify responsibilities for theft, vandalism, or technical malfunctions.

✅ Termination Conditions: Include terms for ending the agreement early if necessary.

Negotiating contracts doesn’t have to be stressful. For many, a clear, professional email is enough to initiate the process. If more discussion is needed, platforms like DocuSign allow you to finalize agreements remotely. Using pre-drafted templates from services like Rocket Lawyer can also simplify the legal aspects while making you look polished and prepared.

Step 9: Partner with a Processing Company

Partnering with a reliable ATM processing company is essential for ensuring smooth transactions and efficient settlements. These companies handle the technical backend of your ATMs, including communication with banks and card networks, so choosing the right partner is a critical step for your business’s success.

What to Look for in an ATM Processing Partner:

✅ Transaction Fees: Compare rates across providers to find the best balance of cost and service.

✅ Settlement Speed: Faster settlements mean quicker access to your earnings.

✅ Monitoring Tools: Choose a processor that offers real-time transaction data and machine performance monitoring.

✅ Customer Support: Look for 24/7 support to quickly resolve any issues that arise.

✅ Integration: Ensure compatibility with your chosen ATM models for seamless operations.

Top 10 ATM Processing Partners

1. NCR Atleos - One of the world's highest-volume ATM processing platforms, processing over a billion transactions annually.
   

2. Columbus Data Services - Mentioned in multiple sources as a popular ATM processor.
   

3. Fiserv - A major player in the ATM processing industry.
   

4. Payment Alliance International - Listed as a popular ATM processing company.
   

5. Global Card Solutions (GCS) - Provides ATM processing to over 1,500 banks in the US.
   

6. First Data Corporation - A global leader offering payment processing and fraud prevention services.
   

7. Worldpay Inc - Processes billions of transactions annually across various payment options.
   

8. Intuit Payment Systems (IPOS) - A multinational fintech company providing payment processing services.
   

9. CORD Financial Services - Mentioned as one of the top choices for ATM operators.
   

10. Prineta - Offers 100% surcharge back and has a nationwide network of technicians.

Choosing a processor is one of the more straightforward steps in the ATM business, as many companies allow you to compare features and sign contracts entirely online. This means you can weigh your options carefully and make a decision without the pressure of face-to-face meetings.

Step 10: Install and Program ATMs

Once you’ve secured a location and chosen your processing partner, it’s time to install and program your ATMs. Proper installation ensures that your machines operate smoothly and are accessible to customers, while programming guarantees they’re ready to handle transactions securely and efficiently.

Key Considerations for Installation:

✅ Placement: Ensure the ATM is in a high-visibility, well-lit area that’s convenient for customers but secure against theft or vandalism.

✅ Security Measures: Anchor the machine to the floor or wall and use anti-skimming devices to protect transactions.

✅ Compliance: Confirm that your ATMs meet ADA (Americans with Disabilities Act) standards, including screen height and accessibility features.

✅ Power and Network: Ensure a stable power source and a reliable internet connection for uninterrupted operation.

Programming Your ATM:

Once installed, your machine must be programmed to communicate with your processing company and bank. This includes:

• Setting transaction fees.

• Configuring cash denominations (e.g. $20 bills).

• Testing the machine to ensure it’s functioning correctly.

For those who prefer a hands-off approach, most ATM suppliers and processors offer programming support. Alternatively, you can learn to program machines yourself through online tutorials or customer support guides.

Step 11: Implement Cash Management

Managing the cash in your ATMs is one of the most critical—and ongoing—tasks in your business. Whether you choose to handle this yourself or outsource it, an effective cash management strategy ensures your machines stay operational and profitable.

Cash Management Options:

✅ Self-Loading: You withdraw cash from your business bank account and load it into the ATM yourself. This approach is the most profitable since it eliminates third-party fees but requires time and effort.

✅ Third-Party Services: Cash logistics companies handle cash replenishment for you. While convenient, this option reduces your profits due to service fees

✅ Partnering with Location Owners: Some ATM owners work with the host business to handle cash replenishment. This can be a win-win if the business generates significant cash on-site.

Tips for Efficient Cash Management:

✅ Use cash forecasting software to predict how often your ATMs will need to be refilled based on transaction data and seasonal trends.

✅ Monitor your machines remotely through your processing company’s dashboard to track cash levels and anticipate reloads.

✅ Start with a conservative amount of cash until you have a better understanding of your machine’s average usage.

For many business owners, self-loading is a great option because it provides complete control and eliminates reliance on others. However, if time is a constraint, third-party services offer a reliable way to keep your machines running without interruptions.

Step 12: Scale Your Business

Once your first ATM is up and running, and you’ve gained some experience, it’s time to think about scaling your business. Expanding your ATM network allows you to increase profits, diversify your locations, and build a more sustainable income stream.

Strategies for Scaling:

✅ Reinvest Profits: Use the revenue from your initial machines to fund the purchase of additional ATMs, keeping your business growth organic and debt-free.

✅ Target Complementary Locations: If your ATM performs well in a bar, consider expanding to similar venues like nightclubs or restaurants.

✅ Explore Value-Added Services: Upgrade your ATMs with features like digital advertising screens, which can generate additional revenue.

✅ Partner with Other ATM Operators: Collaborate with operators in your area to share insights, leads, or even surplus locations.

✅ Franchise Your Model: Once established, consider franchising your ATM business to scale rapidly with minimal hands-on involvement.

Tips for Streamlining Growth:

✅ Use automation tools, like CRM software, to track contracts, cash flow, and machine performance as you scale.

✅ Build relationships with local business associations to gain referrals for potential ATM locations.

✅ Attend virtual trade shows or industry webinars to stay updated on the latest ATM technology and trends.

Scaling doesn’t have to be overwhelming. Focus on systems and processes that minimize hands-on effort while maximizing profitability. Reinvesting early profits into new machines is a straightforward way to expand without taking on unnecessary risk.

Frequently Asked Questions About How to Start an ATM Business

1. Is an ATM business profitable?

Yes, the ATM business can be highly profitable. A single, well-placed machine can earn between $500 to $1,500 per month, depending on its location and transaction volume. The key to profitability lies in securing high-traffic, cash-heavy locations and managing your machines efficiently.

2. How much does it cost to start an ATM business?

Startup costs typically range from $10,000 to $50,000, depending on how many machines you start with and whether you opt for new or refurbished equipment. Costs include purchasing machines, securing locations, and maintaining a cash stock for your ATMs.

3. How do ATMs get refilled?

ATMs are refilled through a process called cash replenishment, which involves loading physical cash into the machine. This can be done in three ways:

• Self-loading: You withdraw cash from your business bank account and load it yourself.

• Third-party services: Cash logistics companies handle refills for a fee.

• Partnerships with location owners: In some cases, the host business can assist with cash replenishment.

4. How much money does an ATM keep?

The amount of cash an ATM holds depends on the machine's capacity and the location's transaction volume. Most machines are stocked with $1,500 to $8,000, with the average starting amount being $2,000. High-traffic locations may require more frequent refills or larger cash reserves.

5. Can I start an ATM business part-time?

Absolutely! Many ATM operators begin on a part-time basis, managing one or two machines while learning the ropes. As you gain experience and confidence, you can scale up at your own pace.

6. Do I need special licenses to operate ATMs?

Licensing requirements vary by state, but at a minimum, you’ll need a business license. Some states may also require permits like a Money Transmitter License, so it’s important to check your local regulations.

7. How do I find locations for my ATMs?

The best locations are cash-intensive businesses like convenience stores, bars, or gas stations. Research potential spots using Google Maps, and be prepared to negotiate with business owners to secure placement.

INSIGHT: Offering a revenue-sharing agreement (typically 50/50) can make your proposal more attractive to business owners.

Conclusion

Understanding how to start an ATM business is the first step toward creating a reliable source of passive income. While the process may seem overwhelming at first, breaking it down into manageable steps makes it much more achievable. From creating a detailed business plan to choosing the right locations and equipment, every decision plays a role in your success.

One of the best things about learning how to start an ATM business is its flexibility. Whether you want to begin part-time with one machine or scale into a full-fledged network, this business model adapts to your lifestyle and goals. It’s especially appealing if you prefer working independently and value the quiet, behind-the-scenes approach.

Of course, like any business, there are challenges. Managing cash flow, finding high-traffic locations, and staying compliant with regulations are all part of the journey. But with the right preparation and tools, these hurdles become stepping stones to building a thriving ATM business.

Now that you know how to start an ATM business, it’s time to take action. Start with your business plan, secure your first location, and watch as your efforts transform into steady income. If you’re looking for more insights or step-by-step guidance, explore our other resources to help you succeed.