How Much Money do ATMs Make?

Have you ever thought about how much you could earn by owning an ATM?

ATMs are everywhere. Why? High level- because their owners are making money or cardholders demand them. Lets take a deeper dive into it.

Full disclosure: This blog post is written primarily for a store owner who is filling their own ATM however the principles and income can be applied to someone starting an ATM business. Keep in mind the person with an ATM business has more expenses, and more risk. I will touch on that at the bottom of the post.

How Do ATMs Make Money?

The primary way an ATM makes money for its owner is through surcharges. A surcharge is a fee that people pay when they withdraw money from an ATM that isn’t associated with their bank. The average surcharge in the U.S. is about $2.70 per transaction. Every time someone uses your ATM, that fee goes directly to you as the ATM owner. Fees can be flat, tiered, a percentage of the withdrawn amount or a combination of the two. 

Average Transactions Per Month

The most important factor in determining how much you can earn is how often your ATM gets used. The average ATM in the U.S. processes about 160 – 180 transactions per month. This can vary greatly depending on the location of the machine. An ATM in a busy area, like a shopping mall or convenience store, may see more transactions, while one in a quieter spot may process fewer.

For the sake of this example, lets use the low average of 160 transactions per month – again is the low average of number of withdrawal transactions a retail ATM does each month the United States in 2024.  We will also use the Average surcharge in the US of $2.70 – which again is accurate data for the average retail ATM in the United States in 2024. 

Calculating the Earnings

Now, let’s do some math to figure out an ATMs earning potential! 

• Number of transactions per month: 160
• Average surcharge per transaction: $2.70
• So, if your ATM processes 160 transactions per month, your total monthly surcharge revenue would be:
• 160 transactions x $2.70 surcharge = $432 per month
• That’s $432 per month in revenue from one ATM. Over the course of a year, this adds up to:
• $432 per month x 12 months = $5,184 per year
• So on average, one ATM generates approximately $5,000 a year in surcharge income.

Costs of Owning an ATM

While earning over $5,000 per year sounds great, it’s important to remember that there are costs involved with owning and operating an ATM. These costs are generally straightforward and manageable. Let’s look at some of the main expenses:

• ATM Purchase Cost: A new retail ATM costs between $2,000 and $3,000. Popular entry level models would be the Genmega G2500, Hyosung Halo 2, and our best selling ATM- the Genmega Onyx.  
• Installation: Installing an ATM will run you a few hundred dollars. You can also bolt it to the ground yourself saving this fee. But lets figure you are paying a company to install your ATM. That being said a typical ATM installation will cost you $395 – $595. 

Example of Monthly Expenses

Let’s break down the costs and see how they compare to your potential earnings. For this example, we’ll assume you’ve purchased a Genmega G2500 ATM for around $2,300 and you plan to amortize the cost over five years (60 months).

Genmega G2500 ATM cost (amortized over 5 years): $2,300 ÷ 60 months = $38.33 per month

This gives you a rough estimate of your main monthly expense, which would be $38.33 for the cost of the ATM itself.

Net Profit

Now that you know your monthly revenue and expenses, let’s calculate your net profit:

• Monthly revenue from surcharge fees: $432
• Monthly expense (ATM cost): $38.33
• Subtracting your expense from your revenue:
• $432 – $38.33 = $393.67 per month
• So, after accounting for the cost of the ATM, your net profit would be about $398.67 per month, or roughly $4,784 per year.

Scaling: ATMs as a Business

Now, what if you own more than one ATM? What if you were an ATM Company. Let’s say you own five ATMs, each generating the same average of 160 transactions per month. Here’s what the math looks like:

• Monthly revenue from five ATMs: $432 x 5 = $2,160
• Monthly expense for five ATMs (amortized cost): $38.33 x 5 = $191.65
• Monthly net profit from five ATMs: $2,160 – $191.65 = $1,968.35
• That’s a monthly profit of nearly $2,000, or about $23,620 per year, from owning five ATMs.

However- you are typically sharing a portion of your profit with the location. A good location- you may share up to 50%. Less is always best for you but we typically recommend you share 15 – 25% or so with the location.

The Importance of Location for ATM Businesses

The amount of money you can make from an ATM relies on its location. Like real estate- location is everything in this business. If your ATM placement is a high traffic location- AWESOME! Places like shopping malls, gas stations, convenience stores, and nightclubs are ideal because people in those areas often need access to cash. If your location is cash only- ATMs are a necessity.

Some cash only businesses – who own their own ATM – sometimes have no surcharge fees. They just want customers to pay cash versus charging sales.

Tips for Success

If you are thinking about getting into the ATM business or buying an ATM for your business, here are a few tips to help you succeed:

If you are buying an ATM for you own business: choose a highly visible spot. Run internet and electricity to that location. Advertise your ATM with proper signage so your customers know you have it! 

If your starting an ATM business look for high-traffic Locations: The more people who see your ATM, the more likely it is to get used. Look for spots where people often need cash, like near restaurants, bars, or entertainment venues. Deli’s, convenience stores, pharmacies, dispensaries, college areas, barber shops, nail salons can be great locations. 

• Start Small: If you’re starting an ATM business, it’s a good idea to start with one or two machines and learn the business. Decide its right for you and once you get comfortable, you can expand and add more ATMs to your network.
• Keep Track of Your Earnings and Costs: Make sure to monitor your ATM’s performance regularly. Keeping an eye on your income and expenses will help you maximize your profit and ensure your ATM is running smoothly.
• Negotiate with Locations: If you’re placing your ATM in a business or public place, try to negotiate a favorable agreement with the location owner. In some cases, they might not even charge you, especially if they believe the ATM will bring in more customers. In high volume- high competition markets up to a 50/50 split is plausible. Our recommendation- never give a sign up bonus or draw on commissions! 

Final Thoughts

Owning an ATM can be a profitable business, especially if you choose the right location and manage your costs wisely. With the average ATM generating around $432 per month in surcharge fees, and after accounting for the cost of the machine, you could expect to make nearly $400 per month in profit from just one ATM. Multiply that by owning several machines, and you could be looking at a significant income.

While there are some upfront costs involved, the potential for semi passive income makes owning an ATM a great business opportunity for those looking to earn extra money without a lot of ongoing work. Whether you start with just one machine or grow a network of ATMs, this business has the potential to be a steady source of income.