How Much Can You Earn with ATM Machines

Earn with ATM Machines

So. how much you can earn with ATM Machines? What most people don’t know is that banks do not own all the automated teller machines or ATMs that you see around you. More often than not, the business where the machine is located probably owns it. Unless, of course, the ATM is installed at the front of a bank.

People and companies buy ATMs as passive income. For those who are not familiar with the concept, passive income is money you earn for an investment that requires no effort on your part.

When you’re an employee, your salary is considered your active income. When you invest in stocks, whatever you earn is classified as passive income. It’s the same concept when you lease out a property. Passive income also refers to the money you receive from the monthly rent.

Is an ATM a Profitable Investment?

Now, the question is, why buy ATMs?

An ATM requires low maintenance. Typically, the processor will handle the repair and maintenance of the machine. It’s the reason why they are an ideal choice to augment the income of your primary business.

A customer is charged a transaction fee every time they withdraw money from an ATM. The amount will then be split between the ATM processor, the owner of the machine, and the owner of the location. Although the surcharge amount varies, the typical transaction fee is between $1 and $8.

There is a formula that computes how much the transaction fee should be. However, it takes into consideration the foot traffic, the location of the machine, and the average number of transactions per month.

If you’re the owner of the machine, you will earn between 25 cents and 50 cents per transaction. You could make more if you also own the location where the ATM is set up.

Potential Main Business

To give you an idea of how much you can earn when you buy ATMs, consider these numbers:

1. Four in ten customers typically go to the ATM from eight to ten times each month on average.
2. Six in ten customers between the ages of 25 and 34 withdraw about $40 from their ATM eight to ten times every month.
3. An ATM in the United States typically records 300 transactions each month.

However, convenience stores enjoy the windfall if they also install an ATM near their stores:

1. Convenience stores with an ATM nearby register a 20-25% increase in sales.
2. 7-Eleven stores record between 1,100 transactions and up to 6,400 transactions each month.

Cost to own ATMs?

Judging by those numbers, at a conservative 300 transactions each month, you stand to earn an extra $150 every month. Even the worst-performing 7-Eleven store will make at least $550 every month at the 50-cent surcharge rate.

If you buy several machines, this type of investment could quickly supplant your primary business. The costs will vary depending on the brand, capacity, and whether or not the machine is brand new.

A new machine will cost between $1,000 and $25,000, but when you buy a second-hand machine, it will cost you at least $2,000. Then again, the potential returns on investment are quite high. You can break even in a few months, and then you will have a perpetual passive income.