Have you just walked out of a convenience store, a bar or a club and used an ATM? Have you ever wondered how profitable it would be to own an ATM? How do these ATMs work, and how do they operate? Are you planning to start your own ATM company? If the answer to all these questions is yes, this article is for you!
In Canada, there are over 70000 ATMs, and 51000 are operated by private companies that service the machine daily, also known as white label ATMs.
If you are considering starting your own ATM company, you will be known as a white-label ATM operator. This article aims to show you how to start your own ATM company. You will have your very own successful ATM company in only three steps.
1. Find an ATM Manufacturer
Many ATM manufacturers are available in Canada, and the best ATM manufacturers you can rely on for White-label ATMs are Triton, Hyosung, and Genmega. Within these manufacturers, there are many machines you can buy, old and new, which are economical and fit for someone about to start their ATM journey.
Models like;
- Hyosung 1500
- Hyosung 1800
- Hyosung 2600 Halo 2
- Hyosung 2700
- Hyosung 2800
- Triton RL 1600, 2000, 5000,
- Hantle 1700 W,
- Genmega 2500
- Triton Argo
These machines will cost you between 1000-3000 US dollars to purchase, depending on the amount of capital. These are the best, preferably used machines; they can be purchased from websites like ATM Guru, ATM Parts Mart, or simply asking bigger operators in your region if they have used machines and are willing to sell.
If you are looking for new machines, i.e. Hyosung, Genmega, and Triton, no issue; call them, order the machine and get it at your doorsteps.
Now that you have the machine, what’s next? It would be best if you found a processor. 4 processors in Canada are direct Interac acquirers. Interac acquirers can be found on their website under the “business” and “find an acquirer” sections to guide you better.
2. Finding a processor
The fastest-growing processor in Canada with new technology and easy-to-use systems is Cash Wave.
Cash Wave is a processor that can process the transaction from the customer and dispense the funds with your machine. Other processors like NRT, Cardtronics, and Online Service Corp provide similar services.
Once you have reached out to the processor, they will guide you on how to get your ATM started in terms of setting up the accounts, setting up surcharge, and understanding how you can track how your ATM is working and how to load the machine. Processors will provide steps and details on how and who to target as ATM customers.
Finding a good processor is very important; with the few processors, there are, I recommend Cash Wave. Processors offer Interchange rates, which means the money you make off the back end. This means not only do you make money from the surcharge of the machine, but different networks like Interac, Visa, MasterCard, etc., pay you to facilitate their transactions. Interchange fees vary from 0.30 to 0.85 cents per transaction.
Most interchanges are received from Interac debit transactions. The interchange rate received by the processor is 0.75 cents. Try to make the best deal with your processor to get as much interchange out of that 0.75. That is 98% of the transactions processed on your machine.
Once you find a processor and the ATM manufacturer you want to work with, the next step is to find a communication provider. Every ATM needs to work off some form of communication; there are two forms of communication: Telephone and the Internet.
We will use the internet as the best option for the sake of the newer machines. Some customers can provide Ethernet ports that allow you to plug your ATM. Let’s say the customer you have found does not have an Ethernet port; what do you do? Unfortunately, ATMs do not operate on Wi-Fi. You can buy communication boxes through the DPL Nuvo link, which provides a wireless internet connection. These boxes range from 10-20 dollars per month, depending on the deal they have available.
Now, you have an ATM with a connection to the internet and a processor to process the transaction. The next step is to open a bank account where your vault cash and surcharge will be deposited. Opening vault cash and settlement accounts with financial institutions is challenging in Canada. It is very important to have good connections at your branch and maintain a good record on your banking side to open an account where you can access cash to load your machines.
Once you have opened these accounts and have many machines which require more cash per week. It is a good idea to set up an IVR with Armoured car services like Brinks, Garda, etc., to have your cash delivered to you at your door rather than having to pick up cash at your branch every week or every day.
Now that everything is set, you are on to your final step.
You now
- Own an ATM
- Have an agreement with a processor
- Have a bank account to receive the funds
- Have a communications provider
The last thing that remains is going out and getting the location.
ATMs work best where the average ticket price is low. This is why you see ATMs in locations like:
- Convenience Store (AAA)
- Parking Lots (AAA)
- Clubs (AAA)
- Restaurants (AA)
- Barbers (AA)
- Dispensers (AA)
- Gas Stations (AAA)
- Super Markets (AA)
- Malls (AA)
- Spa’s (AA)
- Casinos (AAA)
- Hotels (AA)
- Festivals and Events (AA)
You need to target businesses in the above industries and offer them deals allowing you to place an ATM at their business. Convincing people with existing ATMs can be done by offering better Surcharge rates and customer service. It goes a long way in convincing customers to switch from their existing ATM company to yours.
Before offering any aggressive rate, call the competition in the region and see what they offer to customers to know how you can convince them to Put your ATM in their store.
Conclusion
After installing your first ATM, you have successfully entered a business with recurring revenue and passive income. Now, all you have to do is add more volume of transactions per month for you to be able to make more money on a month-to-month basis. That is the complete guide on how to start your ATM business in Canada.
