Banking for your ATM Business
Currently ATM business owners are having a very difficult time establishing banking relationships. We can offer some tips and tricks to help although this is a very difficult and fluid situation that is constantly in flux. There is not one single source that has a 100% clear understanding of it yet. We’re compiling the information you see here all of the time and we welcome any and all feedback. We’re providing this particular web page so that you can read it at your leisure, see the logic behind the information being displayed and make proper business decisions for your unique situation. Of course, we can make no warranty to the information here. We always try to help. That’s our fine print.
As you will see to the right of this paragraph, we only promote that you operate your ATM business in a legitimate, fair and logical fashion always being vigilant about local and state rules and regulations that could affect your own personal situation. Each State Government has numerous resources where you can see for yourself how your business might need a slightly different approach or tactic to achieve the results you need: A banking relationship that is stable and one that you can count on.
Good luck out there! Let us know your thoughts.
Third Party Vaulting Services for your ATM Business
If you are looking for a 3rd party to temporarily vault cash your machines we can also connect you to our network of Vault cash providers who will fill your machines for a fee (either temporarily or permanently).
Please read through the Vault Cash Guidelines presented by the National ATM Council for some important tips and suggestions on how to set up a bank relationship. This is a very good resource to bring to your local bank or Credit Union
[embeddoc url=”https://atmbrokerage.com/wp-content/uploads/2018/09/Vault-Cash-Guidelines.pdf” download=”all”]
This is the current list of Banks who are shutting down, have shut down or continue to shut down ATM business owner accounts or who have stated that they will not take on ATM business accounts.
- Bank of America
- Wells Fargo
- Chase Bank
- M&T Bank
- First Texas Bank
- Berkshire Bank (based in MA)
- Commerce Bank (MA)
- many, many California banks (CA is very restrictive)
- we will continue to add and update this list
There are some banks in certain regions which continue to support the ATM business and if you are in need of a bank or have had your bank shut your account, please read through these guidelines. Initially the best resource are Credit Unions and or Smaller Community Banks. Approach these banks with the following information and they may be willing to work with you. Please read through the National ATM Councils Vault cash guidelines here.
Tips & Tricks
With that said, we have assembled some tips and tricks to help you navigate this banking issue. Although we cannot guarantee that you will not have banking problems, we’ve heard from many of you and here is our compilation:
- Start with smaller banks with fewer locations
- Always talk to a Manager, Director or VP of Commercial Banking. You are trying to get a “sponsor” within your bank and you do not want someone with no authority
- Set up a relationship of true transparency of your ATM business. Anything else is allowing red flags to pop up and possible shut your banking down
- Set up your company correctly. DBA’s and Sole Proprietorship types are not looked at as a legitimate business entity. You might get away with this setup for a while but as your business matures you want to be looked at as a serious business. You will need to setup a business with your local experts. You’ll likely need a true-blue business entity for other reasons as well. Contact a business attorney or Accountant to set one of these up for you. Setting this up properly will keep you from looking like a Sole Proprietor. It has been our experience, these banks do not like Sole Proprietorship entities when related to an ATM business.
- Transparency with your banking relationship means that you provide new documents/contracts about your business without the bank calling you and hounding you to deliver them. A new location contract, a vaulter contract, your processing contract should all be handed over without provocation. Be upfront and help to alleviate red flags on the first pass.
- Set up accounts to silo the aspects of your business that require a silo. The biggest example is “capital”.
- Set up a “capital account” to show where you are getting the capital to build this business. If you sell a truck to start this business, you should show where that money is coming from.
- Set up an “operating” account so that you can silo the “operational” expenses, payments and revenues of the business. Here you will buy machines, paper, marketing exercises, etc.
- Set up a “vaulting” account so that you can segment the most ‘curious’ portion of your business. Why is this guy taking out $40k in twenty dollar bills every single week? And why are these little deposits coming back into the account following this large withdrawal.
- Send a small spreadsheet to your banker every week giving them a heads up of your enormous withdrawal coming up in a few days. This spreadsheet could have a list of your locations and the amount you plan to deposit into the ATM itself.
- Keep accurate records of expenditures. Quick Books can do wonders. We are not endorsed by Quick Books. Be ready to provide at a moments notice to your banker.
Anti-Money Laundering Rules and Regulations are real and they can be scary. Once the above tip and tricks are integrated into your business, you will see that your weekly tasks around banking are efficient and really do not take up too much extra time. Most people report a time savings.
As with anything listed here, we are always ready to help you via email or phone. Give us a call!
Independent ATM businesses ARE NOT money Service Businesses (MSBs)
The independent ATM business has been designated a non- MSB (Money Service Business) as of 2007 per this link and also inserted below. This standing and designation has not changed since 2007. There are numerous theories, ideas and reasons why the banks are shutting out ATM business owners although no one really knows with 100% certainty why this is continuing. Here is some additional information regarding independent ATMs and their respective designation as non MSB businesses.
[embeddoc url=”https://atmbrokerage.com/wp-content/uploads/2018/09/FinCEN-MSB-ATM-Guidance-2007-HIGHLIGHTED.pdf” download=”all”]