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.
- 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. Set up pan “operating” account so that you can silo the “operational” payments and revenues of the business. 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!