ATM Business Glossary
The terms below come up in every ATM route purchase. They are written the way a broker uses them, not the way a textbook does. If something here is unclear, ask us — no question about a deal is too basic.
For how a purchase actually runs, see buying an ATM business. For current inventory, see ATM routes for sale.
ATM terms, defined
Advertising & Marketing– Click here to download a sample marketing flyer which is a basic one-page marketing materials I used to place in excess of 300 locations.
Armor Truck ready– This means the ATM can be vaulted by an armor truck, which normally requires audit-locks and a higher cassette capacity
Audit Lock– This is a single use lock which is a basic requirement from he Armor truck companies. This lock allows you to program the lock so that it gives out a new code every time the lock is used
Commission- Merchant split, commission, lease payment, cut to the merchant etc are all terms for the amount typically paid to the merchant in an AMT placement
Contract- The contract is the agreement that is typically signed between the merchant and the owner of the ATM. See here for a sample which I have utilized; Sample Contract
EMV– Stands for Europay, Mastercard, Visa; this a new chip enabled card which the card issuers are deploying now . Between 2016-2017 ATMs will need to be ATM compliant. Click here for a list of make and model costs by machine.
Interchange- Interchange for the purposes of the independent operator is normally an additional amount of revenue or income which is derived from the additional foreign bank fee which accompany all ATM transactions
ISO- Independent Sales Organization- These are the companies who can handle your transactions and link you up to a processor. There are over 200 ISOs in the ATM industry today
Master Keys– Master Keys, Comvelopes or Encryption keys are an extra layer of security on each terminal and unique are to that terminal
Monthly Net- For independent operators their ‘net’ is normally their surcharge revenue plus interchange income, less merchant commissions.
Processor- The Processor is the ATM organization linking the bank account of the customer through the ATM to your bank account. There are several ATM processors in the US including Columbus Data, RBS Worldpay, Switch Commerce, FIS
Spec Sheets– Here are spec sheets with dimensions and specs on the Genmega 2500; Hantle 1700 and Hyosung Halo. Spec sheets on any other make/model you would be installing can be easily found online or I can provide for you if needed.
Surcharge– This is the fee you set as the owner of the ATM Machine, typically also called the Convenience fee
Terminal ID– This is the unique code the Processor and or ISO assigns to your terminals
Turnkey ATM– This is an ATM where the vault cash and service is provided already and there are no service requirements necessary
Vault Cash– This is the cash or capital in the ATM itself. There are 3rd part vault cash companies which can service ATMs.
ATM Parts
Most new ATMs come with a 1 year warranty on parts and most repairs on ATMs can be handled easily with minimal knowledge of ATM repair and technology skills. Data on related repair breakdowns are not readily accessible as far as I am aware although I am working on gaining more knowledge in this area.
Here is a general layout of the parts on an ATM
Shell- The exterior of the ATM, can be purchased without the dispenser.
Topper- Adds potential advertising space for the ATM, a topper upgrade is around $50-$100 on a new machine
Safe- Safe and safe door where vault cash is contained
Lock- There are 3 main lock types, Dial Lock (standard) Electronic Lock ($50 upgrade), Audit Lock- one time use Armor truck ready ($300-$400 upgrade)
Dispenser- This is the area where cash is stored and dispensed. The most expensive part to replace and is typically repaired rather than replaced. Standard issue is fixed cassette. A 1000 note removable cassette normally adds $50-$100 depending on the retailer. New single cassette dispensers run around $800-$1000
Cassette- 1000 note removable is typical issue although 1700 not cassettes, dual cassettes and more are available. A removable cassette is normally a $50 upgrade on a new machine. Spare 1000 note cassettes run around $400
Screen- The exterior screen for customer use, can be touch or just visual screen, most screen replacements run $200-$300.
Main-board- Most main board with modem are $650-$700 replacement
Card Reader- EMV is new and latest standard. Most ATMs built in the last 5 years can be upgraded to EMV fairly easily and with relatively low expense ($275-$400)
Modem board- Usually located on main board although can be separate, run around $125
Printer- A printer assembly runs around $600-$700
Keypad- typically a $400-$500 part for newer ATMs
Power Supply-
Wireless- Many options exist for wireless devices and these typically run around $15-$20 per month for a lease or $250 to purchase the box and $5 per month for the connection to the wireless provider.
Industry Statistics
Total number of ATMs in the US- 425,000 (source-National ATM Council)
Independently owned ATMs deployed- 222,000 (source-National ATM Council)
Average ATM fee/Convenience fee- $3.00 (source-National ATM Council)
Average commission payment-$.50-$1.00 (based on my analysis of 100+ portfolios and 10,000+ locations)
Average interchange net income-$.10-.20 (based on my analysis of 100+ portfolios and 10,000+ locations)
ATM Frequently asked questions.
For initial basic information, please see my FAQ page
ATM Sales and equipment
Costs for new machine:
Entry level $2000-$2500
Higher end machine with multiple cassettes and dispensers can run anywhere from $3000-$6000+
Most ATMs come with a 2-year limited manufacturer warranty, so you should understand the age of each machine in the business you are looking to purchase.
Manufacturers
There are 3 main manufacturers of independently deployed ATMs in the US
These manufacturers and sell you machines at cost
Hyosung– http://www.nhatm.com, Manf in S. Korea, largest seller of retail ATMs in the US
Genmega- http://www.genmega.com, Manf in S. Korea, 2nd largest seller of Retail ATMs
Triton– https://www.tritonatm.com, made in the US, typically around $200 more espensive than Genmega or Hyosung
Most Popular Models
Links to commonly deployed ATM spec sheets:
Here are some basic things you will want when looking at ATM businesses to buy in regard to equipment:
1k Removable Cassette-This is a 1000 note removable cassette which allows you to either buy an extra cassette and swap cassettes when vaulting machines or remove cassette and add cash in a private or more secure location.
Electronic Lock- the locks for the safe come standard with a dial lock and most operators upgrade to the e-lock for an additional $50. Audit Lock (single use Armor truck requirement) can add $300-$400 to the lock cost
EMV (Europay, master card, Visa- see glossary for more) ready– Most ATMs are now EMV upgraded, this standard started rolling out in 2016-17
You should attempt to select a manufacturer and stick with it if building portfolio. This will enable you to streamline your knowledge and order parts more easily and eventually have spare parts on hand.
Still deciding?
If you are weighing a first purchase, the ATM startup guide covers placement, processing and vaulting end to end. If you already operate and are thinking about an exit, we value routes for free.