Sun

25

Nov

2012

A Guide to Choosing ATM for Sale

In the 45 years of their existence, Automated Teller Machines (ATMs) have been regulated by banks. Interestingly, the cost of establishing an ATM at that time was $30,000 and the cost of running it for a year surpassed a bank employee's annual salary. However, recent government regulations allow private institutions to own ATMs and make money by levying transaction fees to the banks. This has benefited smaller businesses that the private atm for sale industry targets.

Shopkeepers get a cut off the transaction fees in lieu of allowing the machine onsite, providing small line maintenance and replenishing the cash reserve.

Investor retains a share of investment for risk management.

ATM machines are good investment because they require a smaller entrance investment and no staff salaries, rentals or stock has to be paid. Investors can start with a few ATM machines and then expand their portfolio.

There will be a number of opportunities in your city and you must sift through them carefully to narrow down to those most suitable to the capital and time that you are willing to invest in the venture.

Choose shopkeepers carefully as relocating your ATM machine later can be very expensive. Also choose locations with heavy traffic and shopkeeper involvement in promoting it. Restaurants and stores selling more expensive goods are not ideal locations as here the customers are more likely to pay with their credit card instead of hard cash.

Many companies will offer you an atm for sale but make sure to choose one that provides sitting assistance along with the machine. Sample sitting contracts can help you hugely in negotiating sitting agreements with the shopkeepers. A sitting agreement is a signed contract that enlists the terms of your business relationship with the shop owner listing transaction rates, tenure and responsibilities of each party. List your ATM for at least 3 years at each site and make sure that it is covered in the shop's insurance policy.

Some companies pay you as little as 20-40 cents per transaction while others may pay up to 80 cents. Hence, negotiate your transaction rates with the company very meticulously.

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