What makes one ATM location earn more than another?

If you are looking at an ATM business, you will find that machines of the same model can perform very differently. The machine is rarely the reason. The site is. This page lists what to check about a site so you can compare machines fairly. It does not say whether owning ATMs is a good business, because that depends on facts only you can weigh.

Who uses the machine

Machines tend to do better where people carry little cash and need it: bars, convenience stores, markets and venues that run late. Ask what kind of merchant hosts each machine and how its customers usually pay. Visit at different hours. A site that looks busy at noon may be empty at night, and the opposite can also be true.

Competition nearby

Look for other machines or bank branches within walking distance. A free machine next door can draw users away from a machine that charges a fee. Ask whether the host could add another machine or whether a bank might open nearby. Competition can change, so ask the seller what has happened to similar sites.

The location agreement

Each site runs under an agreement with the host. Read how the surcharge is split, how long the term lasts, who can end it and what happens if the host is sold. Ask your lawyer whether it passes to a buyer. A strong site on a short or weak agreement is less secure than it looks.

Downtime and servicing

Ask how often machines go offline, how long repairs take and how far the person who reloads cash must travel. A machine that is down often, or hard to reach, loses use even at a good site. For more on a route, see what an ATM route business is and how to check a route’s transaction history.