ATM Machine Sales and ATM ProcessingBefore jumping into purchasing an ATM machine be sure to do your home work. ATM Machines have come down in price and we see many for sale on ebay that are not 3DES (Triple DES) compliant. 3DES is an encryption process in the key pad and firmware that protects the consumers PIN number from being stolen when the ATM is dialing the ATM Processor and requesting a transaction. 3DES became a requirement several years ago so we are seeing older machines for sale that are very cheap. These ATMs are just boat anchors or require expensive upgrades.
These machines typically sell for a few hundred dollars and are used. Do NOT purchase a used ATM unless it is from a reputable ATM Machine processing company and includes a warranty and processing services. We strongly recommend staying away from ATM Machines sold by private parties or individuals unless you are very familiar with the brand, model, condition and compliant status of that model.
You can get new ATM Machines for under $2,000 and several refurbished 3DES compliant ATMs for $1,000 and up which include parts and labor warranty.
If you purchase an ATM Machine you still need processing (similar to credit card processing). Look for a company that specializes in ATM Processing (you can search ATM Processing eBay or Google the words "ATM Processing" to find some). A reputable ATM Company would offer ATM Machines with or without processing or ATM processing if you already have an ATM. They would simply re-program your ATM onto their switch. To find out if an ATM machine you're considering purchasing is compliant we recommended using Google and calling an "ATM Processing" company.
Reputable ATM processing companies typically require an ATM processing agreement to protect you and them. These agreements are typically 3- 5 years but there are several companies that negotiate fewer years and some that offer just a 2 year agreement with no sign up fee.
Agreements protect you since these companies are moving your funds when one of your customers withdraws cash from your ATM. They move the funds from that ATM customers bank account into your bank account. That should be done nightly except for weekends. Agreements protect the ATM company because many of them don't charge set up fees but incur costs to set up your system so it takes them a few months to a year to recapture those costs.
ATM Processing rebates range from 85% of the surcharge plus $0.20 - $0.25 cents up to 100% of the surcharge plus $0.20 cents depending on your ATM machine usage volume. Some ATM companies offer a Tiered rebate which is tied to ATM performance.
Some ATM companies also offer ATM equipment at drastically reduced prices to get you to sign a processing agreement. This is typically a loss leader so you only look at how cheap the ATM equipement really is and don't really pay attention to the ATM processing portion of the deal. Watch out for a deal on ATM equipment that seems "to good to be true". This is definitely a case of "you get what you pay for".
If an ATM company is selling ATMs too cheap or offers a rebate that's too high, then something has to suffer. They can't give equipment away and give you a high rebate and give you proper service or stay in business. Remember, they are handling your money. You want them to make money so they stay in business to handle any issues that arise.
The thing that suffers the most when companies give away to much is usually service. Think about what it would cost you if your were getting $2.10 every time someone uses the ATM and 300 people per month used it. That's $630 per month. Now, if your ATM has a problem and you can't get help, or parts or service for a week or longer it's costing you $21 per day or over $150 a week.
Look for a company with 24 hour 7 day support with a toll free number. Then, if you're a business that counts on help late evenings or eekends call that number at 11pm or on a Sunday and see if they answer the phone. If it goes to voice mail, how long it takes to get a returned phone call.
If you get voice mail, leave a message. Tell them you're not a customer yet but you are testing to see how good or fast their 24/7 tech support really is.
If the phone is answered live or you get a call back quickly that's a pretty good indication of good service. If your call goes unanswered or takes hours to be returned, that's the sign of a deal to good to be true.
- When shopping for an ATM Machine expect to pay $1800 - $3000 for a good free standing ATM machine.
- When shopping for ATM Processing look for a deal where you get at least 100% of the surcharge and if you have or expect high volume you can negotiate for a little of the "back end" of the deal (maybe an extra $0.10 - $.20).
- Try not to sign an agreement for longer than 2 - 3 years.
- Ask for references of other ATM customers and CALL them.
- Check their 24/7 tech support claims.
- Ask how ATM discrepancies or chargeback’s are handled (a good ATM processor will handle them for you).
- Ask what if any fees are required to get started (sign up fee, application fee, rebates, etc.)
- Watch out for hidden fees, bait and switch, etc.
- Read agreements and make sure withdrawn funds are deposited daily (business days).