Things You Should Know About The ATM Wholesale Business Before You Invest

By Gwen Lowe


ATM machines have become indispensable in today's economy. People all over the world prefer to use these machines to draw out money for their daily needs, rather than go to the banks where lines can be long and transactions can take so much time. For sure, these machines will be around for a long time because of the convenience they provide consumers. If you have been offered to go into the ATM wholesale business, there are a few things you would need to consider before you dive into it.

Nowadays, you don't just find these ATM machines in banks or other financial institutions. You'll find them in supermarkets, drugstores, convenience stores, shops and other places where there is high traffic. Thus, if you have a store or you know of a location where people often go, you can use this opportunity to set up an easy business that does not demand much of your time.

Once you have made the decision of investing on an ATM machine, you need to consider how you can enter this business. Do you intend to own, rent or lease? Do you have a good location in mind? If you decide to own one, remember that there are additional costs every month, the highest of which is the maintenance cost. These costs include mostly the maintenance fees, staff wages, if you are employing people, transportation costs and other incidentals.

Some ATM companies are set up as franchises, while others allow you to rent their machines for a monthly fee. Although choosing a franchise means a higher initial investment, you get benefits from the franchise parent company such as help in finding the best locations, assistance in managing the business, bookkeeping and maintenance of the machines. Usually, you can get parts and services cheaper from companies selling wholesale ATM machines.

Find a good ATM company who provides not just the machines but also post-sale services. There are some companies that sell both new and second-hand machines and also give you options such as a direct purchase or lease. Be careful on choosing your ATM supplier, as the cheapest source is not always the best one.

Be careful about buying pre-used ATM machines that you may find cheap in internet auction shops. Some of these machines are not password encrypted and you may not be able to use them. Today's machines are encrypted so as to safeguard the consumer's transactions. Remember to deal only with suppliers with good track records and have earned good feedback from their customers.

Once you have chosen a good brand, ask about the terms of the sale carefully as you may be required to sign a long-term processing agreement, which is not really necessary. The longest processing agreement that you should sign should only be about 2-3 years. Ask about other ATMs owned by the seller and observe how these are doing.

Remember that if your machine breaks up frequently, you will be losing business everyday. Consider 2-3 ATM machine suppliers and study what they are offering before you buy a machine. Make sure the company will give you a daily transaction report and hat there are no hidden fees that you are not aware of when you sign the agreement.




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