A study by AT&T Global reported that the most profitable square foot in any business, even businesses with slot machines, is an ATM. It also reported that the average ATM, in the U.S. made more that $20,000.00 a year. An ATM will also cut or eliminate credit card charges and increase sales by 20% average nationally.
So, why doesn’t every retailer own one? Well, until recently ATM machines were very expensive. They required a dedicated phone line and needed to remain stocked with large amounts of cash, 24 hours a day, which sometimes attracted a criminal element. That in turn required additional insurance coverage.
In response to these short comings several international companies are now manufacturing a new generation of script or cashless ATM systems. There are ingenuously designed models to fit any retail settings. They have all the advantages and none of the downside of the old ATMs,
If you process a debit card though a credit card terminal you are charge an extra fee on top of the credit card charges. These additional charges and fees significantly impact the profit margins of small ticket retailers. A cashless ATM system can mean a $3.00 difference on a $10.00 transaction. On low mark-up items this can easily be the difference between profit and loss.
As the economy tightens more customers will be using debit cards and this will amplify the overall slow-down in business that many retail experts expect. In addition to making a service fee on every transaction, these new cashless ATM systems eliminate the premium credit card charges on debit card sales.
In Canada, debit cards recently replaced cash as the premier form of payment for retail transactions. America will soon follow this trend. In Canada the new cash free ATM systems are now the rule rather than the exception for most small transaction retailers. Many U.S. national chains and smart independent operator have already upgrading to these money making/savings systems.
These new systems require only a modest capital investment. Some companies offer; no up front cost, lease to own deals. This, in most cases, allows the equipment to pay itself down, with a substantial profit left over each month. When you add to that, the saving in credit card charges, for most retailer; these new machines don’t cost money, they make and save money, starting the very first day.
In the current economic climate can any business afford to pay ever increasing credit card charges or to let twenty thousand or more a year slip though their fingers?