How Much Does It Cost to Start an ATM Business?

How Much Does It Cost to Start an ATM Business
How Much Does It Cost to Start an ATM Business

If you are looking to invest in a cash-based industry, an ATM business can be a profitable venture to consider. However, like any other business venture, starting an ATM business requires some capital investment.

So, how much does it cost to start an ATM business? On average, starting an ATM business costs between $3,000 and $10,000, depending on the number of machines you buy and how you acquire them. Additional costs include an insurance policy, tools for regular machine maintenance, a phone line, and a reliable vehicle.

Read on to explore the different expenses associated with starting an ATM business. If you live in Florida, you might enjoy reading: how to start an ATM business in Florida.

1- The Cost of an ATM Machine

The costs of an ATM machine vary depending on several factors, including the model, features, and functionality. In general, the cost of a new ATM machine can range between $2,000 to $8,000, according to Hyosung America. However, refurbished or used machines can cost less, but they may require repairs or upgrades, which can add to your overall cost.

The key here is to find a machine that has enough features and security protocols to provide a positive user experience while minimizing risk.

2- Additional Expenses

Apart from the cost of the ATM machine, other expenses you need to consider include:

  • Installation: The cost of installing an ATM machine can vary depending on several factors, including location and the type of machine. Expect to pay between $500 to $1,500 for installation. I encourage you to negotiate with your suppliers for potential free installation.
  • Cash Reserves: As an ATM operator, you will need to keep cash reserves to ensure the machine has enough cash to dispense. The amount of money needed for cash reserves will depend on the frequency of cash refills and transaction volume.
  • Maintenance and Repairs: ATM machines require regular maintenance and occasional repairs. The cost of maintenance and repairs will depend on the type of machine and the complexity of the problem.

3- Operating Expenses

Running an ATM business comes with its own set of operating expenses, which could include expenses such as rent, electricity, phone and internet bills, insurance, taxes, and marketing costs.

The total cost of operating an ATM business can vary, but most owners spend between $200 to $600 per month.

4- Legal and Regulatory Expenses

Another factor that can increase the cost of starting an ATM business is the legal and regulatory expenses. To operate an ATM business, you’ll need to get several permits and licenses, which vary by state.

Some of the licenses and permits required could include a business license, a sales tax permit, and an ATM operator’s license. Expect to spend around $500 to $1,000 on legal and regulatory expenses, depending on the state.

5- Insurance

Just like any business, an ATM business requires insurance coverage. Among the insurance policies you need to consider are liability insurance, workers’ compensation insurance, and property insurance. I encourage you to discuss with your lawyer to determine the type of insurance you will need.

Insurance costs vary depending on your location and the size of your business but expect to pay between $500-$1000 per year.

6- Maintenance

ATM machines can break down or malfunction, and when this happens, it’s crucial to get a technician to fix the issue at hand.

Maintenance costs vary depending on the complexity of the problem, but as a rule of thumb, you should budget up to $15,000 per year for repairs and upgrades.

7- Processing Fees

Also, you need to think about processing fees. Whenever someone uses your ATM machine, a processing fee is charged.

As an ATM business owner, you can charge a surcharge fee on top of the processing fee, which you get to keep. Processing fees and surcharge fees vary depending on your service provider. Typically the fees for an atm vary between $1.00 to $8.00 (Source: Forbes). In 2008, the national average for atm fees was $1.97, and $4.35 in 2014 (Source:

How Much Does It Cost to Start an ATM Business

Is It Worth Starting An ATM Business?

ATMs are very profitable businesses because there are few overhead expenses. With a relatively very low initial cost, starting an ATM business can be profitable over time. ATM operators typically charge a flat rate fee per transaction or a percentage of the transaction amount.

And the good news is that the revenue generated can offset the initial startup costs and potentially provide significant profits.

And more importantly, a well-run ATM business can generate a steady stream of passive income, making it an excellent option for anyone looking to invest their money and time in a profitable venture.

What to read next:

Final Thoughts

Starting an ATM business can be an excellent way to build a profitable business. However, like any business venture, it requires some capital investment.

The primary expense is purchasing an ATM machine, which ranges between $1500-$10000. Other expenses, such as rent, insurance, maintenance, and processing fees, vary depending on your location and the size of your business.


Welcome all! I am Altiné. I am SO excited you are here! I am the guy behind The Entrepreneur Journey. I am a blogger, Amazon private label seller, and I share everything I have learned along this journey with YOU

Recent Posts