For customers, ATMs offer convenience, letting them draw money from their checking account without going to the bank. For stores, ATMs offer extra ways to earn money. If you run a store, here are the many different ways that an ATM can help your business generate more revenue.
ATM fees are the most direct and, therefore, the most obvious way that stores make money from an ATM. Many stores that have an ATM charge a fee. This fee, or at least a portion of it, goes to the business that hosts the ATM.
For a store that has a lot of foot traffic, even a small fee could add up to a decent revenue stream. Even for a business that doesn't have a lot of customers, an ATM can generate a few extra dollars -- and it can be put in a back corner that isn't a good spot for merchandise.
Extra ATM Fees
To generate additional ATM fees, stores can place withdrawal limits on their ATMs but allow multiple withdrawals. Limiting how much a person can withdraw in one transaction will force customers who want to withdraw large amounts of cash to complete two or more transactions -- and pay the ATM fees at least twice.
This strategy can be especially effective in tourist areas, where customers may want to carry a lot of cash for tips and in case a business doesn't accept credit cards.
Advertising that a store has an ATM can bring in a few extra customers. Not only will these customers pay the ATM fee, but they also may buy something while in the store. Some of these customers may not have come in if the store didn't have an ATM, so anything they buy is an extra sale.
Fewer Upset Customers
Some customers that come in may expect a store to have an ATM. If the store doesn't, they may become upset and leave without buying anything. While putting in an ATM in won't necessarily generate more sales from these customers, it will keep these customers from walking out and not making a purchase.
Fewer Credit Card Fees
By offering customers with a way to obtain cash, a store can encourage customers to pay with cash instead of a credit card. This can reduce how many transactions a store pays credit card fees on, thus increasing how much of each sale stays in a store's bank account.
For more information about the benefits of hosting an ATM, contact a company like Maritech ATM Solutions.