Considerations When Renting an ATM

First and foremost, you need to know the difference between renting and leasing. Often, the terms are used interchangeably, but they are not exactly the same. Renting allows you to use an ATM for a shorter period of time (though that doesn’t mean you can’t rent for a long period), sometimes as little as a day, whereas leasing typically means a long-term agreement. It is important to know the distinction before making a decision, because both options fit different needs.

When deciding whether to rent an ATM, consider the following:

Cost: Renting an ATM has a lower upfront cost (sometimes none at all) in comparison to buying one. Low monthly payments for short-term usage vastly outweigh spending thousands of dollars on a machine that you may not want for very long. However, if you are looking to make an ATM a permanent fixture of your business, purchasing is probably the better choice. Low monthly payments may work for a while, but over long periods of time you may end up spending more to rent than to buy.

Notification: It is possible that your location requires you to report the placement or use of an ATM in your business within 60 days. Be sure to check if you are in an area that has these requirements and, if so, file a notice for the appropriate agencies within the required timeframe.

Repairs: Most rental agreements stipulate that the rental company handles any maintenance or service the ATM might need over the course of the rental. This definitely saves on costs in comparison to owning, where any repairs fall on your shoulders. However, be sure to carefully read your rental agreement, so you know exactly who you need to call for any repairs and the timelines in which it should be fixed.

Taxes: Rental payments are typically tax-deductible, although unlike leasing agreements, the entire fee is not always deductible. Talk to your accountant about the particulars to see if the tax deduction is another check in the pro column for renting, or if it would be better long-term to buy.

Technology: Renting an ATM gives you access to the latest and greatest in the world of ATM technology. Buying a new, top-of-the-line unit can be very pricey, but renting lets you use the best of the best at a fraction of the cost.

How Much Does Rent an ATM Cost?

Providing an exact cost for renting an ATM is difficult, as the duration of the rental period and the company you rent through directly affect the total price. Typically, rental prices are done by the month, though companies that allow shorter rentals may charge per day or week. That being said, here is a general pricing guide to provide an idea of what you can expect to pay when renting an ATM:

• ATMs have an average rental cost between $50 and $120 per month. Shorter rental periods are available from most companies.
• Installation and training fees average between $50 and $500. If your location has high foot traffic or you are renting for a short amount of time, some vendors waive these fees and take a portion of the machine’s surcharges instead.
• Stocking the ATM, which typically means hiring either an armored truck service for an average cost between $100 and $500 per month, or a cash loading service for an average cost between $40 and $60 per month.
• A phone line (which the ATM needs to function) for an average cost between $20 and $40 per month.
• Replacing receipt paper, which has an average cost between $10 and $50 per month.
• Statement fees, which have an average cost between $10 and $30 per month.

Making Money from Your ATM

It might seem that these costs are high and that there isn’t much money to be made over the costs of an ATM, but that’s where the surcharges or “convenience fees” come in. While the average surcharge on an ATM is around $2.50, they range from as low as $1 to as high as $9. How much you stand to make from that surcharge depends on the percentage of the surcharges that your rental provider takes. When you buy an ATM, you typically have more control over these fees and how much you can make on them. But when renting, it all depends on your provider.

Be sure to read through your rental agreement and see what exactly it says about your surcharges. Talk to your rental company and see what percentage they take. For long-term rentals, you should be making money off of the ATM within a year.