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Tuesday, 25 March 2014

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

By Gwen Lowe


ATM machines are increasingly becoming popular anywhere in the world. Consumers prefer to use the ATM machine for their financial transactions rather than go straight to their banks. These machines will be in use for many decades to come because they save time, money and effort. If you are thinking of an easy business with minimal cost to maintain, then consider investing on ATM wholesale.

ATM machines are found in many other areas aside from banks, where they were traditionally placed. Nowadays, these are commonly found in high traffic areas such as shopping malls, hospitals, schools, drugstores and supermarkets. If you are seriously considering buying an ATM machine and putting it somewhere that will attract a lot of customers, the first thing you need to consider is the location.

If you have decided on starting this venture, there are a few considerations that you have to remember. First, you need to decide how you can purchase an ATM machine. Some suppliers only ask for cash to pay for the purchase, while others are more flexible and may offer you a payment plan. Also, there are some suppliers who will offer you a franchise agreement. This could mean profit sharing or the franchiser may just ask for royalties. Remember also that there are other incidental costs such as set up costs, maintenance fees, staff salaries, etc.

Some ATM suppliers may ask you to sign a franchise with them and you pay them a monthly fixed rate or sometimes, a percent of your total transactions. Buying an ATM machine franchise may be more expensive at the start. However, it has its own benefits, because you will get periodic maintenance, guidance on managing the business and even bookkeeping assistance. When you have a franchise agreement, you may also be given discounts for parts and services.

An ideal ATM supplier is one that not only sells you the machines, but also provides post sales services. Some companies can give you both direct purchase or lease-to-own options. Consider all these options before you sign the agreement. Keep in mind that the cheapest machine may not be the best one to buy, as these may have problems or the company may provide poor customer service.

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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