A veteran friend of mine wants to purchase some ATM machines. Is there a place he can get a military discount while buying them?

CPT Aaron Kletzing — Fri, 29 Jul 2022 20:06:02 -0400

Do you know of any places that sell ATM machines that offer a military discount? Let’s say an ATM machine costs $2,200…is there a place he can get a 10% discount as a veteran and buy it for $1,980? Asking for my buddy.

Response by CPT Aaron Kletzing made Jul 29 at 2022 8:06 PM

CPT Aaron Kletzing — Fri, 29 Jul 2022 20:06:51 -0400

*gasp* could this be the first question ever on RP where SFC Private RallyPoint Member doesn’t know the answer? Haha! ;-)

Response by CPT Private RallyPoint Member made Jul 29 at 2022 8:46 PM

CPT Private RallyPoint Member — Fri, 29 Jul 2022 20:46:35 -0400

To answer the question, I highly doubt it.

I spent the early part of my banking career in ATM Technology and Business Development with Wells Fargo Bank. I got to see the rise and fall of the ATM business model. Buying an individual ATM without the connectivity to the banking system just isn't going to work.

His most likely course of action is researching ATM services, and there are probably still a few out there ready to take his money and let your friend buy into an ATM network of machines where he basically buys the machine, and then pays the servicer to take care of everything else once a location for placement has been found.

You can bet all the good ATM locations have long been found.

I don't know what ATM's cost now adays, but 20 years ago a cheap one went for $20K. The expense is in the SAFE not really the computer parts.

What kills the ATM business model was the rental fees for the placement of the machine. Perhaps your friend owns a local business that can benefit from giving cash advances to customers, but it would be easier and quicker to invite an AMT service provider into his location. Such a contract probably fixes a minimum profit for the ATM provider if the location doesn't generate sufficient transactions. If it's a really good location maybe the ATM owner will pay rent.

What killed the ATM business was Debit Cards, and the rise of popularity of alternative electronic payment systems.

Only the most seedy of locations seem to have profitable ATM locations. Think Casinos and Strip Clubs or bad parts of town. Otherwise, banks make their investment in them worth it as a REPLACEMENT for a person they have to pay hourly to man a teller window.

Make sure you crunch your numbers. Also, the money sitting in the machine itself is losing interest income in expectation of transaction fees.