ATMs and bars sometimes seem made for each other. Bars thrive when customers have cash in their pockets, and ATMs help put the cash there while keeping customers in their seats.

The November/December issue of Bar Business magazine examined the value that ATMs bring to bars. They talked to bar owners, industry observers … and us.

Kyle Radzyminski, co-owner of three Manhattan bars including Billy Hurricane’s, Thunder Jackson’s and Point Break, said that his bars have ATMs because, “You make a couple of bucks, but it’s mainly about keeping people within the confines of the place. It does work.”

Customers are more likely to spend more money if their cash flow never runs out. Instead of ending the night when they spend that last $20, they can opt to stay at the bar and drink more after taking some money out of the ATM.

Additionally, many bars and restaurants have been trending towards the elimination of credit cards as an accepted payment form on-premise. With the economy still slow, some bars prefer to not pay the credit company fees associated with each transaction, and instead force patrons to pay cash. And the risk/benefit ratio—not paying fees vs. possibly losing patrons who prefer credit—would seem to be weighted in favor of cash-only transactions if you have an ATM on-premise.

We show up a little further down in the article, where Kurt Duhn and Steve Ray discuss both specific machines and the general economics of ATMs in bars as well as things many people don’t consider — like their marketing potential.

Every major ATM runs on a Windows operating system, so they now can do much more than simply dispense cash. “Any current model ATM provides room for marketing on the screen,” said Kurt Duhn, General Manager of ATM Network. “With Windows custom graphics system, a bar owner can have coupons or promotions printed on the back of receipts and have other promotions running across the screen.”

Look below most ATM screens and you’ll find more marketing space. Many now offer the option of placing a custom design on the outside of the machine, providing the chance to remind customers which bar they’re currently enjoying, all while taking out more money to buy the next round of shots. And since ATMs often are not naturally sleek machines, adding a design can make the hardware fit more seamlessly into a bar’s decor.

That last point can be important, since the article cites a bar owner who doesn’t have an ATM because he doesn’t like how they look. Covering the ATM in custom graphics easily addresses that.

Anyway, have a look. You can read the article online in our article archive, or download the pdf to get the full magazine experience.