Archive for November 2008

80% of banking transactions occur at private ATMs

Wednesday, November 26th, 2008

People do not go to the bank to get cash the way they used to. Instead, they look for retail locations to get money while running other errands like getting gas or shopping. In fact, over 80 percent of all banking transactions do not take place at banks — they take place through privately owned ATMs.

For merchants that have ATMs in their business, that means increased customer traffic. Because getting cash is one of the things on their “to-do” list, most customers get cash, gas, cigarettes, coffee, etc. all at the same location.

Here’s what some ATM owners had to say about having atms in their businesses:

“Operating a convenience store, we certainly could not live without an atm. People come to use the atm and end up spending more money in our store. Before we had one, we lost many customers to a competitor up the street.”

Ron Coolidge, owner, Super Stop

“We don’t accept credit cards, and since the local bank ATM does not advance funds on credit cards, this has impacted my business and given my customers an additional payment option. I recommend this system to bars or taverns of any size in any town.”

Daniel Bowden, Owner, Doolittles Pub & Eatery

“I think it is essential for anybody who sells liquor and food to have ATMs. It helps people spend money. Some people don’t want to use their check card – they prefer to use debit and get cash out of the machine. Plus, you see a lot of return on additonal sales.”

Cory Hunter, General Manager, Boondocks Bar & Grill

What would it mean to your business if customers came in just to get cash then decided to spend money?

In addition to seeing increased sales, the owner of an ATM also get to keep the transaction fee charged by the machine. If you accept credit cards, you’ll also see a reduction in your credit card fees because more people will withdraw and spend cash instead of making you pay a processing fee by using your credit card terminal.