It is common to see ATMs located in different businesses. From coffee shops to hair salons to marijuana dispensaries, it seems many are reaping the benefits of this decision. If you are unclear of the advantages associated with this, here is a bit of insight.
When people pay for purchases using a credit card, they have the right to request a chargeback if they are not satisfied with the goods or services they received. Unfortunately, there are occasions when someone may take advantage of this and claim to be unsatisfied so they can obtain a refund.
As a business owner, this means that you will have to watch as the money you rightfully earned is taken away from you. If there is an ATM located in your business, this will increase the number of cash purchases, which means less opportunity for chargebacks to occur.
Reducing Card Fees
Merchants who accept credit cards are required to pay a fee for each transaction. If you own a major corporation, this may not be a huge deal, but it certainly is for those with a smaller business. In some cases, there are so many fees that it starts to eat away at the profits.
The more people who pay in cash, the less you will have to pay. Customers like the convenience of grabbing money on demand and you can save a bundle. It is a win-win situation.
In case you were unaware, when people have ATMs placed in their business locations, they generate income with each transaction. The fees that are required of each transaction go to the business, not the bank that the machine is owned by. Imagine a $3 surcharge and 50 customers daily who use an ATM. In that scenario, it would be possible to earn more than $50K in addition to your business profits. With the high level of income that most marijuana dispensaries are taking in, if you do run one we strongly advise you to get an ATM for your marijuana business as it is likely a cash only business in your state.
If you do not accept debit and credit cards, this means that everyone walking in will need access to cash. Do you really want to give them the opportunity to walk off in search of what they need elsewhere? When this happens, there is always a chance that they will not return. Having an ATM available means that they are likely to withdraw money and continue with their original purchase intent.
Attracting Potential Business
Even if someone enters your business with the sole intention of using the ATM, there is a possibility they may see something they like and make a purchase. This means that in addition to the fee you earned with their transaction, there is a chance they may purchase an item or two. No, every person walking in will not make a purchase, but there are many who will.
As you should be able to understand by this point, having an ATM inside your business can be quite beneficial. Between saving money, appealing to more customers and having the ability to boost your yearly income, it would be a mistake for you to avoid giving this some careful consideration.