You’ve waded through the “dos and don’ts” of how to stay safe and keep your business afloat during COVID-19. Now you’re starting to focus on how to thrive in the post-pandemic era.
One way to increase profits is to reduce costs. While it may not be feasible to slash payroll or inventory costs, saving on credit card processing fees by encouraging customers to use cash is a realistic goal that can affect your bottom line.
And the best way to do that is to provide customers with convenient access to cash by having an ATM in your business. In addition to saving money on processing fees, having an ATM is a smart move that will help attract new customers, increase traffic, boost profits on sales and create a new revenue stream.
Cash is King
Despite more frequent use of cards, cash is still the most popular payment method, and many retail businesses earn more by taking cash payments for goods and services.
The statistics don’t lie. According to the Federal Reserve Diary of Consumer Payment Choice and Javelin 2020 Health of Cash Study Americans love currency:
Cash accounts for $1.33 trillion in payments annually in the United States.
Banknotes are used by 83% of the population each month, with $447 billion used to buy goods and services each year
U.S. consumers do not want cashless stores, 82% want merchants to take cash
$193 billion is used at retail locations each year, with the average person using cash 47 times a year.
Diner’s at full service and fast-food restaurants spend $97 billion in cash annually.
Cash is also the most popular payment for tabs under $85 at bars, entertainment venues and coffee shops.
Americans love ATMs almost as much as they love cash, with ATMs being the most popular source of cash.
57% of consumers say they withdraw cash from the ATM each month
40% of customers who withdraw cash from an ATM spend as much as half that cash at the business where the machine is located.
32% of consumers visit a location just to withdraw from an ATM
Making Money with an ATM
While many merchants get an ATM to provide their customers with convenient cash access, retailers also make money from every ATM transaction in the form of a split of the surcharge fee.
While there are many options available to merchants when choosing an ATM, the most popular is a turn-key placement.
In this hassle-free option, the merchant provides a 2x2 foot space in the business and a standard electrical outlet. The ATM operator provides the hardware, communications, supplies like receipt paper and signage, and handles all cash loading and maintenance. Retailers get paid simply for having the ATM in the store. However, there are other options that will allow a business owner to make more money from each transaction.
When you are ready to reduce costs and increase profits, email us or give us a call at (800) 849 3029 and we’ll be happy to review the various ATM placement options with you.