When was the last time you were in a convienience store, a grocery store, a gas station or for that matter, a bar, in which there was not already an ATM located?
Think about it.
While it is true that the market is approaching saturation, you just have to look past the traditional businesses (restaurants, conv. stores, nightclubs). Any business that has a min. daily traffic count of 200+ can benefit from the increased foot traffic and revenue from an ATM.
If, as in the OP's post, the merchant is going to receive $2 per transaction then the merchant is not under lease for the machine. However, as has already been stated, $2 transaction fee will not fly in the real world.
I cashed in big time with ATM's from 2001 until 2005 as an ISO for a bank in Dallas. The money to be made in ATM's is to become an ISO for a bank then find a supplier plus a leasing company and you're in business. I never made less than $2000 per ATM + .25 per transaction. I'm still banking those transaction fees today. You also need minimal start up funds as the leasing company pays your supplier for the ATM then cuts you a check for your mark up.
The merchant requirements to have an ATM are traffic and money. As I stated, you need a min. 200 count foot traffic and $150-200 mo. lease payment. With this arrangement the merchant takes the bulk of the trans. fee (80-90% of $1.50 = $1.20 - $1.35). Typical usage would be 5% or about 10 withdrawals per day for a min. daily income of $12 -$13. $12 x 30 days = $360. After you deduct the lease payment, the merchant nets approx $100, big deal. However, statistics show that 35-50% of the money that is withdrawn will be spent with the merchant, plus, ATM's attract traffic that otherwise wouldn't have frequented the merchant.
All in all it's a really great business if you enjoy biz to biz sales and can arrange a deal with a bank.
