ATM Business Guide
How to Start an ATM Business in Canada
Owning ATMs is a proven way to earn recurring surcharge income. Here is how ATMs make money, what it costs to start, and how to buy your first machine.
How does an ATM make money?
A privately owned ATM earns a surcharge on every withdrawal — a small convenience fee the cardholder accepts on screen before taking out cash. As the owner, you set that surcharge and keep it. The cash the machine dispenses is returned to you through processing, so your real cost per transaction is only the processing fee and receipt paper.
For example, a C$2.50 surcharge on 10 withdrawals a day is about C$750 per month in revenue from a single machine. Add more machines or higher-traffic locations and the income scales with your network.
Steps to start your ATM business
Secure your locations
Start with your own business or partner with high-traffic locations such as convenience stores, bars and restaurants that would benefit from on-site cash access.
Buy your ATM machines
Purchase new or refurbished ATMs sized to each location. Owning the machines means you keep the surcharge revenue they generate.
Set up processing
Connect each ATM to a processing plan so withdrawals are authorized and settled to your bank account automatically.
Set your surcharge and load cash
Choose a competitive surcharge, load the machine with cash, and monitor performance. Refill and adjust as your transaction volume grows.
Surcharges and processing explained
The surcharge is your revenue. The processoris the service that authorizes each withdrawal and settles funds — depositing the cash dispensed plus your surcharge into your bank account, usually within a couple of business days.
Every ATM we sell is EMV card-ready and PCI compliant, so your machines meet current Canadian card-security standards and work with major debit and credit networks out of the box.
Starting an ATM business FAQ
- How does an ATM machine make money?
- An ATM makes money through the surcharge fee charged to the cardholder on each withdrawal. As the ATM owner, you set and keep that surcharge. On a busy machine, surcharge revenue adds up quickly and typically far exceeds the cost of cash, paper and processing.
- How much does it cost to start an ATM business in Canada?
- The main start-up cost is the ATM itself, which ranges from about C$2,450 for a refurbished machine to around C$3,950 for a new Nautilus Hyosung Halo II. You also need working capital to load the machine with cash, which is returned to you through processing.
- What is an ATM surcharge?
- A surcharge is the convenience fee a cardholder agrees to pay when they withdraw cash from a privately owned ATM. The cardholder sees and accepts the amount on screen before the transaction completes, and the surcharge is paid to the ATM owner.
- How does ATM processing work?
- Processing connects your ATM to the banking and card networks. When a customer withdraws cash, the processor authorizes the transaction and settles the funds, depositing the amount dispensed plus your surcharge back into your bank account, usually within a couple of business days.
- Do I need a licence to own an ATM in Canada?
- You do not need a special licence to own a private ATM, but you must complete Know Your Client requirements to activate it, including Canadian ID, business registration if applicable, banking details and a Source of Funds declaration.
Buy your first ATM machine
Start with a new or refurbished ATM from ATM4Canada. Compare costs and read the buying guide to choose the right machine.