ATM Machine

[westender]

I am new to the forum, but I have viewed for a while. I am thinking about installing an ATM machine in my club. Could you guys give me some pros and cons on the decision whether to own the machine or let someone else place the machine. I know that this topic has been covered in the past, but I wanted to see if anyone had recent input on the subject. Thanks for any input.

[nebtans]

With recent article regarding ID theft and credit card abuse, People trust machines more. They are willing to pay the often exorbitant fees from the free standing machines rather than let a server have their credit/ debit cards for tabs.

Recently in my area a very prestigious restaurant was in the news because of servers stealing patron info, then using their credit cards for various purchases. Since then this has been a rather hot topic and I see many people that just will not give their credit cards in public anymore.

[rootsreality]

I am new to the forum, but I have viewed for a while. I am thinking about installing an ATM machine in my club. Could you guys give me some pros and cons on the decision whether to own the machine or let someone else place the machine. I know that this topic has been covered in the past, but I wanted to see if anyone had recent input on the subject. Thanks for any input.

If you own the machine you are responsible for keeping the money in it and keeping it serviced. You will be out the capital to buy the machine plus the $3k-$4k cash in the machine at any given time. You set the service charge and keep 100% of the proceeds.

By getting the machine through an operator, you have no maintenance or upgrade responsibility and no capital outlay. The operator stocks the machine, determines the service charge and splits the receipts with you.

How much $$$ and time do you want to put into this? How long will it take to recup?

[westender]

Thanks for the response. I guess if I gave a little more information about my operation it might help with the analysis. I operate a small private corner bar. In North Carolina, you must sell 35% food, or be private to sell mixed beverages. We do not have facilities for food, so we are strictly a "Private Social Club". This is our 30th year of operation and last year we averaged about $1800 per day in beverage sales. Since we ask for a credit card to "Run a Tab", we always have a lot of credit cards and tabs to keep up with. Over the past couple of years our credit card charges have increased and now make up about 65% to 70% of all paid transactions. On busy nights the credit card transactions can be an many as 150-200. This takes a lot of employee time to keep up with the tabs, transactions and then closing transactions after patrons sign and tip on top of the bar tab. I am thinking that the ATM would increase cash sales, reduce bar tabs and free up the staff for the most important task, serving drinks and collecting money.

I am looking to buy or maybe lease an ATM. I am hoping that someone on the message board has experienced similiar reasoning and could refer me to a reputable company that provides the equipment. While I am not a service technician, I am pretty handy at keeping things in working order. Time and money to stock the ATM with cash and receipt products are not a problem. Any recommendations?

[WIDAVE]

we lease to own our machine. After 5 years we own it. What we make in fees covers lease payment and phone line. We usually end up with some extra each month. We do not take any Credit cards (no food) and as long as we have the ATM don't get many complaints. Don't have to deal with CC and no ffes to pay! We are a smaller local tavern. We set up thru ECS which is a national company and they do all the update and maintanence even when lease is up.

[westender]

Thanks for the information WIDAVE. I will call them first thing Monday. You may be right with the "Lease to Own" program. That sounds like a great plan.

Thanks to all on the Message Board. I have enjoyed, and learned a lot while viewing from the sidelines.

[nebtans]

How can taking cash be any less labor intensive? All the bartender does is record the sale on a tab, then close them all at once at the end of the night. Compared to ringing the cash sale of each beverage?

True there are credit card costs, but there are several options to lower this cost significantly.

[rootsreality]

How can taking cash be any less labor intensive? All the bartender does is record the sale on a tab, then close them all at once at the end of the night. Compared to ringing the cash sale of each beverage?

True there are credit card costs, but there are several options to lower this cost significantly.

One thing we have noticed is that bar customers tend to not tip at all or tip less on credit card sales. My bartenders think they will do better on tips with an ATM machine on site. I haven't commited to this yet but I did look into it a bit. ATM machines have gone down significantly in price - a new full featured ATM machine can be acquired for about $2500.

Check CARDTRONICS in Houston at 832-308-4000. They are one of the largest ATM providers and have several programs specifically for small businesses.

[Havensloft]

One thing we have noticed is that bar customers tend to not tip at all or tip less on credit card sales. My bartenders think they will do better on tips with an ATM machine on site. I haven't commited to this yet but I did look into it a bit. ATM machines have gone down significantly in price - a new full featured ATM machine can be acquired for about $2500.

Check CARDTRONICS in Houston at 832-308-4000. They are one of the largest ATM providers and have several programs specifically for small businesses.

Great info. So you must be thinking hard about the ATM machine. I have been thinking of it myself.

[beach1]

I leased mine for about 160.00 per month. It did enough in transactions to cover the cost of it. It's been paid off for awhile now and makes a few dollars every month. Very little maintenance at all and easy to operate. I am responsible for keeping $ in it. I use a company to process the transactions and they charge a quarter per transaction, and I keep $1.75 for every transaction. The few problems I've had with it they've been able to walk me through fixing over the phone. It needs a phone line to connect to server like your credit card terminal. I use one internet line for the atm, credit card terminal, and jukebox.

[westender]

Thanks for the additional information. Beach1, if you do not mind, can I get the provider who supplied the lease on your machine. I am still "Comparing Apples" and another quote would not hurt. Again, thanks to all for the response.

Westender