Q. How do ATMs work?

A. A good source of reference is http://money.howstuffworks.com/atm.htm

Q. What is the risk of having an ATM?

A. The single risk will be the theft of an ATM. However, this risk is highly unlikely due to the secure method of installation using concert anchor screws, bolts, as well as the secured lock and safe within the ATM.

Q. What is needed to operate an ATM?

A. To operate an ATM, you will need:

• Equipment - The ATM
• Communications - An analog telephone line or dedicated lease line
• Electricity - A 110v electrical outlet
• Cash - Cash to recycle through the ATM
• Bank Account - An account for recycled cash and surcharge profits
• Location - A high foot traffic location

Q. How is a profit made?

A. A profit is made by the number of withdrawal transactions subject to a surcharge fee. Balance transfers and inquiries are not transactions subject to the surcharge fee. At the end of each month, a sum of the surcharge fees is ACH into a bank account by the processor.

Q. How does an ATM transaction process work?

A. A Customer requests a cash withdrawal from an ATM. The customers encrypted card number with PIN and request is sent to the Switcher or Processor. The Switcher sends the request to the customers banking institution for verification and sufficient funds. If funds are available and PIN is correct, the customers banking institution sends an authorize signal to the Switcher and the Switcher relays the signal to the ATM authorizing the ATM to dispense the requested amount. At which time, the customers financial institution electronically transfers the request amount to the Switcher and the Switcher transfers it to the ATM Owner's account at the other financial institution.

Q. Who uses ATMs?

A. ATM Cardholders by Age Group:

• 18-34 year olds - 75%
• 34-44 year olds - 68%
• 45-54 year olds - 70%
• 55-64 year olds - 67%
• 65+ - 36%
• All in U.S. - 66%

  ATM Usage by Income:

• Under $20,000 - 30%
• $20,000 - $29,000 - 42%
• $20,000 - $39,000 - 55%
• $40,000 - $49,000 - 60%
• $50,000+ - 60%

* Source: American Banker's Association

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