How ATM Processing Companies Work

How ATM Processing Companies Work - ATM Advantage

If you plan to enter the ATM business by investing in one or more ATMs, you’ll need to work with an ATM processing company. A good company can not only help you narrow down on suitable machines, but can also help with their placement and ongoing maintenance. As a result, it’s important that you compare multiple ATM providers before making a selection.

What Does an ATM Processing Company Do?

If you need help in buying an ATM, you may expect a good ATM processing company to guide you in the right direction. In addition, it’s common for the best in the business to double up as ATM placement companies, so they can help you select a suitable spot for your ATM and its eventual placement.  The other aspects they help with include:

  • Setting up merchant accounts. You need to start by creating a merchant account. You use this to receive the money you make in the form of ATM surcharge fees.  Some ATM processing companies let you choose from different types of merchant accounts.
  • Connectivity. ATM processing companies typically give you the option to choose between Ethernet- and wireless-based connections. Wireless connectivity does away with the need for a phone line.
  • Processing transactions. After customers insert their cards into an ATM and enter their personal identification number (PIN), the machine forwards the information to the ATM processor, through which the card’s issuer then receives a transaction request. Upon confirmation of the availability of funds, the processor processes the transaction and the machine receives an approval code. Only then does an ATM dispense any money.
  • Account management. When you partner with a good ATM processing company, you may expect it to use a seamless accounting and settlement system that ensures quick and accurate payments. It should provide monthly statements as well as in-depth processing reports every month or quarter.

Cardholder Verification Methods

Using cardholder verification methods (CVMs) is crucial when it comes to preventing the use of lost or stolen cards. ATM processing companies offer machines with different CVMs. These may come in the form of:

  • Keypads to enter personal identification numbers (PINs)
  • Touch screens to capture signatures
  • Fingerprint scanners
  • Iris scanners

What Types of Fees Do They Charge?

You may need to pay some type of fee depending on the ATM processing company you select.  For instance, card issuers tend to charge interchange fees that you might have to bear. You might need to pay transaction fees, network access fees, minimum monthly fees, and technical support fees.  The best companies typically offer 100% paid surcharge as well as added payments for interchange.  Some even provide complimentary ATM repair services to their customers.


The best ATM processing companies are ones that provide cost-effective services without compromising on quality. For instance, the top companies provide easy and real-time access to transaction-related information. Besides, they can also guide people who are new to the field on how to start an ATM business. Providing reliable ongoing support should also be part of the parcel.

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