Second-Hand ATM: Trash or Treasure?

Retail Automated Teller Machines are not only very durable, but they are starting to become a viable business opportunity. While it is true that the used ATM market is thriving for many years because it is dominated mostly by high-end automated teller machines deployed by big banks, lately, a lot of retail ATMs are starting to show up on the resale market.

Opportunity is starting to knock the market’s door

Leasing or financing companies reclaim a lot of these Automated Teller Machines after the merchants default their loans. The ATM industry has experienced an increase in activity after the CCC or Credit Card Center, one of the country’s largest International Organization for Standardization with more or less 15,000 Automated Teller Machines under their belt, filed for bankruptcy a few years ago.

Merchants pay leases of more than $260 per month under the Credit Card Center business model, with an assurance from CCC that they will have to get a return on their investment under revenue guarantees. When the Credit Card Center filed for bankruptcy and their guaranteed returns under their contract vanished, a lot of merchants could no longer afford to pay their monthly dues.

To know about the history of Automated Teller Machines, visit

There are quite a few numbers of merchants that got burned by the CCC issue. Most of those merchants are now trying to make a deal with their leasing companies to pay their outstanding lease. But despite the setback, there are still opportunities that you can find in this whole CCC debacle.

ATM Center is starting to work with big leasing companies to repossess machines with an outstanding lease. Once the machines are pulled from Credit Card Center locations, the ATMs is then deployed in different ways:

The machines are remarketed to new leasers and financed using the original leasing company. The leasers, many of whom have outstanding credit records that stop them from getting financing for an Automated Teller Machine in the past, will pay the same monthly dues similar to those that are under CCC deals; sometimes they spend less, depending on the condition and age of the machine as well as the age of the original agreement. The new merchant will receive all the surcharges that are generated in the new deal.

ATM Center can also retain the ownership of the repossessed Automated Teller Machines and places it in specific locations where it can assume most of the responsibility for the ATMs that includes cash replenishment. The new merchants pay nothing and receive a small percentage or no fee revenue, depending on the volume of the transactions. The new merchants are also responsible for the maintenance of the machine like purchase ATM parts if needed.

While these kind of placements are the only options for high-volume locations, it can lower the cost of a second-hand Automated Teller Machine and makes it a lot more feasible for ISOs to put second-hand machines at lower-volume areas. According to experts, used Automated Teller Machines paved the way for the installation of multiple ATMs in areas with high-volume users, a rarity in the industry.

There are some placements where it has been preferable to use at least two single-cassette Automated Teller Machines. You do not have as many people lining up, waiting and it is easier to keep the machine maintained and stock with cash.

Under the 3rd framework, ATM Center will retain the ownership of the Automated Teller Machines; the new merchant will pay a nominal fee for a right to rent the machines. Under this deal, the new merchant will replenish the machine with cash once it is depleted. In return, the portion of their fee revenue is a lot larger than what they will receive under a placement, but small compared to the income they will receive if they buy a brand-new Automated Teller Machine.

Leasing organizations and companies are not the only sources when it comes to slightly-used or second hand Automated Teller Machines. Some processors will identify ATMs that are not functioning correctly but are still usable that are just sitting in the storage waiting to be used.

All you have to do is buy the defective ATMs, (check what is the problem with the machine, if it can be repaired or not. You also need to check whether the parts are available or if it is worth it to buy new parts) replace defective parts and make sure it dispenses cash accurately. It is much cheaper to buy defective ATMs than buy second-hand machines, but make sure the parts needed are affordable.

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