Pros and Cons of Installing an ATM in Your Calgary Store

The Pros of Installing an ATM in Your Calgary Store

1. Increased Foot Traffic

One of the biggest advantages of installing an ATM is its ability to bring in more customers. People often search for a nearby ATM, and if yours is listed online or visible from the street, it could draw in foot traffic—many of whom may purchase something once inside.

Example: A customer visits your store just to withdraw cash, but ends up buying a drink, snack, or other small item.

2. Additional Revenue Stream

Every time someone uses your ATM, you earn a portion—or all—of the surcharge fee. In many cases, business owners who self-manage the machine can keep 100% of the profits. If you work with a third-party ATM provider, you might split revenue or earn a hosting fee.

Depending on your store’s foot traffic, this can amount to hundreds or even thousands of dollars per month in passive income.

3. Reduced Credit Card Fees

Encouraging customers to use cash by providing easy ATM access can lead to fewer card transactions. This means lower processing fees and potentially quicker cash flow for your business.

In cash-heavy industries like food trucks, small cafés, or barber shops, having an ATM nearby can make your operation smoother and less dependent on card terminals and fees.

4. Convenience for Customers

An in-store ATM adds to the customer experience. People often appreciate the convenience of being able to access cash without having to leave your location. This is especially useful if your business operates in a cash-only or cash-preferred sector like:

Cannabis dispensaries
Tattoo parlors
Local events/pop-ups
Barber shops or salons

5. Control Over Surcharge Fees

When you own or manage the ATM, you can set the surcharge rate, typically ranging from $2.50 to $3.00 CAD. This means you have control over how much you earn per transaction while remaining competitive with nearby machines.

6. Marketing Opportunities

Modern ATM screens can display advertisements or branded messaging. You can promote your own products, upcoming deals, or even sell ad space to nearby businesses. Receipts can also be customized to include discounts or coupons.

7. Improved Security Through Lower Cash Handling

Ironically, having an ATM in your store might reduce the amount of cash you have to handle manually. Instead of giving change or dealing with customer ATM searches elsewhere, cash access is streamlined on-site and secure.

The Cons of Installing an ATM in Your Calgary Store

1. Initial Investment

Buying an ATM machine can cost between $2,000 to $4,000 CAD, and even leasing requires a financial commitment. If you choose to self-load the machine, you’ll also need to allocate your own working capital to keep it stocked with cash.

Additionally, there may be costs associated with:

Installation
Wireless data plans
Maintenance and servicing
Insurance

2. Maintenance Responsibilities

ATMs require regular attention to ensure they’re working properly, stocked with cash, and protected from fraud or skimming devices. While many business owners handle this themselves, it can be time-consuming.

Alternatively, you can outsource management to an ATM provider, but you’ll likely earn a smaller cut of the profits in return for a hands-off approach.

3. Security and Vandalism Risks

Although ATM machines are designed to be secure, they can still be targeted for theft, vandalism, or fraud. You’ll need to take precautions like:

Installing security cameras near the ATM
Placing the ATM in a well-lit, visible area
Using anti-skimming software or enclosures
Getting insurance coverage

In some neighborhoods, these risks may outweigh the benefits unless you have robust security measures in place.

4. Cash Management

Self-managing an ATM means keeping it stocked with cash at all times, which requires both capital and vigilance. You’ll need to monitor usage patterns and replenish the machine regularly.

Running out of cash leads to missed revenue opportunities and frustrated customers—both of which can hurt your reputation.

5. Technical Issues and Downtime

Like any machine, ATMs can malfunction. A jammed card reader, broken receipt printer, or connection issue can render it temporarily useless. If the machine is down, you risk losing trust and foot traffic.

While some issues can be resolved quickly, others may require professional servicing, which takes time and sometimes incurs extra costs.

6. Regulatory Compliance

ATM owners in Calgary must comply with financial regulations. While you don’t need a license to operate an ATM, you are subject to rules under FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) if your operations reach certain thresholds.

You must also ensure PCI compliance to protect user data and avoid liability.

7. Space Requirements

Depending on your layout, finding the right space to install an ATM can be tricky. You’ll want it to be visible but not obstructive, accessible but secure.

Smaller stores may struggle to accommodate a full-size machine without disrupting customer flow or merchandise layout.

Weighing the Decision: Is It Right for Your Business?

Installing an ATM in your Calgary store can be a smart investment—especially if you have:

High daily foot traffic
Customers who prefer or require cash
A desire to earn passive income
Enough space and capital to manage it

However, if your business is primarily digital, experiences low cash demand, or has security concerns, it might not be the best fit.

Here are some quick scenarios where installing an ATM makes sense:

Type of Business	Ideal for ATM?	Why?
Convenience Store	✅	High foot traffic, impulse buyers
Cannabis Dispensary	✅	Cash-preferred industry
Salon/Barber Shop	✅	Clients often tip in cash
Tech Retailer	❌	Digital purchases dominate
Restaurant with POS	❌	Customers mostly use cards

Final Thoughts

For many Calgary store owners, installing an ATM can unlock new revenue, enhance customer service, and reduce card processing fees. It’s especially worthwhile in industries and neighborhoods where cash remains a dominant form of payment.

However, owning an ATM isn’t a completely passive endeavor. You’ll need to stay on top of maintenance, security, and compliance. But with the right planning and provider, it can be a highly rewarding addition to your business.

If you're considering adding an ATM to your store and want help evaluating your options or choosing a provider, feel free to reach out—we can help you navigate the next steps!

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