Hi, was just always curious about this:
How do ATMs work in terms of when they’re paired with slot machines?
I sometimes see ATMs near slot machines and don’t understand how they profitably make money. I get they charge like a £3 fee or something for convenience but if a person withdraws like £50 and inevitably loses it all to a slot machine that means you only make £3 profit if it’s your own money in the ATM.
I also hear about third parties lending you money or something like that but I don’t know what the companies are and I don’t really understand how that works either in terms of how it’s profitable for both parties.
Many thanks to anyone who takes time out of their day to respond. I’m kind of just looking into the slot machine business because I hear it can be very profitable if you build up a lot of them.
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When someone pulls $50 from an ATM, they’re not taking your $50. You are debiting $50 from their bank account, and then charging them $3 on top of that for the convenience of providing them with that $50 in cash form right away.
So say you have your ATM stocked with $10,000. 100 people come to your ATM and each withdraws $100 at a $3 fee. You will have debited $10,000 from their bank accounts, and you will also have charged them $300 in transaction fees. (There are some minor additional fees that are being ignored for the purposes of simplicity)
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