Eli5: How do ATM’s work at small businesses?

Question

Whenever I see local businesses have an ATM, whether it’s the liquor store or the nail salon, I ask myself how they have an ATM. I thought they would put their own money into it, but then how would they profit? Do they get the money from somewhere else (government)? How do they put more money in it, and how are they monitored to make sure the business isn’t stealing from the ATM?

In: 10

Answer 1

Merchants do not put their own money in ATMs. They get a commission each time someone uses the machine. If you notice the fees in their machines are higher than the fees your bank charges. The merchant gets a piece of that difference.