ATMS ON WHEELS, LLC is an ISO (Independent Sales Organization), which sells ATM equipment to merchants and to individual affiliates/investors. ATMS ON WHEELS, LLC also provides the processing service for the electronic transaction transfer data. Company founders are Ron and Sally Stein – both retired from senior management after many years with a fortune 50 company.

It is commonly believed that ATM machines are owned by banks such as Wells Fargo, Washington Mutual, etc. The deregulation of the ATM industry in April 1996, which allowed private investors to collect ATM surcharge/transaction fees, created a great business opportunity for the entrepreneur. This made it possible for individuals like yourself or merchant/owners of private businesses, to own an ATM (Automated Teller Machine) and collect either all or a portion of the surcharge/transaction fee.

Although major banks own the majority of the high transaction sites in the market today, ATMS ON WHEELS, LLC has picked up where the financial institutions left off. We have found that banks own most of the ATMS in malls and national market/convenience store chains. However, the number of opportunities for potential ATM sites is still unlimited. Most banks are interested in ATM sites that produce over 2000 transactions per month. That leaves the rest to independent organizations such as ATMS ON WHEELS, LLC . Our success has come from placing ATMS in the individually owned or franchised businesses. Even ATMS with as few as 200 monthly transactions can still produce an acceptable return on investment.

ATMS ON WHEELS, LLC is a Limited Liability Corporation. We represent all “A” rated ATM manufacturers. We are one of the few companies to provide our customers with a complete “turnkey operation.” ATMS ON WHEELS, LLC offers the Best Customer Service in the business…guaranteed! Our unique, turnkey operation means we do everything from start to finish. This includes:

How the ATM Business Works

Merchant Owned and Managed

ATMS ON WHEELS, LLC sells an ATM to a merchant. The merchant then needs to fund the cash inventory that goes inside the machine. Depending on how many transactions the site generates and how often they want to fill it, will determine how much cash needs to be kept inside. A small convenience store will usually do about 200-300 transactions a month. The merchant/owner would need to keep an average of $1000-$2000 in the machine for it to go through 3-4 days between fills. Weekends take more cash. A cash vault service, like Brinks, is available for a fee however, to be as profitable as possible, it is suggested that you only use a cash vault service for those ATMS doing over 1000 transactions monthly.

The fee charged to the customer for using the ATM is called the surcharge/transaction fee. The suggested surcharge/transaction fee is $1.50-$2.00. Usually this fee is based on local competition and the type of establishment the ATM is located in. Bars, swap meets and casinos are able to charge higher fees. ATMS ON WHEELS, LLC can help the merchant/owner to assess the appropriate surcharge/transaction fee. The merchant/owner receives all of the surcharge/transaction fees. Profits are based on the number of transactions per month and not on the amount of money dispensed from the ATM. The surcharge/transaction fee is in addition to any standard transaction fee that the cardholder's bank may impose.

As customers use the ATM, they can withdraw $20-$200 per transaction, in $20 denominations ($60 is the average withdrawal). If an ATM has 10 transactions on any given day and the average transaction is $60, it would mean that $600 was withdrawn for that day. That money, along with the surcharge, is processed electronically through a processing company and deposited electronically into the merchant's bank account on the next business day. Usually, that cash is put back into the ATM, so that it continually rotates through the machine.

Investor Owned and Managed

By far our most popular program…..

Some merchants like the convenience of an ATM for their customers, but don't want to buy a machine and they don't want to fund the cash inventory. ATMS ON WHEELS, LLC will then find an “Affiliate/Investor” to own the ATM machine and fund the cash inventory. In these cases, the affiliate/investor pays a portion of the surcharge to the merchant. We have found on average, merchant requests range from $.25 to $.50 per transaction. The more transactions per month the larger the merchant's share will be. This can still be very profitable to the affiliate/investor. Some merchants may request a flat monthly “site fee”, usually based on a previous history of high transactions. This can even be in addition to a rate per transaction. The affiliate/investor receives the balance. Remember, there is no set agreement, everything is negotiable.

One of the most positive factors of being in the ATM business is the tax benefit. Contact a tax professional for your specific benefits.

Merchant/Investor Shared

In some cases the merchant may agree to fill the cash inventory, but doesn't want to purchase the machine. ATMS ON WHEELS, LLC will find a “financial only investor”. The affiliate/investor purchases the ATM. ATMS ON WHEELS, LLC places it at the business. The merchant fills the cash inventory. The surcharge/transaction fee is then divided (usually, in half) between the affiliate/investor and the merchant. The affiliate/investor does not fund or refill the cash inventory, they only supply the ATM. The investment is less and so are the profits.

This can also be applied in reverse, whereby the merchant owns the ATM and wants the affiliate/investor to supply and replenish the cash inventory.

In a few instances, the merchant is not interested in a share of the surcharge/transaction fee. His interest is in the ATM being a convenience for his customers. The affiliate/investor receives the entire surcharge. In one example, a hospital offers the ATM as a convenience to their employees and patients. There is $0 surcharge/transaction fee, but the hospital pays the affiliate/investor $1.25 per transaction (over 700 transactions) for the use of the ATM.

Cash Inventory Handling

The cash inventory is the money that is kept inside the ATM machine from which customers withdraw their cash. Depending on the agreement, the cash can be supplied and refilled by the affiliate/investor or the merchant. At this time we do not offer a cash vault service. It has been ATMS OF WHEELS, LLC experience that a service such as Brinks is not very practical for maximum profitability. The service can run any where from $65-$120 per drop.

The cash inventory and surcharge/transaction fee are processed on a daily basis through Columbia Data Services (CDS). Here is how it works: On Monday morning (for example) the affiliate/investor or merchant loads $5000 cash inventory into the ATM. That same day, the ATM processes 10 transactions and customers take out a total of $500 That amount plus your surcharge/transaction fee portion $12.50 (10x1.25 or whatever is agreed to) will be automatically and electronically deposited back into the bank account of the affiliate/investor or merchant/owner on the following day. Friday, Saturday, and Sundays transactions deposit on Monday. Holidays are also delayed until the next business day.

How Much Cash Inventory is Needed?

If an ATM turns 300 transactions a month and the customer averages $60 per transaction, the affiliate/investor or merchant will need $4,500 for a once a week fill, $9,000 to fill every two weeks. Many merchants are at their location every day and keep a minimal amount of cash ($500-$1000) in the ATM. They are then filling the ATM daily or every other day. Some affiliates/investors choose to load the ATM with more money limiting the number of times they have to replenish the cash inventory. However you choose to replenish the ATM, the cash inventory cannot be allowed to run out.

Estimated Monthly Cash Requirements

Processing: Columbus Data Services

ATMS ON WHEELS, LLC is an Registered Independent Sales Organization (ISO), sponsored by Meta Payment Systems (MetaBank). ATMS ON WHEELS, LLC has contracted with Columbus Data Services (CDS) for the electronic processing of ATM transactions. CDS is an ATM management network with headquarters in Dallas, Texas. CDS provides processing for worldwide acceptance of ATM and credit cards with security features to protect against tampering and fraud. CDS is connected to numerous networks including Visa, MasterCard, Plus, Cirrus, Discover, American Express, Pulse, Star and state EBT programs.

All processing is done automatically and is electronically processed for the individuals as set up in the contractual agreement between ATMS ON WHEELS, LLC , the affiliate/investor or the merchant/owner. Read the agreement carefully. Monthly accounting statements are available online through the CDS website. All ATMS ON WHEELS, LLC affiliates/investors will be assigned a user ID and password for access.

At the end month, the affiliate/investor is responsible for printing their own monthly statements, mailing the check to the respective merchant/client for their share of the negotiated surcharge/transaction fee as stated in the placement agreement. Checks should be mailed out by the 10th of the following month. ATMS ON WHEELS, LLC can assist you in composing a form letter to accompany your payments to the merchant/client.

It is the responsibility of the affiliate/investor to maintain an accounting system. ATMS ON WHEELS, LLC will provide you with assistance however, it is suggested that you contact a professional for any bookkeeping, legal or tax advice.

The affiliate/investor represents ATMS ON WHEELS, LLC and as such is expected to help maintain the respect that ATMS ON WHEELS, LLC has earned in the industry.

All ATM terminals under the processing of ATMS ON WHEELS, LLC are to be maintained and managed within the guidelines of the rules and regulations of the sponsoring bank (MetaBank), including the current processing company (CDS). ATMS ON WHEELS, LLC as a registered ISO must act in accordance with the same responsibilities as all financial institutions. The affiliate/investor is required to maintain their machines and businesses within the guidelines and restrictions set forth. ATMS ON WHEELS, LLC reserves the right to accept or deny access to any affiliate, investor or persons who do not participate according to network and sponsoring bank policies and procedures.

Service

Operating Expenses

ATMS ON WHEELS, LLC pays all expenses related to the ATM's operation, except for the cost of the telephone service (usually the investor‘s responsibility). The expenses incurred by ATMS ON WHEELS, LLC include network and computer fees, all costs related to data communications, as well as all maintenance costs. The terminal receipt paper is also included. Janitorial responsibilities near the ATM and its surrounding area fall to the location owner and the investor. It is expected that the affiliate/investor maintain a high level of cleanliness on and around the ATM.

Installation

ATMS ON WHEELS, LLC works with the affiliate/investor on all installation arrangements, including the on-site telephone requirement. Usually, the affiliate/investor pays for the installation of the telephone line (approximately $200) and the monthly telephone bill. Every ATM includes a lighted topper sign. A sign package is available for purchase, which includes an illuminated window sign, door decals and point of purchase signing customized for each business to provide optimal visibility. All equipment and signs are sold to the affiliate/investor at ATMS ON WHEELS, LLC cost. ATMS ON WHEELS, LLC handles the delivery, placement and installation of the ATM and signing. We use 4 security approved 4” x 1 ½” bolts drilled into the floor. Any additional security (steel plates, cement barriers, kiosks or specialty bolting apparatus are available, but at the affiliate/investor's expense.

Remote Management System

ATMS ON WHEELS, LLC performs a daily analysis of each ATM in its network via the internet and the Columbus Data Services (CDS) web site. The affiliate/investor will be signed up for internet access and tracking capabilities. This will allow the affiliate/investor to monitor their business from any home or office computer.

Equipment

ATMS ON WHEELS, LLC purchases equipment from Nautilus Hyosung, with the Mini Bank 1500 being the ATM of choice. Other manufacturer's machines are available however; the Hyosung is the best machine for the money. The Mini Bank 1500 holds $18,000 in bills. Every machine comes with a 1 year warranty on parts, from the manufacturer and a 6 month warranty on labor from ATMS ON WHEELS, LLC . (Extended warranty for parts is available from the manufacturer).

Investor Pricing

ATMS ON WHEELS, LLC sells all equipment and accessories at their cost.

With equipment that is purchased for resale to a merchant/owner, ATMS ON WHEELS, LLC requires a 1-3 year processing agreement.

Location, Location, Location

This might be the single most important part of the ATM business. The right location is imperative in making it profitable for all parties. ATMS OF WHEELS, LLC maintains a list of prospective sites found either by our placement personnel or by the referrals from current ATM owners, businesses, and banking sources. You are encouraged to look for sites that you believe will benefit your particular situation, such as the distance from your home or office to the ATM site. A site can produce as few as 50 transactions per month to as many as 1500 transactions per month. The importance of finding the right location is paramount. If an affiliate/investor prefers to have one of the placement personnel find a site for them the fee for this service can cost from $200-$500 per site. This site fee is the responsibility of the affiliate/investor and is paid directly to the individual who placed the ATM and secured the agreement.

The target market for the ATM product has changed dramatically over the years. Now, there is really no end to the list of potential locations. Any business that has good foot traffic can be a candidate for an ATM. The 24 hour gas stations and markets, colleges, beaches and swap meets have proven to be extremely successful. Any establishment where the customer needs cash to pay for products or services has excellent possibilities. Seek high visibility and high traffic businesses such as:

Other venues to consider are low income areas. Welfare recipients now receive their monthly funds by using an EBT debit card, which all ATMS installed by ATMS ON WHEELS, LLC accept.

Look for new construction. Every new market, restaurant, gas station, or mini mall is a potential ATM site.

Not all ATM sites will be as profitable as you would like them to be. It is suggested that an ATM produce a minimum of 300 transactions per month to be profitable however, 200 transactions with the right agreement can also be profitable. If after 90 days a machine is not producing to its expectations, ATMS ON WHEELS, LLC will move it to another location free of charge. The affiliate/investor will still be responsible for the telephone installation.

References

The following are some of the businesses that ATMS ON WHEELS, LLC currently has an agreement with:

Site transaction records as well as personal and business references are available.

ATMS ON WHEELS, LLC also provides ATMS at select special events throughout California. Some examples include:

Security

When supplying and refilling cash ATMS ON WHEELS, LLC recommends the following safety tips:

• Travel in pairs
• Remain aware of your surroundings at all times
• Do not follow the same routine every week
• If your ATM site has security available, ask for assistance
• Be sure that your ATM is installed in a safe, well lit area
• Do not inform the merchant/owner when you will be replenishing cash
• Always be cautious when discussing your ATM business

Insurance

All ATMS and cash Inventory processed through ATMS ON WHEELS, LLC must be insured for theft and/or vandalism. Insurance is provided for through ATMS ON WHEELS, LLC by Frederiksen & Frederiksen Insurance Company, for Chubb Group Federal Insurance Company, A.M. Best rated A+, size XV, and billed at a cost of $1.50 per $100 to the affiliate/investor. A limited liability insurance policy for up to $1 million is provided for the affiliate/investor as long as processing is maintained by ATMS ON WHEELS, LLC. Premiums are based on the number of ATMS the affiliate/investor owns. The affiliate/investor is currently billed monthly at $35.00 per machine. ATMS ON WHEELS, LLC is a member of ATMIA (ATM Insurance Association), as well as the Better Business Bureau.

Premiums can run $8-$20 per month, per machine and vary by site, replacement value of the ATM equipment and amount of the cash inventory maintained. ATMS ON WHEELS, LLC recommends that all sites be protected by a burglar alarm with wireless back-up protection and that the alarm be monitored by a central monitoring station. Premiums are billed at the time of installation for a period of 1 year however; they will be prorated to the November 1 renewal date. All premiums are to be paid directly to ATMS ON WHEELS, LLC . Any changes to insurance coverage are to be received by ATMS ON WHEELS, LLC by the 1 st of each month.

Reporting Requirement: New machines and locations that are not on the insurance schedule must be reported to ATMS ON WHEELS, LLC and payment received by the insurance company before coverage can be effective.

Loss Valuation: Machines will be replaced with similar machine of like kind and quality up to the scheduled limit.

Coverage and Conditions: No coverage for cash in transit. Terrorism coverage is included. Machines must be permanently chained or bolted to the wall or floor at the location or a burglar alarm, with wireless back-up protection must be installed and connected to a central station.

Why Do Businesses Need An ATM?

Becoming an affiliate/investor is a smart business decision. It is also why the merchant will make the decision to do business with you.

• An ATM increases sales because it allows customers to access cash from bankcards, credit cards, etc. Having an ATM, will increase the amount of cash flow through a merchant's location allowing more money to be spent on goods and services. Customers spend 20% more at the location where they use an ATM.

• An ATM builds customer traffic at a merchant's location.

• An ATM increase's customer loyalty, giving the customer additional services when they shop at the merchant's location.

• An ATM pays for itself just by being used. The merchant earns income off of every transaction.

• An ATM transaction is guaranteed and eliminates charge backs, disputes, bad checks, credit card and swipe card fees (which can be 5% of the sale).

• An ATM provides security for the merchant, the employees and the customers by reducing the probability of robbery and employee theft, as the merchant can keep less money in the register.

• An ATM means that the merchant's potential customers will no longer stop at a competitor to get cash (and spend it there).

ATM Facts

• Customers prefer using an ATM rather than a point of sale swipe card devices nearly 28 to 1.
• 60% of Americans ages 25-34 and 51% ages 25-49 use ATMS 8 times a month, withdrawing an average of $60.00 per transaction.
• Friday, is the most popular day for people to use an ATM.
• Each year, ATMS perform nearly 12 billion transactions by over 150 million card holders.
• Among people that use both credit and debit cards, debit cards are used most often, 5.9 times per month versus 5.1 times per month.
• ATM customers spend an average of 20% more than non-ATM customers.
• ATMS at retail locations see an average increase in store sales from 8% to 10%
• Night clubs see 70% to 80% of the dispensed cash staying at the club.