Want to poll members.....What's a fair ATM surcharge?

1 dollar

 

I would say 3.00. I was just a Kemah last week at the gas station there and needed some quick cash so I walked in with the feeling I am going to pay like 5.00 due to location but was pleasantly surprised they only charged 2.50

 

No offense to the OP, but this thread sucks. Just another example of the skimmer's economy we live in today... and people are dumb enough to allow it to happen.

 

I'd say around $2.50....

But if I cant find a Bank Of america for a free withdraw I'll just go to another bank and pay their fee. I feel much more comfortable doing that than using a atm at a gas station but maybe thats just me.....

 

Truth be told, unless the fee is something outlandish like 6 or 7 bucks, I'm probably just going to go ahead with it. Generally when I'm stopping at an ATM, I'm headed somewhere and don't want to take the time to find other ATMs to maybe save a dollar.

 

There is like 5 million chase ATMs, and with the Chase app, you can find one close by. I kinda weigh gas cost vs atm cost though. I assume they're all 2.50.

 

Whatever you can get out of people. Some banks have branches everywhere open 2-3 hours after the workday and half days on Saturdays and they don't charge anything for cash withdrawals.

 

If I'm taking money out of ATMs it's usually because I need cash for gambling and I forgot to take cash out before I left, so I might pay $5 anyways (what's that one hand?). I'll be pissed off though.

 

Where's the option for zero?

If an ATM is going to charge me for using my money, I find another.

 

I will never pay more than $2.50, and that isn't even an option. Chicago rarely has ATM fees at $3.00...

 

Don't really care as my bank refunds the fee.

 

Based on circumstances, I think it would be okay for you to charge at least $3.50. Like you said, you are more than likely not going to get repeat customers, therefore it seems most people just need to get cash quick and willing to pay the money to save time.

 

All about convenience. Are you going to pay the $3 now, or get in your car and drive around wasting gas and time looking for another ATM because you feel you can find better, only to find another ATM with the same fee or one that's .50 less and you've spent more than that in gas and time.

 

as a customer i hate it. as a ATM owner, i think you should raise it to $3.50. you're losing 27% in profit because i'm sure the increase will not deter out of towners from using your ATM.

 

Another point about the convenience of his and a lot of ATMs, is even if you intend to find your bank to get free ATM service, not all banks have branches in Houston. I had to spend about 2 months in South Carolina for business a few years ago, there's no Wells Fargos out there. I never needed to get cash, but if I did, I'd be forced to find an ATM.

 

3.50 is a fair amount if you have nothing but out of towners client. Remember people flying in from out of state are in a hurry to get some cash for their convienance and most likely does not have a ride to drive around to look for an atm at a bargain price. Sound like a good business to get into. Mind posting a link to where I can purchase one new? Was about to buy a couple of gold bars to invest but this sound too good. Especially if you don't pay any rent and all the profit is 100%.

It's just business paul ~ micheal jackson

Spoiler

micheal jackson buying the rights to the beatles from paul mccartney lol

 

is this the thread where I can brag about how much I don't pay for ATM ?

OP just because you wouldn't pay more doesn't mean other people won't. Don't let your personal bias get in the way. I am surprised sometimes when I float a high price out and the person tells me it's the lowest I've found.

Have you looked at where majority of the out of towners are coming from?

if they are NY and CA ,then I would consider going even higher at as much as $4.50

Lots of people on here from TX and the cost of living etc is lower in TX so naturally an atm fee that is higher may not play well to the audience of this bbs. Like you said it's out of towners so you can't base your TX bias on someone that is willing to pay $5 from NY.

Why not experiment and see how it goes for $4.50 ??

100 transactions at $2.50 is = $250
55 transactions at $4.50 is = $247.50

Are you really going to lose 45 transactions at $4.50 ?? Maybe a few but I wouldn't be surprised if you still got 70-80 transactions (that $315 at $4.50 btw). Especially if they are out of towners, near an airport, near car rental and all the things you mention.

Also at the end of the day as much as it is close, are you really going to be down with going all the time to refill?. Seems to me less transactions, at a higher rate will cost less in terms of maintenance, and the processing fees that you are paying as well. perhaps I am missing something.

Are you considering a revenue management approach? Perhaps on high demand periods (weekends, nights) look at a revenue management approach where you have a higher atm rate vs. lower demand periods? That may be too much to manage but looking at it from just a 'how much' point of view seems to be not looking at it all the way and being somewhat closed minded... Revenue management is not taking an order today for $2.50 so that you can satisfy a demand that may be willing to pay $5 tomorrow. This is what airlines do ,and there are simple revenue management approaches that can also boost your bottom line besides this tipping point approach.

Also is there a way that the atm can dispense in multiples of $10 ?? seems like $20 minimum limit cuts people out as well. I remember being poor needing to buy something and not even having $20 in my account. I think the same way you are worried about losing people to high fees, you might be losing some people that need that $10 crack rock.

There has to be other costs besides just the atm,and the fees so you need to look at number of transactions vs. bang for your buck per transaction vs. maintenance vs. number of refill visits etc.

Out of curiosity what is the avg withdrawal amount?
How much do you have to generally keep in the atm so that you don't have to go back and refill?
is there such a thing as theft insurance? If yes how much is that? I assume an insurance policy will cover certain amounts, I am intrigued to know what this cost is?

As others are saying it's an interesting business, but I refuse to believe its all unicorns and rainbows ,or more people would be in it. In business there are the things you see, and the things you don't think about that can add up. As much as it seems like a great deal, just wondering how much this is a fortunate location. Speaking of locations, I am always astounded how many business simply only accept cash in hawaii. Seems like hawaii might be a good place for something like this.

Let us know in 6 months how it is going..