Beat the banks

You can save around £3,000 a year in banking charges by installing an ATM. Louise Banham finds out the benefits and what retailers need to consider

More than 22,000 of the 70,000 ATMs in the UK are in the convenience sector.

“Customers expect an ATM in their convenience store, just as they expect to get a loaf of bread and a pint of milk,” says Ewan Ogilvie, managing director at YourCash Europe.

Retailers are paid a small commission per transaction, so the store benefits from every customer using the ATM.

“We regularly see customers earning £100-200 a month in commission and over 50 of our customers earn over £5,000 a year,” he explains. “It flows straight through to their bottom line.”

What type of ATM?

Retailers can choose between external or internal machines. The former encourages more transactions, while the latter brings more people in-store and increases basket spend.

There’s also self-fill or fully-managed ATMs. Self-fill is a low-cost option. Retailers use their takings to fill the machine and the ATM provider pays the money used straight into their bank account. It means retailers can save on banking fees. Ogilvie says YourCash’s customers save in excess of £3,000 a year in bank charges.

When it comes to security, he recommends retailers fill their ATM before the shop opens, lock it, and at the end of the day, take out the cash and cassettes and leave the ATM door open. No cash should be left in the ATM overnight.

Leaving the door open once cash is removed is crucial to preventing break-ins. “Anyone looking in once you’re closed will see an ATM, but also see the door open and that it’s empty,” he says.

YourCash provides free PoS stating ‘no cash is left in this ATM overnight’ as an additional security measure.

Considerations

“We’ve had a cash machine since 2005. Every convenience store should have one – especially bigger stores. You have to tie up a lot of your own cash, but you get a 10% return on that and it saves a lot of money on banking charges.

“It’s not difficult to fill and empty them, you just build it into your daily routine. We have a lot of security – ramraid bollards, shutters, an alarm, smoke alarms – but whether you’ve got a cash machine or not you need the same amount of security.” 

Harjit Singh
H & Jodie's Nisa Local, Walsall, West Midlands

Ogilvie says most of YourCash’s ATMs are provided to retailers free of charge.

On rare occasions where stores can’t meet the volume of transactions forecast by the supplier, they may have to pay a monthly rental fee.

Retailers are required to fill the machine every day with a set amount, have enough cash on site to meet usage demands and train staff to operate the ATM when owners aren’t present.

Retailers opting for through-the-wall ATMs should be aware that it could be eligible for additional business rates and subject to planning permission requirements. They will also need space for a safe room.