ATMs - How Does the Retailer Decide?
by Sebastian Romero
Published on this site: May 12th, 2006 - See
more articles from this month
ATMs or Automated Teller Machines, are an essential part of modern
life.
In many families both the adults work, making it impossible to reach
the bank to withdraw cash. ATMs do make this possible.
ATMs are of two basic types, hole in the wall machines set into
a reinforced bunker, and retailer cash machines, standing in shops
and other premises. Retailer cash machines may be front or rear-loading.
Why are there so many ATMs? Retailers want one in their premises.
ATMs attract customers and over half of the money withdrawn from
a retailer ATM is spent on the premises. There are some costs involved,
with the retailer paying for phone line costs and power consumption
of the ATM, so there has to be substantial benefits for so many
retailers to be clamoring for an ATM.
Retailers have several choices. They can choose which bank network
the ATM is connected, though the ATM will process transactions from
customers of all banks.
The retailer can also choose to load the ATM with their own cash
takings, saving bank charges and loading charges from Cash in Transit
companies. This depends on the retailer having sufficient high quality
notes to load the ATM once or twice each week, few people want to
be doing this on a daily basis because it must be done with the
premises in a secure condition and out of opening hours.
As an alternative to loading their own cash, retailers are increasingly
asking the ATM providers to organize cash loading. A security company
will survey the site, talk to the retailer about what is required
in terms of security procedures, and assume responsibility for loading
the machine. The security company may require a secure room, like
an office, where the can work on the cash cassettes.
Retailers have a choice between front and rear loading machines.
Rear loaders have to be accessible from front and rear, so are usually
inserted in a solid wall, with an office or store room at the rear.
The safe opens at the rear and they are loaded from the rear, so
the store can stay open while the ATM is being loaded. Rear loaders are much more secure, from a cash
loading perspective.
Front loading ATMs take up less space, but the security procedures
when the ATM is being loaded are more intrusive. Some security companies
will insist on shutters being down and the shop empty while the
Cash in Transit crew are on the premises. Other companies will only
insist on this while the ATM safe is only actually open.
The retailer must balance the inconvenience of locking the store
while the security company are working, against the alternative
inconvenience and security concerns of doing the job themselves
before or after normal opening hours.
Sebastian Romero owns several convenience stores in San
Diego. He has a background in the security industry, including Cash
in Transit. He acts as a security consultant for small businesses
in his local area. For more security related information check out
http://www.security-management-systems.info/ or
http://www.security-industry.info/
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