ATM vs Credit Card Fees – Which Helps Your Business More?

For many small businesses, credit card processing fees are a persistent drag on margins. This guide explains the true cost of cards, how an in‑store ATM offsets those fees, and when a blended setup makes the most sense.

On this page

The Cost of Card Processing

When a customer pays with a card, several parties take a fee: the processor, the card network, and the issuing bank. Convenience is high, but so is the cumulative cost for merchants.

  • Typical effective rate: 2–3.5% plus per‑transaction fees.
  • Fees scale with revenue—bigger months mean a bigger bill.
  • Chargebacks, monthly minimums, and statement fees add noise to forecasting.

How an ATM Generates Revenue

Installing an ATM flips the dynamic. Instead of paying a fee every time, you earn from customers who choose cash while trimming card volume.

  • Surcharge share: you keep a portion of each withdrawal (often $2–$3 per use).
  • No per‑swipe cost: customers opt into the surcharge for convenience.
  • Higher cash tickets: cash in hand often accelerates small, high‑margin purchases.

A Simple Example

Consider $10,000 in monthly sales:

  • Cards only: roughly $300 in processing fees (3%).
  • Cards + ATM: 75–150 withdrawals → about $150–$400 in shared surcharge revenue.

Even modest cash adoption can neutralize hundreds in fees each month.

Best Practice: Offer Both, Nudge to Cash

Cards provide flexibility and trust; a visible ATM provides choice. Smart placement and clear signage (e.g., “ATM available”) can shift just enough volume to change your cost structure without hurting conversion.

Getting Started with Archer ATM

Our placements are no‑cost. We handle installation, monitoring, and compliance; you receive transparent monthly payouts and support. It’s a low‑friction way to reduce fees and add revenue.

“Why let outside processors keep all the fees? With an ATM, part of each transaction stays in‑house.”

About Archer ATM

We help local businesses monetize foot traffic with clean, compliant ATM installs and simple monthly payouts.