Making Self-Directed Investments in ATM Networks

Published on July 13, 2026

ATM machines are everywhere. Individuals with self-directed IRAs can invest in these as alternative assets and earn passive income, with the potential for strong ROI depending on the strength of the location.

In this article, we look ways at to invest in ATM machines and networks through a self-directed IRA.

Investing in an ATM network: business or franchise

Starting an ATM business requires good location scouting to ensure machine placement is where people need cash and bank ATMs are not readily available. High-traffic locations include busy bars and restaurants, casinos, hotels, and convenience stores.

The self-directed IRA purchases the machine(s) and pays for setup costs; or buys an existing ATM portfolio or route from a retiring operator who has a single or multiple machines already in place that are generating revenue.

The ATM Industry Association (ATMIA) reports that an average independently placed ATM processes 150 to 300 transactions per month, depending on location. The investor earns income via two sets of fees:

• The surcharge fees paid by users, generally between $2.50 and $3.50 per transaction. The operator (investor) splits this with the venue owner as a commission for allowing the machine to be placed on the premises.
• The interchange fees paid to the operator by the debit/credit card networks, which are nominal (10-25 cents per transaction), but add up in a busy location, especially on top of the surcharges.

Another way to participate in ATM networks is to invest in an ATM franchise. The self-directed IRA pays an upfront franchise fee and the initial investment costs to the franchisor, which helps locate sites, assists with branding and bookkeeping, and provides operational training and technical support. A nationally recognized ATM franchisor should have a large client base of major hospitality and entertainment venues, parks, hospitals, museums, and more, providing access to premier locations. However, between the high upfront fees and ongoing royalty and management fees, this can be a costly way to invest.

Operating an ATM business

Startup costs for an ATM machine range from $3,000 to $10,000 per unit, depending on whether you invest in used/refurbished or new equipment. If you procure a refurbished unit, make sure to use a reputable dealer that provides quality equipment and some kind of limited dealer warranty. Other expenses the self-directed IRA will incur are the initial cash vault, insurance, and compliance, processing setup and connectivity costs.

Operating costs include processing fees, connectivity (to the card processor), and the revenue share to the location.

The investor is responsible for “fronting” the machine’s inventory by keeping the ATM filled with $20 bills; that money is returned to the self-directed IRA electronically by direct deposit from the ATM network on the next business day (minus a small processing fee). Depending on volume, a single ATM machine can yield several hundred dollars a month in profit.

NOTE: When this investment is operated as a business, certain business taxes may apply. Some account owners set up a self-directed IRA LLC (sometimes called a checkbook IRA) to make these investments. Investors are wise to consult with a trusted tax and/or business advisor before getting started.

Due diligence: considerations before investing in an ATM network

There are many operational, legal, and financial factors to research before investing in an ATM network:

• ATM processor – The party that handles transaction routing, network access, and settlement.
• Processing fees – Investigate whether flat monthly fees or per-transaction fee pricing will be in your favor.
• Processor network access – The processor must connect to the Visa/Plus, Mastercard/Cirrus, and regional ATM networks. If network access is restricted, cards from certain banks can’t use your machine, which reduces transaction volume (and potential revenue).
• State licensing requirements – a business attorney can advise you on this or check with your state agency.
• Connectivity – Cellular-connected machines cost more in connectivity per month but avoid the need to negotiate internet access with every location owner.
• ATM management software – The processor’s dashboard that provides real-time transaction monitoring, low-cash alerts, out-of-service notifications, and monthly performance reports.
• EMV compliance – This refers to chip card capability (EMV stands for Europay, MasterCard, VISA), which confers anti-fraud protection. Additionally, ATM machines are required to run current, supported software. A machine that is non-EMV compliant can expose the operator to chargeback liability.
• ADA compliance – Keyboard height, audio output, and privacy screen must meet ADA 2010 Standards. Non-compliant machines expose the operator to civil liability (ADA litigation).
• Settlement speed – Ask if the processor settles the account weekly or daily (for an additional fee).
• Cash insurance – A policy with specific provisions that cover cash in ATM vaults during transit and storage.
• Vaulting fees – Operators with multiple machines spread across a large area may prefer to use armored courier services to protect cash in transit (and save a lot of driving time between locations).
• Tech support availability – Make sure tech support will always be available to address machine glitches or emergencies.

If you have questions about the many types of alternative assets allowed in a SDIRA, contact our helpful team at NewAccounts@NextGenerationTrust.com or 888-857-8058.