ATM Northeast Inc. (Www.Atmetrade.Com) Term Paper

Pages: 13 (3242 words)  ·  Bibliography Sources: ≈ 7  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

The larger the distributor, the more attractive the deals they can command for the ATM's themselves and for the transaction processing and other services required to run the machines. In turn, they pass along these volume discounts to distributors working for them. They also pay fees to sponsor banks and to networks, which typically amount to several thousands of dollars a year for each network ("How to be a successful ATM Distributor," 2005)."

The article also asserts that large distributors also offer services such as help desks and contracts. In addition, the large distributor are a source for lease financing and transaction processing ("How to be a successful ATM Distributor," 2005). This is important because when a smaller distributor works under a large distributor they can learn the different aspects of the business while still being protected ("How to be a successful ATM Distributor," 2005).

The article insists that there is an exchange for the insight that is gained by working under a large distributor. This exchange comes in the form of a percentage of the fee that the smaller distributor charges customers to use the ATM ("How to be a successful ATM Distributor," 2005). This fee is the primary way for an ATM distributor to make a profit ("How to be a successful ATM Distributor," 2005).

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Although working under a larger distributor is recommended, the author explains that doing so is becoming increasingly more difficult ("How to be a successful ATM Distributor," 2005). This difficulty is occurring because larger distributors are no longer recruiting small distributors that don't have any experience in the business ("How to be a successful ATM Distributor," 2005). The unwillingness of large distributors to recruit is due to the cost associated with aiding a small distributor in this manner ("How to be a successful ATM Distributor," 2005).

Term Paper on ATM Northeast Inc. (Www.Atmetrade.Com) Was Assignment

According to this article, another way of insuring that an individual becomes a successful ATM distributor is to simple "ask around" ("How to be a successful ATM Distributor," 2005). This means that a person interested in opening such a business should inquire of people that have professional relationships with top distributors ("How to be a successful ATM Distributor," 2005). These people will usually provide you with contact information. Once given this information it is important to get in contact with the distributors and perhaps visit there offices. This will provide the potential distributor with some information and insight into the ATM business ("How to be a successful ATM Distributor," 2005).

Finally, the article asserts that once and individual decides to become an ATM distributor they must dedicate some time to building the structure of the business ("How to be a successful ATM Distributor," 2005). This means they must concentrate on basic things such as having reliable transportation, a laptop and perhaps a palm pilot ("How to be a successful ATM Distributor," 2005). After the structure of the business is put into place, the individual should concentrate on sales and customer service ("How to be a successful ATM Distributor," 2005). These strategies should effective in starting a successful ATM distribution business.

Another strategy that should be utilized in being a successful distributor is the offering of machines that have multiple functions and provide services for the unbanked segment of the population (Bielski,2002). Such machines have been tested in 7-elevens throughout the country (Bielski,2002). According to an article found in ABA Banking Journal such machines allow customers to perform a number of transactions that standard machines do not. The author explains,

"The device operates as a cash and coin dispenser, but it can also accept tokens, cards, checks, cash, and promotional coupons. Customers can initiate purchases by card or cash. Built with a customer service phone, the device also offers a large touch screen display and full alphanumeric keyboard. As part of the check cashing process, it fires off electronic information to Certegy (formerly Equifax), which runs credit checks on the presenter to automate the risk management aspect of check cashing (Bielski, 2002)."

The article reports that the phones attached to the kiosk, feature customer service reps that collectively know 20 different languages (Bielski, 2002). This type of ATM is particularly useful for foreign workers that need banking services but have limited banking options (Bielski, 2002). The article also asserts that the initial pilot program illustrated the need for such an ATM machine. In addition, it gave the creators of the machine a chance to modify the machine so that it was more user-friendly (Bielski, 2002).

Another issue that a successful dealer must address is the safety of the ATM at the various places of business. According to an article found in Security Management explains a bill to increase mandatory security measures at ATM machines. The author explains,

"A bill (H.R. 3662) introduced by Rep. Steve Rothman (D-NJ) would require the Federal Reserve System to adopt mandatory minimum requirements for the security of automated teller machines (ATMs). ATM owners would have to develop measures to discourage robberies and assist in identifying perpetrators. Other ATM security measures to be required would include adequate lighting, CCTV cameras, maintenance of surveillance records, and alarm systems (Anderson 2002)."


Indeed, the use of Automated Teller Machines is here to stay. Thus companies that are in the business of finding new and innovative ways to aid in their success. Although ATM distributors are not as lucrative as they once were, there are some practical ways that an ATM distribution company can increase their odds of becoming successful.

In accordance with the literature review, one of the first things that a potential ATM distributor must do is ask around. If an individual is interested in opening this type of business it is important that they get into contact with individuals that have relationships with distributors. Once this has been done and the distribution center has been visited, the individual must decide if an ATM distribution business is right for him/her.

If they decide to go into business, they must make sure that they have reliable transportation, a laptop and a palm pilot. Whether the new distributor decides to operate under the umbrella of a large distributor or go at it alone, they must recruit a sales team. It is recommend that the potential ATM distributor should attempt to work under the umbrella of a larger distributor if possible . Doing this will allow the new distributor to learn the different facets of the business. In addition, it will save the new distributor a great deal of money. If the new distributor decides to work under a larger distributor, they must also take into consideration that the large distributor will expect to receive a portion of the profits.

Once a new distributor begins to sell products to customers, they must put customer service at the top of their list of priorities. This will aid them in retaining customers in the end. According to the literature review, successful ATM distributors will also seek new and innovative ways to attract customers and sell more machines. One promising way to do just this is the distribution of machines that have multiple functions and provide banking solutions for those that do not have such services. In doing this, the business will be able to meet the needs of a new demographic and increase profits.

The literature review has made it clear that an individual must be dedicated to the business, if they want to see it succeed. This means that they must create an appropriate plan of action and follow through with that plan. The ATM distributor must also have customer service as a priority of the business. Good customer service will allow the company to keep the customers they already have and present them with an opportunity to gain more customers.

Lastly and most importantly, as an element of customer services the ATM distributor must make every effort to ensure that the ATM's protect the privacy of users. The distributors must ensure that they have followed all the state regulations regarding security. In addition, they must do whatever is necessary to ensure that there is adequate lighting and other security measures to deter thieves. Providing such security could easy the relunctance that some business owners have in regards to placing an ATM in their establishments.

Monitoring Process

As for Kathleen Pacheco and Jack Kerney, it appears that they have successfully implemented some of these Recommendations. For instance, before starting the business Kathleen did substantial research to ensure that this type of business was right for her. In addition, she found a mentor that could assist her in running a business. The owners of the company also found a sales team appear to be adequate. The owners have also sought different methods of expending the business through their website. Overall, it seems the implementation of these recommendations is one of the reasons why the Company has become a successful ATM distributor.


The purpose of this discussion was to share the story of Kathleen Pacheco… [END OF PREVIEW] . . . READ MORE

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How to Cite "ATM Northeast Inc. (Www.Atmetrade.Com)" Term Paper in a Bibliography:

APA Style

ATM Northeast Inc. (Www.Atmetrade.Com).  (2005, February 28).  Retrieved September 18, 2020, from

MLA Format

"ATM Northeast Inc. (Www.Atmetrade.Com)."  28 February 2005.  Web.  18 September 2020. <>.

Chicago Style

"ATM Northeast Inc. (Www.Atmetrade.Com)."  February 28, 2005.  Accessed September 18, 2020.