Gas stations are a staple in every Canadian community, serving as more than just refueling points. Many now function as convenience hubs, offering snacks, drinks, car washes, and even banking services through ATM gas station placements. For both entrepreneurs and gas station owners, ATMs present an appealing opportunity to increase income, improve customer experience, and capture foot traffic. However, while the potential profits are significant, there are also challenges to consider.
Let’s explore how gas station ATMs work in Canada, what kind of ATM business revenue they generate, and the common obstacles owners face.
Why ATMs and Gas Stations Are a Perfect Match
Gas stations are high-traffic locations, often open long hours or around the clock. Customers stop not only for fuel but also for quick convenience purchases. By adding an ATM, station owners provide an additional service that keeps customers on-site longer and encourages them to spend more inside the store. For entrepreneurs operating independent ATM businesses, gas stations provide ideal placement due to their steady stream of daily visitors. This is why gas station ATMs in Canada remain one of the most popular choices for deployment.
How Gas Station ATMs Generate Revenue
At the heart of any ATM placement is surcharge income. Each time a customer withdraws money, a convenience fee is charged. That fee—minus network and processing costs—creates ATM business revenue for the owner.
In many agreements, revenue is shared between the ATM operator and the gas station owner. For example, if the surcharge is $3.00, the operator might keep $2.00 while the station owner receives $1.00. Over hundreds of transactions per month, this can add up significantly.
Beyond surcharges, ATMs also create indirect profits. Customers who withdraw cash are more likely to make impulse purchases in-store, benefiting the gas station’s primary business.
Average Transaction Volumes and Profit Potential
The success of an ATM gas station placement depends largely on traffic and location. A busy urban station near highways or residential areas may see 500–800 ATM transactions monthly. A smaller rural station may average closer to 200.
Let’s break it down:
-
High-Traffic Location Example
600 transactions × $3 surcharge = $1,800 monthly gross revenue.
After processing fees and revenue sharing, operators might net $1,000, with station owners earning $400–$500. -
Moderate Location Example
300 transactions × $3 surcharge = $900 monthly gross revenue.
Net profit may be $500–$600, depending on fees and agreements.
Over a year, even moderate transaction levels can create steady passive income, making gas station ATMs in Canada a worthwhile investment.
Key Benefits of Placing ATMs in Gas Stations
1. Steady Foot Traffic
Gas stations naturally attract visitors, making them reliable ATM sites.
2. Additional Revenue Streams
Both operators and gas station owners enjoy direct surcharge income plus an increase in in-store sales.
3. Customer Convenience
Providing cash access enhances customer loyalty and differentiates the station from competitors.
4. Low Maintenance for Owners
In many cases, ATM operators handle maintenance, stocking, and compliance, leaving gas station staff focused on core operations.
Challenges of Operating Gas Station ATMs
While profitable, running an ATM gas station setup isn’t without difficulties. Here are some common challenges operators and owners must navigate:
1. Cash Management
ATMs must be stocked regularly with cash, requiring either the operator or a third-party service to handle secure deliveries. This adds ongoing logistical costs.
2. Security Risks
ATMs can attract theft, vandalism, or fraud attempts. Owners must invest in surveillance, alarms, and sometimes reinforced ATM cabinets to protect machines and customers.
3. Regulatory Compliance
In Canada, ATMs are regulated for security, consumer protection, and anti-money laundering compliance. Independent operators must ensure their machines meet all requirements, from transaction reporting to signage.
4. Revenue Sharing Agreements
Contracts between ATM operators and gas station owners must be negotiated fairly. Disagreements over surcharge fees, profit splits, or maintenance responsibilities can cause conflict if not clearly defined.
5. Upfront Costs
While less expensive than opening a new retail business, ATMs still require upfront investments in hardware, installation, and network integration. ROI may take months to materialize, depending on transaction volume.
Ownership Models: Who Runs the ATMs?
There are several ways to set up gas station ATMs in Canada:
-
Owner-Operated – The gas station owner buys and manages the ATM, keeping most of the revenue.
-
Independent Operator – A third-party ATM company places and manages the machine, sharing revenue with the station owner.
-
Bank-Branded ATMs – Sometimes, banks install ATMs for brand presence. These often benefit customers but may offer little or no revenue sharing for the station.
Most small gas stations prefer working with independent operators, as it reduces their responsibility while still generating a steady revenue stream.
Tips for Maximizing ATM Business Revenue
1. Choose the Right Location
Place the ATM in a visible, secure area inside or near the entrance for maximum traffic.
2. Offer Competitive Surcharges
Set fees in line with local averages—too high may discourage use, too low reduces profit.
3. Promote Cash-Only Purchases
Encouraging cash payments for certain items can increase ATM usage.
4. Ensure Reliability
Machines should be stocked and maintained regularly. Downtime translates directly into lost revenue.
5. Leverage Partnerships
Work with trusted ATM operators who understand compliance, customer service, and cash management.
The Future of ATMs in Canadian Gas Stations
Although digital payments are rising, ATMs remain essential in many communities. Travelers, cash-preferred customers, and even businesses rely on local machines. In smaller towns, gas stations may be the only convenient access point for cash.
Advances in ATM technology are also making them more versatile. Some machines now support bill payments, cryptocurrency transactions, or mobile wallet top-ups. These innovations could help ATM gas station placements remain profitable in the long term, even as payment trends evolve.
Final Thoughts
ATMs in gas stations are a proven model for generating steady income while providing valuable services to customers. With the right placement, maintenance, and revenue-sharing structure, both operators and gas station owners can benefit.
While challenges such as security, compliance, and cash management exist, they can be addressed with proper planning and partnerships. For entrepreneurs seeking reliable ATM business revenue or station owners looking for additional income, investing in gas station ATMs in Canada remains a smart strategy.
FAQ’s
Q1. Do gas station ATMs make good money?
A: Yes. Depending on location and transaction volume, gas station ATMs can generate hundreds or even thousands of dollars monthly in surcharge revenue, shared between operators and station owners.
Q2. What are the costs of placing an ATM in a gas station?
A: Costs include the purchase or lease of the machine, installation, compliance, and ongoing cash stocking or maintenance. Independent operators often cover these costs in exchange for revenue sharing.
Q3. Who maintains gas station ATMs?
A: In most cases, ATM operators handle stocking, servicing, and compliance. Gas station staff simply provide space and benefit from revenue sharing, making the arrangement low-maintenance for the station owner.
