In today’s increasingly cash-conscious retail environment, offering convenient access to cash is more than a perk—it’s a competitive advantage. For many Canadian businesses, installing an ATM can boost foot traffic, improve customer satisfaction, and create a passive revenue stream. But when it comes to acquiring one, a common question arises: Should you buy an ATM?
In this article, we break down the pros and cons of buying versus leasing, helping you decide the best option for your business in 2025. Whether you’re a convenience store owner in Toronto or a gas station operator in Alberta, understanding the financial and operational implications of ATM ownership is key.
Why Consider an ATM for Your Business?
Before diving into the financial models, it’s worth asking: why add an ATM at all?
Benefits include:
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Additional in-store revenue from surcharge fees
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Increased customer visits and longer dwell times
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Higher in-store sales, as cash users often spend more
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Greater brand perception as a full-service business
In short, ATMs aren’t just machines—they’re micro investments in customer convenience and passive income.
Buying an ATM in Canada: Pros & Cons
Purchasing an ATM outright can be an excellent option, particularly for businesses seeking full control over operations and profits. Let’s break it down:
Pros of Buying an ATM
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Full Revenue Retention
When you buy an ATM in Canada, you keep 100% of the surcharge revenue, minus transaction processing and maintenance fees. Over time, this adds up. -
Long-Term ROI
Owning the machine means you break even sooner and continue to generate profit well after. Many business owners view it as a solid ATM investment. -
Asset Ownership
Like any equipment purchase, owning the machine gives you a tangible asset you can depreciate or sell later. -
Customization
When you own the ATM, you can choose branding, screen messages, surcharge rates, and more.
Cons of Buying an ATM
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High Upfront Cost
A new ATM typically costs between $3,000–$8,000, depending on features and compliance (e.g., PCI, EMV standards). This can strain small business budgets. -
Maintenance Responsibility
As the owner, you’re responsible for repairs, cash loading, and compliance updates. -
Cash Management
You’ll need to fund the machine regularly and manage the cash cycle—something many owners outsource for a fee.
Leasing an ATM Machine: Pros & Cons
Leasing offers an attractive alternative, especially for those who want to avoid upfront investment or deal with operational hassles.
Pros of Leasing an ATM
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Low Initial Investment
You can lease an ATM for as little as $100–$200 per month, preserving your capital for other business needs. -
Hassle-Free Maintenance
Most lease providers include repairs, upgrades, and compliance services in the lease agreement, saving you time and stress. -
Flexibility
If your business is new or seasonal, leasing allows you to test ATM performance without a long-term commitment. -
Cash Loading Services
Many leasing companies offer armored car cash loading services as part of their package.
Cons of Leasing an ATM
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Lower Profit Margins
You may share surcharge revenue with the lessor or pay monthly fees that reduce your passive income. -
No Ownership
You don’t build equity in the machine, and at the end of the lease, you may need to renew or return it. -
Potential Long-Term Cost
Over several years, leasing can become more expensive than purchasing, especially if the machine performs well.
Buy ATM Canada: When Does It Make Sense?
Choosing to buy an ATM in Canada is often ideal for:
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Established businesses with consistent foot traffic
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Locations open long hours (gas stations, 24/7 stores)
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Owners with enough capital to invest up front
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Operators willing to manage the machine or outsource selectively
If your location processes a high number of transactions per month (e.g., 300+), buying can pay off within the first year, making it a sound ATM investment.
When Leasing is the Better Option
You might choose to lease an ATM if:
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You’re just starting and want to test ROI
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Your location has unpredictable or seasonal traffic
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You prefer to avoid maintenance or compliance headaches
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You want a no-risk way to offer added convenience to customers
For many businesses, leasing offers a smart entry point into ATM ownership without assuming the full burden right away.
Hybrid Model: Profit-Sharing Agreements
There’s also a third model gaining popularity in 2025: profit-sharing partnerships. Some ATM service providers offer to place a machine at your location for free and split the surcharge revenue with you.
It’s a win-win if:
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You don’t want to pay upfront
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You want minimal responsibility
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You still want passive income
However, you’ll typically earn less per transaction compared to full ownership.
Key Considerations for 2025
Before you buy an ATM in Canada or opt to lease, consider the following:
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Foot Traffic – Higher foot traffic = more transactions = higher ROI
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Cash Usage – Do your customers still use cash? ATMs are most effective in cash-reliant businesses
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Compliance – Ensure any ATM is PCI-DSS and EMV compliant
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Service Provider Reputation – Whether you lease or buy, choose a provider with proven Canadian support
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Surcharge Revenue Forecast – Calculate your break-even point based on average daily transactions.
Conclusion: Buy or Lease—Which Is Right for You?
There’s no one-size-fits-all answer. Your decision to buy an ATM in Canada or lease an ATM should depend on your business goals, cash flow, and appetite for management.
If you’re looking for long-term income and control, buying is the way to go. If you’re testing the waters or prefer a hands-off approach, leasing offers flexibility and ease. Either way, adding an ATM to your business in 2025 is a smart move to increase foot traffic, serve more customers, and grow your bottom line.
FAQ’s
Q1: Is it better to buy or lease an ATM in Canada?
A: Buying is better for long-term ROI and full control. Leasing works well for startups or hands-off owners wanting convenience without upfront costs or maintenance responsibilities.
Q2: How much does an ATM cost in Canada?
A: A new ATM typically costs between $3,000 and $8,000 in Canada, depending on features, compliance requirements, and whether installation or service is included.
Q3: What’s the ROI on an ATM?
A: An ATM can generate $300–$1,000+ per month in surcharge revenue. Most owners break even within 6–12 months, depending on transaction volume and machine ownership structure.
