The numbers don't lie. ATM revenues dropped another 6.5% last year, according to the NACS State of the Industry 2025 report. For convenience store and grocery retailers watching their bottom lines, this decline raises an important question: Is an ATM still a relevant investment for your business?
The answer is more nuanced than you might think. While traditional ATM surcharge models face headwinds, smart retailers are finding new ways to make these machines profitable. The key is understanding what's driving the revenue decline and adapting your strategy accordingly.
The Surcharge-Free Revolution
The main driver behind declining ATM revenues isn't necessarily that consumers have stopped using ATMs altogether. Instead, they're increasingly unwilling to pay fees for accessing their own money. This shift in consumer behavior is reshaping the entire retail ATM landscape.
Traditional surcharge transactions are averaging around 120 to 250 transactions per store. That’s a significant drop from historical norms. The average number of surcharged ATM withdrawals across the United States used to hover around 300 per month. Today, fewer stores are meeting that benchmark, and the trend shows no signs of reversing.
Meanwhile, surcharge-free ATM transactions are taking off. Many surcharge-free machines are seeing well over 300 withdrawals per month, with transaction volumes often increasing by 10% or more when retailers eliminate fees. This creates an interesting dilemma: going surcharge-free might bring additional store traffic and boost in-store sales, but you lose all surcharge revenue in the process.
The challenge for retail ATM operators is finding the right balance between customer satisfaction and profitability. While surcharge-free models attract more users, they require a different approach to generating ATM profits.
Recouping Lost Revenue
Whether you decide to go surcharge-free or you're simply trying to offset declining transactions, you can counter lost revenue with other revenue-generating options. The ATM industry has evolved far beyond simple cash dispensing, and forward-thinking retailers are capitalizing on these expanded capabilities.
Many traditional ATMs are expanding their service offerings to improve profits. Dynamic Currency Conversion services allow international visitors to withdraw cash in their home currency, generating additional revenue per transaction. Some machines now enable debit card holders to purchase cryptocurrency directly, tapping into the growing digital asset market.
A new wave of deposit-taking ATMs for retail is also surfacing. Consumer deposits represent an ATM offering that most surcharge-free locations don't provide. This unique service can bring back some ATM users to surcharged machines, creating a competitive advantage for retailers who invest in these advanced units.
Modern retail ATMs can expand your self-service offerings with cryptocurrency transactions, bill pay services, prepaid mobile phone top-ups, and much more. These transaction revenues are incremental – the more options you have on your machine, the more enticement you create for self-service ATM use, and the more money you could potentially make.
Cash Remains "King" for Many
Despite concerns about declining cash usage, the latest Federal Reserve Study on payments shows that cash use has remained stable since 2020. This stability persists even as digital payment methods continue growing in popularity. For retail ATM operators, this represents a foundation of ongoing demand that isn't disappearing anytime soon.
Cash remains crucial for financial inclusion, serving populations that may not have access to traditional banking services or prefer cash transactions for budgeting purposes. ATMs remain an important resource for cash users and play a vital role in the broader economy.
This ongoing cash demand means that retail ATMs still have a place in your business model – you just need to approach them strategically. Rather than relying solely on surcharge fees, successful retailers are viewing their ATMs as multi-service platforms that can generate revenue through various channels.
Making ATMs Work for Your Business
The key to profitable retail ATMs in today's market is diversification. Instead of putting all your eggs in the surcharge basket, consider how your ATM can serve multiple revenue-generating functions. Whether that's through expanded services, strategic fee structures, or using the machine to drive foot traffic for other purchases, the opportunities are there for retailers willing to think creatively.
ATM revenues may be declining, but that doesn't mean ATMs themselves are obsolete. By understanding changing consumer preferences and adapting your approach accordingly, you can still make these machines work profitably for your retail business. The retailers who succeed will be those who view their ATMs not as simple cash dispensers, but as comprehensive self-service platforms that meet evolving customer needs while generating sustainable profits.