How to Buy an ATM

Step 1: Decide if an ATM Is Still the Right Investment

The first question you should ask yourself isn’t which ATM to buy. 

Instead, you need to ask yourself, should you be buying an ATM at all. For some institutions, an interactive teller machine (ITM) may be the better play, based on their overall goals and customer needs. For others, the ATM still serves a critical role. 

You may fall into that latter bucket, but the key here is to not make that assumption and challenge yourself first.

The distinction matters because the ATM is often treated as a commodity purchase. Too many leaders look at buying an ATM as a necessary evil, where you simply replace the old one, check the box, and move on. That mindset ignores how much the decision impacts strategy.

An ATM might not feel like a headline technology initiative, but the right one can affect your deposit strategy, your staffing model, and your ability to expand into new markets.

Ask how this fits into your broader priorities

Start by asking: “What role do ATMs play in our institution today, and what role do we want them to play going forward?”

Don’t assume what worked last time is good enough

A lot has changed since most institutions last purchased ATMs. Customer expectations have shifted. Deposit automation has become the minimum threshold. And the vendor landscape itself has changed, meaning what was a safe bet 10 or 15 years ago may not be the right fit anymore.

This is why the first step in buying an ATM isn’t looking at hardware specifications. It’s looking at your strategy. An ATM that lines up with your deposit goals, staffing model, and growth priorities is a smart investment. One that’s just filling space in your branch or your drive-up lane is wasted capital.

Step 2: Assess What You and Your Customers Actually Need

Deciding to buy an ATM is only the starting point. The harder part is defining what you expect it to deliver. Too often, institutions let habit drive the purchase. The old machine dispensed cash, so the new one will too. The last vendor recommended a base model, so that must still be fine. 

That mindset keeps you stuck in the past. That mindset can also cost you.

ATMs are not one-size-fits-all. The right machine for one branch might be the wrong fit for another. What makes sense in a downtown location with heavy foot traffic looks different from what you need in a suburban drive-through. If you skip the step of assessing actual usage and customer demand, you risk paying for features nobody uses or leaving money on the table by not offering the services people want.

Look at how your customers use self-service today

Start by asking: “What do our customers actually use our ATMs for, and what are they asking for that we don’t currently provide?”

• If most of your volume is still cash dispense, that may be fine, but it is worth asking whether deposit automation would serve a growing portion of your base.

• If you eliminated envelope deposits years ago, revisit whether modern imaging deposits could reduce branch traffic and cut teller costs.

• If your ATMs rarely see use after hours, you may not need top-tier functionality at every location, but in a high-traffic branch or drive-through, you might.

Consider the changes since your last purchase

The average ATM replacement cycle runs 10 to 15 years. A lot shifts in that span:

• Regulation and compliance: Windows updates, PCI requirements, and accessibility standards all evolve. What passed an audit five years ago may not pass today.

• Customer expectations: Consumers are used to digital speed. A machine that feels outdated reflects poorly on your institution, even if it still technically works.

• Staffing pressures: Teller workloads have increased. If a machine can remove thousands of low-value transactions from the line, that changes the staffing math in a way it didn’t a decade ago.

Match functionality to strategy, not habit

This is where institutions often make the mistake of defaulting to “cheapest option” or “same as last time.” Instead, tie the decision back to your goals:

• If deposit growth is a top priority, prioritize deposit automation.

• If expansion is on the table, consider how ATMs will serve as brand markers in new markets.

• If cost control is the main driver, calculate how shifting routine transactions to a machine affects teller productivity.

Your goal in this step is simple: be intentional about which capabilities actually move the needle for your customers and your institution.

Step 3: Avoid the Most Common Mistakes

When it comes to ATMs, the easiest way to waste money is to assume the purchase is simple. Many institutions make the same mistakes over and over; mistakes that look harmless in the moment but lead to higher costs, more downtime, and frustrated customers down the road.

Step 4: Decide How You Want to Buy

Once you know what you need, the next decision is how to get it. On paper, buying an ATM looks straightforward: pick the model, cut the check, and schedule the install. In practice, the path you take to buy will shape how much time you spend chasing vendors, how smoothly the installation goes, and how reliable the machine is once it’s live.

Buying Direct from a Manufacturer

Some institutions still go straight to the manufacturer. The appeal is simplicity. You think you’ll get the machine faster, maybe cheaper, and with fewer layers in between. The problem is that manufacturers are sales-driven organizations. Their reps have quotas to hit, which means the solution you get is often whatever helps them close the deal, not what’s best for your strategy.

Service is another issue. 

Fifteen years ago, you might have known your rep by name and had them on speed dial. Today, many banks say they haven’t seen a rep in years. When the machine goes down, you’re often routed through call centers, waiting on people who don’t know your institution, and sometimes fighting invoices for repairs that should have been covered under service agreements.

Buying Through a Partner

Working with a solutions partner looks like an extra step on the surface, but it changes the experience. A partner’s role is to take on the legwork:

• Compare hardware options across vendors.

• Manage installation from site survey to go-live.

• Handle processor paperwork and keep you out of the weeds.

• Train your staff so they can balance and operate the machine on day one.

• Monitor uptime so problems are addressed before you even pick up the phone.

The value is in accountability. You’re not chasing five different vendors. You’ve got one partner who owns the process and makes sure the machine is not only installed but fully functional.

Outsourcing Your ATMs

For some institutions, outsourcing to a trusted ATM partner can make sense. Smaller banks and credit unions, or those with only a handful of machines, may not have the bandwidth to manage the operational load. Outsourcing can give you predictable costs, relief from compliance headaches, and a refresh cycle that keeps you current without major capital outlays.

But while the right ATM technology partner can be a strategic asset to your financial institution, keep in mind that outsourcing is not a silver bullet. 

“Out of sight, out of mind,” doesn’t really work when it comes to your financial technology.

You’re still accountable for compliance. Contracts can be rigid, locking you into refresh cycles that may not match your needs. And not all providers are equipped to handle advanced functions like deposits or core integration, even if they say they can.

If you consider outsourcing, ask the right questions:

• How do you handle compliance updates?

• Who is actually doing the service when something breaks?

• Do you have real experience with the functionality I need?

• What happens when things go wrong?

Choosing the Path That Fits

There is no single right way to buy an ATM. The decision comes down to your priorities. If you want a quick transaction, buying direct might look appealing but comes with risk.

If you want accountability and strategic alignment, a partner is often the safer bet.

If you want predictability and minimal involvement, outsourcing may fit.

The key is knowing what trade-offs you are willing to accept and making that decision with your eyes open.

Step 5: What to Ask a Potential Outsourced ATM Partner

The biggest mistake institutions make when buying ATMs is assuming all providers are the same. The hardware may look similar, but the difference is in how the partner supports you before, during, and after the install. The questions you ask up front determine whether you get a machine that quietly does its job for years or one that becomes a constant source of frustration.

Here are the questions that matter most:

Who manages installation and project oversight?

It’s common for providers to outsource the physical move and setup of the machine. That part isn’t the issue. The question is who actually owns the project. If no one is accountable for coordinating vendors, handling delays, and making sure the machine goes live, you’re left managing the mess yourself. The right answer is a partner that controls the process from start to finish, even if third parties are involved, so there’s one chain of custody and one point of accountability.

Do you provide in-house service or outsource after installation?

A provider may claim they “cover service,” but if the work is farmed out to a third party, you could end up in a loop of finger-pointing. Ask who shows up when the machine goes down. Are they W2 employees who know your environment, or contractors who were assigned that morning? The difference will show up in uptime.

How do you handle ATM processor paperwork?

Switching vendors or platforms often means piles of forms and technical details. If your partner leaves you to figure that out, you risk checking the wrong box and delaying activation. The better answer is a partner who not only helps with the paperwork but also advocates on your behalf with the processor.

What kind of training and operational support do you provide?

You don’t want to be handed a manual and left to figure things out. Training should cover the basics, loading paper, balancing the machine, handling common issues, and it should happen on-site before the vendor leaves. The right partner makes sure your staff feels comfortable operating the machine from day one.

How do you measure service performance?

Many providers talk about response time. “We’ll have a technician on site within two hours.” That sounds good until you realize the machine is still going down every week. A better measure is uptime: how often the machine is actually available for your customers. Ask your partner how they track uptime, how they report it, and how they’re held accountable if performance slips.

Step 6: Dos & Don’ts for Buying ATMs in 2025, 2026, & Beyond

The ATM you buy today will be in the field for years, maybe more than a decade. That means the decision you make now locks in not only the hardware, but also the service model, the vendor relationship, and the customer experience your institution delivers. Too many banks and credit unions approach this purchase as if it’s a short-term transaction. In reality, it’s a long-term commitment.

We’ve seen the same patterns repeat across hundreds of institutions. Some make thoughtful, strategic choices that position them well for the future. Others cut corners, cling to old assumptions, or let habit drive the purchase. The difference shows up quickly in uptime, compliance audits, and the amount of time staff spend chasing problems instead of serving members.

This is where the simple “dos and don’ts” matter most. These aren’t theoretical best practices; they’re drawn from what actually goes wrong (and right) in the field.

Don’t: Assume everything will go perfectly

No installation or service plan is flawless. The real test is how a partner responds when something goes wrong. Do they communicate delays? Do they stay until the machine is live? Or do they leave you waiting for the next available technician?

Don’t: Equate size with quality

A larger provider may have more technicians, but that doesn’t mean you’ll be a priority. Big banks get moved to the front of the line. Smaller institutions often end up waiting while bigger clients are served first. Choose a partner whose values and service model put your uptime first.

Don’t: Take shortcuts to save time

Leaders under pressure sometimes choose the quickest path forward, e.g, skipping due diligence, glossing over paperwork, or ignoring training. Those shortcuts always cost more later. A little extra time spent asking the right questions and holding vendors accountable prevents months of lost time, wasted money, and customer frustration.

Slow down, get it right

Getting the ATM decision right isn’t about chasing the newest feature or checking a box on compliance. It’s about making a choice that holds up under pressure: when transactions spike on a Friday afternoon, when auditors are in the building, when your best teller is out sick and the line is long. That’s when you feel whether you bought well or not.

The institutions that thrive don’t stumble into good outcomes. They slow down, they challenge old assumptions, and they make the buying process part of their larger strategy. The result is more predictable costs, fewer fires to fight, and a better experience for customers and staff. That is what separates a smart ATM purchase from an expensive piece of hardware sitting in the corner.

Before You Buy an ATM (Key Realities to Keep in Mind)

It’s easy to get caught up in models, specs, and price tags when you’re buying an ATM. Vendors will give you slick presentations and promises that sound good in a boardroom. But once the machine is in the field, the realities hit fast. Transactions don’t slow down just because your ATM isn’t live yet. Customers don’t care that your vendor had a service window. Regulators don’t excuse missed updates because you outsourced responsibility.

These are the truths that separate the institutions that get years of value out of their ATMs from the ones stuck fighting fires.

• Deposit automation is no longer optional. What used to be a premium feature is now the baseline. At the teller line, a deposit costs $4 to $8. Through an ATM, the same transaction costs closer to $0.75 to $1.25. If deposit growth or staffing efficiency is on your roadmap, this capability should be treated as table stakes.

• More technicians in-market doesn’t equal better service. Large providers prioritize their largest customers first. If Bank of America or Wells Fargo is down, their call gets answered before yours. Service quality should be measured in uptime, not in how many trucks a vendor has on the road.

• Outsourcing gives predictability, not a free pass. Handing off ATM operations can simplify costs and relieve some of the compliance burden, but you still answer to regulators. You can’t outsource accountability. Even in an outsourced model, you need transparency and regular checks to make sure your partner is delivering.

• Installation is where many projects fail. It’s not enough for the machine to arrive on site. If paperwork is filed wrong or training is skipped, you can end up with a machine bolted to the floor but not actually live. A strong partner makes sure the project is fully complete on day one.

• Local support matters. National footprints don’t tell you how a vendor will serve you in East Tennessee, Rock Hill, or rural South Carolina. Ask about their actual presence in your markets and look for evidence they can support you where you operate.

If you keep these realities front and center, you won’t get distracted by surface-level promises. You’ll be focused on the things that really determine whether your ATM is an asset that works day after day, or a liability that keeps your staff tied up and your customers frustrated. That’s the difference between spending money on a machine and making an investment that actually pays off.

Closing Perspective: Spend the Right Money on an ATM, Not the Most Money

Buying an ATM is not just another line item on your budget. It is a long-term decision that shapes how your institution serves customers, manages costs, and handles compliance. The machine you choose today could still be running ten years from now. That means the real question is not “Which model do we buy?” but “How do we make sure this investment supports our strategy over time?”

The difference between a smart decision and a costly one shows up in the fine print:

• Did your vendor own the installation from site survey to go-live, or were you left chasing five different companies when things went sideways?

• Did your staff receive the training they needed to balance the machine and handle errors on day one, or are they still hesitant months later?

• Does your service partner measure success in uptime (how often your customers can actually use the machine), or do they hide behind response times that look good on paper but leave you dealing with constant downtime?

When you strip it all down, the purchase is about trust and accountability. The right partner helps you ask the hard questions, navigate the paperwork, and get the details right the first time. They look beyond hardware specs and pricing sheets to focus on what really matters: reliability, service quality, and fit for your institution’s goals.

At QDS, our philosophy is straightforward: we want you to spend the right money, not the most money. Sometimes that means helping a client invest in a feature-rich solution because it lines up with their growth strategy. Other times it means steering them away from bells and whistles they don’t need, or even recommending outsourcing when it’s the smarter option. The point isn’t to maximize the sale, it’s to make sure the institution walks away with a decision they’ll be glad they made five years from now.

The ATM you buy today will carry your brand, touch your customers, and either reduce or add to your operational burden for years to come. Taking the time now to slow down, challenge assumptions, and choose the right path pays dividends in fewer headaches, lower costs, and a better experience for your team and your members. That’s what buying the right ATM really looks like.