We use ATMs regularly in our life but probably never think about how they actually work. However, you probably have thought about how much money is in those ATM machines exactly. Well, we wondered the exact same and decided to find out.
In this article, we are going to take a look at how an ATM works and how much ATMs hold in cash all around the world. Let’s jump in and find out.
How Much Money Does An ATM Machine Hold In USA
ATM machines do not have a specific amount of money held in them. There are many variables that come into play when an owner decides how much money to put in an ATM Machine.
When filling an ATM machine traffic levels, income in the area and machine security will all be taken into account.
An ATM in a high-traffic, high-income area may have as much as $60,000 in it. In places such as Vegas where some ATMs hold $100 bills, these machines can have up to $100,000 in them.
In lower traffic or lower income area, a machine may hold a maximum of $20,000 at a time. If there are fewer people around to use the machine, it doesn’t make sense to unnecessarily fill the machine. This would open the ATM owner to higher liability if the ATM was to be stolen.
Off Hours
On “Off Hours” when machines are unlikely to see much use, there is usually a lot less money in the machines. During these low hours or days, a machine may only have $10,000 in it.
Recycler Machines
Some ATM machines have the ability to “recycle money”. This means that the ATM takes cash for deposits as well as withdrawals. This means that the machine can use the money deposited by person A and use it for person B’s withdrawal.
These machines can operate with much less money as they are constantly being refilled by the general public.
Insurance Policies
Different banks will have different insurance policies. These policies will dictate how much money can be kept in a machine at any one time. Some banks will have insurance that covers them more than others.
How Many Bills Can An ATM Machine Hold
An ATM Machine is made up of “cassettes”. Each cassette can hold up to 1,000 bills. Some machines will hold up to 10 cassettes meaning if the machine holds $20 bills it could hold up to $200,000. While this is a possibility it is unlikely that most machines can hold this amount of money.
How Much Can You Withdraw From An ATM In The USA?
In the USA the average withdrawal limit ranges from $300 to $1000 depending on your bank and account. Some accounts may let you withdraw slightly more but it is unlikely you will be able to withdraw more than $1000 at any one time.
How Much Money Does An ATM Machine Hold In The UK
In the UK a typical bank machine will hold up to £40,000 on a busy street on a Friday night. However, on an average day, a normal village high street ATM will likely hold less than £5,000.
This is much less than the cash machines in the USA.
How Much Can You Withdraw From An ATM In The UK?
In the UK the maximum withdrawal from an ATM is set by your bank. The bank and type of account you have will determine the amount you can withdraw from an ATM machine Daily. The Daily withdrawal limit in the UK is between £250 and £1000 depending on your bank and account.
Why Do ATMs Have Withdrawal Limits?
There are two main reasons ATMs have withdrawal limits. One is that ATMs only hold so much cash. Banks use these limits to predictably control the flow of money.
The other reason is customer security. Without a withdrawal limit, there would likely be a rise in ATM-related crime. Criminals would have a much larger incentive to steal debit and credit cards if there was no withdrawal limit.
How Do ATM Businesses Make Money
There are multiple ways an ATM business can generate revenue. Here are the most common ways:
Charging Fees – The most common way ATMs make money is through fees added on top of your transaction. We all hate paying money to withdraw our money but the fact is, sometimes it’s necessary or just convenient. These fees can range anywhere from $1 to $8 depending on the location of the ATM and how in demand they are.
While no fee ATM's are becoming more popular, the average ATM fee $4.72 in the United States, and this is currently on the rise.
Exchange Rate Fees – When someone uses a foreign card and makes a currency exchange on a machine the machine owner may charge a fee for this service. These exchange rate fees can be hefty and can make ATM owners a lot of money, especially in tourist destinations.
Machine Rental – Normally an ATM owner would pay a premises owner to place his ATM on site. However, in certain situations, a shop owner or concert venue may pay ATM owners to place their machines at the venue. For example, a concert in a field in the middle of nowhere will need ATMs for cash but there are none around. The ATM owner has the leverage to charge for these machines to be brought in.
How Do Free Cash Machines Make Money
While paid machines make money through withdrawal fees there are free ATMs, so how are they making money? While free machines are rare in the USA they are very popular in the UK. These machines are usually placed by businesses that benefit from having a cash point nearby.
By having cash available they are likely to get more customers in their shop. So the money they may lose in ATM machine upkeep, they make back much more on cash purchases at their store.
Wrapping Up
So there you have it. A typical bank machine in the USA may hold up to $100,000 while in the UK it is likely to hold much less at £5,000 on a typical day up to £40,000 on a busy night. ATMs are essential parts of our daily lives and many people make a good living with them, running an ATM Business.