Passive Income, Rising Pressure
Despite the growth of digital payments, cash remains stubbornly persistent. In 2025, 38% of transactions under $25 still rely on physical currency, according to Federal Reserve data. For entrepreneurs, ATMs continue to offer a compelling value proposition: passive income averaging $2.50–$4.00 per withdrawal with minimal daily management.
Yet new pressures are reshaping the economics of ATM ownership. U.S. tariffs on imported electronics—ranging from 10% to 50%—have driven hardware costs up by 12% to 25% almost overnight. Card readers sourced from China now face a 54% duty, and South Korean touchscreens are subject to a 25% tariff, according to industry watchdog invidis.com. These shifts are forcing operators to think differently: making smarter purchasing decisions, targeting locations where cash still flows reliably, and finding ways to maintain margins while adapting to a tougher import environment.
The Tariff Impact
The April 2025 tariff implementation created immediate price pressure across the ATM industry. A basic machine that cost $2,400 in early 2024 now carries a $2,700-$3,100 price tag due to import duties. These increases primarily stem from three components: steel vaults (10% global tariff), display panels (25% tariff for Korean imports), and security modules (54% for Chinese electronics).
Rather than viewing this as purely an obstacle, savvy operators recognize three emerging opportunities. First, refurbished ATMs or refurbished ATM parts have gained new appeal, offering 20-30% savings compared to new units while maintaining full EMV and ADA compliance. Second, domestic suppliers like ATMTrader, who stocked U.S. inventory pre-tariff can offer limited quantities at 2024 pricing. Third, the higher barrier to entry has reduced competition for prime locations, creating breathing room for committed operators.
Where Cash Still Reigns
While headlines proclaim the rise of a cashless society, the reality is more complex. JPMorgan Chase's 2025 consumer survey found that 44% of Gen Z still use cash as a budgeting tool, challenging the assumption that younger generations have fully embraced digital payments. On the business side, 28% of small businesses continue to operate on a cash-only basis, primarily to avoid card processing fees that eat into margins.
Certain sectors remain especially reliant on physical currency. Due to federal banking restrictions, cannabis dispensaries are unable to accept card payments and must operate in cash. Nightclubs, too, see steady demand for cash—with over 200 monthly withdrawals on average, driven by guest fees and tipping culture. Even in tech-forward college towns, peer-to-peer cash exchanges remain common for small, informal transactions.
Location Strategy
The tariff environment makes location selection more critical than ever. Premium placements share common traits: captive audiences with limited payment alternatives, high foot traffic, and operational hours extending beyond bank availability. Dispensaries, laundromats, and 24-hour convenience stores typically outperform marginal locations like office lobbies or low-traffic retail.
Successful operators now negotiate slightly higher revenue splits (25-35% versus the traditional 20%) to secure these prime placements, recognizing that the incremental cost is justified by transaction volume. For deeper insights on optimizing placements, explore NationalLink's expert guide: ATM Placement Services by NationalLink: Convenience and Profits
Operational Realities
With inflation pushing operational costs upward, 2025 operators maintain $3,000−$5,000 per machine in cash reserves—a 20% increase over pre-tariff norms. Many utilize armored transport services (150−300 monthly) for high-volume locations, calculating that the security and time savings outweigh the expense.
Routine upkeep follows a disciplined rhythm. Weekly card reader cleanings prevent malfunctions, while monthly receipt paper changes ensure uninterrupted service. Quarterly software updates, typically handled remotely by processing partners, maintain security compliance. The most successful operators document these routines systematically, creating checklists that team members can follow precisely.
Strategic Planning
While the ATM industry faces uncertainties, smart operators can prepare for these key developments:
1. Tariff Scenarios
The tariff landscape may shift dramatically by 2026. Political changes could lead to reductions, potentially lowering equipment costs but increasing competition. If tariffs remain, expect manufacturers to fully adapt their supply chains, leading to price stabilization. Stay informed through trade publications and supplier networks to anticipate changes.
2. Economic Conditions
Economists project modest inflation (2-3%) and steady growth through 2026. For ATM operators, this means:
- Budgeting for 3-5% annual cost increases
- Monitoring cash usage patterns that may fluctuate with economic pressures
- Maintaining flexibility to adjust surcharge fees if needed
3. Cash Usage Trends
Cash has likely found its floor at 10-12% of transactions. While digital payments continue growing, cash maintains strongholds in:
- Cash-only businesses
- Budget-conscious households
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Communities with limited banking access
Operators should focus on these resilient segments.
4. Technology Transitions
Prepare for essential upgrades:
- PCI 6.0 compliance by the beginning of 2026
- Windows 11 migration before the end of 2026
- Potential adoption of contactless features
5. Scaling Strategies
The challenges of 2025 create opportunities for disciplined operators:
- Reinvest profits into strategic expansions
- Leverage established vendor relationships
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Apply hard-won operational efficiencies
Many successful operators grow from 1-2 machines to full fleets within 3 years.
Delivering Competitive Edge
As tariffs reshape the industry, ATMTrader offers operators a way to maintain control over costs and operations. Their U.S.-based inventory allows buyers to avoid steep import fees that now affect card readers, screens, and other components. For buyers scaling up, bulk purchase programs further reduce per-unit pricing, allowing operators to preserve margins even as hardware costs rise elsewhere.
Support infrastructure has also adapted to meet today’s demands. Unlike legacy vendors limited to business hours, ATMTrader provides 24/7 access to a technical support team equipped to handle both common and complex issues. These include surcharge setup, wireless connectivity, and EMV compliance—often resolved without the need for on-site service. For operators managing machines across multiple locations, this level of responsiveness minimizes downtime and operational risk.
Building Through Disruption
Tariffs have raised the bar. Succeeding in 2025 means tighter cost control, smarter site selection, and cleaner operations. But the core remains: recurring income, scalable growth, and a service people still use.
For those ready to adapt, disruption creates leverage. Tariffs filter out the unprepared—leaving room for focused operators to win.
Next Steps
- Compare ROI of refurbished vs. new units
- Scout 2–3 high-traffic, cash-reliant locations
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Contact ATMTrader for tailored guidance: (855) 286-2286 or ATMTrader.com