VIDEO TRANSCRIPTION
Hey, what’s up, everybody? It’s Justin Live from B2B vault, the payment technology podcast with your host, Allen Kopelman! And we’ll be providing you with educational information about business, payments, FinTech, decentralized finance, and the technology businesses use in today’s world. And in today’s podcast, we’re going to be talking about ATMs. Managed ATM services and all the different changes in the world of ATMs. Very exciting stuff for those that are into the ATM industry. A lot of people have. Yeah, no, but there are a lot of people that ATMs in their store. Or they use an ATM, or they have ATM at their business.
And, or they want to ATM at their business. Very true. So, they don’t know how we’re going to tell them how it works a little bit. Let’s get into it. All right. So, it’s, we have the ATM convention coming up for the National ATM Council. That’s going to be at the Hard Rock Cafe. Yeah, the Hard Rock Hotel in Hollywood.
Yes. Yeah. Hard Rock Hotel and Casino. I’m sure some of the ATM guys there will be leaving their leaving donations at the blackjack table. Leaving donations, I like that! Hahaha! Yeah. Some of those ATM profits will be going there. It’s a time, education is important for us to be abreast of what’s going on in the ATM business because this is when we find out about all the compliance things that are coming up from and going on in the business.
So, there’s going to be speakers, and then vendors there and hopefully we’re going to, they asked us to come down there and do a podcast, maybe two. Cool! So hopefully, we’re going to go there and at least do one podcast, maybe two. And so, we’re going to, there’s going to be different vendors so the companies who make the actual machines are going to be there.
And since there really hasn’t been a convention in about two years, cause of the pandemic maybe almost three years. There’s going to be a lot of people there, I’m sure. There’s going to be a lot of people, the hotels sold that already. Are you kidding me? No, they sold out their room block already. For this convention?
Yeah. It’s going to be there’s going to be that many people there to be. Wow. This FinTech industry is just nuts. Yeah, it’s booming! It’s crazy to me. How many people come to these conventions for credit card processing or ATMs? It’s just nuts. Yeah. So, there’s going to be, I’m sure a lot of people coming from all over.
I know some guys coming from Montana, New York, and New Jersey, people come from all over to go to these conferences, because this is where you can learn. This is where you’re going to see the this is the first time; we’re going to see all the new machines from Hyosung. We’re I’m a big Hyosung fan, Jen Mego the other company. Super nerd stuff, man. The other company that, and they’re going to show their new ATMs and they’re coming out.
I’ve seen some videos already, to have some kiosks coming out. They have a new machine, it’s an ATM and a kiosk together. So, all sorts of, different types of configurations. We’ve gone through a lot in the ATM industry. I remember, in early 2000, maybe it’s two. I have to look up the years, but the first one that was a big headache was that came out with this American Disabilities Act, ADA compliance.
And all of a sudden, all these ATMs were no longer usable. Any good. Cause the keypads were too high. So, all of a sudden Baboom! People were scrambling around, oh, we need to get a new ATM, need to do ATM, we need a new ATM. Why? Because why they’re not going to, they’re going to get whacked from the American Disabilities.
Going to come in, file a lawsuit against them, and then they’re going to have to pay money and to get out of it or whatever. So that was a big changeover. We had a big change with the pin pads, upgrading pin pads, that was a software deal! And then the last one was the, was EMV, which went into effect for a credit card in 2015.
But EMV actually went into effect on ATMs in 2012- 2013. When is the convention? I think it’s September 13th and 14th. It’s actually, the first day there’s like a reception at night and the next day is like a whole, all the speakers and the show and the whole deal. Cool. So, it’s pretty cool!
It’s going to be pretty cool like I said because they haven’t had one in a couple of years, a lot more people are going to come than usually come to these things. You said it’s sold out, but! Yeah. And they’re offering rooms at nearby hotels. So, it’s important, we’re going to hear a lot of, there’s going to be a lot of important information discussed that these things, general information.
So, like now there’s a new thing coming out where there are new pin pads supposed to be put on machines by 2025, you got plenty of time for that. We’re talking about PCI compliance updates to machines because some people might be running older, equipment. That’s using old software. You have to really keep up with ATMs.
We’re lucky we work with a company that has these remote boxes on the ATM, like a wireless box, so that can help keep the software up to date. So, we don’t have to go running out there and trying and installing software and wasting a couple of hours. That’s good. I’m sure they’re going to discuss cashless ATM compliance, which we’ll talk about a little later ATM security.
It’s always a big thing because there’s always every once in a while, you read these stories about jackpotting! What is that? Okay, so jackpotting is when somebody basically figures out how they can break the program in the ATM. Usually, I’ve asked the ATM companies about this and I’m like, you could literally go by the keys to the ATM. Probably off eBay! But all it’s going to do is open up the top of the ATM.
Okay. Or the bottom door, but the bottom door, you need to have the combination, or you got to have the fobs to open the vault, you’re not getting in there. But at the top, you can actually, maybe do something. So, people were getting into the top of the ATM unplugging, the communications cable, plugging something else in there, and then plugging something in between it like an additional device and then they go stick their ATM card in there, ask for 20 bucks and instead, the ATM spits out a couple of grand. Nice. Then they go take the thing out of the top. Now you got to be pretty slick to be doing that, and we’re pretty ballsy like to be doing that, like in somebody’s restaurant. That’s why we try, when we install ATMs, I follow simple rules. You need to be able to see it.
Like it’s not behind a wall, needs to be out somewhere where people can see the ATM. Like you don’t want to put it in a hallway where someone could get back there and right. Have their time to work on it. You want it like out of the open, somebody’s not going to mess with it, and you want to keep it away from windows and doors.
Excuse me, windows, and doors, because you always see stories about people trying to steal the ATM. We’ve had a couple of ATMs get broken into one. I felt real, listen, the places we put them in. The business owner has to have additional insured, they have insurance, so they have insurance.
If the ATM gets broken into, they’re responsible for the cash. Sometimes the cash is insured. Wow! In some cases, it’s not insured, but at the same time, they have alarm systems and all that, but we had a place where the alarm didn’t go off. Somebody got in there, they used a saw to cut the side, open of the ATM.
And then I laughed because they didn’t know what they were doing. They only got out like 300 bucks. So, they were probably pissed. There was more money in the ATM, but they didn’t obviously like it, look at some good YouTube videos and I’ve seen other videos like on Facebook, see people buy an ATM at an oh, that’s like at an auction.
That’s the thing. Yeah. They buy it at the auction. Then you see, them trying to smash open the ATM. I just laugh my ass off when I watch these videos because they’re doing the stupidest stuff, they’re trying to pry open the door. I. Man. Like, why don’t you just call an ATM guy up instead of sitting there for 45 minutes, trying to bust open the bust out the door of the ATM? Do you know how much the ATM guy going to charge?
Couple hundred bucks! My point is if there’s nothing in it. Then you wasted a couple of hundred bucks. Otherwise, either that or figure out like calling somebody on the phone and go, how do you get this thing open? I don’t know. You. It’s just funny! You’ll see them busting it. They’re trying to bust the top off.
They’re trying to figure out, wait, they think the money’s coming out of the, where the credit card goes in. I don’t know if they’re fooling around or not, but so the prob the other thing is, they wreck a perfectly good ATM. That they could have sold the parts for is my point.
Even they could have called the ATM guy, and said, hey, open this up. If there’s nothing in it, great. You want to buy it from me? Do you want to buy it for the parts? The dispenser alone is worth close to a thousand bucks. Just a dispenser, but they destroy it because they’re drilling holes in the thing and everything.
So, it’s funny. I should put a link to one of them, I should find one of the videos and we should put a, we should make a podcast and play it and then sit here and laugh at the guy trying to bust in the ATM. But it’s just crazy, call somebody and let them do it. I’ve had people who’re like, oh, can you come to remove the ATM out of my business?
And I get there and I’m like, okay, like you have the combination, you got the keys. They’re like, no, no combo. I’m like, okay, it’s going to be 500 bucks. They’re like 500 bucks for what? I’m like, you think you’re getting it out of here. Have you, you’re going to wreck the whole ATM. Trying to get it out.
Because they don’t know how to do it. I’ve seen people try to do it. They call a locksmith, and the locksmith comes over and takes a drill, and puts 20 holes through the door of the ATM. And then they go, oh they got the door open, and they find out there’s no money. Meanwhile, they destroyed the door, the dispenser, the locking mechanism, the locks everything.
It’s of no use to anybody. Once you destroy the dispenser, you destroyed its garbage. Yeah. Like I have extra dispensers because they’re like gold. Sometimes people have a broken ATM, we just buy it for the parts. Take the printer off and take the dispenser off.
Take the screen the whole front of the machine off and keep that, keep it for parts. But you can’t do anything if, once you wrecked the dispenser, let’s say the ATM’s a $3,000 ATM you wrecked the dispenser and the door just throw the thing in the garbage, but the jackpotting is crazy!
Somebody, in fact, a couple of years ago, there were some guys jackpotting ATMs in Orlando. And had a pattern where they were doing it and the FBI started watching locations. Yeah. And they caught them! Really. They caught the guys, they were looking for a specific kind of an ATM and they were looking, and they were going through an area and what they were doing was they would like, one guy would go in.
They were, they would do it like teamwork. One guy would go in, unlock the ATM, and then another guy would slide the thing back. Somebody else would come over, and they would try to keep the employees busy in the back. Or they would find one that’s in a back hallway nobody’s watching.
Nice. Stuff like that. So, they identified a few spots. They might hit, they saw the people set it up. Sometimes they wait because they seem like maybe there’s no money in it. And also, if somebody’s watching their ATM, all of a sudden, they’re going to see a bunch of, bills get dispensed out of it.
Remote. If you have remote monitoring set up and you can shut it, but by that time it’s too late the money’s stolen. Real quick! Before you get into the rest of that. Thank you to our sponsors, NPS printer, and Nationwide Payment Systems. Thank you. Shout out to our listeners. Make sure you continue to share.
Check back every Tuesday, Thursday, and Friday for podcasts. Head over to B2Bvault.info to catch up on past episodes or to link up with Allen or myself. There’s also if you need a merchant account, there’s an apply now button on the top, click that apply now. Or an ATM! 10 questions let’s go. If you need an ATM hit up Allen at text BOOK to the word 9 5 4 8 2 7 9 8 1 8.
And he’ll get back to you and get you an ATM in your business. Yeah, but the jackpotting, is no good! No good. So, we’re excited to see the new ATMs coming out, and some kiosks to see what we can do with those. There’s always going to be talk. I saw there are several companies going to be there showing their Bitcoin either Bitcoin ATM or Bitcoin that you can buy through the ATM machine or something to do with Bitcoin.
So that’ll be, that’s always a big talk. You know what, cryptocurrency, it’s a hot topic. Yeah. Especially with the government right now. And we’ll see what happens with the coin. The price has been going. Down. It’s not so good. So, let’s talk about cashless ATMs. We touched on it in another podcast the other day when we were talking about payment trends, and it seems that some of the cannabis associations have come out with statements, telling their members, to get rid of the cash.
We’ll say ATMs. So, there is a complaint solution, but it’s a cash ATM that dispenses cash. So, you have to, and there are banks, there are two or three different banks that allow people like myself to put an ATM in the dispensary. We load it with our cash, you cannot load it with money from the dispensary!
And then we take care of the cash. That’s the only compliance solution that they have? Yeah. That’s what they allow. That’s the stupidest thing in the world! They feel a couple of the cannabis associations feel that if. Maybe these dispensaries would stop using all these workarounds that they would have a better chance of getting the safe banking act.
But I don’t, I’m not sure. First of all, cannabis, when you talk about legal cannabis, California has had it for a decade now. At least! At least maybe longer than 10 years. So, you would think that in all this time, as each state keeps passing, legalization like in Florida, we have medical marijuana.
Now they’re pushing for recreational marijuana. So, you would think as all these states start to push through all this stuff, that federal government, and especially now we have this huge deficit, right? They should be tapping into this big cash cab, a multi-billion-dollar industry, and collect taxes on it.
Not only just the taxes I don’t even know if you have to pay income tax. If you own a dispensary, I’m not even sure what happens with that. It’s a, it’s like a whole crazy thing with it. The state tax you mean? No, they pay state tax, but I’m talking about federal income tax. They’re obviously they’re not paying federal income tax.
That’s what I mean, it’s crazy! Like what’s going on billions of dollars. I’m sure they’re liable to put together their tax return at the end of the year, but how would they? It’s crazy. Like, I was listening to some guys talk about cannabis taxes. The other day was talking to them, and they were like, yeah, we have a huge problem.
And they were asking me like, oh, can I put them in touch with the armored car company? Because they were like, yeah, with these cannabis places, they want to come in with a whole bag. Money and pay their sales tax at the tax office. Right! They’re like, we don’t want that. What are we going to do?
We are not equipped to handle that. The IRS? No, not the IRS, the local sales tax places. Oh. So, I was talking. But what is, that’s not the dispensary’s fault! Right, that’s what I told them. I said, get it fixed the dispensary. How else are they supposed, what are they supposed to do? Some of these, I was here,
I was talking to one of the dispensary owners that we were talking to us about an ATM machine. I was like we can’t sell you one an ATM. You have to get a managed contract with us. We put it in the ATM. Then we put in our own cash, you can make a commission, we can’t use your cash. We can’t have the cash.
Cash can’t be from somebody who owns the dispensary. Yeah, you can’t be recycling your money, man. We can’t do that. I know people who tried to do that. And they’ve their bank accounts closed and everything. Because eventually, the bank finds out. You’re not coming in to pick up the twenties. They have anti-money laundering.
They figure it out. They go, okay, here’s Justin’s dispensary. Oh, this guy’s getting deposits every day, a thousand, 2, $3,000. You’re getting deposits, then they call you on the phone. Hey, where’s all this money coming from? Oh, I have an ATM Justin, you’re supposed to come to pick $20.00 up at the bank.
And then put it in the ATM machine, but you’re not doing that. You’re just, recycling the money from your business, right? They go, Justin goes, yeah, they go you can’t do that anymore. Your bank accounts are closed. Boom it’s done! It’s stupid. No, but that’s what happens. I’ve talked to dozens and dozens of dispenser owners, and I understand their pain.
But there are banking solutions available. They’re just like ridiculously expensive. And I talk to a do no, I talk to a company. They want like a $2,000 setup fee. Then they’ll come to the dispensary and pick up the cash, like once a week or once every two weeks. And it’s another couple of grand. And then they’ll get you set up with the bank and the bank charges two, $3,000 to set up your business, but they come to pick up the money.
That sounds good to me. I don’t know what the profit margin is, but. The profit margin is, you got to get your money in the bank, either that or these places are using like private vault places. Ah! Where they’re having, where there’s tons of money. Rocky, come on. I know you want some more snacks, but you can’t be, maybe he’s having the munchies, because we’re talking about the dispensaries.
I the perfect time to wrap it up buddy, but there are compliance solutions, that’s the only compliance solution we can offer. Is put in a physical ATM uses the managed services, and have cash for your customers. And then if you need help getting banking, we can. We can tell, we can tell you the roadmap because we know what type of banks are offering that to customers.
Even, if I tell people they’re in the hemp industry CBD, they have a hard time with the bank. The best thing, go to a credit union, go to a local community bank, or a state-chartered bank. They can take your money. They don’t have a problem with it. Go to those banks first and. Get it set up. It’s not that, it’s not that complicated, we provide consulting services for these kinds of situations because it’s in the high-risk category!
Sounds good. All right. So that’s today’s topic today about ATMs. If you need an ATM in your business. Text the word BOOK to 9 5 4 8 2 7 9 8 1 8. We’ll set up an appointment with you. You can also go to the website B2B vault.info. Hit us up on social media, we’re everywhere at B2B vault. You can find us on all the podcasts world!
Wherever you listen to podcasts, we’re probably there! B2B vault, the payment technology podcast. Check it out. Hope everybody enjoyed today’s show and Peace out Carpe Diem
