I feel like a few things were skipped in between network and operators (for US at least.) There are a lot of middlemen in the distribution of off-premise ATMs. The banks, networks, processors, sponsor banks, ISO's, distributors, operators, merchants, etc. It's actually much more complicated because it gets kind of like an MLM scheme when distributors can have infinitely nested "sub"-distributors so, as an operator, you may be many more steps away from things than you realize.
Generally, ISO have bank sponsors. They can operate ATMs. More often, they service distributors. Distributors are typically local businesses serving a market; they may operate ATMs. They also can just sell the ATM and the merchant can operate it. The ISO and sponsor banks typically is where the processing agreement/negotiations is actually happening. The ISO is typically the highest level anyone will ever interact with on the downstream side (it's the top of the pyramid in the MLM example). Everyone down stream gets a payment portal specific to their function. An operator can be anyone, they service the machine and keep it stocked with inventory (cash) and typically keep the surcharge (less than 100% is a bad deal, renegotiate.)
What's interesting is the ISO gets its hands on some interchange. Then it gets passed around as negotiated. Most people in the industry don't talk about this, but it's usually their revenue since the operator is getting the surcharge. But, even as an operator of a single ATM, you can ask for a cut of the interchange pie. Like all things, it varies but with volume you have leverage to negotiate a bigger slice.
It's similar to how as a consumer there are no line items for you to see, but there is interchange when you make a credit transactions. You bank is being paid by the merchant's bank to facilitate the transaction. If your card/bank chooses, they can share that interchange with you. It's purely marketing as to whether they will or not (it's a product feature).
It's possible as a merchant operator your transaction economics would look like:
Cash Reimbursement + 100% Surcharge + Cut of Interchange (amount varies, but I was averaging ~$0.50 per transaction)
> Note that the settlement of these deals is necessarily much slower than the transaction itself is. The ATM network will often be paid the following business day by your bank, but the ATM operator will probably be paid several days later by the ATM network, using an ACH transfer (in the US) or similar frequently slow rails.
ATM operators should be getting the money quickly. It works next-day on the schedule of the ACH system. IIRC the cutoff is 4pm ET and it's next business day. Any operator not getting this is probably stuck on some 25+ year old agreement and probably should switch providers; renegotiate at a minimum if it's even worth the hassle.
Generally, ISO have bank sponsors. They can operate ATMs. More often, they service distributors. Distributors are typically local businesses serving a market; they may operate ATMs. They also can just sell the ATM and the merchant can operate it. The ISO and sponsor banks typically is where the processing agreement/negotiations is actually happening. The ISO is typically the highest level anyone will ever interact with on the downstream side (it's the top of the pyramid in the MLM example). Everyone down stream gets a payment portal specific to their function. An operator can be anyone, they service the machine and keep it stocked with inventory (cash) and typically keep the surcharge (less than 100% is a bad deal, renegotiate.)
What's interesting is the ISO gets its hands on some interchange. Then it gets passed around as negotiated. Most people in the industry don't talk about this, but it's usually their revenue since the operator is getting the surcharge. But, even as an operator of a single ATM, you can ask for a cut of the interchange pie. Like all things, it varies but with volume you have leverage to negotiate a bigger slice.
It's similar to how as a consumer there are no line items for you to see, but there is interchange when you make a credit transactions. You bank is being paid by the merchant's bank to facilitate the transaction. If your card/bank chooses, they can share that interchange with you. It's purely marketing as to whether they will or not (it's a product feature).
It's possible as a merchant operator your transaction economics would look like:
Cash Reimbursement + 100% Surcharge + Cut of Interchange (amount varies, but I was averaging ~$0.50 per transaction)
> Note that the settlement of these deals is necessarily much slower than the transaction itself is. The ATM network will often be paid the following business day by your bank, but the ATM operator will probably be paid several days later by the ATM network, using an ACH transfer (in the US) or similar frequently slow rails.
ATM operators should be getting the money quickly. It works next-day on the schedule of the ACH system. IIRC the cutoff is 4pm ET and it's next business day. Any operator not getting this is probably stuck on some 25+ year old agreement and probably should switch providers; renegotiate at a minimum if it's even worth the hassle.