CSI Customers Form Surcharge-Free ATM Alliance

Tuesday 11 January 2005 08:11 CET | News

A dozen community banks, all customers of Computer Services, Inc. (CSI), have formed an alliance that provides their customers with access to surcharge-free Automatic Teller Machines (ATMs), with a goal of connecting hundreds or even thousands of ATMs throughout the nation.

Banks do not have to be customers of CSI to join. Although reports an average surcharge of $1.32, alliance members view surcharge-free ATMs as a way to attract new customers and provide better customer service to existing ones. Consumers with accounts at these banks will pay no surcharges when using ATMs owned by any of the other banks in the alliance. This group of community banks is using the alliance as a strength in numbers approach to their big bank competitors. Although some CSI customers own dozens of ATMs, the average across the CSI customer base is significantly less than the thousands of ATM locations offered by the big banks. And on another front, big banks that process ATM transactions and issue debit cards for smaller banks have begun to offer the smaller banks customers free access to their ATMs. Combining the ATMs of all the alliance member banks will allow these banks to compete more effectively for customers loyalty. Banks become members of the alliance by paying a one-time fee of $300 per bank, regardless of the number of Bank Identification Numbers (BINs) or bank ATMs. Any BINs added in the future will be assessed a one-time fee of $100. Currently 12 banks are sharing 68 ATMs but as more banks join, participating banks customers will gain surcharge-free access to more and more ATMs.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce

Industry Events