Archive for September 2009

The talking ATM turns 10

Wednesday, September 30th, 2009

On Oct. 1, 1999, the country’s first talking ATM opened for business at San Francisco City Hall. It was the 13th such machine in the entire world.

Ron Boutte has been blind since since he was 10, but he’s an old pro at using ATM machines. Boutte reads the Braille on the keypads and has memorized the sequence of buttons to press.

But cash is not always at Boutte’s fingertips. Unable to see the screen, the 44-year-old cannot tell if the machine is out of order or if an error occurs.

But for Boutte and other blind and visually impaired residents of San Francisco, a solution has arrived. The first talking ATM in the nation is now in the city treasurer and tax collector’s office in City Hall.

It can be found by following a talking sign, an infrared control that tells users where they are. The voice gets clearer as the person gets closer to the destination.

At the ATM, audio instructions come through a headset. A voice repeats which keys have been punched and will notify the customer when the transaction is completed or if it fails.

The machine was a modified Diebold built by T-Base Communications, which had built the other 12 talkers for the Royal Bank of Canada. It arrived after years of lobbying by California advocates for the blind, and came a few months after banking giant Wells Fargo announced plans to install talking ATMs throughout California. As blind advocate Lainey Feingold explains:

Blind community advocates laid the groundwork for talking ATMs in the 1980s and early 1990s, with important policy work on federal legislation and regulations. These advocates made strides with the banking industry, as well as by serving on standard-setting committees. Banks were first contacted using structured negotiations in the mid-1990s; by 1999, all of these efforts resulted in the first installed talking ATMs in the United States.

Three months before the first talking ATM was installed in the United States, Wells Fargo and the California Council of the Blind (CCB) announced a historic plan to install talking ATMs throughout the state.

One month after San Francisco’s talking ATM was up and running, CCB announced that Citibank had installed five talking ATMs in California. The announcement was the result of an agreement that CCB and individual CCB members had reached with the bank.

When 20 talking ATMs were installed at Wells Fargo locations in April 2000, Wells became the U.S. bank with the most talking ATMs in the country.

Bank of America was the first bank in the country to agree to install talking ATMs in more than one state. In March 2000, it announced a deal with CCB to develop a plan to install talking ATMs in California and Florida and said it would work out a plan for the rest of the country the following year.

In 2002, Citibank announced that it had installed the first talking ATMs in New York, and Wells Fargo announced state-wide plans for talking ATMs in Iowa.

Today, of course, nearly all ATMs can talk, and most are able to offer instructions in multiple languages. As with many such innovations, it turns out that talking ATMs are useful to everyone, not just blind people. Many ATMs use voice commands to get transactions started, reducing confusion and wasted time. Voices can make the ATM experience more enjoyable and interactive, saying “please” and “thank you” as the customer makes choices. Hearing the instructions also serves as a double-check to reading them, reducing errors.

And it all started with one machine in a government office in California, 10 years ago.

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Tech Tales: Jim’s Corner

Monday, September 28th, 2009

The dotted line shows the route driven by our tech.

Early one spring, ATM Network got a call to install an ATM at a resort on an island in Lake of the Woods, on the Minnesota/Canada border. As you can see from the map, Lake of the Woods is huge and the border cuts back and forth through it several times, but generally the east and north sides are in Canada, while the United States owns a portion of the west and south sides.

The weird thing is that a large chunk of the western shore is a peninsula, known as the Northwest Angle. The peninsula itself is part of the United States (it happens to be the northernmost point in the United States, aside from Alaska), but the shore it’s attached to is Canadian. This odd situation is a result of a geographic mistake written into the Treaty of Paris, which ended the Revolutionary War and defined the boundary between Canada and the United States.

The resort was on an island just off the end of this peninsula, and much closer to the north shore than the south. That meant the installer had to cross into Canada, drive up the west side of the lake, cross back into the United States, drive to the end of the peninsula, and then get on a boat to reach the resort.

There was flooding all over northern Minnesota, and most of the hotels in the area were still closed for the season. Those that were open were booked up. So the installer spent the night in Grand Forks, N.D.

The next morning he tried to drive to Warroad to cross into Canada. But flooding had closed the roads around Roseau, so he backtracked and ended up crossing the border at a town called Pinecreek. After going through customs (in a van filled with tools and a large ATM), he spent 45 minutes driving toward the peninsula.

As he neared the peninsula’s border, he started seeing signs for a place called Jim’s Corner. They all urged drivers to stop there, saying “You must stop at Jim’s Corner.” “Be sure to stop at Jim’s Corner.” It sounded like the Wall Drug of northern Minnesota. By the fifth or sixth sign, the installer was really curious what Jim’s Corner was.

But when he finally reached it, “Jim’s Corner” was a plain, unremarkable shack on the side of the road. The installer shrugged and drove on past.

The shack at Jim's Corner.

He crossed back into the United States (there was no border crossing, just a sign) and drove to the end of the peninsula, where a water taxi service could take him to the resort. He wasn’t sure what tools he would need, so he unloaded his entire van (including the ATM) into the boat.

The boat made several other stops, so it was a couple of hours before the installer arrived at the resort.

The installation itself was quick and routine. After making sure everything was working and showing the resort staff how to use their new machine, the installer packed his tools back up and went to wait for the boat to return. A couple of hours later he was back on shore. He packed up his van and headed back toward Canada.

As he drove down the peninsula, he again started seeing signs for Jim’s Corner. It had been a long day, and he was still mystified at what Jim’s Corner had to offer that justified all the signs. So when the shack came into sight, he pulled over, stopped, and walked in.

Inside was a video phone with U.S. and Canadian flags, underneath the words “Where are you checking into?” Since he was heading into Canada, he pushed the “Canada” button. A customs agent appeared on the screen and began asking him standard customs questions: “Where are you going? Do you have anything to declare?”

Yep, it was the border station, run on the honor system and managed over remote video by customs agents based elsewhere.

After answering the questions — and hoping the agent wouldn’t notice that, according to their records, he had entered Canada twice that day without ever leaving it — the tech returned to Grand Forks for the night, ending a 14-hour day.

More on Jim’s Corner
In 2006, CNN’s Gary Tuchman visited the shack.
Photos of the inside of the shack.

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In UK, ATMs become Wi-Fi hot spots

Monday, September 28th, 2009

ATMs are for dispensing cash, right? Traditionally, yes. But people keep finding other uses for them, like advertising, dispensing coupons and cash-value cards, selling stamps, taking deposits, paying taxes and much more.

Now a couple of British companies have turned them into Wi-fi Internet gateways.

Cashbox ATM sites are to be turned into wireless hot spots. BT, via its BT Openzone network, have made a five year agreement with Cashbox to offer wireless technology in a number of their 2,500 locations across the UK.

The first of 10 sites went live on the 22nd July 2009, allowing those with wireless technology devices to work, surf or game. BT Option 3 broadband customers can use the Openzone network for free as can O2 iPhone users. Casual users can pay for online time in a variety of ways including monthly subscriptions, vouchers or by the minute.

The economics of this are interesting — Cashbox is essentially renting space to British Telecom so the latter can expand its wireless network. But it’s not hard to see other potential benefits for ATM owners.

Just for starters, having a Wi-Fi connection might mean:

Increased customer traffic, as people come in to use the Wi-Fi.
Increased sales, as people buy incidentals while in the store. They might want something to drink while using the Wi-Fi connection, for instance.
Increased ATM usage. If they need cash to pay for that drink — or realize, upon seeing the store’s ATM sign, that they’re short on cash — the odds are good they’ll get it from the ATM machine on the premises.
Advertising options. When customers connect to the Wi-Fi hotspot, they could be shown a brief ad screen or message — perhaps offering specials on store products that a casual customer might be interested in.

There are some embryonic efforts to do similar things here in the United States, using either Wi-Fi or Bluetooth. But because Europe’s wireless networks tend to be more advanced than ours (3G service, for instance, was introduced on a commercial scale in Europe a good 18 months before it was available in the United States), they’re ahead of us on services like this. The good news: by the time such services are feasible here, they’ll have worked out most of the kinks.

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Guide dogs trained to use ATMs

Friday, September 25th, 2009

British guide dogs being trained to use ATMs.

When you first look at it, the picture seems to be a fake. But it’s real: those are dogs with their paws on cash machines, learning how to withdraw money from them.

The dogs are trained by a British charity called Canine Partners, whose mission is to train guide dogs for people with physical disabilities.

The dogs don’t actually enter PIN numbers. As the story explains:

They are adept at inserting and withdrawing cards at ATMs to help owners in wheelchairs who are often not able to stretch far enough to do it themselves.

A spokesman for charity Canine Partners, which trains the dogs, said: ‘They put in the card and take it out and take out the money and give it to the person in the wheelchair.

‘They can’t put in the Pin but a person in a wheelchair can go sideways on and do that.’

What would be really useful is if the dogs could be trained to find and fetch cash….

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Friday fun: Bless this ATM

Friday, September 25th, 2009

A duilian-equipped ATM in Lhasa, Tibet.

Tibet, where new technology meets old traditions. ATMs are a relatively recent arrival in Tibet. In the capital of Lhasa, one bank — perhaps in a bid to build trust in the new machines — placed duilians on either side of their terminal.

Duilians are a traditional Chinese form of blessing, going back at least 1,000 years. It consists of two lines of poetry, one on each side of an opening, written with the goal of “few words but deep meaning.” A library’s duilian might reference books, learning, wisdom or poetry. A private home might have a duilian that bestows blessings on visitors.

The tradition is slightly different in Tibet. Instead of characters, the duilian is an image. But the intent is similar: in this case, to bless the transactions moving through the ATM.

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The advantages of wireless ATMs

Wednesday, September 23rd, 2009

Take your ATM anywhere with a wireless adapter from ATM Network.

Modern ATMs require only three basic things from their owners: Someone to refill them with cash and receipt paper, a power supply, and either a phone line or a Internet cable so they can contact the transaction processing network.

That’s not very demanding. But the last two requirements mean most machines are tethered to the spot, unable to go very far from a wall outlet.

Efforts to go off the power grid are still in the prototype stage. But wireless ATMs — machines that use either WiFi or cellular phone networks to process transactions — are a different matter. They’re available today, and at suprisingly reasonable prices.

Going wireless has three components: the wireless router, the installation, and the monthly service fee (using a cellular network is like sticking a cellphone inside your ATM. Just like with a cellphone or a phone line, there’s a monthly charge for service).

Wireless routers aren’t cheap. The industry standard, a JBM C201, costs between $400 and $500. Look for special deals, like a discounted router when you sign a wireless-service agreement.

Installation charges can vary widely. It’s usually worth it to have the router professionally installed, but be sure to check prices. It’s also usually cheaper to have the router installed at the time you purchase the ATM; adding it later will be more expensive.

A JBM C201 wireless router.

ATM Network, for instance, can retrofit just about any ATM to be wireless. Installation is just $99, we have one of the lowest cellular subscription fees in the business, and the router is *free* with a two-year service agreement. The only place you might find it cheaper (and if it is cheaper, it isn’t by much) is at companies where “service after the sale” is a dirty word.

There are some obvious advantages to going wireless: No need to install a second phone line or wire a new Internet connection, for instance. The ability to move the ATM among multiple stores or try out different locations within a store. The ability to take the ATM to temporary locations like festivals, fairs, conventions, trade shows, farmer’s markets and so on.

But a recent study found a whole bunch of other reasons. For instance:

It’s the future. In large parts of the world (and remote parts of the United States), traditional land-line communication infrastructure simply doesn’t exist. And with cell phones filling the void, it’s unlikely such infrastructure will ever be installed. In those areas, an ATM has to be wireless in order to function.

“In Africa, it’s all cellular technology,” Gamon said. “It’s a big continent, and they’re just rolling out mobile services at a huge rate with a huge uptake. But cabled services are very minimal. Much the same is true in China and India. It’s the only cost-effective way to provide communications services.”

Easier and quicker to install. No need to have electricians or technicians run outlets to the machine’s location. No waiting for the telephone company to activate a phone line. Just wheel the machine in and turn it on.

“We have several wireless units at department store chains that do not want a phone line run through their store,” said Chuck Hayes, a product manager for Long Beach, Miss.-based Triton Systems. “We see them at sports stadiums where there are difﬁculties in getting phone lines run to certain locations.”

Easier maintenance. For companies with multiple ATMs, having all their machines on a single cellular network makes it easier to monitor them for problems. And because the connection is always on, they’ll know instantly when something goes wrong. With a traditional dial-up machine, it takes a lot longer to notice problems because a machine might go several days without dialing in even if it’s working perfectly.

“Uptime is important, and when you have a monitored solution, you quickly know that the ATM isn’t online or isn’t communicating,” Gamon said. “You can’t get that with a dial-up connection.”

More secure. ATM thefts are rare, but they happen. With a traditional landline, once the machine is unplugged it goes off the network. But a cellular machine remains connected, making it easier to trace.

With the cost of wireless service now comparable to that of a phone line or Internet connection, perhaps the real question to ask is, “why NOT make it wireless?” The advantages in flexibility and ease of installation more than make up for the modest installation cost.

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Stadium Village gets cash access upgrades

Wednesday, September 23rd, 2009

TCF Bank Stadium, as seen from the sidewalk outside Sally's Saloon.

With the opening of the new TCF Bank Stadium on the University of Minnesota campus, the Stadium Village shopping district once more lives up to its name (indeed, you can buy t-shirts that read “Stadium Village: Now with stadium.”).

Anticipating a surge of cash-strapped fans, two ATM Network clients prepared for the rush in different ways.

Stub & Herbs has been a campus staple for 70 years.

Stub & Herbs, the campus drinking and dining staple, has an ATM Network machine inside. For the home opener on Sept. 12 they opened an expanded outdoor “beer garden”, and plan to add tailgating space for future games. The result: sales that were five times a normal Saturday.

Sally's new through-the-wall ATM.

Just down the street, Sally’s Saloon has been in business for 17 years. They also have an ATM Network machine inside. But Sally’s decided on a more innovative response to the new stadium: adding a second through-the-wall ATM to serve street traffic. Their strategy is twofold: extra surcharge revenue from passers-by, and advertising screens that encourage people who just got cash to stop in and have a drink or a bite to eat.

A close-up of Sally's new ATM. The owner built the wooden enclosure; ATM Network installed the machine.

A customized ad screen encourages ATM users to stop inside.

Both examples show how successful business owners get the most out of their ATMs. For them an ATM is a convenience for customers, a revenue source and a marketing tool, all in one compact package.

Go Gophers!

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In Pakistan, bank ATMs run out cash

Monday, September 21st, 2009

In Pakistan, ATMs are exclusively owned by banks. This year that has led to trouble, as bureaucratic inertia left the banks unprepared for heavy withdrawals ahead of the Islamic holiday of Eid.

Most automated teller machines (ATMs) remained out of cash on Friday, as more and more bank customers withdrew money for Eid shopping…. Many branches had “out of order” written on their ATM booths. Customers were seen running from one ATM to another to get cash, but to no avail.

This apparently happens every year at Eid. You can imagine what a drag on the economy it is when people who want to spend money are prevented from doing so because they can’t get access to their cash.

Like the false scarcity of ATMs in India, this story is a strong argument in favor of non-bank ATMs. The reason the bank ATMs ran out of money is because people are trying to withdraw money to go shopping. If the stores were allowed to own ATMs that they kept stocked with cash themselves, do you think the shopkeepers would let the machines run out of cash? Of course not. Result: People would have easy access to their money, and shopkeepers would both collect the surcharge and facilitate sales. It’s a classic example of how small-scale capitalism can be more efficient and responsive than large centrally-run organizations.

India appears poised to move towards more use of privately-owned ATMs. Perhaps Pakistan will as well.

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They really like their ATM

Monday, September 21st, 2009

Darvel's main street.

Most of us probably take ATMs for granted. When you need cash, you find an ATM and take out money. It’s not something you really think about.

That is, until you can’t find one anymore, as recently happened to the residents of Darvel, Scotland.

Darvel residents are furious that the town has been left without a ‘hole-in-the-wall’ bank machine.

And they are demanding that the Clydesdale Bank restores the ATM in West Main Street, which has been out of order for a month.

The only other ATM in Darvel is in the post office, but it’s only available during normal shop hours.

“It is absolutely ridiculous,” said Charles McCluskey, of West Donington Street.

“People here have had to go Newmilns to get to another autobank when the post office is shut.”

For its part, the bank is apologetic, but says the problem isn’t a simple one.

There is a problem with the electricity supply to the machine in question, which is in a former Chinese takeaway premises.

Said a spokesman for the bank on Monday: “We are obviously very conscious of the inconvenience caused to the people of Darvel by the temporary loss of the ATM on West Main Street. Unfortunately the issue is completely outwith the Clydesdale Bank’s control, and until it is resolved the machine will be out of service. We believe the matter is close to resolution but have been given no clear timing for this. In the meantime, we can only offer our sincere apologies and hope the situation is rectified quickly, for the benefit of all concerned.”

Or maybe, given the obvious demand, an entrepreneur could set up a non-bank through-the-wall ATM to serve the good people of Darvel.

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ATMs crucial for convenience store growth

Friday, September 18th, 2009

From Canada comes a case study of what ATMs mean to convenience stores.

It’s the story of Alimentation Couche-Tard, the largest convenience-store chain in Canada with 2,000 stores (it also operates the Circle K chain in the United States). They decided that ATMs are a key to their continued growth. Here’s why:

The technology is part of Couche-Tard’s strategy of transforming the typical trip to the c-store from an impulse stop to a destination.

Competition from groceries has increased in recent years, blurring the line between quick-stop and full-service retail establishments. Grocery stores are opening earlier and closing later, and they offer more pre-packaged food and more one-stop shopping services, such as prepaid phone cards and lottery tickets, than they have in the past. An ATM has become de rigueur for a convenience
store, from a customer-service standpoint as well as a proﬁtability perspective.

“First and foremost, ATMs are for the convenience of our customers,” said Steve Lévesque, product category manager, whose job includes oversight of Couche-Tard’s Eastern Canada ATM network.

That convenience draws what Lévesque calls “new money” into the stores.

“ATMs serve as a destination for us, and customers who would not otherwise come into our stores use the ATMs. So we generate revenue there as well as some impulse sales,” he said.

It makes sense: ATMs embody the “convenience” aspect of convenience stores. And by drawing in new customers and increasing sales (not to mention surcharge revenue on transactions and the ability to sell on-screen ads), they add immediately to the bottom line. And with ATMs cheaper than ever before (ATM prices have fallen 75% in the last decade), it’s never been easier to harness that profit.

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