Archive for November 2009

Include ATMs in holiday-shopping strategy

Wednesday, November 25th, 2009

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The holiday season is here, and that means figuring out a budget for presents. That can be tough at any time, but it’s especially difficult — and important — given this year’s slack economy.

The first thing, obviously, is to stay within your means: Don’t give gifts you can’t afford. But that can be easier said than done. If you need to get the most out of your holiday shopping buck, it helps to have a strategy. And as the Houston Chronicle points out, ATMs are a useful part of that strategy.

Their first tip: Shop early. You’ll get better selection and prices, especially on end-of-summer closeouts.

Their second tip: Rely on cash.

Shop only with cash this year. Credit card interest rates are going up in anticipation of a new credit card law that restricts how and when card issuers can raise rate. If your rates have gone up and you don’t pay off the balance every month, your Christmas debt will last longer in 2010 than it did this year. Cash also helps you stay within your budget because when the dollars are gone, that’s it. Trekking to an ATM to take out more cash gives you a long pause in your shopping that you can use to talk yourself out of overspending. That kind of break in the action doesn’t come when you are writing checks or swiping credit cards.

Use layaway plans. This will help you stick with the cash-only edict by allowing you to put aside items in layaway until you can pay them off in installment payments. There tends to be a small flat fee for using the service. Major retailers that offer layaway options include Burlington Coat Factory, Marshalls, T.J. Maxx and Toys R Us. K-Mart and Sears are also providing online layaway programs. It also doesn’t hurt to ask local small business owners if you can set up a pre- and post-holiday cash payment plan for big-ticket or one-of-a-kind gifts, such as jewelry, art work and treehouses.

Give cash. Cash is freedom. Your loved one can use it for whatever he or she really needs — which may be to pay rent, a utility bill or catch up on a debt payment. Your child’s teacher can use money more easily than a gift card to a coffee chain or restaurant.

So put away the credit card — and its temptation to pay just a little more, or buy just one more thing. Decide how much you’re going to spend, take out that much money, and either buy presents for cash or give the cash itself as a gift. You’ll be happier, the recipients will be happier, and you won’t face that post-Christmas hangover when the bills arrive.

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CNN: Will new ATMs change society?

Monday, November 23rd, 2009

People outside the ATM industry are starting to notice the rapid evolution of ATMs. CNN’s Matt Ford ponders what it will mean for the future.

When it comes to ATM use the world is divided — and not just along the usual lines between rich and poor.

While banks in Hong Kong and some countries, such as Spain, Portugal and Russia, offer a wealth of services [through ATMs], banks in the UK and U.S. typically just provide bank account services.

Certainly the age of the network can be a barrier, with countries that have recently installed ATMs — for example India — much better placed to extend services than those with older systems, like the U.S.

But social attitudes also seem to play a part. In the UK, where ATMs are universally referred to as “cash machines”, people seem unwilling to change their habits and prefer online banking.

Ironically, Asia and developing countries may be quicker to embrace new technologies because the U.S. and Europe were so quick to embrace ATMs when they first came out — and now have a mental picture of ATM uses that’s stuck in the past.

It may be that the U.S. and UK are more conservative simply because they have had access to ATMs for longer than other countries where rapid change may have made consumers more willing to be early adopters.

“In Asia overall economic development has been rather sudden, and the technology that provides consumers with banking services has leapfrogged more established economies, like the U.S. and UK,” Tracy Kitten editor of ATMmarketplace.com told CNN.

“Consumers in these developing markets are accustomed to self-service, and advanced functions on self-service devices… because brick and mortar branches are not so commonplace.”

But in the end, it’s just a question of when, not if, new ATM technologies will arrive in force:

“Based on our long experience in the ATM space, we believe the UK and other regions will eventually catch up, it is just a matter of time,” Sharon Dickie, vice president of marketing, NCR Financial Services told CNN.

“Based on [customer] feedback, we have a strong reason to believe that ATM payments and services is a growing trend.

“Using the ATM will open the door to serve a bigger consumer-base, as both account holder and non-account holder can use the service.”

And ATMs may turn out to be a social good:

There could even be a social value to extending ATM services, and it may help narrow the “Digital Divide”.

“Government agencies and financial institutions are relying on multi-service ATMs as solutions for financial inclusion to bring banking services and other government services to individuals not easily reached otherwise,” says Dickie. “Brazil, in particular, is a leader in this area.”

In other words, as we’ve mentioned before, ATMs bring modern banking services and convenience to traditionally “unbanked” and “underbanked” populations, allowing them to participate fully in the modern economy.

We’ll just have to wait a little longer than the rest of the world to get it.

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ecoATM names new CEO

Monday, November 23rd, 2009

A week after winning this year’s “Big Idea” contest for its cell-phone recycling kiosk, ecoATM has name Tom Tullie as its new CEO, with a mandate to guide the company as it attempts toe expand beyond the startup stage.

According to ecoATM, Tullie was CEO of Vativ Technologies, a provider of advanced communications technology before joining the company. Prior to working with Vativ, Tullie was with Path 1 Network Technologies, a provider of IP video-transport products to broadcasters, satellite operators, cable multisystem operators (MSOs), and telecom operators.

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Can you trust your ATM provider?

Friday, November 20th, 2009

Buying an ATM involves two related but different transactions: buying a machine, and finding a processing company to handle the transactions for the machine.

Many buyers focus heavily on the first transaction, and that’s understandable: they’re spending a couple thousand dollars on a piece of hardware. They want to make sure they get the right machine at a good price, along with decent after-the-sale support like shipping, installation, training, warranties, repairs and so on.

But a lot of ATM owners don’t pay enough attention to the second transaction, and that’s a mistake: in the long run, the processing company you choose will have a bigger effect on your business than the model of ATM you bought or the price you paid for it.

Consider two owners who buy the same machine. One pays $2000; one pays $2500. The machines both earn $500 a month, on top of the other ATM benefits like increased sales and reduced bad-check charges.

The first owner will pay off the machine in four months; the second owner will pay it off in five months. After that, there’s no difference in the profitability of the machines.

But processing contracts tend to cover long periods of time — five years or more. So the processing company you choose will affect your business long after you’ve forgotten how much you paid for your machine. That’s why it pays to choose your processor even more carefully than you choose your machine.

Here are some things to look for in a processing company:

Do they have a track record?

You’re going to be trusting your business to your processor for a long time. You want some assurance that they will be around for the long haul. Find out how long they’ve been in business and how many machines they handle processing for. Ask for customer testimonials or industry endorsements.

Are they trustworthy?

This is a big one. You depend on your processor for all of your ATM profits. They’re responsible for calculating your surcharge revenue and paying it to you every month, accurately and on time. Your processor also reimburses you for money that customers withdraw from the machine. Can you trust them to handle all that money and get it to you on time, every time?

In Arizona, for example, an ATM company named Global Cash was recently fined and nearly barred from doing business in the state because it defrauded banks by miscoding cash advance transactions and then misled regulators about it.

In California, the owner of All States ATM recently pleaded guilty to charges of defrauding investors by claiming to be an eight-year-old company with hundreds of employees and ATMs, when in fact there was nothing.

Clearly, you don’t want to trust your money and ATM income to a processor that is at risk of legal trouble or willing to cut ethical corners. Either one can hurt your business, even if you’re not a direct victim of their actions.

What services do they provide?

Does the company merely process transactions? Do they have a service department in case your machine breaks down? Do they offer on-going technical support for operating your machine? Do they provide guidance on how to get the most value out of your machine through proper placement, signage and use? Do they offer ways to upgrade or customize your machine, such as wireless connections, advertising surrounds or custom advertising screens? When you have problems or questions, are they easy to reach? Or do you always get voicemail and they never return your calls?

Do your homework on your processing company, and you’ll be much happier — and more profitable — in the years to come.

ATM Network

So how does ATM Network stack up? Quite well, we think. Some things to know about us:

We’ve been in business for 13 years.
In that time we’ve grown steadily, and now service more than 5,000 locations.
We’ve been a member of the Better Business Bureau since 2001.
We’re listed on Dun & Bradstreet.
We have a nationwide service and parts department, staffed with skilled technicians who can fix your machine or help you access advanced features.
We’re the exclusive online ATM provider for Sam’s Club.
We have lots of customer testimonials and industry endorsements.
We provide 24/7 customer service, with fast, helpful response times.
We offer automatic direct deposit of your money — on time, every time. Every day we reimburse you for customer withdrawals, and every month we send you your surcharge income.
We offer lots of customization and upgrade options, as well as kiosks and advertising surrounds.

Even better, processing with ATM Network costs you nothing. We make our money from your customers’ banks, not you. So you keep 100% of your surcharge revenue while knowing your processing is being handled by one of the most stable, responsive and trustworthy companies in the business.

We also offer great prices on ATMs. Why? Because we make money on processing. Without the machine, there are no transactions to process. So we sell our ATMs almost at cost in order to get your processing business. Then we ship it to you for free, advise you on the best place to put it, install it, train you to operate it and give you signs to advertise it.

That’s why we’ve been in business for 13 years. It’s why we have thousands of locations, and a long list of endorsements and testimonials. And it’s why thousands of smart ATM owners trust us to handle their processing.

Posted in ATM benefits, ATM operators, ATM owners | No Comments »

ATM goes behind bars

Friday, November 20th, 2009

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In California, an ATM is being use to cut down on fraud, theft and mismanagement — in jail.

With help from new kiosks installed at the Mendocino County jail, staff no longer have to put an inmate’s money in an envelope and count it two or three times.

The “EZ” booking kiosks allow jail staff to put money into a machine that counts the money, generates a receipt and then puts the money into the inmate banking system.

“Basically we are trying to get out of the money handling business,” Corrections Lt. John Bednar said. “We are trying to get the human error part out of it.”

Sheriff Tom Allman … noted that the system frees up time for staff. He also said he expects problems with errors or inmates who claim possession of $1,000, for example, to be eliminated by the machines.

“I expect a zero percent mistake ratio with this system,” Allman said.

…Right now, there is one kiosk in the intake area of the jail and another in the booking area, as more money often shows up during booking.

A third kiosk is in the lobby area where deposits can be made to inmate accounts. (The) kiosk in the jail lobby has the capability to accept inmate bail payments and kiosks can accept bail paid with credit cards or debit cards.

Family members can even load money into an inmate’s account online.

These are specially-designed kiosks, not general purpose ATMs. But it shows the increasingly creative ways people are using basic ATM technology.

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‘I don’t feel like a client; I feel like I am their friend.’

Friday, November 13th, 2009

A letter we received this week from a new client:

Over the past 3-4 weeks we have been converting our ATM machines to ATM Network. At first, the task seemed insurmountable. We were in a race against time with our previous vendor, who temporarily locked us out of the data-tracking website; shut down one of our machines; removed another one of our machines from a very profitable site and replaced it with his own machine without any discussion with us; and then, it appears, starting changing system and maintenance passwords….

Our initial contacts with Steve Fisher gave us not only confidence in your company, but hope to save our small business. He is diligent about returning e-mails and phone calls and communication was our lifeline. He, in turn, got (service manager) Tom James involved; and I cannot tell you how helpful, kind and patient Tom has been through all of this. With Tom walking me through every step, we did a whirlwind of conversions. I made mistakes, dumped screens, etc. but thankfully became more proficient with each conversion. Although I have not met Tom … he is one of the most decent, caring and helpful individuals I have ever communicated with.

I don’t know how many clients give you feedback; but I wanted you to know what a fine team you have put together. … Most of all, I don’t feel like a client; I feel like I am their friend.

Lori Manning
Independent OSO

Read more customer testimonials on our testimonials page, or by clicking on the “Endorsements” category in the left column.

Posted in ATM benefits, ATM owners, Company news, Employees, Endorsements | No Comments »

Friday Fun: Pizza ATM

Friday, November 13th, 2009

Pizza-Hut-ATM

Okay, it’s just an entry in a Photoshop contest, but with the explosion of new features in ATMs and kiosks, will a pizza ATM be far behind?

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Worldpay founder seeks to buy it back

Wednesday, November 11th, 2009

Is this a case of seller’s remorse?

The founder of online payments operator WorldPay, Nick Ogden, has formally approached the Royal Bank of Scotland about buying the business back.

Not really.

The WorldPay business was one of the assets RBS was told to dispose of by the EU competition watchdog earlier this week as a condition for joining the UK Government’s asset protection scheme.

Ogden founded Internet payment processor WorldPay in 1997 before selling it to the Royal Bank of Scotland in 2002.

A spokesman for Ogden confirmed to Finextra that he has formally approached UBS, which is handling the sale, about buying it back. He is also in talks with three private equity groups about financing the deal.

The unit could cost up to £1.5 billion although Ogden will look to pay considerably less now that RBS has had its hand forced by the EU.

He’s got competition, though, from the founder of Lynk, a U.S. company that RBS bought in 2004.

Ed Uzialko, the founder of Lynk, now also a part of RBS WorldPay, told Reuters he wanted to buy the U.S. business back.

The WorldPay that RBS is selling is much, much bigger than the WorldPay that it bought back in 2002 for 40 million pounds. That’s because RBS uses WorldPay as the brand for its entire payment-processing unit — so it includes Lynk, for example, a company that RBS paid $525 million for.

RBS WorldPay provides the transaction-processing for a lot of companies, including ATM Network. But splitting off the payment-processing division won’t affect customers too much. It’ll be the same business with the same employees and systems — just a slightly different name on the door.

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Tech Tales: The Case of the Tampered Keypad

Monday, November 9th, 2009

keypad

Editor’s note: ATM Network technicians are so experienced that they routinely uncover and solve problems that the manufacturers themselves missed. This is the story of one such incident.

Because ATM transactions involve money and personal financial information, they are heavily encrypted – the data encoded so that neither the ATM owner nor anyone who sees the data stream can read it.

Specifically, whenever a customer types information — like, say, their PIN number — into an ATM keypad, the keypad takes the number and runs it through a mathematical algorithm that encodes the PIN so that only the transaction-processing server can read it.

Because the algorithms are the key to reading the encrypted information, they’re treated with a level of security normally reserved for nuclear launch codes. The manufacturer keeps control of the algorithm, and distributes a randomly generated “master key” that can decode it. The key is broken into two halves. The manufacturer keeps one half; the other half is split in half again and the pieces sent to ATM Network. Each piece is entered by different people, and the ATM downloads the manufacturer’s half from a secure server. So no one has the whole key.

A few years ago, a major manufacturer’s machines began dropping their encryption. Rather than send unencrypted information, the machines took themselves out of service, displaying an error code saying the keypads had been tampered with.

Except the keypads hadn’t been tampered with. Plus it was happening a lot: some merchants were calling twice a week. And every time it happened, the only way to fix it was to install a new master key — which meant sending out two techs with the two halves of the code, or sending out a tech with one half and mailing the other half to the machine’s owner. Either way, it was a lot of expensive service calls.

Our troubleshooting team got involved. Since the error code mentioned keypads and the keypads were part of the encryption process, they began replacing keypads and sending the old keypads back to the manufacturer for examination. That sometimes solved the problem, but more often than not the replacement keypads would fail, too.

The manufacturer wasn’t being particularly helpful, so the team sat down to examine the keypads.

Each pad had a circuit board on the back that contained the encryption chips. The board drew power from the ATM, with a battery backup in case the power went out. The team tested the board, checking connections, looking for broken circuits and so on. Everything seemed fine.

Then a tech noticed that the backup battery appeared to be loose. Closer examination revealed that it wasn’t soldered to the board. A quick test confirmed that it was able to move just enough to disrupt the circuit bringing power to the encryption chips.

But so what? It was the battery backup, not the main power line. The problem would only affect the machine if it lost power.

Unfortunately, the machine was designed so that resetting any error code — including “out of paper” or “out of cash” messages — required turning off the power. Some quick checking confirmed that the problem only cropped up when the machine lost power or was turned off.

The solution? Resolder the battery to the board.

ATM Network alerted the manufacturer, which addressed the problem in a technical bulletin. But instead of fixing the problem by properly soldering the boards during production, the manufacturer just updated the machine’s software so error codes could be reset without turning the machine off.

Because of that, the problem still crops up from time to time. Every time it does, ATM Network technicians fix the problem permanently by resoldering the boards.

Neither the manufacturer nor any other company had managed to solve the mystery. Indeed, the manufacturer was spending a small fortune on replacement keypads. Only ATM Network had the expertise and dedication to find a solution.

Postscript: Issues like this are one reason ATM manufacturers are starting to build in remote key capabilities into their software: it allows master keys to be sent and managed electronically, increasing security while cutting down on the need for technician visits. Listen to this remote key webinar if you’re interested in learning more about them.

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A really remote ATM

Friday, November 6th, 2009

djibouti

Navy Federal Credit Union, based in Virginia, is the largest credit union in the world, serving 3 million members. But what really sets it apart is its customer base: membership is only open to people who work for the Department of Defense.

That means a lot of soldiers, sailors and Marines are members. And that leads to some unique situations.

Last month, Navy Federal installed an ATM at Camp Lemonnier — a small outpost in Djibouti that is the center of U.S. efforts to deal with Somali pirates operating off of the Horn of Africa. (It’s the red dot on the map above).

The credit union said it took two years to work through the tangle of technical and regulatory issues involved in putting an ATM in such a remote place.

Posted in Fun, Industry news, history | No Comments »