Archive for the ‘ATM benefits’ Category

Turning ATMs into marketing machines

Wednesday, October 21st, 2009

digitaltransactions

We’ve touched on the subject before, but this month’s issue of Digital Transactions (available in pdf form) has an article by Mary Knich, a vice president at First Data Corp., about ways ATMs are becoming more than a simple cash-dispensing device.

She mentions in passing that many bank ATMs are becoming unprofitable, thanks to expense (bank ATMs can cost as much as $50,000, compared to around $2,000 for retailer ATMs) and a lack of surcharge fees. (Never mind that the main reason banks installed ATMs in the first place was to save money on teller salaries rather than make money on transactions).

Those factors don’t affect nonbank ATMs, which are cheaper, use surcharges, and offer other bottom-line benefits like increased customer traffic. But some of her suggestions could be adapted by private ATM owners to maximize the value their ATM brings to their business. The two main ones:

Make the transaction experience a pleasant one.
Modern machines and fast Internet connections can work together to make ATMs part of a customer-relationship program. Faster transactions are part of it; consumers are more impatient than ever before. But those same fast connections, coupled with the modern Windows-based operating systems used by newer ATMs, mean it’s easier to add off-the-shelf functionality to ATMs or serve up customized graphics and video to either advertise or entertain.

Advertise to a captive audience.
While you want the transaction to go fast, why not grab your customer’s eyeballs for the few seconds they do wait? Customized ad screens or even short videos give users something besides the walls to look at. For merchants it’s an opportunity to cross-sell products, offer personalized promotions or simply entertain their clientele. Then send them on their way with your own on-receipt advertising — a coupon, say, or an upcoming special — so they have an incentive to come back.

When you think of it, dispensing cash is only one small part of an ATM’s attributes. Consider: it’s essentially a PC with a color screen, hooked up to the Internet, sitting in a metal case that’s 2 feet square and four or five feet high. Think about what an Internet-capable PC can do. Think about how much advertising and graphics you could pack into 20 or 30 square feet of surface area. Now think what you can do by combining all those features into one package. It’s a cash machine! It’s a billboard! It’s a video player!

With the right machine, the possibilities are staggering.

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Some grocery stores stop taking checks

Monday, October 19th, 2009

Given the hassle and fraud involved in personal checks, and the widespread availability of ATMs, it was probably just a matter of time before this happened:

Whole Foods Market Inc. is considering banning the use of personal checks at its stores and this month stopped accepting checks at two stores in Los Angeles County and one in Arizona as a test. Fresh & Easy Neighborhood Market, the California division of British retailing giant Tesco, won’t take personal checks at any of the 70 stores it operates in California.

“Supermarkets used to be a repository of checking, cashing payroll and personal checks, but in an age of direct deposit and debit cards, that’s not something that is relevant to their customers anymore,” said Mac Brand, a Chicago food industry consultant. The heads of these chains see check processing as a time-consuming and expensive service at a time when the industry wants to drive down business costs, he said.

The move got mixed reviews from shoppers.

“Grocery stores are a dime a dozen. If the Albertsons where I shop stopped accepting checks, I would just go to Vons,” said Kerry Showalter of Newbury Park.

The new policy would also be hard on many seniors, who have been slow to adopt the use of debit cards, said Gail Hillebrand, a lawyer and financial services expert for the nonprofit Consumers Union.

But a widespread move by the grocery industry to ban personal checks would not upset shoppers such as Sharon Fern of Placentia.

“I haven’t written or carried a checkbook in many years,” she said. “Wouldn’t bother me a bit.” Debit cards are far more convenient, she said.

The stores say the ban will improve service, because processing check payments is a time-consuming process that slow up an entire checkout line. The stores hope check-writing customers will switch to using debit cards or ATMs.

“We keep our systems as simple as possible, keeping prices low for customers. We do accept cash, credit and debit cards and also have an ATM in-store,” said Brendan Wonnacott, a spokesman for Fresh & Easy.

Bill Jordan, Whole Foods’ regional vice president, said prohibiting personal checks should improve service.

“Since most of our customers pay with cash, debit cards or credit cards, we want them to be able to check out as quickly as possible. This pilot program was put in place to see if personal check users would make the switch to debit cards or another form of payment.”

A recent rise in bad checks also factors into the new policy, he said. “That unfortunately makes it more difficult for the remaining customers who prefer to pay this way. To help reduce fraud, we have a several-step personal check approval process that can often inconvenience other customers in line,” Jordan said.

Not mentioned: the cost of bad-check fees, which can range as high as $35 per check. There are ways to fight that, of course — such as using free check-collection services. But that doesn’t solve the time problem.

So the checks have to go — unless the stores experience a sharp decline in sales because of it. But if they’re correct and shoppers simply switch to cash and plastic, we may be seeing the beginning of the end for the personal check.

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In tough times, refurbished ATMs get a look

Monday, October 19th, 2009

When deciding to install an ATM, the biggest expense usually is the cost of the machine itself. They’re cheaper than ever, but still run $2,000 to $3,000 — or even more for top-end models.

So it’s no surprise that buyers are interested in refurbished ATMs. They cost less than new machines — and it’s good for the environment, too.

The cost savings can be substantial — as little as half the price of a similarly configured new machine, though a 40 percent savings is a good rule of thumb.

But not every refurbishment is the same. The quality and extent of the work depends on the skill of the technician performing it. Don’t just look for the lowest price; look for a company with a competent service department, and get details on exactly what they do with the machine. Make sure all the components get inspected for signs of wear. And make sure the machine gets thoroughly tested after it’s been worked on.

It’s also a good idea to buy from a company that will stand behind its products after you buy it. If they aren’t willing to install and service the machine, that’s a warning sign that you might be buying a lemon.

In addition, refurbishment offers both opportunity and cautions when it comes to rapidly changing technology.

The caution: Make sure you’re not buying an obsolete machine that will need to be upgraded or replaced in a few years. Making sure an old machine is working doesn’t give it a color screen, a fast processor, a modern operating system or up-to-date encryption. Be sure the machine you’re buying will meet your needs and industry standards for years to come.

The opportunity: Since refurbishing a machine involves taking it apart anyway, upgrades can be added for relatively little extra cash. It’s easy, for instance, to install a color monitor, new printer, faster processor or more advanced card reader, or make the machine wireless or Internet ready. Machines can also be painted or wrapped. Don’t be afraid to ask the refurbisher about adding features you want.

ATM Network occasionally acquires used machines. When we do, our experienced technicians restore them to like-new status. Our refurbished ATMs come with the same service agreement as our new machines; that’s how confident we are in our refurbishment process.

Bring us your used machine to refurbish, or ask if we have any in stock. Even if we don’t have one, we might be able to find one for you. We’ll get it, restore it, deliver it, install it and service it afterwards. It’s yet one more reason why ATM Network is the best partner you can have in the ATM business.

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‘I wish we had contacted ATM Network years ago’

Tuesday, October 6th, 2009

A letter from one of our customers:

I just wanted to let you know how happy Landmark College is with our two new ATMs. I looked back at our timeline and saw where I first made contact with ATM Network on July 16. Our two new ATMs were installed on August 24 by a very knowledgeable technician who explained the system and who made us feel comfortable in our roles in maintaining the machines.

In the first month of operation we made $1,326 in commissions, which was $249 more than we made in ATM revenue for the previous entire year.

I believe you made the comment that we probably would earn enough in commissions to pay for one machine before the invoice arrives. At the current pace, it looks like we will have amassed enough commissions to have both machines paid for before the first invoice arrives.

I also have been enjoying the ability to view ATM cash balances from my desktop, which has allowed us to refill the machines before they run out of cash. It’s been a wonderful experience and I wish we had contacted ATM Network years ago.

Thanks again and I look forward to many more profitable months.

Mark Higgins, Controller
Landmark College

Read more customer testimonials on our testimonials page.

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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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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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