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Posts Tagged ‘ATMs’

Tech Tales: The case of the bad protocol

Thursday, June 24th, 2010

Editor’s note: ATM Network technicians have the experience to solve even the thorniest problems, and routinely go above and beyond to do so. This is one such story.

One day the ATM Network service department got a call from a bar and grill in southern Minnesota. Their ATM had suddenly stopped contacting the transaction processor, rendering it useless. When it printed receipts, they said “System unavailable.”

The technician had the owner print out the machine’s electronic journal, which showed that the the ATM was running into “protocol errors”. That usually meant that transactions were getting interrupted in the middle of processing. The most common causes all involve the phone line: too much static, interference from a DSL connection, a shared phone line or (for technical reasons), phone service provided by cable companies.

Further questioning, however, revealed that the bar didn’t have cable TV, much less cable phone service. It didn’t have an Internet connection of any sort, so there wouldn’t be any DSL interference. And the ATM had its own dedicated phone line.

That left static on the line. The tech called the local phone company, which checked its lines and said they were fine. But just in case, they installed a DSL filter to block DSL interference.

A couple of days passed, and the customer called back: the ATM still wasn’t working. In the meantime, the techs had gotten another call from a customer in a neighboring town. He had two machines: One was on an Internet connection, and it was working fine. The other used a phone line, and it was having exactly the same problem as the first customer.

The tech asked which phone company owned the line. It was the same company that served the first customer. This wasn’t unusual: the company serves a large swath of southern Minnesota. The tech called the company and told them a second machine was down. The company checked that line, too: it was fine.

Then a third customer called with the same problem. Different machine, different model – but the same phone company.

The tech thought about it for a little bit, then looked up the phone company’s service area and began calling ATM Network customers in the area. He found four more clients with ATMs that couldn’t communicate with the transaction processor.

He called the phone company for the third time and told them what he found. They still insisted it wasn’t their fault, and suggested it might be ATM Network’s server.

The tech seriously doubted that, but to be sure he called up merchants who had ATMs from competitors that didn’t use our processing network. They, too, reported processing problems.

He called the phone company a fourth time. The company said it couldn’t be their fault, but they’d look into it.

Two days later, everything started working again. The phone company never admitted anything.

ATM Network contributes $3,000 to ATMIA fund

Tuesday, June 15th, 2010

ATM Network has donated $3,000 to an industry fund that will help educate consumers and legislators about the ATM industry, as well as explore options regarding fees charged by credit-card networks.

The donation comes after independent ATM operators faced two direct threats to their businesses in less than two months.

BACKGROUND
In early April, Mastercard unilaterally reduced the transaction fee it pays to independent ATM networks while tripling the fee it charges to process Mastercard-branded cards or use its Cirrus network. Bottom line: Mastercard will siphon an additional $26 million a year from independent ATM operators — a transfer of wealth from thousands of small-business owners all across America to one of the world’s largest financial companies.

Then in mid-May, during Congressional debate over a financial-reform bill, Sen. Tom Harkin (D-Iowa) proposed an amendment that would have capped ATM surcharges at 50 cents — making most nonbank ATMs unprofitable to operate. Its passage would have resulted in ATMs disappearing from business establishments of all kinds, as well as destroying several thousand jobs.

Thankfully, the Harkin amendment was defeated. But the prospect of it being reintroduced in some form, as well as worries about future moves by Mastercard, has prompted the ATM Industry Association (ATMIA) to address the problem head-on with the creation of a “defense fund”.

THE FUND
The fund, made up of voluntary contributions from members and nonmembers, will pay for two things:

1. Legal advice in the wake of Mastercard’s profound changes to the industry’s fee structure.

2. A “white paper” on the nonbank ATM industry, to better explain what it does, how it works, and why proposals like Harkin’s would be disastrous for it.

ISSUES THAT AFFECT EVERYONE
Why should anyone outside the industry care? Let’s take a look.

In the case of the Harkin amendment, it’s pretty simple: a limit on ATM surcharges would make many ATMs unprofitable to own and operate.

Sen. Harkin clearly doesn’t understand the economics of nonbank ATMs. He assumes the only cost associated with an ATM transaction is the cost of processing — a cost erroneously estimated at 36 cents by Harkin’s staff.

But that ignores the cost of the ATM itself, as well as the time and cost of installation, maintenance, insurance, supplies and cash. Harkin seems to think that merchants would be happy to install and maintain a money-losing ATM. That’s simply ridiculous.

In the case of Mastercard and Cirrus, anti-competitive behavior hurts everyone who uses an ATM. Mastercard’s fee changes mean processing a Mastercard or Cirrus transaction is more expensive for merchants than, say, processing a Visa card. That leaves merchants with few choices — including raising surcharges for everyone (even if you don’t use Mastercard or Cirrus) or removing the machine because it’s no longer profitable.

None of the available options are good for either merchants or customers. The ATMIA fund will help the industry explore legal, regulatory and market strategies that would let us avoid such harmful choices.

WHAT CAN BE DONE
ATMIA has asked each member company to donate $500 to the fund. ATM Network has donated $3,000. We strongly urge others to step forward, too. You can donate online at the following links:

ATMIA members
https://www.atmia.com/unitedstates/membership/membershiprenewal

Nonmembers
https://www.atmia.com/unitedstates/membership/join

Thank you for joining us in this effort!

In midst of recession, ATM use surged

Monday, May 3rd, 2010

The ATM business is sometimes described as “recession proof”, and stories like this are one reason why.

U.S. consumers are withdrawing more money from ATMs, likely the result of the economic recession, industry insiders say. In September 2008, when the recession was official, consumers started relying more heavily on cash and debit, and less on credit.

Gary Faulkner, the executive vice president and chief marketing officer of Morphis Cash Forecasting Software of Dallas, says it was around that time that U.S. ATM withdrawals started going up. He said many of his ATM customers started complaining that the Morphis forecasting tool was not meeting targets, and ATMs were often low on cash because of increased withdrawal amounts. Faulkner says ATMs that had been effectively managed by Morphis’ system for years were suddenly running out of cash.

“Starting in September 2008, customers were complaining that the forecasting was not right,” he said. “Nearly universally, our customers saw an increase in transactions and an increase in cash withdrawals per transaction.”

Faulkner says the volume of transactions increased as well. In fact, Faulkner estimates that the overall cash withdrawals from each transaction increased from roughly $65 to $75 a transaction to about $100 a transaction.

We’ve written before about the practice of using cash accounting to manage tight budgets — withdrawing a certain amount of money for holiday shopping or a weekly budget, and when the cash is gone, stop spending. We’ve also noted why a recession can be good for ATM usage.

Now the numbers are in. ATMs really *are* recession proof.

ATM maker Triton sold for $7.5 million

Thursday, April 29th, 2010

A year after a failed merger with Nautilus Hyosung, ATM manufacturer Triton Systems — maker of the popular Triton RL1600 — has been sold.

Triton Systems of Delaware was recently purchased from the Dover Corp. by a group of private investors for $7.5 million.

Triton Systems president and CEO Daryl Cornell says the new owners have expressed confidence in their ability to continue to grow the company.

“The only real change is the end of the uncertainty surrounding Triton during the protracted sale process,” Cornell said. “We believe that this sale was the best possible outcome for Triton, its customers, its employees and the community.”

The company will maintain a strategic partnership with the publicly held Dover, but does not plan a public stock offering of its own.

Cornell says Triton’s continued partnership with Dover had its advantages. But being a privately held will allow Triton to explore otherwise unavailable opportunities and partnerships.

The company will not seek a public offering, either, Cornell says. Such a move would allow Triton access to equity markets, but would be too cost prohibitive in the end.

In the short term, no major changes are expected, and no executive departures were announced.

ATM Network adds online ATM feature comparison chart

Wednesday, April 28th, 2010

ATMs are powerful, flexible pieces of equipment. They accurately and reliably encrypt data, process transaction, dispense cash, communicate with customers and prevent theft.

But that also means they can be complicated. ATMs come in a bewildering array of shapes, sizes and features. Figuring out which machine is best for your situation can be difficult.

Probably the best and easiest approach is to call an independent distributor like ATM Network and speak to an account representative. Independent distributors sell ATMs from lots of different manufacturers. They know the products and don’t have a stake in a particular brand or model, so they can discuss the pros and cons of each machine and how it fits your specific situation.

But for people who like to research things themselves, or just want to get an idea of what kind of questions to ask, ATM Network has created an interactive ATM feature comparison chart on our website.

Choose up to three machines, and the page will list their features side-by-side in an easy-to-read and easy-to-understand chart.

Want to have the list handy when you talk with an account rep? Just print it out for easy reference.

ATM Network has always considered an informed customer our best customer: we’re confident that the more you know, the more you’ll appreciate ATM Network’s combination of value, experience and service. The new comparison chart is just one more way we put our money where our mouth is.

Tranax not changing name after all

Tuesday, April 6th, 2010

Back in February, Tranax announced it was changing it’s name to Hantle USA, to better align its brand and its products with Hantle Systems Co. Ltd., Tranax’s Korea-based parent company.

But on Wednesday, Tranax said there would be no name change after all.

The name change, according to attorneys for Tranax, was never official. In fact, lead attorney Bob Freitas tells ATMmarketplace.com that Tranax is not owned by Hantle Systems at all, and that there is no relationship between Hantle Systems and the company that acquired Tranax in the fall of 2008, Korea-based Eltna Group.

In an e-mailed statement, Freitas says: “Hantle USA is a separate company that is not a subsidiary of Hantle Systems. Hantle Systems sells ATM modules to Hantle USA . Hantle USA currently intends to focus on marketing and sales of ATM equipment, modules and related products for the retail industry. Hantle Systems is an established Korean company with 18 years of history in research and development of ATM modules for the banking and other industries.”

Some significant changes have taken place. On Feb. 1, Hantle USA took over responsibility for selling the company’s retail ATMs, while Tranax is now focused on kiosks, scanners and components. Hantle USA will also handle servicing for existing Tranax ATMs. Eventually all of the company’s ATMs will be rebranded to Hantle, but the transition will probably take a long time.

The head of Tranax’s parent company apologized for the confusion.

“Tranax regrets recent incorrect statements about the company which resulted from miscommunications between an employee and the upper management of the company,” said Won Gee Lee, CEO of Tranax and Eltna, Tranax’ owner, in an issued statement. “We apologize to our customers, the media, and the public who received this incorrect information. In fact, Tranax continues as a business, focusing on ATM machines and other related products, including scanners, self-service terminals and other modules for non-retail industries, including the banking industry.

ATM Network moves customer statements online

Monday, March 29th, 2010

Tax time can be a headache for many small business owners. It’s not just that business tax rules can be confusing and arbitrary. Spring is the time when you have to go through a year’s worth of saved receipts and paperwork, trying to find a specific number or form, and hoping you didn’t accidentally throw out or misfile an important piece of paper.

At ATM Network, we understand this very well. Every year at this time we get a lot of calls from our customers. Usually it’s because their accountant needs to know how much money they made on their ATMs last year, and they didn’t save all the monthly statements we sent them with their checks.

It’s an even bigger headache for people who own a lot of ATMs. Someone with 80 machines has to keep track of — and add up — nearly 1,000 different monthly statements. The headache can be enormous.

Then there are the checks themselves. Paper checks can get lost, stolen or damaged. They take days to arrive. And machine owners have to take them to the bank, physically endorse them and deposit them.

At the end of 2009, ATM Network took a big step toward making things easier for customers by switching from paper checks to electronic payments. Customer profits are deposited directly in their bank account — automatically, without risk, and usually 10 days or so earlier than with paper checks.

Now ATM Network has taken the next step with Webstatements, its online statement archive.

Instead of receiving and storing a paper statement, customers can login to their Webstatements account to view their machine’s financial results.

They can see total activity for all of their machines, or view each machine individually. They can sort results by month and year. And if they do want paper copies, they can print out individual statements for all of their machines with a single click of the mouse.

The online statements contain all the information that used to be on ATM Network’s paper statements: profit information, daily activity, network activity, and more. So it’s easy to see at a glance how a machine is being used and how profitable it is.

Webstatements works in conjunction with ATM Portal, an online reporting service that tracks up-to-the-minute activity and keeps track of daily operating items like how much cash remains in each machine. ATM Portal provides daily reporting; Webstatements provides monthly summaries, as well as customer-specific financial information unavailable through ATM Portal.

It’s just one more way that ATM Network provides its partners with top-of-the-line service and accountability.

ATMs: from afterthought to vital link

Wednesday, March 24th, 2010

The latest issue of Credit Union Times traces the adoption and spread of ATMs by credit unions, starting in the 1990s, charting the machine’s rise from a novelty to a mainstay of the credit-union industry.

Since 1990, the lowly ATM has moved from being little more than an adjunct to a credit union or bank’s branch structure to being a significant part of customer service strategy and the average retail landscape today, industry executives said.

“In 1990, ATMs were like extensions of bank [or credit union] branches so most ATMs were located at, or close, to branches,” explained Michael Lee, CEO of the ATM Industry Association, an international organization that represents ATM manufacturers and deployers. There were only about 85,000 to 150,000 machines in those days, and they were virtually all tied to bank or credit union branches.

As we’ve noted before, loosening restrictions on ATMs is what drove the explosion in ATM usage:

“The big revolution in the U.S. ATM in this time period was the introduction of surcharging in 1996,” Lee said. The surcharge fee paid by consumers using an ATM not belonging to their bank increased from zero in 1996 to an average of roughly $1.50 in 2003, he added, citing the Federal Reserve. “The fee allowed ATM owners to take ATMs to nonbank areas in the retail sector, closer to where consumers live, work and shop. The fee provided the economic stimulus for the huge growth of the retail ATM.”

And oddly, the explosion of competing retail ATMs helped drive the development of credit union and bank ATM networks. Once people began to see ATMs as a normal part of their financial lives, two things happened: They demanded more and better access to them, and they became more open to using ATMs for a wider range of financial transactions.

Which is why ATMs today do everything from dispensing cash to taking deposits to selling stamps and insurance. 20 years ago, few people would have trusted a machine with such transactions. Today, they don’t think twice about it.

NCR names new CFO

Monday, March 22nd, 2010

ATM manufacturer NCR Corp. has named Robert Fishman as its chief financial officer.

Fishman has been the acting CFO since October, when then-CFO Anthony Massetti resigned to take a job with Avaya Inc., a communications-services provider. He also served as interim CFO from May 2007 through January 2008. He has been with the company since 1993.

“Bob’s proven himself to be an outstanding contributor throughout his career at NCR,” said NCR’s chief executive officer, Bill Nuti. “He will facilitate a seamless transition with our senior leadership team and the finance organization. In addition to a very strong background in finance, Bob brings an invaluable depth of NCR experience to the CFO role. He’s built great teams and helped manage through some of the most complex periods in recent company history.”

an ATM finder for your Blackberry and iPhone

Tuesday, March 16th, 2010

Here’s a cool application that could mean more traffic for your ATM:

MasterCard Worldwide has announced the launch of the MasterCard ATM Hunter application for BlackBerry smartphones that allows users to easily locate the nearest ATM no matter where in the world they are.

The application first came out for iPhones, and is now available for Blackberries. It uses uses GPS technology to show users the nearest ATMs. They can sort by things like surcharge and accessibility (wheelchair, drive-up, 24-hour) and then get directions.

If the phone doesn’t have GPS-capabilities, users can consult a database of ATMs to find one near them.

There’s even an online version for those of us playing at home.

The application is free. You can download it from the iPhone App Store or Blackberry’s AppWorld.

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