April 12 - Independent ATM deployers throughout the United States have seen ATM-transaction revenue steadily decline over the last 10 years. Market saturation, increasing competition with surcharge-free ATM networks, cash-back debit options and increasing operational expenses resulting from more stringent regulatory and security mandates have all taken their tolls.
But perhaps the biggest threat to the infrastructure of retail, off-premise ATMs in the U.S. has been fluctuating interchange fees – fluctuations that have not worked in the IAD’s favor.
To help address IAD concerns about interchange, ATMIA and Kahuna have produced a new white paper, "The Future of ATM Interchange," which explores options to prevent further reductions of interchange in the U.S. ATMIA and Kahuna’s recent survey found that reduction in interchange was the number one concern of U.S.-based IADs.
Reductions in interchange implemented over time by the card networks to appease merchants have hurt ATM operators. “The balance between supporting the needs of the issuer and the needs of the acquirer have to be resolved in order to protect independent deployers,” said David Tente, ATMIA U.S. executive director.
The comprehensive white paper offers perspective about interchange’s history, its evolution, tactics independent deployers can use to increase revenue under the current network rules, lessons from international markets, and what ATMIA and other groups that represent IAD interests are doing to stop interchange erosion.
“I believe IADs will find the white paper very informative,” said Bryan Bauer, president of Kahuna. “The better we understand the issues that impact interchange, the better prepared we will be to protect our businesses and work together to eliminate further decline in our revenue.”
To download the white paper, click here.