July 16 - The ATM Industry Association (ATMIA) has announced that a task force of ATMIA members will meet on Tuesday, July 22, with the Federal Reserve Board of Governors in Washington, D.C. ATMIA requested the meeting to address growing concerns over the routing of ATM debit transactions.
Implementation of the Durbin Amendment granted merchants the right to choose between at least two unaffiliated networks for routing debit transactions at the point of sale. The purpose of the rule is to limit “anti-competitive network restrictions.” This is helpful to merchants who accept debit transactions, however, ATM withdrawals using the same debit card are excluded from that provision. ATMIA argues that ATM acquirers continue to be subject to the same anti-competitive network restrictions that were the primary justification for the Durbin rule.
“As our recently released ATM Industry Overview points out,” explains ATMIA USA Executive Director, David Tente, “pre-tax profit margins for ATM operators have now narrowed to the point that some lower volume locations could be at risk. This is an issue that affects primarily smaller financial institutions and independent operators, and could negatively impact consumer access to cash.”
Transaction routing issues may be further exacerbated by EMV migration, which is imminent in the next few years. Until EMV is fully deployed throughout the entire debit system, some transactions routed to more cost-effective regional networks may be diverted to global networks instead.
ATMIA contends that routing choice for ATM acquirers will create a more competitive payment system and result in more options for consumers seeking convenient access to their cash. The industry has pledged to work closely with the Federal Reserve to address these concerns and provide input on other payment related issues.
The ATM Industry Association, established in 1997, is a non-profit global trade association with just under 5,000 members in 65 countries. As an independent, non-profit trade association, our mission is: to promote ATM convenience, growth and usage worldwide; to protect the ATM industry's assets, interests, good name and public trust; and to provide education, best practices, political voice and networking opportunities for member organizations. If you wish to join, please contact a member of the ATMIA team. Follow ATMIA: LinkedIn, Twitter, YouTube