ATM Fees - ATM Surcharges - New ATM Business

http://www.newatmbusiness.com is your guide to the ATM business. This interview is an excerpt with International Merchant Services (IMS) president Neil Johnson.

Question:  Wow. Now, obviously, the ATM business, if you're in the business of ATMs, of having an ATM, fees are critical. ATM fees are a mystery to many. As a new entrant into the business, what should I know about ATM fees?
Neil: If you're a new entrance into the business or you're a seasoned veteran, some of the things that you should know about ATM fees, you look at ATM fees and most people when they talk about ATM fees are talking about the surcharge or a convenience fee. They're really divided into three camps on the way that those fees are utilized, either as a convenience where you're placing an ATM in your business so that your customers have the convenience of using it.
It's much like a convenience store or a restaurant wants to have clean restrooms, not because they sell anything out of that restroom, but because it's a convenience to their customer and brings their customers back.
On the other side, not just convenience, but you have companies that want to have it as a revenue generation. They want to take every square inch in their business and maximize what they can get for that. So, those companies, they might want to jack up their surcharge to as high as the market will bear.
Then there's other businesses, and I think these are the more astute business people, that look the ATM and develop a strategy where they're looking at sales revenue and using the ATM as a sales generator to generate sales by lowering the surcharge to a lower amount, either lower than your competitors, or perhaps even not having surcharged at all on that ATM, that brings customers into your store, and you're dispensing cash to them and we all know that a percentage of that cash that's dispensed is spent there in the store. So having that done is very, very important.

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• ATM Surcharges
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