Arlington Federal Credit Union, a community based credit union in
Texas with $38 million in assets and 10,000 members had an opportunity
to place an ATM in a local convention facility. The City of Arlington,
which is a SEG of the credit union, owns the facility and wished
to provide cash access for convention participants who were using
an adjacent hotel ATM for cash access at high surcharge rates. In
assessing the placement opportunity, the credit union believed the
capital cost and recurring operating and human resource time in
managing a machine, especially one with irregular transaction volumes,
would be a challenge.
However, the credit union was able to achieve a successful outcome
with a turn-key ATM program provided by Mobile Express Capital Corporation
(MECC). This program eliminated the capital outlay for the ATM,
eliminated management time and balancing of the ATM and provided
a cost-effective ATM placement, as well as income generator from
higher surcharges and increases in transaction volume during peak
convention times. As provider, MECC actively manages the currency
in the machine utilizing customized ATM software and stays in continual
contact with the facility manager to stay abreast of upcoming events.
The company does not require the credit union to supply vault cash
for the ATM, thereby reducing credit union risk of loss and regulatory
AFCU took advantage of an MECC option to keep 100% of the surcharge
income from this location for a slightly higher fee. The surcharge
income the credit union received provided a subsidy for other ATM
locations where the credit union could serve its members, whereas
the surcharge income may not have covered operating costs and time
and effort had the credit union operated the machine internally.
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