Using ATMs as an Income Producing Opportunity

Find out how a community-based credit union was able to successfully implement an ATM program, despite the perceived challenges.


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 scrutiny.

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.

Interested in learning more about innovative ideas in credit union ATM deployment? The 2002 Branch & ATM Deployment Research Report highlights key trends in the credit union marketplace on these critical member service channels. Discover credit unions' expansion plans over the next two years, location strategy and how front-line employee performance is improved through incentive programs.




May 13, 2002

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