A deal with Total Petroleum Inc. makes Deluxe Data Systems Inc. the latest nonbank to deploy automated teller machines.
Under terms of the agreement, Deluxe Data will deploy 266 cash dispensers in Total Mart stores throughout the central states.
A Deluxe Data spokesman said that while it was not the Milwaukee-based company's intention to become an aggressive deployer of ATMs, he admitted that the Total Petroleum deal sets a precedent and that other such deals may follow.
"Typically, we have only provided the data processing behind our customers' ATMs," said Paul Schmelzer, vice president of Deluxe Data. "But Total Petroleum asked us to play a different role.
"This is a new role for Deluxe Data, and we intend to apply it to other opportunities," he said.
Deluxe Data, a subsidiary of Minneapolis-based check printer Deluxe Corp., is working with Diebold Inc., Canton, Ohio. The two companies will place 266 InterBold i Series cash dispensers in Total Marts. Diebold Inc. will provide the hardware, installation, and servicing, including cash replenishment and balancing services.
"Besides the participating stores, there are 400 or 500 more Total Mart stores nationwide that could eventually be supplied with cash dispensers," said Mr. Schmelzer. "The off-premises market is a growing opportunity."
Other nonbanks that have become aggressive deployers of off-premises ATMs include Electronic Data Systems Corp. and Affiliated Computer Services Inc., which rank second and third on the Bank Network News list of the largest ATM deployers in the United States. They are surpassed only by BankAmerica Corp.
"Banks have seen nonbanks encroaching on their territory in many areas, including ATM deployment and home banking," said Anne Morgan Moore, president of Atlanta's Synergistics Research Corp.
"It's a very lucrative business because of the fee income," she added. "I'm not at all surprised that Deluxe decided to get into this business."
