David Gosnell

Financial institutions and surcharge-free ATM networks are devising new ways to increase the number of signature-based debit cards while chucking onerous fees.

Two key numbers that provide a glimpse of how the market for automated teller machines is faring finally seem to be getting closer together.

7-Eleven Stores Inc.'s August announcement that it would acquire some 5,483 automated teller machines deployed in its convenience stores is another sign that off-premise ATM programs are undergoing a significant shift, as one-time big players are exiting the business. The convenience-store giant is buying the ATMs, and all contractual obligations, from American Express Co. for $44 million in cash.

It's no surprise that electronic funds transfer networks that support their own personal identification number-based point-of-sale debit brand are getting most of their growth from purchases rather than automated teller machine transactions. Some networks, however, are benefiting more than others from the continued double-digit growth in POS debit.

The ties that bind payroll debit card providers with the largest independent sales organizations that provide automated teller machine services are tightening.

Chip-based payment cards have had a spotty record at best, in large part because acquirers are skeptical of investing in the infrastructure to accept the cards. But the U.S. Navy is using the captive audience aboard its ships to implement a chip-based, cashless debit card payment system that will result in the mothballing of its fleet of 200 automated teller machines on 175 ships.

Credit cards and signature-based debit cards get most of the attention when the topic of conversation turns to interchange. But interchange rates set by personal identification number-based point-of-sale debit networks continue to rise, according to new market data from CCM sister publication ATM&Debit News.

Personal identification number-based debit is hot, and Metavante Corp. is trying to stake out its territory in the market through its proposed purchase of Montvale, N.J.-based NYCE Corp., owner of the nation's second-largest PIN-based electronic funds transfer network.

Big mergers and acquisitions in the ATM ISO industry have slowed as buyers digest past purchases, but deal-making may soon pick up again.

The first large-scale use by government of private electronic funds transfer systems is being touted as so successful that personal identification number-based debit cards soon will permanently replace all paper Food Stamps.

Citing cost and lack of pressing need, EFT processors are holding back on their tech investments. When will the climate warm up?

Thanks to increasingly sophisticated technology, consumers today have the ability to perform more and more banking functions on automated teller machines. But getting them to take advantage of the machines' capabilities is a different matter.

There was a time when independent sales organizations operating automated teller machines were considered bottom feeders, taking small parts of various ATM services in retail locations and making a business of them.

Cash-back at the point of sale is a popular feature with consumers because it lets them withdraw funds using their personal identification number-based debit card accounts without paying surcharges or foreign fees. Now, some merchants are expanding the cash-back function into a new area: automated checkout systems.

When Congress passed the USA Patriot Act, it hoped to make it harder for terrorists to funnel funds through the U.S. banking system undetected. But it appears lawmakers' best intentions may have unintended repercussions for an emerging product-prepaid cards.

Automated teller machines traditionally have been one-way machines. While consumers could use the devices to withdraw cash from their accounts, they could not use them to send money. Now they can.

Banks want Congress to endorse electronically imaged checks, but consumer groups worry about inadequate protections against mistakes and fraud.

Large financial institutions were the first mass deployers of automated teller machines, and their customers quickly began viewing the machines as an important part of their banking lives. Many deployers began using surcharge-free ATM fleets as part of their marketing strategy against local competitors.

The ATM industry made a small gain last year after an abysmal 2001. Now manufacturers hope that new services planned by banks will translate into more revenue.

The ATM industry expects that the recent adoption of a new programming language will enhance the services available through automated teller machines.