ATM Revenues Fall
BOSTON - (06/14/04) -- ATMs revenues, on the rise for thepast decade, as are one decline, according to a new survey by DoveConsulting Inc. The survey, of 134 top deployers that operate144,000 ATMs indicates that consumers are increasingly avoidingusing ATMs that charge customers a fee and the trend is shrinkingthe revenue to pay for ATM operations. For example revenuesgenerated by on-premise ATMs between 2001 and 2003 declined by 17%,as far fewer debit cardholders were using machines not owned bytheir own financial institution. Those are the cardholders whotypically pay a fee to use the machines. And average revenuegenerated by off-premise ATMs located mainly in retail locationsdeclined by 11% among both nonbank and bank respondents, the surveyfound. On average, the surveyed financial institutions lost $260per month per on-premise ATM deployed, while the averageoff-premise ATM operated by financial institutions lost $242 permonth. The percentage of transactions initiated by non-customers atfinancial institutions' off-premise ATMs declined to 49% in 2003from 57% in 1998. Non-customer transactions at on-premise machinesdeclined to 20% of total transactions in 2003, down from 29% in1998, the survey found. The survey also shows, however, that ATMoperating expenses are declining in most categories. The survey wassponsored by credit union-owned CO-OP Network, Pulse EFTAssociation and the Star network, which is owned First DataCorp.