GLENDALE, Ariz.-Three Arizona credit unions are participating in a pilot program to dispense Visa Gift cards at walk-up and drive-through ATMs in select locations throughout the Grand Canyon State.
The program is being offered by Visa, Inc., and Mesa, Ariz.-based ATM technology company Better ATM Services. The credit unions involved are: $450-million Credit Union West, here; $30.5-million MariSol FCU, Phoenix, and, $92.1-million Pinal County FCU, Casa Grande.
"We have two motivations for becoming involved in the pilot program," said Bob MacGregor, CEO of Credit Union West. "First, we try to be an innovator in the industry-we were the first credit union in Arizona to issue a debit card. Second, we saw this as a safe, convenient service for our members."
For members and non-members visiting the three participating credit unions, ATM menu screens include a "Purchase Visa Gift Card" option and a prompt to designate the value to load on each card. Cards are available with no activation fee in $25 denominations during the pilot. Better ATM Services said the new ATM-dispensed Visa Gift card is made of a durable yet thinner material, which allows cards to easily pass through the cash mechanisms of ATMs.
Better ATM Services CEO Todd Nuttall said the pilot program is "just the first step" in a larger strategy to make availability of gift cards at ATMs commonplace.
Eight of Credit Union West's 11 branches are in Maricopa County, which includes Phoenix, and those eight branches are part of the pilot. MacGregor said the CU has banners outside the participating branches and an automated display in the lobbies that features a cardboard cutout.
"We started Dec. 19, just before Christmas," MacGregor said. "We wanted to get it out a little bit earlier, but when dealing with a big company such as Visa things take time. I should add Visa has been really supportive."
MacGregor said Credit Union West views the program as a way to add extra convenience for it members. He said the need for gift cards is "becoming more and more important," and the ability to buy one safely 24 hours a day "is a cool thing for our members."
No Fees During Pilot
The pilot program currently is operating without fees. When the pilot winds up later in the spring MacGregor said the parties involved will decide if there will be a per-card fee.
"The normal fee is $4.99, but we would be much more competitive than that," he said.
The future of the program will include the purchaser choosing the exact amount of the gift card. MacGregor said he is "excited to allow members to customize the card amount. This card is a polyester type composite that is very durable, allowing it to be thinner yet still work in a card reader."
