A huge nonbank-owned network of automated teller machines just got bigger.
Affiliated Computer Services Inc., Dallas, signed a contract this week with Card Capture Services Inc., effectively adding 450 ATMs to Affiliated's MoneyMaker network, bringing its total close to 3,500.
Under the agreement, Affiliated will provide comprehensive management and network services for Card Capture's clients, located mostly in four northwestern states - Washington, Oregon, Idaho, and Montana - thus extending the reach of the network, which previously did not have much penetration in that region.
The clients, who own the ATMs on their premises, include convenience stores, gas stations, restaurants, bowling alleys, and other retailers.
"Our goal is to provide new income opportunities for retailers throughout the U.S.," said Thomas M. Rouse, executive vice president of Affiliated. "This is a major step forward."
The latest move buttresses Affiliated's position as the third-largest deployer of ATMs in the United States.
An Affiliated spokesman said the company's goal was to surpass Electronic Data Systems Corp. (5,550) and BankAmerica Corp. (5,600) to become the nation's top deployer of ATMs.
"We will continue to go after the ATM terminal driving business, which will bring several hundred more ATMs onto MoneyMaker," said Jim Stewart, Affiliated senior vice president.
"We will also aggressively pursue alternative service providers like independent sales organizations or independent distributors," Mr. Stewart added. "By working with these organizations, we will grow much more quickly than we could do on our own."
He said much of the conversion work involving the Card Capture ATMs was completed last week.
The contract with Card Capture Services, a Portland, Ore.-based nationwide reseller of ATM systems, continues Affiliated's strong growth in the placement of ATMs in retail locations.
Affiliated executives say they are focusing their energies on placing ATMs in places the banks are not interested in.
"We do not consider ourselves a competitive threat to the banks," said Mr. Stewart. "There's very few banks that are going to want to go after the market we are targeting, namely second and third-tier retailers."
Industry watchers tend to agree that the nonbank ATM deployers do not pose a threat to banks.
"For banks, it is more a philosophical concern than a real one," commented Stephen S. Cole, chief executive officer of Cash Station Inc., a Chicago-based regional banking network.
Card Capture Services provides transaction processing and systems management in the ATM and point-of-sale debit environments. Its merchant- owned ATMs average 600 transactions a month.
Affiliated and Card Capture Services will now work to extend the reach of the network even further. The two companies have agreed to jointly offer ATM systems and services through the Fleming Cos., one of the nation's biggest food marketing and distribution companies.
