New York Cash Exchange, the automated teller machine network, may expand beyond the city for which it's named.

Feeling increasing pressure from competing ATM networks to the south and west, NYCE, owned by a consortium of New York banking companies, is talking to Mellon Bank Corp. about forming a venture that would allow it to handle ATM transactions for banks outside of the Big Apple.

NYCE has had informal discussions with the Pittsburgh-based company, say sources close to the talks. Mellon's strengths in back-office processing of payment transactions would fit neatly with NYCE, which is an electronic network that transmits payment information.

Mellon's location in Pittsburgh would also expand NYCE's reach westward, opening the possibility of further agreements with Midwest networks such as Cash Station.

Executives at Mellon and the New York Switch Corp., which operates NYCE, declined to comment on the talks.

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