Two New England trade groups called off plans to work together to create a network of automated teller machines that don't charge fees.
Instead, the Massachusetts Bankers Association and the Community Bank League of New England will create separate alliances of surcharge-free machines.
The goal remains to offer customers an alternative to surcharges, typically $1 or more for customers who use other banks' ATMs.
The two groups, which met Tuesday, parted over several issues: who would control the alliance, when it would begin, and whether to allow credit unions to join.
The Community Bank League didn't want to relinquish half of the oversight of the network to the larger trade association. And the group's leader said the Massachusetts Bankers Association wanted to put off the network's inception too long.
Meanwhile, the Massachusetts Bankers Association didn't agree that credit unions - the industry's main foe - should be able to join the alliance. And the trade group felt the Community Bank League was moving too quickly.
Both sides say they are disappointed by the split and aren't writing off a partnership in the future.
"It's unfortunate," said Jane C. Walsh, president of Northmark Bank in North Andover, a Massachusetts Bankers Association member. "It would be better if we had worked together to get it done."
She said it's not logical for the smaller group to go it on its own since the network needs volume to succeed.
The Massachusetts Bankers Association, which has 210 members, said it has 500 to 700 machines that might join its network. Massachusetts has approximately 3,300 machines, of which 62% are controlled by Fleet Financial Group and Bank of Boston Corp.
Fleet is considering a surcharge on its ATMs, while Bank of Boston said it is not.
The Community Bank League of New England, which represents 115 thrifts, has pledges from 90 institutions with about 300 ATMs in at least four New England states.
Donald S. Glass, president of the Community Bank League, said that timing was the biggest problem. His group wants to start providing customers a network of free ATMs in January.
Then there was the issue of who would be in charge.
The Massachusetts Bankers Association wanted to create a separate board to run the network, with both groups having equal control.
Mr. Glass downplays the importance of control issues, but he said that his group was opposed to sharing equal control with one state organization. He worried that Fleet and Bank of Boston - the two largest Massachusetts Bankers Association members - would have too much control of the alliance.
"Mass Bankers were a little surprised to learn that we wouldn't acquiesce to their calling it equal control," Mr. Glass said. "We're calling it big bank control."
