Kalamazoo group serves cash at ATMs in city's McDonald's.

Consumers Credit Union, Kalamazoo, Mich., is doling out cash to members through automated teller machines in local McDonald's restaurants.

The $30 million-asset credit union opened its first fast-food ATM in April and now has machines in three stores.

"We opened our third yesterday," said credit union president Kit Snyder in an interview Wednesday.

"If the transactions continue to rise - boom! - you'll see another. It's the best thing since apple pie," he said.

Consumers is one of a handful of credit unions that have opened machines in McDonald's restaurants with the goals of adding convenience and cutting COSTS.

"We wanted to offer members free ATM service yet still attract income on foreign transactions," Mr. Snyder said.

Suncoast Schools Federal Credit Union, Tampa, opened cash-dispensing ATMs in 20 McDonald's in May.

"We were looking to get a number of machines out and working with McDonald's was the quickest and most effective way of doing it," said Tom Dorety, senior vice president of the $1.1 billion-asset institution.

The credit union operates a 35-machine network.

It's less expensive to the credit union if members use one of its 35 ATMs than if they use a branch or an ATM owned by another institution, he said.

Mr. Dorety said the credit union might widen the program.

"It would depend on how successful this is," he said. "I would not say never, but we don't have any plans at this time."

North Carolina State Employees Credit Union, the country's second-largest credit union with $3.7 billion in assets, has opened ATMs in 90 McDonald's since May 1993.

The credit union owns a 450-machine network.

The Raleigh-based credit union may open more ATMs in the area, said senior executive vice president Bobby Hall.

The credit unions have opened machines in McDonald's because of location and heavy traffic.

"You get 20,000 people walking into a McDonald's every month," Mr. Snyder said.

So far the ATMs have averaged 850 transactions per month.

Opening an ATM in a McDonald's was a third the cost of a free-standing machine, Mr. Snyder said.

Opening an indoor ATM costs between $8,500 and $11,500, compared to up to $40,000 for a stand-alone machine.

Members also feel safe using an ATM in a public place, Mr. Hall said.

"There's a growing need for security," he said.

"Inside a McDonald's is a more secure environment than outdoors."

Terry Brennemen, owner of two Kalamazoo restaurants with the machines, decided to go in with Consumers to draw business and provide customers with a convenience

"Both stores are close to the interstate, so people who are traveling have an opportunity to get something to eat and some money," he said. "When I'm traveling I'm looking for the same thing."

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