Mellon Network Services has renewed and expanded an agreement with AT&T Global Information Solutions to provide automated teller machine and debit card processing services to AT&T's banking customers.
Under the five-year agreement, the Pittsburgh-based division of Mellon Bank Corp. will offer ATM terminal driving and processing services. It will process Visa check and MasterMoney off-line debit card transactions for the 600 financial institutions served by AT&T's data processing centers in Glastonbury, Conn.; Columbia, Md.; Framingham, Mass.; Cranbury, N.J., and Dallas.
Mellon had previously been providing ATM services for the Glastonbury and Framingham centers.
Mellon drives more than 2,900 ATMs for nearly 900 financial institutions, including Mellon Bank with 600 ATMs. The network service handled more than 23 million transactions in November, and reached the milestone of one million transactions in one day.
Cliff Hill, vice president and manager of systems for Mellon, declined to disclose financial arrangements with AT&T's Global Information unit but called the agreement "a nice deal for us."
Mellon will offer services to the 600 community banks, all under $6 billion in assets, though the banks may choose to use other providers.
Neither Mellon nor AT&T could estimate the number of ATMs the deal might encompass. "That depends on whether AT&T's customers will enter into agreements with Mellon," said Mr. Hill.
AT&T said some of the banks don't have the electronic tellers yet. But Mellon said it can provide ATMs along with the other services offered.
Mr. Hill is confident that Mellon will pick up new business because of Mellon's experience and its "robust" on-line link with AT&T's service centers. "I suspect we'll price it appropriately," he added.
Mr. Hill said the product offerings will provide the economies of scale necessary for the smaller financial institutions that can't afford to drive their own terminals. It will also offer access to the ATM and debit card world.
An AT&T spokeswoman said small banks will be able to compete better, offering their customers a broader range of services. The telecommunications company is linked to a number of service providers, she said, giving the banks a choice of suppliers.