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Advertisements Vs. ATM Fees

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Advertisements Vs. ATM Fees

ATM fees are just one of those touchy subjects that can make even the meekest of personalities take a turn and show a wild side. That could be mainly because ATM fees vary so widely from one ATM owner to the next and from one financial institution to the next. This can make it virtually impossible sometimes to get a reasonable grip on what’s fair to outrageous to pay. Of course, for the customer, fees are about paying the lowest amount as possible. But for the ATM owner, fees are an integral part of doing business, so while there is a desire to be reasonable, they must also stay competitive in the market just to stay on level with other ATM institutions.

Creative Advertising

While assessing ATM fees are certainly an important part of doing business, they’re not always welcomed or embraced by customers. There can be a lot of complaining about the rates, and even requests for refunds from customers who may decide to challenge the fee amounts based on several criteria. At any rate, the ATM owner has to become creative at ways to keep his customers happy enough to continue doing business with his establishment. And, at the same time, the owner must try to develop a workable solution that will keep a crucial and much-needed revenue stream coming into his financial business.

ATM advertising is a possible solution that owners can implement that may help to solve some of the customers concerns. It’s an on-screen video message where the customer agrees to watch a pre-recorded advertising message in return for reduced or an elimination of ATM surcharges. The customer is given this option when they begin making their transaction, so there are no worries that the commercial will just simply “play” for them, without their permission. Infringement on a customer’s time in that way can be annoying, so ATM owners want to be sure be aware of that possibility and offer the customers options.

With this type of marketing and advertising, both the customer and the ATM owner are appeased on different levels; the advertiser for agreeing to play the advertising video compensates the ATM owner, and the customer (possibly) pays a significantly reduced bank fee in exchange for watching the advertiser’s sales pitch. The sales pitch usually won’t take any longer to view than it would to make an ATM transaction, so there is no lengthy, inordinate amount of time spent watching video commercials while standing at the ATM machine. Usually, the ads will be anywhere from 10-30 seconds, just enough time to capture the customer’s attention and make a lasting sales impression.

The ATM owner and the advertiser will work out and negotiate the terms of the advertising contract. They will determine how long, how frequently and what style of commercial is best suited for the machines. Varying factors can determine ad costs, which is why negotiation is crucial. Since this type of advertising is vastly different from print or even television advertising, it’s important to look at the overall marketing package in terms of quality, relevance and style and not just length. For instance, in some cases, the advertiser will need to negotiate the rate based on the length of the commercial, whether it’s 10 seconds or 60 seconds, especially if it’s for a well-known product or brand.

Coupons and More Savings

Another feature that gets the customers attention is the tear-off coupon that’s at the bottom of their banking receipt. These receipts are good for other services or products that are with local businesses in the area, encouraging customers to keep their business with local establishments. This also incentivizes the business owners to place ads with the ATM machines, especially if they’re trying to target a certain demographic or entice the foot traffic that surrounds the area where the ATM is located.

What makes these types of transactions so worthwhile is because the advertisements are targeted specifically to ATM-style audiences, so it’s something (a product or a service) that would interest the customer. The customer does however have the option to “opt-out” of the feature and choose to not watch the videos. If the customer does go this route, they usually will have to agree to pay the ATM fees.

 

The Reason for ATM Fees

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It’s not always a bad thing, but talking to a few banking customers will give you a lot of insight about how they feel on the subject of ATM fees. They will tell you that paying outrageous ATM fees, for them, is sometimes annoying and even alarming. It can be quite alarming if the customer has to use an ATM at a location where they weren’t expecting to get such a high usage rate attached to their transaction. For the ATM owners, the more profits that they can charge and obtain, the better it is for their business’ bottom line. But for the customer, finding the ATM with the lowest to no ATM transaction fee is going to be the ideal situation.

Great for the Owner

The Reason for ATM Fees

Without a healthy bottom line, the ATM owner doesn’t have the financial resources he needs to provide a quality service to his customers, not to mention a much-needed convenience that some customers love. ATM fees allow owners to offer their customers the latest software updates for their transactions, a faster processor on the machine, equipment that’s in excellent condition and the peace of mind in knowing that the machine will always be able to accommodate their cash requests whenever they need it to. Not to mention also that ATM owners are furiously competing with one another on getting the bulk of the ATM business traffic, so it’s in their best interest to offer customers an attractive deal in return for their business.

Great for the Customer

For the customer, exorbitant ATM fees could mean less trips to the ATM, or, going out of their (convenient) way to find a machine that charges less that machines that are closer to them. Some customers will even go out of their way to transact with ATM machines that charge anywhere from $.50- $2.00 less than the machines that are closer to them, all to save as much money as they can. However, when the customer takes his business elsewhere, the ATM owner could possibly feel the effects of it and may feel compelled to lower their rates in order to draw that customer back.

So, who should profit more and be better accommodated? The ATM owners… or the customers?

Where Do ATM Fees Go?

As far as ATM fees go, sometimes these charges are implemented solely for the customers who are non-members. That means that if a customer doesn’t already bank with an institution or have an account with that bank, they may be charged an ATM fee in order to perform a transaction by withdrawing money or using another banking service. In other cases, relatively fewer, fees are often charged to all customers, regardless of whether or not they have an account with that particular banking institution. One of the biggest complaints that customers have of exorbitant ATM fees is that since there isn’t a human teller helping them with their transaction, there is no reason why the fees have to be so incredibly high, or at best, no reason why there has to be such frequent and periodic steep increases just to access that bank’s financial services.

Fees…For What?

One of the main reasons as to why there are ATM fees is simply to manage this service and to keep it running smoothly and conveniently for the bank or ATM owner’s customers. In fact, there is software that has to be upgraded on a routine basis, that which is often covered with fee services. The machine also has to be repaired on occasion, or at the very least, maintained for service. There is also the insurance responsibility that is required for ATM machines that owners have to take into account in case of theft, natural environmental causes or other issues. When a customer is a member of a bank, these types of maintenance fees are built into either the customer’s monthly fees or through fees to their accounts if their balances fall below a minimum balance requirement.

So while having ATM fees assessed to customers is not at all a “waste,” it helps when customers understand the need for these types of fees and why some banks charge one amount while other banks charge another. The best thing for ATM owners to do to keep a steady stream of business is to keep their fees reasonable but comparable to what their competition is charging in the market. For customers, it’s a good idea to try and be as consistent as possible with one banking institution so as to cut down on the amount of fees that they pay out, but ideally it’s best to be a member of the banking institution where they frequently use the ATM machine. This will help to ensure that their fees stay stead

ATM Fee Disclosure Reform

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In a world of conveniences that make daily necessities much better, access to ATM machines are probably at the top of many lists. ATM machines are certainly a welcomed convenience for customers, especially when they’re pressed to get cash in a hurry and they’re looking for the nearest ATM machine(s). As ATM owners, providing such a welcomed service in prime locations can also be quite lucrative and provide a steady flow of customer traffic. It’s a win-win situation for both the customer and the ATM machine owner, that is, until there are miscommunications or underhanded things done that adversely affect ATM owners. While they are a great idea and convenience to have, what’s not so great is when situations arise where customers sue machine owners because of this wonderful convenience.

Are There Fees?

Are There FeesCustomers generally understand that when they use an ATM machine at a bank or a location other than their main banking facility, they can expect to pay a small to moderate user fee for the service. The fee amount can vary from one facility to the other, but there will invariably be a fee incurred by the user. There is rarely, if ever, no machine user fee, so the notion of “no fee” is really not expected.

Surprise Lawsuits?

Another thing that’s not expected is the litany of lawsuits that ATM owners have had to deal with for supposedly not disclosing their ATM machine fees to customers. Several lawsuits ranging in varying dollar amounts have stated that the usage fees were not displayed in plain sight and they were not knowledgeable of the fees before they made a transaction. Therefore, because the defendant (the ATM owners) are responsible for ensuring that the fees notifications are prominently displayed on the unit, the monetary lawsuits were awarded in favor of the plaintiffs. So why were the notices not in plain sight?

The New ATM Bill

This is where things get a little controversial. Notices can be placed with a sticker on the unit, notifying the customer of the fees. The problem is that the stickers were constantly being removed (weather conditions, theft, etc.) in some cases, making it appear that the owner wasn’t providing optimal customer service. This problem needed a solution. There had to be a better, more ideal way to apprise the customer of the fees. That answer was in the amendment of the Electronic Fund Transfer Act, more specifically H.R. 4367. This amendment works to protect ATM owners and also to discourage those frivolous lawsuits that were beginning to drastically increase.

 

The newly reformed ATM Fee Disclosure bill now protects ATM owners as it eliminates the requirements that were originally set forth in the amendment that required ATM owners to have and display a physical sticker which notified customers of the ATM service fees.

ATM Changes for Owners

ATM Changes for OwnersWith the new bill in place, all that ATM owners would be required to do is to continue to apprise customers of the service usage fees, but they can now display that information digitally on the screen. Customers have the option to accept or deny any charges associated with the ATM machine when using it to access cash withdrawals. This new system also eliminates faulty problems that were occurring with the notification stickers and them “getting lost” so frequently. So whether the missing stickers were due to acts of nature or from malicious intent, ATM owners no longer have to worry about lawsuits resulting from not having fee information displayed on the machines.

 

ATM owners are glad and relieved to know this good news. The problem with the lawsuits was affecting the owners in a very negative way having to constantly defend their compliance with the notifications. With digital notices, customers can and are required to read and accept the full disclosure sentence regarding the fees, and they must do this before the ATM machine continues to transact their request. This means no more misunderstandings, miscommunications and best of all, no more lawsuits.

Things to Do Before Starting an ATM Business

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Three Major Things to Do Before Starting an ATM BusinessWithout a doubt, the ATM business is a very easy and quite lucrative one to get into. Everyone from the small business owner to the large corporation understands the immense benefits that abound in owning and managing an ATM business. ATM business owners can position their machines at most any well-trafficked location and see a return on their investment in a short matter of time. The key to success is choosing the right company to go with in setting up an ATM business, and knowing how to properly organize and manage it for optimal, profitable results.

The ATM business is one that can easily be a long-term, high-profit business that grows each year, but it’s important to ensure that the business is properly set up from the beginning. Everything from ATM software, security, location and management needs to be considered seriously before any real profits are seen. This is also important so as to keep those profits coming in while keeping business expenses as low as possible.

Here are a few tips to review and make sure are they’re on your checklist as you start the ATM ownership process:

1. Determine Ideal Setup

How do you want to manage the ATM business? Several options include owning and managing the machine, or, owning it and having someone else manage it by loading it with cash as necessary. Perhaps there will be another owner, and you simply manage the machine. Either of the options depends solely on your personal preferences and what works best for your end goals. Be aware however that you will need to ensure that the proper legal paperwork is in place to protect liabilities, especially since this area of business involves handling large amounts of cash.

2. ATM Machines, New or Used?

This is another consideration that’s best determined by your budget or preferences with the style and functionality of the ATM machine. Buying a used machine vs. a new one will definitely save you a significant amount of money on cost, but it’s also important to be sure that the used version will have all of the features and capabilities that it needs in order to draw in favorable traffic. Also, newer, more current models are going to have current software and run more efficiently, but if you’re considering planting multiple ATM machines in different locales, your best option may be to invest in used models until you break even with your profits.

3. Find ATM Dealers

In addition to thinking of either new or used machines, you also have to consider from whom you purchase your machine. It’s imperative to use only reputable dealers and ATM machine processing facilities with whom to do business. Make sure that the company has a stellar client support system for questions and setup. Also ensure that there are warranties included with your equipment so as to avoid any issues later on. Unless you know of a third party either on a personal level or you’re very familiar with the brand and model of an ATM machine, it is not a good idea to buy your machine from a private party or individuals who list an ATM machine for sale.

Finally, as it is with customer service in any business, ensure that the ATM processing company that you select has a generous support system for their clients. Scope out a processing company that offers 24 hour, 7 days a week support, and also has multiple contact numbers to reach them, preferably toll free numbers. This is important for customers because ATM owners will have all different hours, night and day, where they will be working and managing their machines. They need access to customer support just in case they run into any issues, and at any time of the day or night. Take note of whether or not live callers answer the phone lines, or if there is an automated message. If you get an automated message, test the call by leaving a voice mail message asking for more information. Notice the length of time that it takes to have your call returned, and this is a good indicator of how you’ll be treated once you become a customer.