ATMIA Updates Position Paper on Variable Surcharging

The ATM Industry Association (ATMIA) has released an updated version of its “ATM Convenience Fee Position Paper”.  Originally published in 2006, the paper states ATMIA’s position that the freedom to apply a convenience fee on ATM transactions is a fundamental economic and business right for both Independent ATM Deployers (IADs) and all financial institutions, and is a practice which is conducive to greater convenience, choice and fee transparency for consumers.  In light of reduced interchange and the continuing erosion of competition between regional and global networks, this freedom is absolutely critical.

ATMIA urges all ATM networks to remove any rule that prohibits differential variable ATM convenience fees. The removal of such restrictions stifling competitive price movements, would encourage the use of more cost-effective networks and make ATM networks far more competitive and sustainable for a dual-sector industry than is currently the case.

The inability to vary cost-based ATM convenience fees in response to supply and demand dynamics will lead inevitably to a shrinkage of the convenience ATM market, as is happening already in some regional markets; which, in turn, will reduce expenditure of cash at retail locations, and thereby damage consumer economies around the world.

“The lack of flexibility to reflect differences in the cost of accepting transactions from the various ATM networks has been an issue for more than a decade” explains ATMIA US Executive Director, David Tente.  “And the costs and impact of other changes brought about by EMV migration further exacerbate the problems in the U.S.  Relief, in the form of rule changes, is needed for the health of the entire industry.”

The updated Position Paper may be downloaded from the Advocacy page of ATMIA’s website and is available to both members and non-members.