KING OF PRUSSIA, Pa. — Surcharge-free ATM transactions are increasingly critical for customer and member retention at banks and credit unions. And a growing number of financial institutions across the board are signing with the Select-A-Branch ATM Network to extend their brands and provide a valuable surcharge-free service.
According to a news release, SAB's patent-pending technology and business process allow SAB ATMs to recognize individual card issuers when cards are inserted. If the issuer is an SAB ATM, the ATM automatically presents a transaction screens to display the issuing FI's brand logo, colors and advertisements to the cardholder. The transaction is then delivered surcharge-free, which is perceived as a consumer service and another reason for the cardholder to value the institution's brand.
PNC Bank's senior vice president of electronic banking, Jim Walker, says the Select-A-Branch ATM Network has helped him reach PNC's New York-based cardholders.
"With relatively few branches in New York City, we needed to improve our access to our existing and prospective customers, in terms of branding and service," Walker said. "This presented two very expensive options: Fight for ATM locations and real estate in one of the most high-priced cities in the world, or seek to acquire a local institution with access to the market. SAB provided a third option, and one that allowed a pay-per-use model that guaranteed that our investment was actually reaching our target audience at the point of consumption."
Network participation requires that the financial institution agree to reimburse SAB for the surcharge fees waived for their customers and members. The pay-per-use model, which SAB says is an industry first, provides a measurable customer impact with no additional costs. The transaction-based results generate a fee structure that is congruent with an institution's size and geographic spread, opening the door to participation from institutions of all sizes.
"Having access to free ATMs is a big motivator for me to stick with TD Bank," said Janet Treadaway, a TD Bank customer. "And during this big shake up in the banking market, it certainly helps to see my bank making an effort to connect with me."
