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This article appeared in the ATM & Financial Self-Service Executive Summary, Summer 2006.

In north-central Texas where conditions are hot and dusty, ATMs have to withstand frequent use and constant exposure to the elements. There, thousands of customers count on ATMs for cash withdrawals, balance inquiries and other electronic-banking transactions each day.

Ensuring ATMs have long lifecycles - and make good first impressions - is a priority for Richardson, Texas-based Cash Carriers USA. The full-function ATM company provides armored-car, cash-replenishment and other value-added services to financial institutions and independent sales organizations (ISOs).

"Many of the ATMs we service belong to smaller financial institutions, ISOs and credit unions that simply don't have the resources or the desire to purchase a new full-service ATM, which can cost well over $25,000," said Jerry Gregory, Cash Carriers' chief development officer. "For them, maintaining and prolonging the life of the cash machines they have already deployed is critical."

One way Cash Carriers works with its customers: It renovates existing ATMs - replacing worn-out screens with new LCD technology.

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CRT failure is common and costly. After heavy customer use and exposure to constantly changing weather, an ATM's CRT images can yellow and grow dim. A worn-out screen's surface also may have messages permanently burned into it.
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LCD technology extends the ATM's life and makes the machine look newer and more appealing. And it's less costly to the servicer.

Cash Carriers, using sunlight-readable LCD replacement monitors from Cincinnati-based The ATM Exchange, replaces up to 12 old screens per month. The ATM Exchange's LCD flat screens, which Gregory said last three times longer than CRTs, can be used on NCR Corp.'s 5670, 5684, 5685 and 5688 models. Monitor replacements take about 30 minutes and cost about half of what an FI could pay an original equipment manufacturer to repair or replace a burned-out CRT.

Behind the screens

An ATM's screen is crucial. After all, it is the customer's window to the ATM. But equally important is an ATM's maintenance, which includes regularly scheduled preventative checks, upgrades and installation of replacement parts.

Regular maintenance and upgrades can double the average 10-year life of an ATM, Gregory said. With a newly installed LCD monitor, the ATM owner can get more than five years of 24/7 screen imagery as well as the capacity to display more colorful and appealing screen presentations.

Another factor is standards compliance. All ATMs must meet Triple DES mandates from MasterCard and Visa. Cash Carriers uses ATM Exchange's 3DESPlus upgrade. The security enhancement kit is designed to replace single-data encryption, specifically on Diebold Inc. and NCR models.

The kit includes an encrypting PIN pad (EPP) from Sagem Denmark and an EPP-intelligent router from Thales e-Security, which monitors and intercepts ATM and key management messages.

"Many of our smaller customers don't have the funds to purchase new equipment, and their single biggest concern is making their existing ATMs comply with Triple DES," Gregory said.

Cash Carriers has installed hundreds of upgrade kits, and Gregory said he expects to install hundreds more.

"ATMs have a longer shelf life if the ATM servicer troubleshoots, repairs and services the machine on a frequent basis," Gregory said. "We may perform the repairs or make the service call, but it's the owners who recognize the cost savings through creative upgrades such as 3DESPlus or LCD flat screen solutions. They make the call about getting a better return on their ATM investment by taking extra care with service and maintenance."

Maintaining and extending the life of an ATM requires the right mix of service and parts. Routine preventative maintenance includes checking and changing ATM belts, gears and other parts.

"An annual cleaning is good idea, but an ATM will only remain a top performer if the owner or service provider is meticulous about all aspects of service," Gregory said.

Dave Parlin, president of The ATM Exchange, said extending the useful life of an ATM is as simple as good preventative maintenance, as well as identifying cost-saving upgrades available from innovative sources.