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Diebold makes play for off-site market with ATM franchise program
March 6, 2002
NORTH CANTON, Ohio -- Diebold, Incorporated (NYSE:DBD) is introducing the first-ever ATM franchise program in an attempt to get more of its machines into off-site retail locations.
Retailers will lease space to Diebold, which will install and service a Diebold cash dispenser. Diebold will own the machine, and retailers will recycle their own cash by depositing money directly into the unit. The merchant will pay Diebold a monthly fee of $84, which will be waived when transactions exceed 150 a month.
Diebold will share surcharge revenue with the merchant, based on the number of monthly transactions. A retailer will get 40 percent of surcharge revenue at the 150-a-month transaction level but could earn up to 95 percent of the surcharge if transactions exceed 750 a month.
"It's a win-win situation for everyone involved," said John Titko, national sales manager of Diebold's Retail Division. "People typically associate a franchise with fast food chains, but we've taken it a step further with a solution that lets merchants pass on a value-added service to their customers."
Diebold designed the franchise program to provide more continuity and stability for merchants.
"Other ATM programs have been very disappointing to many retail merchants who have experienced the unanticipated removal of the ATM," Titko said. "The Diebold program is designed to ensure contract fulfillment by being economically viable at lower transaction levels and distributing transaction revenue in a fair and equitable manner."
Retailers will lease space to Diebold, which will install and service a Diebold cash dispenser. Diebold will own the machine, and retailers will recycle their own cash by depositing money directly into the unit. The merchant will pay Diebold a monthly fee of $84, which will be waived when transactions exceed 150 a month.
Diebold will share surcharge revenue with the merchant, based on the number of monthly transactions. A retailer will get 40 percent of surcharge revenue at the 150-a-month transaction level but could earn up to 95 percent of the surcharge if transactions exceed 750 a month.
"It's a win-win situation for everyone involved," said John Titko, national sales manager of Diebold's Retail Division. "People typically associate a franchise with fast food chains, but we've taken it a step further with a solution that lets merchants pass on a value-added service to their customers."
Diebold designed the franchise program to provide more continuity and stability for merchants.
"Other ATM programs have been very disappointing to many retail merchants who have experienced the unanticipated removal of the ATM," Titko said. "The Diebold program is designed to ensure contract fulfillment by being economically viable at lower transaction levels and distributing transaction revenue in a fair and equitable manner."
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