A growing consumer preference for cash has led to the steady use of ATMs by credit union members, slowing an overall decline in the use of the machines, according to a survey of credit union leaders by Credit Union 24 Inc., a Tallahassee, Fla.-based network with more than 100,000 ATMs.
At the same time, purchases at point-of-sale locations have remained steady, but they are growing at a slower rate than ATM cash withdrawals and that has credit union leaders worried because financial insitutions are losing interchange revenue.
Jim Park, president and CEO of Credit Union 24, which also operates hundreds of thousands of point-of-sale terminals at national and local retailers, explained why some credit union leaders are wringing their hands.
"While this is not a bad thing, it was a major focus of credit unions last year—as illustrated by survey data—to move members towards cash-back at the point of sale, as this generates interchange income compared with ATM transaction cost," Park said. "While the financial reform legislation has caused much uncertainty, the more that credit unions can continue to drive members to increase income-generating behaviors, the more it will benefit credit unions in the long term."
