A reciprocal agreement between two operators of ATM networks illustrates consumers' growing preference for cash and how some businesses are responding to the demand.
Credit Union 24, the nation's largest credit union-owned ATM and point-of-sale network, and Alliance One, one of the country's largest credit union surcharge-free ATM groups, announced Thursday that they are expanding ATM/POS and surcharge-free ATM access for participating credit union members in their organizations' respective programs.
According to the marketing arrangement, Tallahassee, Fla.-based Credit Union 24 members and future members will have the opportunity to utilize Alliance One's nearly 5,000 surcharge-free ATMs if they choose to do so without paying an implementation fee to join the low-cost ATM cooperative. Alliance One, which is based in Columbus, Ohio, deploys ATMs in 43 states, Washington D.C. and Puerto Rico. More than 1,500 financial institutions are Alliance One members.
As part of the agreement, participants of Alliance One who receive service through Corporate One Federal Credit Union, which founded Alliance One in 1998, now will be able to add the Credit Union 24 gateway to their ATM/debit card programs and receive a $300 rebate on the set-up fees. Credit Union 24 operates 55,000 fee-free ATMs nationwide.
Jim Park, president and CEO of Credit Union 24, said the partnership is necessary.
"According to our recent credit union industry survey, ATM usage among credit union members remains steady, with fewer credit union leaders, citing a decrease in ATM usage, as behavior was trending in the past," Park said. "This combined with national trends illustrate how consumers are continuing to rely more heavily on cash-based transactions, dictating the need for our industry to maintain and expand fee-free ATM access to our members. Alliance One's cooperative structure mirrors the very foundation of our movement, and it's a business model that Credit Union 24 embraces wholeheartedly. To be able to provide expanded surcharge-free ATM access without negatively impacting the bottom line is a win-win situation for everyone involved, particularly the credit union member."
By providing credit unions with expanded ATM and POS access, it will help credit unions compete with larger financial institutions and provide the very best services to their members, said Lee Butke, president and CEO of Corporate One Federal Credit Union.
Credit Union 24 has hundreds of thousands of POS locations with national and local retailers and more than 100,000 ATM terminals across the country.
