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ATMIA publishes results of IAD cash settlement account closure survey

March 19, 2019

The ATM Industry Association has announced the results of its 2019 IAD Cash Settlement Account Closure Survey.

According to a press release, the association conducted the survey in order to evaluate the impact of sudden cash settlement account closures experienced by many independent ATM deployers.

The survey of ATMIA members and nonmembers sought to determine the scale of account closures, the circumstances surrounding typical closures, and how operators are dealing with them. 

The survey found that 12 percent of respondents had never had an account closure and 27 percent had had only one closure. Fourteen percent had experienced more than five account closures. 

Survey results indicated that fleet size played no apparent role in the numbers. Although 42 percent of respondents operate 100 or fewer ATMs, they are about as likely to have a history of three or more closures as an operator with more than 1,000 terminals.

The association said that an especially interesting finding was that 29 percent of respondents who had experienced a closure said that the reason given was that the entity was deemed to be a money services business. 

A bank's risk manager should be well aware of the fact that ATM operations do not fall within the FinCEN and FDIC definitions of an MSB, the ATMIA said. Unfortunately, account terminations are almost never reversed, even when an error has been made.

Independent operators overall do seem to be handling their account closures reasonably well, the release said. Approximately 77 percent said they were given 60 days or fewer to terminate their bank relationship; 96 percent said they were able to establish a new bank relationship in less than 60 days. Although that search can be intensely frustrating, nearly all are successful in the end, ATMIA said.

Download the full survey report. 

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ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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