News

Community banks form surcharge-free ATM alliance

January 11, 2005

PADUCAH, Ky. - A dozen community banks, all customers of Computer Services, Inc. (CSI) (OTC Pink Sheets: CSVI), a provider of core processing and other services, have formed an alliance that provides their customers with access to surcharge-free ATMs.

According to a news release, banks do not have to be customers of CSI to join.

Consumers with accounts at member banks will pay no surcharges when using ATMs owned by any of the other banks in the alliance. Alliance members view surcharge-free ATMs as a way to attract new customers and provide better customer service to existing ones.

Currently 12 banks are sharing 68 ATMs.

Debbie Williams, senior vice president of Crestwood, Mo.-based  FirstService Bank, first floated the idea of the ATM alliance at CSI's St. Louis User Group meeting in February 2004.

"When new customers sign up for many of our services," Williams said, "they often tell us point blank that they plan to keep their checking accounts at one of the nation's big banks because 'they have ATMs everywhere.'"

Randy Bono, vice president at Premier Bank in Jefferson City, Mo., faces the same situation. "One of the first questions our new customers ask is 'Where are your ATMs? ATMs are an expensive service a bank has to offer to be competitive. This alliance will help all CSI customer banks leverage the cost of multiple ATMs and allow us to compete with the large banks."

Banks become members of the alliance by paying a one-time fee of $300 per bank, regardless of the number of Bank Identification Numbers (BINs) or bank ATMs. Any BINs added in the future will be assessed a one-time fee of $100, according to the release.

Williams said she would like to see all CSI customers join the alliance.  "Community banks are recognized for providing good customer service. With this alliance, we can join together to do it."