News

E-Trade and Visa deal to give customers increased ATM access

December 9, 2001

ARLINGTON, Va. -- E-Trade Bank, the branchless banking unit of E-Trade Group Inc.(NYSE: ET), said this week that it has signed exclusive agreements with credit card issuers Visa USA and Visa DPS to enable E-Trade to issue a single card that customers can use at ATMs for access to their bank and brokerage accounts. The deal will give E-Trade cardholders broad access to Visa's network of 22 million merchant locations.

E-Trade said the cards will allow customers using selected E-Trade ATMs to make withdrawals, request balances from and transfer funds between E-Trade Bank and E-Trade Securities accounts. According to a report published by Reuters, the company also will upgrade about half its ATMs with the new technology within the next 18 months.

E-Trade and Visa U.S.A. will work to co-market the new service, while Visa DPS will work with E-Trade to develop new cards that will provide customers with consolidated ATM access

"The Visa agreements lay the foundation for one-card access to E+Trade brokerage and banking accounts," said Mitchell H. Caplan, chief financial products officer and managing director, North America and of E-Trade Group. That service, he added, "will greatly enhance customer convenience and flexibility.'

E-Trade Bank reported assets exceeding $12.7 billion, more than $7.7 billion in deposits and close to 435,000 customer accounts as of June 30.