News

ISO giving away money at ATMs

March 26, 2003

HOUSTON -- Giving away money may sound like a crazy way for an ISO to conduct its business.

But Nationwide Money Services, a Ponte Vedra Beach, Fla.-based ISO with about 1,200 machines under contract in 35 states, has gotten media attention and increased transaction volumes at two ATMs in the Houston area by randomly dispensing $50 and $100 bills at those machines.

"We're having fun with it," said Sharon Jackson, Nationwide's director of marketing."We wanted to find a different way to let people know that the machines are there."

That was especially important with one of the locations, a Kwik Kar facility that offers oil changes and other automotive services. Unlike the other location, a Handi Stop convenience store, consumers likely wouldn't expect to find an ATM at a Kwik Kar, Jackson said.

The ATMs begin dispensing the larger denomination bills along with the standard $20 bills on March 20 and will continue doing so through March 30.

In addition to the opportunity to get free cash, the Kwik Kar location is promoting its ATM by providing a coupon for $3 off of a full-service lube on each ATM receipt. Noting that a $2 surcharge is collected at the ATM, Jackson said, "Customers who use the coupons make money on the deal."

Jackson's contact at the Kwik Kar facility told her that people have come into the business looking for the ATM since the local media began running reports about it.

Jackson wasn't sure how many times higher denomination bills were dispensed at the ATMs, but she said it occurs frequently enough to generate additional word-of-mouth advertising.

"We knew we needed to get people winning in order to get them to tell their friends about it," she said.

Nationwide is considering similar promotions at other ATM locations, she said.

According to a Nationwide Money release, the company's ATMs dispensed more than $281 million in 2002.