News

Too many ATM choices confuse Japanese consumers

October 6, 2003

TOKYO - ATMs are proliferating in non-branch locations like convenience stores and railway stations, some now operate around the clock and rules regarding service hours and commissions are losing uniformity, causing confusion among Japanese users.

According to a report in the Daily Yomiuri, consumers say they are having difficulties using and choosing ATMs due to the wide range of services and charges.

Major convenience stores have teamed with banks to install ATMs to lure customers. Although there are restrictions according to the agreements between the banks and convenience store chains, most ATMs at convenience stores accept a number of bank cards that allow users to withdraw money at any time.

Convenience store chain am/pm Japan Co. spearheaded the move when it set up ATMs belonging to Sakura Bank (currently Sumitomo Mitsui Banking Corp.) in March 1999. The nation's largest convenience store chains operated by Seven-Eleven Japan Co. and Lawson Inc. followed in 2001, rapidly spreading the service to consumers.

The number of ATMs in 12 major convenience store chains totaled about 15,000 on Aug. 31, or about 50 times more than in late 1999, according to the Daily Yomiuri. In contrast, domestic bank outlets have about 14,000 ATMs.

(See related stories Sumitomo Bank to install ATM in c-store, Japanese bank to install ATMs at c-stores, Japanese c-store to install ATMs, New Japanese ATM network joins banks, c-stores, Seven-Eleven Japan plans ATM network, Japan's IYBank to begin ATM service May 15, IYBank ATMs go 24/7, Sony Internet bank opens, uses ATMs and Lawson installing ATMs at Japanese c-stores)

Banks also have tried to increase the number of ATMs and extend their service hours. Since September 2000, Ikeda Bank, based in Osaka, has been setting up ATMs in major stations of Hankyu Corp. to improve services to commuters heading to work and school.

Since March 2002, Shinsei Bank has set up machines in 27 major stations on the Keihin Electric Express Railway Co. line in the metropolitan area. Yokohama Bank began installing ATMs in stations on the Odakyu Electric Railway Co. line in October to cover all 69 stations on the Odakyu Line.

Some banks have also increased the number of ATMs operating around the clock. The number of ATMs operating 24 hours a day at UFJ Bank surged from 12 to 308 on Sept. 24. (See related stories UFJ 1st Japanese bank to offer 24-hour ATM service and Japan's Mizuho Bank extends ATM hours)

ATM fees vary by bank, location and time. While some banks such as Shinsei Bank offer 24-hour free service including on the machines of their partners, major commercial banks normally charge 105 yen to about 210 yen (94 cents to $1.89 U.S.) at night, on weekends and on holidays.

Since last year, four leading banks have begun charging fees for daytime use on Saturdays, while attracting large deposits by offering free service during other hours. (See related story Japanese authorities question banks' decisions to add ATM fees)

Bank of Tokyo-Mitsubishi offers five levels of services according to the deposit amount.

Customers with deposits and investments of more than 500,000 yen can use the bank's ATMs, including those at convenience stores, without paying any commission at all hours. Meanwhile the charges for ATMs at convenience stores varies by the bank of the deposit and the store as well as by the hour. The system is complicated by charges ranging from 52 yen to about 350 yen (46 cents to $3.15 U.S.), making it difficult for users to figure out.

Some banks added new functions to their ATMs, according to the Daily Yomiuri. On March 31, Numbers and Loto 6 lotteries became available on all Mizuho Bank ATMs. Payments are deducted from the bank account, while prize money will automatically be transferred to the account.