Cash Connect urges opposition to ATM surcharge and interchange limitations proposed in Congress.
May 13, 2010
(302) 283-4153
crossand@cash-connect.com
Newark, Del.—
Dear Friend,
The U.S. Senate is considering a measure that would cap ATM surcharge fees at $0.50.
It is critical that your U.S. Senators hear from you today.
This measure would be devastating to the ATM industry and have broad negative implications for consumers and the
economy.
Capping ATM fees is a lose-lose scenario for consumers, and small businesses.
- Consumers lose because there would be a dramatic reduction in the number of ATMs available
for their convenience. A $0.50 surcharge would not generate enough revenue to cover the
cost of operating many ATMs, which would lead to their removal.
- Small businesses lose because thousands of small businesses such as gas stations,
convenience stores, and independent ATM operators rely on ATM surcharge revenue to
stay in business and create jobs. These ATMs dispense tens of billions of dollars annually,
which drive sales in these retailers and our greater economy.
I strongly urge you to do two things today:
- Call your U.S. Senator's offices today and ask them to oppose any caps on ATM surcharge and
interchange fees. Click
here to find the U.S. Senators from your state.
- Send this email to your co-workers, vendors, merchants, family, and friends and urge them to do
the same.
The measure's sponsor, Sen. Tom Harkin (Democrat-Iowa), claims that the cost to process a transaction is a mere $0.36, and adds "It's unfair for people to pay that
much to access their own cash," referring to any surcharges that exceed $0.50.
You and I both know that there are numerous costs involved with operating an ATM including equipment depreciation, maintenance, communications, supplies, cash costs, just to name a few. In fact, the 2006 ATM Deployer Study, published by the Star Network, estimated that the average monthly cost of deploying an off-premise ATM for banks and ISOs is $1,450 per month, while total surcharge and interchange revenue at the average off-premise ATM is only $1,013. The study further demonstrates the cost per transaction for ISO's is roughly $1.75 per transaction, nearly 5 times the figure stated by Sen. Harkin.
Further, consumers continue to have numerous options to access cash surcharge-free such as their bank's ATMs or cash-back at the point of sale. ATMs charging a surcharge simply provide additional options for their convenience.
Passage of this legislation would cripple the ATM industry and hurt consumers.
Our immediate action is imperative both for our ATM industry and the free-market system that made our nation great. We cannot allow our government to set arbitrary prices for products and services that would cause our businesses to operate at a loss.
Please take a few moments to call your U.S. Senators today and ask them to oppose any caps on ATM surcharge and interchange fees.
Thank you for your shared commitment to the ATM Industry.
Sincerely,
John Clatworthy
SVP Client Services
Cash Connect
