Independent ATM deployers have seen transaction revenue decline steadily over the last 10 years because of market saturation, competition with surcharge-free ATM networks, cash-back debit options and the expense of meeting more stringent regulatory and security mandates.

But perhaps the biggest threat to the infrastructure of retail, off-premise ATMs in the U.S. has been fluctuating interchange fees – fluctuations that have not worked in deployers’ favor.

To address interchange concerns, the ATM Industry Association and Kahuna ATM Solutions have produced a new white paper, The Future of ATM Interchange, which explores options for preventing further reductions of interchange revenue.

Lower interchange rates that the card networks have adopted to appease merchants have hurt ATM operators, the authors of the paper said in a press release.

“The balance between supporting the needs of the issuer and the needs of the acquirer have to be resolved in order to protect independent deployers,” David Tente, ATMIA U.S. executive director, said in the release.

The white paper, available for download from the ATMIA and Kahuna websites, covers interchange’s history, tactics deployers can use to increase revenue under current network rules, lessons from international markets, and what ATMIA and other groups are doing to stop interchange erosion.

“I believe IADs will find the white paper very informative,” Bryan Bauer, Kahuna president, said in a release. “The better we understand the issues that impact interchange, the better prepared we will be to protect our businesses and work together to eliminate further decline in our revenue.”


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