First Data Corp. has signed a long-term agreement with the National Institutes of Health Federal Credit Union to manage its ATM network and provide other financial services. The deal illustrates how payments companies increasingly are forming partnerships to provide a broader range of services to clients. 

First Data announced May 26 it will manage 28 credit-union ATMs deployed in Washington, D.C., and the Baltimore metropolitan area. The Atlanta-based company also will provide signature-debit processing, ATM driving, hardware and software monitoring, first- and second-line maintenance, and Check 21-deposit acceptance.

The deal is part of a two-pronged agreement; the Rockville, Md.-based credit union also renewed its service contract with First Data’s Star electronic funds transfer network. First Data did not disclose the renewal agreement’s terms.

The credit union’s 41,000 debit cardholders also will have access to Starsf, Star’s surcharge-free ATM network. Starsf also will provide cardholder access to Bethesda, Md.-based Allpoint, the world’s largest surcharge-free ATM network with more than 37,500 machines.

In addition, the credit union will lease 28 full-function ATMs from NCR Corp., another First Data partner, JuliAnne Callis, the credit union's president and CEO, tells PaymentsSource.

NCR and other ATM manufacturers are emphasizing ATM-management services as sales of individual machines decline. Most management contracts are for three to five years, industry experts say. 

Duluth, Ga.-based NCR has targeted credit unions. In December, it signed a three-year outsourcing agreement with Co-op Financial Services, enabling Co-op’s credit-union members to lease instead of buy ATMs to reduce their capital expenses (see story).  The National Institutes of Health Federal Credit Union is a Co-op member, Calls says.

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