NYCE Payments Network LLC is cutting ATM interchange and surcharge fees for some transactions beginning Aug. 1, according to the newsletter of the National Association of ATM ISOs and Operators, a two-year-old trade organization, which is chartered in Marietta, Ga. Some 35 ISOs are association members.
The newsletter's June edition reports that NYCE will reduce interchange for off-premise transactions-cash withdrawals and cash advances-to 50 cents from 52 cents.
Secaucus, N.J.-based NYCE also is dropping the 3-cent transaction-surcharge fee for cash withdrawals and cash advances.
In addition, NYCE is charging a 2.5-cent ATM-acquirer fee for all approved and denied NYCE transactions, the newsletter reported.
NYCE notified MetaBank, a Storm Lake, Iowa-based ATM ISO sponsor, of the changes, and MetaBank notified its client ISO operators.
A NYCE spokesperson wrote in an e-mail message that the network, which switches ATM and debit transactions, does not comment on pricing.
However, Raymond A. Varcho, a board member of the National Association of ATM ISOs and Operators, says the reductions will hurt ATM ISOs.
"Costs are going up, but revenue from fees and interchange is going down," says Varcho, who also is vice president and general counsel for WRG Services Inc., a privately held, Willoughby, Ohio-based ATM manufacturer, transaction processor and maintenance company. ATM