Profitable Fees Spur Spread of Automated Teller Machines

By Peter Sinton San Francisco Chronicle | THE JOURNAL RECORD, November 11, 1997 | Go to article overview

Profitable Fees Spur Spread of Automated Teller Machines


Peter Sinton San Francisco Chronicle, THE JOURNAL RECORD


Chevron stations are quickly becoming places where you can fill up your wallet as well as your gas tank.

Since August, the San Francisco-based oil giant has installed automated teller machines at 457 of its 600 company-owned gas station convenience stores in 11 states. As many as 5,500 of 7,500 independently owned Chevron brand stations and convenience stores around the country also might add ATMs.

Cash machines have been spreading well beyond banks and supermarkets. They are popping up in airports, amusement parks, bars, bowling alleys, casinos, colleges, hospitals and hotels. There are now more than 165,000 ATMs around the country. That's up more than 26,000, or nearly 20 percent, from 1996, according to the trade publication Bank Network News. The number of "off- premise" machines owned by banks and others like Chevron have more than doubled since 1994 to 67,000. Banks still control 75 percent of all ATMs, including those located off-site. But more machines are being located away from banks. "Previously ATMs were a customer convenience," said John Hall, spokesman for the American Bankers Association. "At best they broke even or made a tiny profit." That has changed since the two national ATM networks, Plus and Cirrus, ended their bans on surcharging noncustomers a year and a half ago. Today consumers who use an ATM that is not owned and operated by their own bank pay an average $1.11 fee for the privilege of extracting cash. That is on top of the typical 55-cent "interchange" fee that the ATM owner gets from the user's own financial institution. Most owners charge $1 to $1.50 in transaction fees. But casinos commonly impose a $5 surcharge and some take as much as $10, according to Bank Network News. Chevron is following the example of some of the biggest ATM network owners -- No. 1-ranked BankAmerica and No. 4-ranked Wells Fargo -- and collects a $1.50 surcharge. Chevron would not comment on the economics of its ATM commitment. But John Jorgenson, a Chevron convenience store retail manager, said, "If we have 1,000 transactions per location per month, I'd be a happy camper." ATMs don't come cheap. The machines Chevron buys from NCR cost about $15,000 each. On top of equipment costs, owners generally pay $1,000 to $2,000 a month to maintain the machines, including cash replenishment, servicing, telephone costs and rent. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Profitable Fees Spur Spread of Automated Teller Machines
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.