Magazine article American Banker

Cash Station Picks EDS Switching Service

Magazine article American Banker

Cash Station Picks EDS Switching Service

Article excerpt

Cash Station Inc. has selected Electronic Data Systems Corp. to handle core transaction switching services for the regional automated teller machine network.

"We're very excited about this partnership," said Stephen S. Cole, president and chief executive officer of Cash Station. "EDS is offering us brand-new technology. They can take us in new directions, which our members want."

Neither party disclosed the contract price.

Under terms of the agreement, EDS will take over ATM switching functions Nov. 1, 1995.

Until then, the Chicago-based network will continue to use Midwest Payment Systems Inc., a unit of Cincinnati's Fifth Third Bancorp., which had supplied Cash Station's switching services for eight years.

Mr. Cole said Cash Station was not dissatisfied with either the cost or quality of MPS' services but felt a fiduciary responsibility to put the switching out for bid.

About this time last year, Cash Station had agreed to merge with Magic Line Inc., the dominant regional ATM network in Michigan. In that deal, which later fell apart, NDB Bancorp of Detroit, a partial owner of Magic Line, would have taken over Cash Station's processing.

When the Cash Station/Magic Line merger fell through last May, Cash Station decided to request proposals from other vendors of switch services.

"EDS rated highest on all four of our key criteria: cost, quality, functionality, and management philosophy," said Mr. Cole

The contract is viewed as a big win for EDS, which supplies switching services to several smaller ATM networks. …

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