Newspaper article THE JOURNAL RECORD

Banc One Plans ATM Expansion, Will Charge Own Customers for Use

Newspaper article THE JOURNAL RECORD

Banc One Plans ATM Expansion, Will Charge Own Customers for Use

Article excerpt

NEW YORK (AP) -- Banc One Corp. is planning a vast expansion of its automated teller machines and, in a move criticized by a consumer organization, will charge its own customers to use them.

Over the next 12 months, the Columbus, Ohio-based buyer of Oklahoma City's Liberty Bancorp will add 4,500 cash machines in non- bank locations such as BP Express and Diamond Shamrock convenience stores, and at Mail Box Etc. sites. The cash machines will be located in the 12 states -- most in the Midwest and West -- Banc One already serves.

The new machines, called Rapid Cash, will only dispense cash and will not perform other banking services like Banc One's ATMs do. They will not carry the Banc One logo, even though the bank will own and manage the machines, said Emerson Brumback, director of retail distribution for Banc One. Banc One will charge a $1 for every transaction to Banc One customers and $1.50 to non-customers. "This is a system for delivering cash to consumers in convenient locations, and the only way it's cost effective is to charge for it," Brumback said. Banc One, the ninth-largest bank in the nation, is one of the first big banks to charge its own customers. Currently, most big banks do not charge their own customers to use their ATM services. However, many do impose fees on non-customers who use the stations. But the practice will likely catch on at other large banks, said Ed Mierzwinski, a researcher at the U.S. Public Interest Research Group. "As the banks feel confident that they have enough market power, they will begin to charge their own customers, and they will claim that they need to do it to cover their costs," Mierzwinski predicted. ATMs are popping up in many nontraditional locations such as gas stations, convenience stores, casinos, hotels and even cruise lines. According to Bank Network News, the number of ATMs in the United States grew 14 percent in 1996 to 140,000. …

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