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TECHNOLOGY |
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ATMs
The growth of online banking, electronic payments and deposits, and automated teller machine (ATM) usage has been driven by customer demand for greater convenience. ATMs were introduced in the mid-1970s. By 2007 there were some 415,000 ATMs in the United States, almost four times the number of bank and thrift branches in 2007. ATMs increasingly are being installed in places where consumers may want access to their money such as supermarkets, convenience stores and transportation terminals.
The ATM business consists of three major entities: ATM cardholders’ banks, the ATM network that links banks in other locations and the owners of the ATM machines, which may or may not be banks. Most banks allow their own customers to withdraw money from their ATMs free of charge but charge a fee to other banks’ customers. These charges help offset the cost of ATMs and fees banks must pay to the ATM network system.
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OFF-PREMISE ATM DEPLOYMENT, 2003-2007 (1)
Year |
Total ATMs |
Off-premise ATMs |
Percent off-premise |
| 2003 | 371,000 | 238,000 | 64.2% |
| 2004 | 383,000 | 263,000 | 68.7 |
| 2005 | 396,000 | 266,000 | 67.2 |
| 2006 | 395,000 | 260,000 | 65.8 |
| 2007 | 415,321 | 236,732 | 57.0 |
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(1) ATMs located away from financial institution branches.
Source: ATM & Debit News. |
| - The first ATM in the United States was installed in 1971 at the Citizens & Southern National Bank in Atlanta.
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ANNUAL PIN-BASED VOLUME, 2003-2007 (1)
(millions)
Year |
ATM volume |
POS volume (2) |
Total volume |
| 2003 | 10,828 | 5,006 | 15,971 |
| 2004 | 11,030 | 6,274 | 17,304 |
| 2005 | 10,524 | 8,210 | 18,734 |
| 2006 | 10,104 | 10,082 | 20,186 |
| 2007 | 14,824 | 11,327 | 26,151 |
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(1) PIN (personal identification number) volume. Adjusted to eliminate double-counting caused by two networks reporting a transaction.
(2) POS (point of sale) is a retail payment system that allows funds to be transferred electronically from a customer’s account to a retailer, for example from a debit card.
Source: ATM & Debit News. |
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ATM TRANSACTIONS, 1998-2007 (1)
Year |
Average monthly ATM transactions |
Terminals |
Total transactions
(millions) |
| 1998 | 4,973 | 187,000 | 930.0 |
| 1999 | 3,997 | 227,000 | 907.4 |
| 2000 | 3,919 | 273,000 | 1,070.0 |
| 2001 | 3,494 | 324,000 | 1,132.0 |
| 2002 | 2,509 | 352,000 | 883.2 (2) |
| 2003 | 2,432 | 371,000 | 902.3 (2) |
| 2004 | 2,400 | 383,000 | 919.2 (2) |
| 2005 | 2,214 | 396,000 | 877.0 (2) |
| 2006 | 2,131 | 395,000 | 842.0 (2) |
| 2007 | 2,974 | 415,321 | 1,235.3 (2) |
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(1) Total network transactions include all deposits, withdrawals, transfers, payments, and balance inquiries performed on ATMs in the network, whether or not those transactions are switched through the network data center, as well as point of sale transactions on network terminals.
(2) Adjusted to eliminate double-counting caused by two networks reporting a transaction.
Source: ATM & Debit News. |
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TOP TEN U.S. ATM OWNERS, 2005-2006
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Number of ATMs |
Rank |
Owner |
2005 |
2006 |
| 1 | Cardtronics | 26,399 | 30,984 |
| 2 | Bank of America | 16,785 | 17,079 |
| 3 | J.P. Morgan Chase & Co. | 7,310 | 8,560 |
| 4 | Wells Fargo Bank | 6,504 | 6,700 |
| 5 | Wachovia Bank | 5,179 | 5,131 |
| 6 | U.S. Bancorp | 5,003 | 4,841 |
| 7 | Washington Mutual Inc. | 3,743 | 3,912 |
| 8 | PNC Bank Corp. | 3,721 | 3,581 |
| 9 | Citibank | 3,100 (1) | 3,072 |
| 10 | KeyBank | 2,200 | 2,700 |
(1) Estimated.
Source: ATM & Debit News. |
| - Cardtronics, the largest U.S. ATM owner, has contracts with merchants in a variety of businesses, including 7-Eleven, Target, ExxonMobil and several drugstores. The nine next largest ATM owners are all banks.
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