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What is an ATM Alliance?

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  • Written By: Luke Arthur
  • Edited By: C. Wilborn
  • Last Modified Date: 25 March 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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An ATM alliance is an agreement between multiple banking institutions that benefits both the banks and customers of these entities. Many times, banks will work together in order to set up an ATM alliance so that customers can utilize automatic teller machines (ATMs) from multiple banks. By doing this, individuals can access their money even if it's at a different financial institution, without having to pay significant fees. An ATM alliance can make things much easier on individuals because it gives them more options when it comes to accessing an ATM.

Many bank customers utilize ATMs on a regular basis in order to gain access to cash from their accounts. When a bank customer is away from his or her normal area, an ATM from his or her bank may not be around. This can be an inconvenient situation for the bank customer and make it difficult for him or her to access the money that is needed.

With an ATM alliance, this problem can be avoided. The terms of alliance agreements can vary greatly from one agreement to another, but the basic idea behind an ATM alliance is that banks work together in order to let customers from other banks use their ATMs. This means that if a customer of one bank is not near a branch, he or she can travel to a different bank within the alliance and use an ATM.

When this happens, the money is transferred through an electronic payment system and the customer is able to get cash out of the ATM. One of the big benefits of an ATM alliance is that it limits significant fees. Without this type of alliance, customers may have to pay a significant service charge in order to utilize a foreign ATM. With an agreement between banks, the banks usually agree to forgo large transaction fees in order to increase business for everyone.

This does not necessarily mean that there will be no fees when dealing with an ATM alliance. Sometimes, a nominal fee will still apply to cover the processing charge. This fee is generally much less than what it would have been without an alliance in place, however.

Another primary benefit of this system is that it provides additional convenience for bank customers. Instead of trying to travel to another bank location, a customer can simply access the ATM that is closest, as long as that ATM is part of an alliance with his or her bank. This even gives the opportunity to access ATMs in international markets, as some alliances may be with banks that have branches in other countries.

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