|ATM Magazine - |
August 30, 2000
Diebold makes play for off-site market with
ATM franchise program
NORTH CANTON, Ohio -- Diebold, Incorporated (NYSE:DBD) is
introducing the first-ever ATM franchise program in an attempt to get
more of its machines into off-site retail locations.
Retailers will lease space to Diebold, which will install and service a
Diebold cash dispenser. Diebold will own the machine, and retailers
will recycle their own cash by depositing money directly into the unit.
The merchant will pay Diebold a monthly fee of $84, which will be
waived when transactions exceed 150 a month.
Diebold will share surcharge revenue with the merchant, based on
the number of monthly transactions. A retailer will get 40 percent of
surcharge revenue at the 150-a-month transaction level but could
earn up to 95 percent of the surcharge if transactions exceed 750 a
"It's a win-win situation for everyone involved," said John Titko,
national sales manager of Diebold's Retail Division. "People typically
associate a franchise with fast food chains, but we've taken it a step
further with a solution that lets merchants pass on a value-added
service to their customers."
Diebold designed the franchise program to provide more continuity
and stability for merchants.
"Other ATM programs have been very disappointing to many retail
merchants who have experienced the unanticipated removal of the
ATM," Titko said. "The Diebold program is designed to ensure
contract fulfillment by being economically viable at lower transaction
levels and distributing transaction revenue in a fair and equitable