Chase Expands Surcharge Free ATM Access At Hess Express Gas Stations In NY & NJ

Implications: "Chase What Matters" is Chase's new tagline in its national ads. Chase's customers' are saying "surcharge free ATM access" is what matters to them, which is why Chase is expanding its ATM branding deal with Cardtronics to install Chase branded ATMs at Hess Express Gas Stations in NY and NJ. Surcharge fees have continued to rise since 1996 when the average surcharge fee was only $0.45 cents. The $2.00 surcharge fee is the most common, however, in the last year some banks have raised their surcharge fees to as high as $3.00 for non-bank customers. As of July 2007, U.S. consumers paid over $4.4 billion in ATM fees. Chase's ATM branding deal with Cardtronics is a great business case of how a bank can expand its ATM network without the investment of building more branches or locate prime space to install ATMs. Cardtronics owns and operates the machines and Chase's customers' gain "surcharge free" access at Duane Reade in NY, NJ & CT and now at Hess Express Gas Stations in NY & NJ.

Analysis: Chase is expanding its ATM Network through ATM branding deals with Cardtronics at Hess Express Gas Stations in NY and NJ. Cardtronics owns and operates the ATMs and will brand them "Chase" at Hess Express Gas Stations to provide Chase's customers' with "surcharge free" ATM access. Surcharging has been around since 1996 when Visa and MasterCard lifted the ban on "surcharging." Since that time surcharge fees have rose and  skyrocketed to $3.00 per transaction at some banks in 2007.

1.  Chase's ATM branding deal with Cardtronics has been profitable for Chase, who relies on Cardtronics to locate "high traffic" off-premise locations to deploy Chase branded ATMs and Chase's customers' gains an expanded ATM footprint without having to pay "surcharge fees" to access cash and Chase has experienced growth in ATM transaction volumes at Duane Reade

2.  Chase pays Cardtronics a fee to deploy the machines, brand the ATMs with Chase's brand, and replenish the machines with cash and service and maintenance of the ATMs. Cardtronics owns and operates over 33,000 ATMs and Cardtronics offers a full-service, turn-key placement of ATM machines for banks interested in expanding its ATM network via ATM branding, which is a trend in the industry

Takeaway:  In an effort to retain existing customers and acquire new customers, while expanding their ATM distribution, banks are participating in selective surcharge alliances, implementing surcharge reimbursement programs or offering "surcharge free" ATM access to  their customers, such as Chase's and Cardtronics ATM branding deals at Duane Reade and now Hess Express Gas Stations. Chase gains a larger footprint distribution and offers its customers more touch points at a lower cost than if Chase had deployed the ATMs on its own, while growing its ATM transaction volume. Chase is taking its own advice and "Chasing What Matters," volume, customer retention and customer acquisition.