Surcharge-Free Networks & Branding Programs

Webinar Hosted by: Kahuna ATM SolutionsPresenter: Mark D. Smith; VP of Financial Solutions

Account holders are fee-sensitive

Large service fees easily deter ATM clients ATMs and Financial Kiosks remain ubiquitous in the market

Cash is King Surcharges inch up

• $3.00 is common• National average is $2.60 according to a 2013 Bankrate.com survey

Cardholders “seek out” Surcharge-Free ATMs

Market Drivers

Surcharge-Free Networks have become vital

Surcharge-Free ATM transactions available at thousands of locations

Financial Institutions of all sizes join surcharge-free networks for cardholder convenience and even more significantly for cardholder retention

A free service builds loyalty Extends footprint and retains customers

Kahuna proudly offers MoneyPass Surcharge-Free Network

Market Expectations

Loyalty, Loyalty, Loyalty

ATMs will remain the endpoint for FIs • Mobile and on-line banking • ATM Locators are powerful tools

FIs increasingly join Surcharge-Free Networks to gain points of access for their cardholders• Surcharge-free ATM access is in demand – It brings traffic

MoneyPass reports an average increase in transactions by 5 times the current rate of the ATM

Market Outreach

How does an IAD (or ISO) benefit from having a surcharge free network on their ATM?

Isn’t that the means of revenue for the deployer?

Absolutely • We only recommend this program for locations with a highly competitive ATM

market and high foot traffic The locations must have high numbers of cardholders

o College Campuso Tourist Areaso Transportation Hubso Major City – Downtown/Business Center

Will it work for the Independent ATM Deployer?

ATM transaction levels remain flat in the US market

Interestingly, a private label ATM is seen differently than one that clearly identifies a known and respected FI brand

Adding a FI Brand is a proven method to grow transactions• Known FI brands and services equate to consumer confidence and

retention• Surcharge-free network’s brand is promoted through FIs to their

cardholders and via ATM locators• Social media continues to build the brand awareness directly to

cardholders

A Branding Program is a proven way for the ATM deployer to build revenue, not just drive more ATM transactions

ATM BrandingMarket Considerations

What would a Surcharge-Free Network do for them?

Cardholders “Seek Out” participating ATMs• ATM Locaters On-Line/Mobile APP bring new faces to the location

For the merchant• More foot traffic• More cash recycling in the establishment

Building the Business Case

Generous Interchange

While the ATM Operator and Merchant lose the surcharge revenue, they receive a higher interchange for these transactions

• MoneyPass offers $.70 cents for Withdrawals and $.30 cents for Non-Monetary ATM transactions

But…Not ALL transactions are surcharge-free

The loss of surcharge revenue must be compared to gains in foot traffic, increased sales and an uplift of transactions due to confidence

Revenue Trade-Off

Ideal opportunity for branding the Surcharge-Free Network and gaining the reputation of a National Brand • Trust/Confidence leads network members and prospects to use that ATM more

often Loyalty to the location is the real benefit to the ATM providers and

merchants Higher Interchange and Transaction Lift are the key gains

Building Loyalty

FI Marketing far more effective Getting cardholders to an ATM is important

• Surcharge Free Programs gets them there

Offer the FI a branding package that is customized and effective• The ATM is an extension of the FI’s branches

Build Loyalty

Provide Kahuna ATM Solutions with a BIN List for analysis

We can help identify target cardholders

A bin analysis will quickly show which locations are ideal and which should not be a consideration

When proposing this program to FIs, seek out their marketing departments

A VP of Marketing or Marketing Director is the ideal contact

How to Get Started

As a follow up to this webinar, Kahuna ATM Solutions will be sending you marketing materials

Excellent tools to encourage Surcharge-Free Programs and the benefits of ATM Branding

If you need help along the way

Kahuna ATM offers outsourcing programs for developing a surcharge-free network program and branding strategies

What’s Next?

Questions?

Thank you!

Kahuna ATM Solutions www.kahunaatm.com

888-357-8472

Mark SmithVP of

Financial Services

mark@kahunaatm.comP) 770-977-

9172