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Surcharge-Free ATM Arrangements:
Challenges and Opportunities

Presented:  November 17, 2005
The presentation deck for this session is available for $50.
  

  
Presentation Highlights
  

 

 

 
Speaker:

Michael Lill
Senior Consultant
First Annapolis

Presentation Outtakes
Session description:
 Surcharge-free alliances across the U.S. have expanded as financial institutions have sought greater ATM access for their cardholders, and ISOs have sought to spur transaction volume.  Despite this, the economics of surcharge-free access remain challenging for many participants.  Key challenges include, for example, the inherent conflict between financial institutions’ issuing and acquiring businesses.  Historically, financial institutions and other owners of large ATM portfolios have had limited incentive to participate in no-surcharge programs due to the potential loss of surcharge revenue.  For financial institutions, an additional objection has been the perceived impact on deposit account acquisition.  As a result, surcharge free networks have failed to attract many larger ATM owners that would significantly expand access and improve the overall network value proposition.  Furthermore, many of the most accessible and attractive off-premise locations are held by major financial institutions and other deployers, many of which have thus far refrained from participating in network sponsored no-surcharge alliances.  Despite this, surcharge-free arrangements remain attractive options for certain deployers.

In this session you'll learn:

  • What are the various surcharge-free models in the market today?
  • What are the key benefits and drawbacks of surcharge-free arrangements?
  • What are the critical issues when considering the adoption of some type of surcharge-free arrangement?
  • How are surcharge-free arrangements likely to evolve in the near future?

This program is appropriate for senior financial executives with responsibility for ATMs, Cards, Networks, Product Development, Marketing, Market Research and Strategy Teams.


About Michael Lill:

Michael Lill is a Senior Consultant in the electronic banking practice area at First Annapolis.  Mr. Lill focuses on providing strategic planning, busines and product development, and merger and acquisition advisory services to the electronic payments industry, including financial institutions, electronic funds transfer (EFT) networks, data processors, and technology providers.

 

Mr. Lill’s recent major projects in the EFT practice have involved conducting competitive vendor selection processes for leading financial institutions, performing a processing benchmarking study for a national EFT processor, and performing a strategic new product and market analysis for a major ATM manufacturer.

 

Mr. Lill has also specialized in emerging payments, advising financial institutions on opportunities in the evolving payments arena.  His engagements in this area have included providing strategic advice on the impact of payments trends for a major merchant acquirer, analyzing acquisition opportunities for a major person-to-person payments provider, and evaluating the Internet banking market for a major commercial ISP.

 

Mr. Lill also supports the other major practice areas of First Annapolis, on assignments in the U.S. and abroad. His project work in this area includes:  assisting a Latin American bank in enhancing its portfolio management strategy, conducting an opportunities analysis of credit card markets in Latin America for a worldwide financial institution, developing strategic and tactical plans for a national shared ATM network in Haiti, and others.

 

Prior to his work with First Annapolis, Mr. Lill performed marketing for Compaq Computer Corporation's server division.  Prior to Compaq, Mr. Lill managed business development in Eastern Europe for Peripheral Enhancements Corp.

 

Mr. Lill earned his Masters of Management with concentrations in finance, marketing, and management and strategy from the J.L. Kellogg Graduate School of Management at Northwestern University. He earned a B.A. in Government with a concentration in International Politics from Wesleyan University, Connecticut.   michael.lill@firstannapolis.com

About the First Annapolis:
First Annapolis was founded in 1991 with a focus on advising clients in payment-based sectors of the financial services industry. Since its inception, First Annapolis has advised credit and debit card issuers, transaction processors, card associations, retailers, and other stakeholders in the payment value chain. As we built deeper relationships with our clients, the breadth of our advisory services expanded. Most notably, we built a suite of merger and acquisition advisory services to complement our core management consulting services. Coupled with our growing International presence, management consulting and M&A advisory services comprise our Service Offerings.    www.FirstAnnapolis.com

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