From: John Boyle 
Newsgroups: uk.finance
Subject: Re: Cash Machine Withdraw Fees..
Date: Sat, 14 Oct 2006 00:28:03 +0100

In message <1240j2tspi9da9jrsvc2lam28rahhtsp0j@news.markshouse.net>, 
Mark Goodge  writes
>>My point was that the cost is not effective for the shop keeper to pay
>>for it, but the machine operator gets a profit because they get the £2.
>
>If the shop is getting sufficient extra trade as a result of the
>presence of the machine, then that is where the shop profit comes
>from.

Er,, yes, but only if the shop doesnt pay for the installation. If the 
shop pays the installer then it could only be a nominal amount. If the 
shop paid the full cost then it would not vet a return.
>

>>>>Err,not quite. The megamarkets come to quite peculiar deals with the
>>>>banks who are quite anxious to have their own machine in a place where
>>>>it can be guaranteed that 100k+ people will walk past it every day.
>>>
>>>Thus demonstrating that there is significant value to the supplier
>>>even where the customer isn't charged for use.
>>
>>Only when the supplier is the Bank, not a private operator.
>
>No; the benefit to the operator is the same. Whether or not the bank
>gets any benefit is a separate issue - at busy places like
>supermarkets, then the brand awareness is valuable enough to justify
>carrying part or all of the cost of installation and maintenance,
>whereas it may not be at smaller establishments. But the value to the
>shop operator is the same in both large and small shops: the presence
>of a cash machine increases both customer numbers and customer spend.

You continue to confuse the two basic types. 1) Bank supplied and 
operated ATMs and 2) Private operator ATMs.

1) are generally free of charge to users and often the Bank rents the 
space off the land owner. IN the case of 'stand alones' (i.e. not part 
of a branch) then the rent paid can be £5k p.a. In Supermarket and other 
high visibility locations where the bank can expect a high useage then 
the rent paid can be lower or even negative. When calculating their 
cost/benefit they take into account the reduced demand for counter 
service that these machines provide. These machines are not found in 
small shops or filling stations.

2) Banks dont gets directly involved in these so any benefit to them is 
discounted. The private operator has to make a direct profit from their 
£2 charge (or whatever) per go. They induce the shop owner to have one 
by suggesting they will get more sales. The shop owner may be asked to 
pay or they may not be.
-- 
John Boyle