Could ATM Fees Be a Thing of the Past?

Company offers free ATM use in exchange for watching advertising.

June 06, 2014

NEW YORK – Thanks to the expansion of a company called FreeATM, consumers may be soon be able to watch a short advertisement in order to forego ATM fees. First introduced in 2011 with a single ATM in New York City, the company plans on expanding rapidly throughout the country soon. FreeATM’s immediate plans include the rollout of 20 ATMs throughout New York City’s boroughs this August.

Customers using the ATMs will be shown a 15- to 20-second targeted ad on a screen, and then be able to use the machine fee-free. The plan is for around 250 ATMs in the New York metro area to start using the platform within a year.

According to an article in Time magazine, Clinton Townsend, founder and owner of FreeATM, originally had the idea that his company would own and operate ATMs. That vision has evolved, however, and now FreeATM is partnering with major cash-machine operators Everything ATM, ATM Money Machine Inc. and NationalLink. The latter operates roughly 10,000 ATMs around the country.

“We have demand from operators from Boston to Hawaii, but we’re trying to control the roll-out,” Townsend told Time via e-mail. “We’re targeting the week of August 18 to launch. This may move around by a few days or so, as we are coordinating several venues to be unveiled at the same time.”

Several convenience stores actively promote the fact that they have fee-free ATMs, including Sheetz, which last fall announced a partnership with PNC Bank to host 480 surcharge-free ATMs in its stores in Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia. Wawa, meanwhile, has hosted surcharge-free ATMs for years, and celebrated its one-billionth free ATM withdrawal back in 2010.

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