Case Study

One of Gateminder’s smaller credit union customers (under $2 million in total assets) was interested in establishing an ATM program. However, a contract they had signed years earlier had given their card vendor exclusive rights to driving any ATMs.

Not giving up, the credit union looked to see when that contract ended. It gave notice to that company that they would not renew their contract. In the meantime, they signed a contract with Gateminder Corporation to begin processing an ATM because Gateminder charges no monthly fees of any kind. The company that they had been with before wanted almost $2,500 a month for the same processing that Gateminder was providing for nothing. The location this credit union had chosen would be used by many of their credit union members, but also many non-members whom they would surcharge.

The credit union did not purchase the ATM, but had Gateminder install one of its own machines which the credit union filled with their own cash – assigning about $3,000 to drive the machine. Since Gateminder installed its own machine and provided all of the servicing of it while the credit union used its own cash, it split the $1.50 surcharge fee. The credit union and Gateminder each received $0.75 a transaction.

In the first six months our credit union client made about $75 a month, or a 30% return on their $3,000. After seeing what the ATM could do, the credit union board asked Gateminder if it could purchase the ATM from them and receive 100% of the surcharge. Of course, Gateminder was happy to allow that and the credit union purchased the ATM (which was used, but in great condition) for $2500.

After expensing the ATM over 72 months (or $35 a month), the credit union began receiving 100% of the surcharge or about $150 a month in income.

Income from that one ATM is now approaching $10,000 since its installation. Since that time the credit union has added 4 more ATMs with Gateminder and have never paid a monthly fee for network processing.

Other credit unions have actually paid breach of contract fees to get out of their previous contracts to join the Gateminder network as it was more cost beneficial based on the fact there are no monthly fees and credit unions can keep 100% of the surcharge income.

At a time when the financial institutions and retailers are looking for any possible advantage for profit, doesn’t it make sense to contact Gateminder and let us show you what we can do?

Gateminder Corporation

16926 Saint Clair Avenue
East Liverpool, OH 43920

(330) 310-7844

gatemindercorp.com