Shazam network offers no-surcharge ATM option, The

Northwestern Financial Review, Nov 8, 1997

The Shazam ATM network has launched the "privileged status" program, designed to help community financial institutions compete against larger national financial institutions. The program gives Shazam network members the opportunity to offer no-surcharge ATM service to their customers.

The privileged status program has the potential to affect 1,166 financial institutions in 19 states, and 2,956 ATMs in 27 states. Richard Jenkins, corporate counsel for Shazam, commented that the program has the potential to make the financial services marketplace even more competitive.

The privileged status program is voluntary, allowing any Shazam network participant, including debit card issuers and ATM acquirers, to enroll. The program was successfully tested at four Missouri banks. Shazam is conducting meetings to inform bankers about the program.

Responding to requests from community financial institutions to establish a no-surcharge option, Shazam created the privileged status program, but remains neutral on the issue of surcharging.