White Label ATMs in Canada
Encyclopedia
White Label ABMs in Canada provide alternative source of cash dispensing vis-à-vis traditional automatic banking machines (ABMs) from banks.
, the major financial institutions
have their own branded ABMs located throughout the country. These ABMs prominently display the logo of the banks. A "white label" or "no name" ABM, which are usually located in non-traditional places, display no major bank labels on the actual ABM. Before 1997, only banks and other deposit taking financial institutions were allowed to be part of the Interac
network. After 1997, independent operators were allowed to operate ABMs, not owned by major financial institutions.
In 2006, a little more than half of the 51,000 ABMs in operation in Canada were "white label".
With a network of over 15,000 units, The NRT Technology Corporation is the largest processor of non-bank ABMs in Canada, handling more than 50 million transactions annually.
According to the Financial Consumer Agency of Canada
(FCAC), fees for using a "white-label" ATM can add up to over $6.00 per transaction.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFees_e.asp The same agency states that private (white-label) operators are "not required to adhere to a minimum or maximum limit", meaning that the fee amount is up to the operator.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFeesInfo_1_e.asp The operator is obliged, however, to disclose the fee to be charged and give the consumer the option of cancelling the transaction.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFees_e.asp
CIBC has been criticized for creating a wholly owned subsidiary white label company, "Ready Cash". While many CIBC customers have free access to transactions with official CIBC accounts, as Ready Cash is not a CIBC bank, they are charged twice, once by Ready Cash and once by CIBC.
Local small establishment retailers such as gas stations, bars/pubs, & restaurants are common for putting in the private White Label ATM's to receive a fee for each transaction made at the ATM. Most white-label ATM's charge a minimum C$1.50 for the use of the machine with approximately 50% of that going to the retailer. The C$1.50 is above and beyond what the cardholders financial institution may charge.
include:
Background
In CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, the major financial institutions
Big Five banks
Big Five is the name colloquially given to the five largest banks that dominate the banking industry of Canada. The five banks are operationally headquartered in Toronto, Ontario. They are all classified as Schedule I banks that are domestic banks operating in Canada under government charter...
have their own branded ABMs located throughout the country. These ABMs prominently display the logo of the banks. A "white label" or "no name" ABM, which are usually located in non-traditional places, display no major bank labels on the actual ABM. Before 1997, only banks and other deposit taking financial institutions were allowed to be part of the Interac
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
network. After 1997, independent operators were allowed to operate ABMs, not owned by major financial institutions.
In 2006, a little more than half of the 51,000 ABMs in operation in Canada were "white label".
With a network of over 15,000 units, The NRT Technology Corporation is the largest processor of non-bank ABMs in Canada, handling more than 50 million transactions annually.
White label fees
Customers usually pay an added fee to use these ABMs, which can be split between the private provider and the owner of the property hosting the machine.According to the Financial Consumer Agency of Canada
Financial Consumer Agency of Canada
The Financial Consumer Agency of Canada is an independent government agency of the Government of Canada. FCAC provides consumer information and oversees financial institutions to ensure that they comply with federal consumer protection measures. Created in 2001, the Agency investigates cases of...
(FCAC), fees for using a "white-label" ATM can add up to over $6.00 per transaction.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFees_e.asp The same agency states that private (white-label) operators are "not required to adhere to a minimum or maximum limit", meaning that the fee amount is up to the operator.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFeesInfo_1_e.asp The operator is obliged, however, to disclose the fee to be charged and give the consumer the option of cancelling the transaction.http://www.fcac-acfc.gc.ca/eng/consumers/BankInsurance/ABMFees/ABMFees_e.asp
CIBC has been criticized for creating a wholly owned subsidiary white label company, "Ready Cash". While many CIBC customers have free access to transactions with official CIBC accounts, as Ready Cash is not a CIBC bank, they are charged twice, once by Ready Cash and once by CIBC.
Local small establishment retailers such as gas stations, bars/pubs, & restaurants are common for putting in the private White Label ATM's to receive a fee for each transaction made at the ATM. Most white-label ATM's charge a minimum C$1.50 for the use of the machine with approximately 50% of that going to the retailer. The C$1.50 is above and beyond what the cardholders financial institution may charge.
Notification of Fees
A warning message will appear at some point prior to accepting to withdraw funds, advising the cardholder what the cost of the service is. There is always an opt out function to cancel the transaction and avoid paying the fees.Private operators
Some of the providers in CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
include:
- ViaCash of Barrie ON - http://www.viacash.ca
- NRT Technology Corp. of Toronto - Since 1997 - http://www.nrtpos.com/
- Money Plus Express/ Money Plus Xpress of Toronto - 2011 - http://www.moneyplusgrp.com
- ATM Canada Inc. - Since 1997 - http://www.atmcanadainc.com
- Flex-Touch Canada Inc. - Internationales, Services, Leasing, Processing, Wireless Solutions - http://www.flextouch.ca -
- ATM Systems Ltd. of Toronto - 2000 http://www.atm4Canada.com
- Cash N Go Ltd of Edmonton AB & Hamilton ON - 1998 http://www.cashngo.com
- Direct Cash ATM of Calgary AB - 1998
- Ezee ATM of Toronto ON
- Frisco-Bay ATMs of Montreal QC is unit of Frisco-Bay Industries Ltd of Montreal - 1997 http://www.friscoatms.com"
- Inkas Group of Toronto ON - 1998 http://www.inkas.ca
- King Cash Corp. of Edmonton AB - 2001 http://www.kingcash.ca
- Triton Canada Ltd of Calgary AB - 1997
- Laser Cash owned by Threshold Financial of Mississauga ON http://www.threshold-fti.com
- ClearCard is a National service provider of ATMs http://www.clearcard.ca
- Canada Cash ATM's Ltd. in Atlantic Canada
- Canada Card Processing - http://www.canadacardprocessing.com/related-products/atm-machine-services/