California ATM Firms Set to Profit from New Legislation

It’s a good time to be in the ATM business in California. In late September, Governor Arnold Schwarzenegger signed Senate Bill 389 into law, which will allow ATM firms to collect surcharges from individuals with international bank accounts. The law, which goes into effect on January 1, 2006, will ensure that all users of ATMs — domestic and international — pay the same fees.

With millions of foreign visitors to California, the revenue potential will be great for ATM companies, including SWIPE USA, the largest manager of ATM and advanced-function financial kiosks in the Bay Area, with hundreds of locations in San Francisco, Oakland, Sacramento, and Berkeley, as well as Los Angeles and other areas.

“The bill states that charging only those with U.S. bank accounts is unfair and we’re pleased that it ends the disparity between domestic and international users,” said SWIPE USA CEO Ron Christensen. “We alone expect to see a five to seven percent increase in revenue in the first 12 months of the new law instead of taking a loss on foreign usage of our product.”

According to the San Francisco Convention and Visitors Bureau, 3.7 million people, or approximately 24 percent of all visitors to San Francisco, are international travelers. With each visitor who stays in a San Francisco hotel or motel spending an average of $263 per day — one of the highest averages in North America — the new charges will generate millions in extra revenue for the local and state economy.

To take advantage of the new bill and help visitors to popular tourist destinations this fall, SWIPE is giving away maps of San Francisco that show its ATM locations.