Better ATM™ Services has patented technology that enables automated teller machines (ATMs) to dispense prepaid gift cards via the ATM cash tray using standard cassettes within the ATM (U.S. and other domestic provisional patents).

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The Better ATM™ Services' business model leverages the existing ATM infrastructure and business models to serve as an efficient and cost effective distribution option to help meet the galloping consumer demand for prepaid, stored value cards - especially proprietary cards offered by merchants.

Click here to see what the Card Sheets look like (PDF format).

Of the approximate 395,000+ ATMs operating in the U.S. today, two-thirds are located in "off-premise" locations from financial institutions, mostly at merchants. About three-fourths of these off-premise ATMs (73%) are not bank owned or branded. Such networks of ATM installations are due to independent sales organizations (ISOs) that market, install and manage machines to help merchants meet consumer needs for cash. Dispensing and incoming interchange fees are shared between the ISO's sponsoring bank, ATM processor (or "driver"), the ISO and the merchant. Approximately 27 million ATM transactions occur everyday.

Prepaid, stored value cards are a recent phenomenon in America and are spreading rapidly around the world. Gift cards make up the largest segment of prepaid cards and are a more convenient gift alternative or means to manage ongoing purchases without being limited to the amount of cash a consumer carries. The Tower Group estimated that approximately $80 billion was spent on such cards in 2006. Another card industry management firm estimated that the average purchaser of gift cards purchased 4.9 cards in 2006. Expectations are that such volume will dramatically increase this year.

Currently, consumers desiring to purchase such cards must either (1) visit a merchant location that sells its own card,
(2) visit a supermarket or other mass merchandiser that has a J-Hook display of many cards and execute the purchase and activation at the check-out counter, or (3) go online to order a card to be sent in the mail.

According to the Mercator Advisory Group, 568 million in-store gift cards were purchased in 2005 at card issuing merchant locations while 56 million gift cards were purchased via J-Hook and Internet distribution channels. All three methods are time consuming to the consumer as well as time consuming and costly to merchants.

Distribution via multi-function kiosks and ATM "side-cars" are a recent phenomenon. However, kiosks and side-cars are expensive and not very consumer intuitive. Kiosk and side-car hybrid penetration are limited as are the number of cards that can be stored and dispensed (150 vs. 900) and market acceptance of them is uncertain.

Card distribution via ATMs alleviates both burdens in a more efficient and cost effective manner while enhancing revenue opportunities to the merchant, ISO, and prepaid merchant card providers and processors.

Better ATM™ Services' business model focuses on licensing patents and certificating component players within both the ATM and gift card infrastructures so that they are enabled to profitably provide a more efficient, secure and cost effective distribution alternative for gift cards and other non-cash media while adding functionality and value to the role of ATMs. Hence, ISOs, processors, merchant card providers and ATM manufacturers and ATM driver/processors are free to structure their offerings, set their own pricing and compete as they do today.

Better ATM™ Services intends to enable card producers to supply cards that meet Better ATM™ Services' specifications (pricing should be comparable to current standard credit and debit cards). Better ATM™ Services' pricing model calls for one-time fees to be charged for each new ISO, processor, or ATM manufacturer and each new enabled ATM along with a monthly fee for each active enabled ATM. It is not Better ATM™ Services' intention or role to compete with any licensed or certificated industry participant.

Each gift card constitutes a single panel of three panels on a "card sheet" (patent filed). The card sheet has approximately the same dimensions of larger international currencies like the Dutch Gilder and Danish Kroner. Most ATM equipment utilizes fairly standard currency cassettes that accommodate currencies of varying size including Better ATM™ Services' card sheet dimensions.

Early testing with multiple ATM manufacturers' equipment proved that the card sheets could be retrieved and dispensed. Certification testing with ATM manufacturers and POS terminal manufacturers is underway. Additional revenue and marketing opportunities for advertising and promotion coupons as part of the plastic being dispensed are also being explored. Preliminary estimates for gift card dispensing from an ATM range from 2 - 4 per day (a 25 - 30 percent increase in transactions over cash) and 6 - 9 transactions during the Christmas holiday season depending on the kind of merchant.

It's Better ATM™ Services' intent to initially help seed the market with a number of enabled ATMs through a charter commitment program consisting of two to five ATM manufacturers, at least six prepaid merchant card suppliers and processors and their related ISOs to conduct three to four month pilots at selected merchant locations to help successful generation of the program.

Discussions with leading ATM manufacturers and ATM component suppliers have been positive as have preliminary discussions with several processors and ISO groups with nearly all expressing keen interest in the concept and market potential. Several early contacts suggest that they will fund and/or enable their own ATMs for the pilot period.

The Charter Pilot Period kicked off in September with five beta site machines being installed in restaurants in the greater Phoenix area to help expand knowledge about usage and other installation and operational issues.

For more information, please contact:

Derek Cook
Better ATM™ Services
6402 E. Superstition Springs Blvd, Suite 213
Mesa, AZ 85206
(480) 296-2033 direct
(480) 346-0200 fax
info@betteratmservices.com email