Customers don't understand ATM signage

Many ATM and debit card users are still confused regarding automated teller machine usage, according to a new study commissioned by the PULSE EFT Association.

The survey of 1,000 card users showed that even though ATMs have been part of America's financial system for over 20 years, many people

are still unsure of the meaning of brand signage at machines. More than 45 percent of the 748 respondents who had used a "foreign" machine over the past three weeks, meaning a machine other than those operated by their bank or credit union, had misperceptions about card usage. The two most common misperceptions were:

* One in four thought that if one of the brands on their card did not match the ATM machine's brands, then they could not perform a transaction; and

* Twenty percent thought that if the ATM signage showed one of the brands on their card, then it meant they would not be charged a fee.

PULSE suggested financial service providers might be losing customers because of the brand signage at machines. "ATM operators might realize incremental increases in activity by promoting the message `All ATM cards accepted here'," said Stan Paur, PULSE's president and chief executive officer.

The study also provided insight into specific reasons why a consumer would choose to use a particular ATM machine. Almost half (43 percent) revealed they always look for their own bank or credit unions affiliation. Also, 16 percent said they seek out machine that won't charge fees, and another 16 percent said they choose ATMs that are convenient or closest to their homes.

PULSE, an electronic funds transfer network used by 3,700 banks and credit unions across the country, is based in Houston.