it should be noted that Bill Jackson of Triton Systems doesn't have an
upgrade solution for the tens of thousands of ATM's he has sold since the
mid-1990s.  NCR and Diebold ATMs can be upgraded at the present time

Kelly


ISOs don't see eye-to-eye on ADA ATMmarketplace.com

ATMmarketplace.com

News

ISOs don't see eye-to-eye on ADA

by Rick Redding, General Editor * 11 October 2001

LAS VEGAS - Bill Jackson referred to the impending ADA
regulations for ATMs as a "sleeping giant," that will affect
everyone in the ATM industry during a presentation at ATMIA's
2001 Conference West.

Triton Systems Inc.'s chief technology officer, a member of a
select group of ATM executives who have held meetings with blind
advocacy groups this year, told a group comprised mainly of
representatives of ISOs that it is difficult to prepare for new
accessibility rules expected to be approved by the Department of
Justice next year.

"Nobody really knows what's going to happen," he said. "My advice
is to show you are making an effort to implement a compliance
program, so you can at least show you're trying."

Key issues for ISOs include the potential requirements for
retrofitting existing machines, and the potential for what he
called "drive-by" lawsuits brought by attorneys who may target
ATM deployers in hopes of getting quick settlements.

Referring to information released by Bank of America at last
week's ATM Conference in New Orleans, Jackson said the cost for
upgrading existing ATMs to become "talking ATMs" won't approach
the $4,000 per machine the bank is spending. He said that Triton
has received only a small number of requests from ISOs on the
issue, and hasn't yet delivered a final price for upgrades.

While banks have certainly taken the lead in responding to the
potential new regulations, which could be finalized and approved
by the Justice Department in less than a year, few ISOs have made
proactive responses to the issue. Several banks have begun
programs to retrofit ATMs with software and hardware to make
their ATMs compliant, while most ISOs are either taking a
wait-and-see approach or are ignoring the issue.

"My opinion is we're overreacting to the ADA regulations, and we
need to take a look at lobbying to repeal some of the
regulations," said Bruce Kreeger, president and CEO of ATM Center
Inc. " I think cooler heads will prevail and it won't pass."

Kreeger said he couldn't imagine a scenario in which blind people
would actually use ATMs regularly, and that the requirements
won't affect the business of ISOs. Statistics released last week
by Bank of America showed that existing talking ATMs have
generated fewer than two transactions per month.

Jackson, however, pointed out that the fact that there is no
business case for upgrading ATMs won't matter when the
regulations are handed down.

Saul Caprio, director of marketing for E-Trade Access, is the
only ISO representative in the group of ATM executives organized
by the American Bankers Association to address the issue with
blind advocacy groups. With ATMs placed in several large retail
outlets, he believes E-Trade could become a natural target for
lawsuits brought by advocates of the sight-impaired.

"We're totally committed to doing what it takes," he said. "We're
just waiting for the final regulations to see what we need to do
and what role the merchants will have to play. We're determined
our ATMs at major retailers will be made compatible whether
they're required to or not."

Some suspect that the most likely scenario will be that new ATMs
will be required by some future date to be able to talk, and that
existing machines will be spared from the new requirements. That
could be a selling advantage to manufacturers and ISOs who are
first in line with machines that comply with the new rules.

TJ Hannon, vice president of marketing for Hanco Systems, said
his company has been working with its manufacturers to be
prepared.

"It's something you'll be able to sell to your customers. From
that standpoint, it can be an advantage, especially if you've got
it and your competitor doesn't," he said.


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