Firm Experiments With Ads Instead of Fees For ATM Use

Would you sit through an advertisement or two in order to save a few dollars in out-of-network ATM fees? A New York firm -- Free ATMs NYC -- is betting you would.

The company, based in Brooklyn, N.Y., plans an early 2012 launch of its ATMs in bars, restaurants, and other retail venues not served by bank ATMs. Customers may withdraw money without having to pay the out-of-network fee normally charged by the ATM's owner, which is around $3. Customers, however, will still have to pay whatever their own bank charges for the transaction.

Instead of paying a fee with money, ATM users will pay with their eyes. Customers will watch a couple of brief commercials on the ATM's video screen before getting their money. The ad revenue will cover the transaction cost and, the company hopes, provide a profit.

"FREE ATMs NYC is the only truly surcharge-free ATM company in the United States," the company said on its website. "We Bring our services to the public in partnership with third party organizations in a mutually beneficial transaction experience."

The website proclaims that Narragansett Beer has signed on as a sponsor for next year. Presumably, the sponsor is banking on a bar customer withdrawing money from an ATM, seeing the ad, then ordering the company's product.

"Our ATMs are placed in targeted demographic areas," company said. "This allows our clients to penetrate markets not attainable by online, print media, or billboard advertising."

Financial services industry analysts are taking the venture seriously, saying if the business model proves viable, it will likely attract more players, and could ultimately cut into the revenue banks collect from ATM transactions.