White-label automatic banking machines (ABMs) are ATMs that provide an alternative source of cash dispensing vis-à-vis traditional automatic banking machines (ABMs) from banks. White-label ABMs may be operated by an

independent ATM deployer An independent ATM deployer (IAD) is a non-financial institution that owns, manages, and places ATMs (cash machines) in retail premises or elsewhere. IADs emerged in the 1990s in the USA while working alongside depository institution Colloquially, ...

Background

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

, the major financial institutions have their own branded ABMs located throughout the country. These ABMs prominently display the logo of the banks. White-label or "no name" ABMs, which are usually located in non-traditional places, display no major bank labels on the actual machine. Before 1997, only banks and other deposit taking financial institutions were allowed to be part of the

Interac Interac is a Canadian interbank network that links financial institutions and other enterprises for the purpose of exchanging electronic financial transactions. Interac serves as the Canadian debit card system and the predominant funds transf ...

network. After 1997, independent operators were allowed to operate ABMs not owned by major financial institutions. With a network of over 15,000 units, the NRT Technology Corporation is the largest processor of non-bank ABMs in Canada, handling more than 50 million transactions annually.

Fees

Customers usually pay an added fee to use these ABMs, which can be split between the private provider and the owner of the property hosting the machine. According to the

Financial Consumer Agency of Canada The Financial Consumer Agency of Canada (FCAC) is an agency of the Government of Canada that enforces consumer protection legislation, regulations and industry commitments by federally regulated financial entities. It also provides programs and i ...

(FCAC), fees for using a white-label ATM can add up to over $6.00 per transaction.
The same agency states that private operators are "not required to adhere to a minimum or maximum limit", meaning that the fee amount is up to the operator. The operator is obliged, however, to disclose the fee to be charged and give the consumer the option of cancelling the transaction. Canadian Imperial Bank of Commerce, CIBC has been criticized for creating a wholly owned subsidiary white-label company called Ready Cash. While many CIBC customers have free access to transactions with official CIBC accounts, since Ready Cash is not a bank they are charged twice, once by Ready Cash and again by CIBC. Local small establishment retailers such as gas stations, bars and pubs, and restaurants are common locations for putting in private white-label ATMs to receive a fee for each transaction made at the ATM. Most white-label ATMs charge a minimum C$1.50 for the use of the machine with a percentage of that going to the retailer depending on their involvement with the ATM. The C$1.50 is above and beyond what the cardholder's financial institution may charge.

Notification of fees

A warning message will appear at some point prior to accepting to withdraw funds, advising the cardholder what the cost of the service is. There is always an opt out function to cancel the transaction and avoid paying the fees.

References

{{Reflist Automated teller machines Banking in Canada