Who Needs A Bank Anyway?

When was the last time you actually went into a bank to process a transaction? With the advent of ATMs and direct deposit, it's probably been a while. Now, it looks like getting cash at Check Cashing Outlets will be one more service performed at non-banks.

Cashier's Association of NY (CCANY) has announced a 45-day pilot test of a new Personal Teller Machine (PTM). The PTM is a low cost device which allows account holders to access electronic cash withdrawals in check cashing outlets.

The program is being run in conjunction with Chase Manhattan Bank and is marketed as a way to service customers who are using ATM cards. According to Richard Price, chairman of CCANY's Point of Banking committee, "The system will provide more access to electronic cash transfers in areas that are underserved by bank branches and ATMs."

To use the Personal Teller Machine, consumers go to a check cashing outlet and swipe their ATM card through the Personal Teller Machine located at the teller window. The cash is dispensed and a "convenience fee" is deducted. The maximum fee is 1.1% of the face value. (Note: Comparable retail Check Guarantee average rate is 1.3%.)

The pilot program will place PTMs in 18 check cashing outlets. After the pilot program, the devices will be placed in 400 check cashing stores within six months.