217 Safeways Able to Accept Banking Cards
Starting today, automatic teller machines in 217 California Safeway stores will be equipped to accept bank money machine cards issued by all California banks.
The move represents a major step toward full electronic “point-of-sale” banking, in which retail purchases will be automatically deducted from a customer’s checking or savings account.
The Safeway system is operated by National Transaction Systems of El Segundo, which plans to expand the teller network to 60 more Safeway stores and about 250 7-Eleven convenience stores by the end of the year.
Frees the Card Holder
“The new program frees the card holder from being concerned about where and how to access funds in a checking account,” said NTS chief executive James W. Brubaker. “He or she can withdraw money at one of their institution’s branches or, if more convenient, while shopping in a nearby Safeway store.”
At present, about 3.5 million California bank card holders can use the machines in Safeway stores through a shared electronic bank network. The new system will expand the possible users to 12 million with the addition of banks and savings and loans that were not previously part of the network--including California’s five biggest banks, Bank of America, Crocker, First Interstate, Security Pacific and Wells Fargo.
“It’s going to make a lot of financial institutions sit up and notice,” said Frank Nowakowski of City National Bank, which operates the 200-bank Instant Teller network. “It’s a step in the right direction. We have no objections.”
A customer who is not already authorized to use the Safeway money machines must file an application with the store and with NTS. The application must specify which bank card will be used and include a voided check from the account. The process is expected to take about two weeks, NTS officials said.
Customers may withdraw a maximum of $100 a week, which will be taken from their accounts within 24 hours by means of the Federal Reserve automated clearing house. A fee of 75 will be charged for each transaction. NTS and Safeway will split the fee under a undisclosed formula.
“We’re really delighted,” said Safeway spokeswoman Felicia del Campo. “We are in favor of anything that expands the use of the machines among more of our customers.”
