An argument against upgrading ATMs in the US has long been related to cost. The number of devices, their age and diversity, and the wide distribution area all make for a daunting process. Remote upgrades, even if possible, are not sufficient to thwart the latest skimming attacks. The hardware also has to be replaced.
A flush face, for example, would prevent any kind of skimming device. Imagine a plain glass interface with a touch screen and a slot, like a giant iPad. Anything placed on the glass would be a dead giveaway. Chip and pin, likewise, could be installed so Americans could enjoy some of the same security features found abroad. The possibilities for anti-fraud are great, except for the problem of getting new hardware into the field. Fraud has apparently not been cause enough for a major overhaul.
This could soon change due to a ruling by the US government related to the Treasury Department’s upcoming plan to make money accessible to the blind and visually impaired per the 1973 Federal Rehabilitation Act. The general counsel of Cardtronics, which runs tens of thousands of ATMs, has this to say in response to the plan:
“Cardtronics will be adversely affected should such a change in currency force us to make hardware and/or software changes in order for our ATMs to continue to function properly,” Keller wrote. “Retrofitting ATMs all over the country is costly not only due to purchasing the hardware/software upgrades from the manufacturer, but the labor and travel associated with a large number of upgrades required in a relatively short period of time. In some cases, retrofitting older models is not possible and would require us to replace such ATMs.”
He likens innovation in hardware to a drag on the industry:
In addition to causing ATMs to jam, an ill-designed tactile character would lead to fewer bills being placed in each cassette, Keller wrote. “Both problems could stall the industry and, in turn, stall commerce,” he said.
…or it could spur commerce though increasing the customer base, while reducing the cost of improving security and lowering ATM fraud risk.
Oh my god, remember when the vending industry nearly went out of business retrofitting and replacing vending machines to accept DOLLAR BILLS? That was a near global catastrophe, and the entire populace almost had to stop consuming sugary drinks while every machine on the planet was shut down, waiting for a replacement or overhaul!
Oh wait…umm…never mind, now it’s possible to charge $2.00 for a single bottle of soda. I think the vendors are happy enough…and stinking rich.