Euronet Worldwide Benefits from German Interchange Fee Increase
Euronet Worldwide Benefits from German Interchange Fee Increase
Recently, German banks lifted restrictions that require a fixed, transaction interchange fee for domestic Eurocheck (EC) cards, enabling ATM owners to establish their own ATM usage fee. Euronet’s outsourcing partner bank has raised the fee by approximately 20%, from DM 4.00 to €2.50 (DM 4.89) on their ATMs across Germany. All of the increase on Euronet-serviced ATMs will flow through to Euronet as revenues under its ATM service agreement. Transactions from Eurocheck cards account for almost 90% of the total transactions performed on ATMs serviced by Euronet in Germany. Favorable interchange rates enable ATM owners and operators to provide consumer convenience through ATM deployment in easily accessible locations.
“We are pleased that the German banking authorities have allowed our outsourcing partner bank to change the ATM interchange fee,” said Michael Brown, Chairman and CEO of Euronet Worldwide, Inc. “The timing of this increase, right before the Christmas holiday season, couldn’t be better. Germany has accounted for approximately 16% of Euronet’s revenues in the first half of 2001. The fee increase could affect transaction demand, but we anticipate that the net result will be an increase in revenues.”
About Euronet Worldwide
Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware, financial network gateways, outsourcing and consulting services to financial institutions and mobile operators. These solutions enable their customers to access personal financial information and perform secure financial transactions -- any time, any place. The company has processing centers located in the United States, Europe and Asia, and owns and operates the largest independent ATM network in Europe. With corporate headquarters in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries. Visit our web site at www.euronetworldwide.com.
Contacts:
Media Contact:
Misti Garffie
Euronet Worldwide
913-327-4257
mgarffie@payspot.com