Cardtronics, the nation's single largest independent ATM deployer and part owner of the popular Allpoint fee-free ATM network, announced Tuesday that 7-Eleven, its largest retail client, would no longer host its ATMs past mid-2017.
Cardtronics and its partially owned subsidiary, Allpoint, established partner agreements with CU24 as well as the Pennsylvania Credit Union Association, Maryland and DC Credit Union Association and Delaware Credit Union League, along with the New Jersey Credit Union League and Illinois Credit Union League, according to the network's website.
In a July 7 statement, Cardtronics said 7-Eleven announced that it had selected a related entity of 7-Eleven's parent company as its next ATM provider. The existing agreement between Cardtronics and 7-Eleven remains in full force and effect until mid-2017.
“We are proud of the service and unique products that we have delivered to 7-Eleven since 2007. While we are disappointed in this decision, we have every confidence in our business and the robust growth opportunities ahead of us,” Cardtronic's CEO Steve Rathgaber said. “We will continue delivering service to 7-Eleven for the next two years while executing our growth strategies.”
Cardtronic's 55,000 surcharge-free ATMs allowed members of participating credit unions to access cash without paying a surcharge, but the company charged the credit union a fee based on its enrolled card base. However, Allpoint is not wholly owned by Cardtronics and has non-Cardtronics ATMs in 7-Eleven stores, so it could potentially negotiate a separate agreement.
Cardtronic's Director of Public Relations Nick Pappathopoulos confirmed that 7-Eleven confirmed the change but declined to answer questions about what might happen next.
“What exactly will happen in 2017 … one could only speculate at this point and we're not going to do that,” Pappathopoulos wrote in an email. “As Cardtronics CEO Rathgaber said in yesterday's news release, right now we will continue delivering ATM service to 7-Eleven and we have every confidence in our business and the robust growth opportunities ahead of us. For the time being, that is all we have to say on the matter.”
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