White-label ABMs

White-label automatic banking machines (ABMs) or White-label ATMs are ATMs that provide an alternative source of cash dispensing vis-à-vis traditional ATMs from banks. White-label ATMs (WLAs) may be operated by an independent ATM deployer.

White-label or "no name" ATMs, are usually located in non-traditional places, such as inside grocery stores or other non bank locations. They display no major bank labels on the actual machine and fees are typically higher than those associated with bank owned ATMs.

History
In Canada, the major financial institutions had their own branded ABMs located throughout the country. These ABMs prominently display the logo of the banks. White-label or "no name" ABMs, which are usually located in non-traditional places, display no major bank labels on the actual machine. Before 1997, only banks and other deposit taking financial institutions were allowed to be part of the Interac network. After 1997, independent operators were allowed to operate ABMs not owned by major financial institutions.

with a network of over 15,000 units, the NRT Technology Corporation is the largest processor of non-bank ABMs in Canada, handling more than 50 million transactions annually.

In India, the Reserve Bank of India (RBI) permitted non-bank entities to establish, own, and operate ATMs in June 2012. The central bank issued Certificates of Authorization to eight non-bank entities for setting up and operating WLAs in India. As of March 2023, over 35,800 White Label ATMs were deployed in India.

Fees
Customers usually pay an added fee to use these ABMs, which can be split between the private provider and the owner of the property hosting the machine.

According to the Financial Consumer Agency of Canada (FCAC), fees for using a white-label ATM can add up to over $6.00 per transaction. The same agency states that private operators are "not required to adhere to a minimum or maximum limit", meaning that the fee amount is up to the operator. The operator is obliged, however, to disclose the fee to be charged and give the consumer the option of cancelling the transaction.

CIBC has been criticized for creating a wholly owned subsidiary white-label company called Ready Cash. While many CIBC customers have free access to transactions with official CIBC accounts, since Ready Cash is not a bank they are charged twice, once by Ready Cash and again by CIBC.

Local small establishment retailers such as gas stations, bars and pubs, and restaurants are common locations for putting in private white-label ATMs to receive a fee for each transaction made at the ATM. Most white-label ATMs charge a minimum C$1.50 for the use of the machine with a percentage of that going to the retailer depending on their involvement with the ATM. The C$1.50 is in addition to what the cardholder's financial institution may charge.

In India, WLAs offer five transactions free of charge every month to all ATM card holders. The WLA operator is compensated by the card-issuing bank through an intercharge fee.

Notification of fees
A warning message will appear at some point prior to accepting to withdraw funds, advising the cardholder what the cost of the service is. There is always an opt out function to cancel the transaction and avoid paying the fees.