White label ABMs in Canada provide alternative source of cash dispensing vis-à-vis traditional automatic banking machines (ABMs) from banks.
In Canada, the major financial institutions have 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.
White label 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 (white-label) 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, "Ready Cash". While many CIBC customers have free access to transactions with official CIBC accounts, as Ready Cash is not a CIBC bank, they are charged twice, once by Ready Cash and once by CIBC.
Local small establishment retailers such as gas stations, bars/pubs, and restaurants are common for putting in the 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 of their involvement with the ATM. The C$1.50 is above and beyond what the cardholders financial institution may charge.
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.