Another ATM Company Shuts Down – What Credit Unions Need to Know

July 30, 2025

By Joe Woods, SVP Marketing & Partnerships, Dolphin Debit Access

In the past year alone, two ATM outsourcing and operating companies have abruptly shut down, leaving credit unions nationwide scrambling to maintain and rebuild their ATM networks. The root causes? Greed, mismanagement, and in some cases, outright theft.

These closures serve as a stark reminder of the importance of rigorous due diligence and risk assessment when selecting an ATM services partner. Many of the smaller outsourcing firms originated as ATM ISOs (Independent Sales Organizations). Traditionally, ISOs focused on deploying ATMs in retail environments, relying heavily on surcharge and interchange revenue. Their machines were often lower-cost, featured minimal security, and frequently used commercial-grade safes instead of proper level one vaults.

Security and operational standards in these environments are typically far below those of institutional-grade providers. It’s not uncommon to see undertrained personnel loading cash without armored vehicles or proper security measures — sometimes carrying both a cash box and a toolbox at the same time. Their priority is often cost-cutting, not operational integrity.

As consumer payment behavior has shifted over the past two decades — favoring debit and credit cards over cash — many ISO operators saw a decline in transaction volume and revenue. In response, they began marketing their services to credit unions as low-cost ATM outsourcing solutions. While these offers may appear attractive on the surface, the risks can be significant.

The most recent closure underscores this point. The company in question suffered from serious internal control failures, most notably, a lack of separation between ATM operations, cash handling, and service functions. When a single organization is responsible for operating, managing, and loading the cash, it creates the perfect storm for fraud. Without checks and balances, theft can go undetected until it’s too late.

This situation has caught the attention of credit union regulators and insurance providers alike. Moving forward, credit unions should expect increased scrutiny during exams and audits, with a focus on the safeguards in place for ATM operations.

To mitigate these risks, it is essential to work with a partner that maintains full separation between operational systems, cash management, and field service. Anything less leaves your institution vulnerable.

If your credit union is unsure about your ATM provider’s controls or risk profile, now is the time to act. Reach out to your GoWest Solutions team for help evaluating your current setup to ensure the continued safe and secure operation of your ATMs.

Posted in GoWest Solutions, Top Headlines.