| NEW YORK
NEW YORK Oct 3 A decade after JPMorgan Chase &
Co said with great fanfare that it would make life
easier for customers by putting its cash machines into Duane
Reade drug stores in New York City and Walgreens stores in
Florida, the big bank is retreating.
Customers who use the ATMs marked with Chase's blue octagon
logo in those drug stores are beginning to be met with a
message: "Soon this machine will no longer be a Chase ATM."
The new message is the public start of a withdrawal that
stems from an agreement the largest U.S. bank by assets made in
April to sell 2,586 cash machines - primarily in Walgreens and
Duane Reade drug stores, and other retailers - to ATM operator
Cardtronics for an undisclosed amount.
The exact timing depends on how quickly the machines can be
converted for use under the brand name of another financial
The deal includes ATMs in Walgreens in nine states in total,
including stores in Arizona and the Chicago area.
Chase spokesman Mike Fusco said the bank is logging off of
the ATMs because it will save money and because customers use
these particular machines less.
"It really came down to simplifying the business," said
Fusco. "Our customers are using those ATMs less frequently given
that our ATM presence has expanded significantly over the last
When Chase disconnects, it will have about 15,500 ATMs,
primarily in its branches. That is more than twice as many as in
2005 when the bank turned to drug stores to quickly place cash
It also has ATMs at some airports, train stations and sports
Fusco said Chase has ATMs within five minutes of the "vast
majority" of discontinued machines because of expansions since
it made the drug store deals. For example, in 2008, two years
after turning to Walgreens for more Florida locations, JPMorgan
picked up 260 branches in its financial crisis purchase of
Chase ATMs in branches accept deposits while the store
machines it is giving up only dispense cash and show account
Cardtronics is talking to other financial institutions about
putting their brands on the machines and it expects to announce
new arrangements "later this year," Cardtronics spokesman Nick
Pappathopoulos said in an email.
A spokeswoman for Walgreens Boots Alliance Inc,
which owns Walgreens and Duane Reade, had no immediate comment.
(Reporting by David Henry in New York. Editing by Carmel
Crimmins, Bernard Orr)