Meanwhile, two major ATM and payments CUSOs said they can withstand the new competition.
Discover Financial Services launched Discover Bank in 2000 when it changed the name of the Greenwood Trust Co., a bank it acquired in 1985, to Discover Bank.
The bank holds the deposits to Discover's savings and CD accounts as well as the Cashback Checking product which the company began offering on a limited basis in February 2013 and plans to roll out broadly in 2014, according to the firm.
Discover offers FDIC insurance for its savings, CD and checking products.
Cashback Checking depositors earn 10 cents for every debit card transaction, bill paid electronically or check they write.
Adding the 43,000 Allpoint ATMs in the U.S. to the existing 900,000 PULSE branded ATMs will mean that Cashback Checking account holders will have surcharge-free access to 133,000 ATMs, many in convenience stores, supermarkets and other convenient retailers.
CO-OP Financial Services, the CUSO which offers surcharge-free ATM access through its CO-OP ATM program declined to comment directly on the move, but Caroline Willard executive vice president for markets and strategy for CO-OP, noted that many CO-OP ATMs still take deposits which no Allpoint ATMs do, preserving a competitive difference for the CUSO.
But a spokesman for Discover observed that the Discover checking depositors have access to their accounts through a mobile phone app that permits deposits to be made remotely, erasing the need for making deposits through any ATM.
CU 24, the other nationwide ATM and POS CUSO, had a similar take to CO-OP's.
“CU24 does not anticipate any significant market impact in the credit union community,” wrote a company spokesman in an email. “Through CU24, credit unions can gain access to that same Allpoint network along with approximately 25,000 additional surcharge-free ATMs, no matter which card brand they issue.”