Many credit union members will soon pay a surcharge to use an ATM at Walgreens stores throughout the state of California after an agreement with CO-OP Financial Services expires at the end of July.
In a statement to CU Times, CO-OP said it was unable to reach an economically viable agreement with an independent sales organization to provide surcharge-free access to credit union members at approximately 560 Walgreens ATMs in the state.
"ATMs in Walgreens California stores will no longer be part of the CO-OP ATM network, and thus not surcharge-free to members of participating credit unions. This takes effect July 31, 2016, following our notification to client credit unions back on May 27," CO-OP said.
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Low volumes may have been a factor in the decision as well.
"The Walgreens California locations averaged about 200 CO-OP ATM transactions per month (significantly less than the average retail location)," CO-OP said.
There are 5,100-plus other CO-OP ATM locations in California, with at least one CO-OP ATM within three miles or less of 95% of the Walgreens stores, it added.
CO-OP said it works with independent sales organizations to provide free access to credit unions across the United States and that it evaluates and renegotiates those contracts as they expire.
Walgreens Boots Alliance operated 8,199 drugstores in the United States as of May 31. The company operates under the Walgreens, Duane Reade, Boots and Alliance Healthcare brands. The CO-OP ATM network currently comprises about 30,000 ATMs nationwide.
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