Citigroup Will Brand 5,500 7-Eleven ATMs in Surcharge-Free Deal

In a move that quintuples the number of ATMs in its network, Citigroup Inc. today announced it will brand machines in 5,500 7-Eleven Inc. convenience stores in 31 states. The ATMs, which will bear the Citibank brand, will allow customers to withdraw cash without incurring surcharges, a feature the bank says will save each of its cardholders $67 in yearly ATM fees, estimating that its customers make on average three non-Citi transactions a month at an average fee of $2 per transaction. The move coincides with the Dallas-based c-store chain's plans to expand its installed based of so-called Vcom machines from 1,000 to all 5,500 domestic stores. Vcom kiosks allow customers to pay bills and cash checks as well as perform cash withdrawals. 7-Eleven said it will shortly begin allowing its customers to make deposits, starting with Citigroup accountholders. The ATM branding deal also follows Citigroup's launch last week of Citibank Direct, its Internet bank. “We realize our customers are busy and may not have a Citibank Financial Center nearby when they need to use an ATM,” said Maura Markus, president of Citibank North America, in a statement. “By partnering with 7-Eleven, we're increasing our ATM locations five-fold.” The bank and the chain are promoting the ATM branding arrangement with a cash giveaway promotion in New York, Chicago, Las Vegas, and San Francisco. Financial terms of the arrangement were not announced.