CO-OP Reaches ATM Deal With Costco; Planning Move Into Credit Card Processing

COLORADO SPRINGS -- CO-OP Financial Services has reached an agreement with Costco, the warehouse retailer, to provide access to surcharge-free ATMs at the company's stores, the credit union-owned company announced during its annual meeting here yesterday. The agreement will involve more than 300 stores nationally, with the exception of stores in Washington and Oregon where agreements with banks are already in place. “The demographics are attractive and it’s a very compatible relationship,” said CEO Stan Hollen, during yesterday meeting.. CO-OP is also preparing to announce expansion into credit card processing services during the third quarter of this year. "Credit cards are something we feel very strongly we should be into," Hollen told the Credit Union Journal. "It's right for us and it's value added. We plan to be very price competitive." Separately, CO-OP announced it is paying its 1,035 credit union owners a $12.1 cash dividend and a $9.8 million allocated equity dividend. CO-OP reported an 11% increase in net income last year to $26 million. There are almost 2,000 credit unions participating in the system.