An out-of-service ATM. A major ATM service provider’s abrupt collapse left many credit union ATMs offline, cutting off members’ access to cash.

Dozens of credit unions and their members were thrown into turmoil in early April after ATM Solutions Inc., a third-party cash servicing vendor, suddenly shut down operations without warning. In an April 3 email to clients, the Cincinnati-based company cited “unforeseen business circumstances” for its immediate closure. The impact was swift and widespread: ATM Solutions had serviced roughly 2,000 ATMs across 12 states, including machines for credit unions in Tennessee, Kentucky, Mississippi and beyond. Within days, many of those ATMs went dark or cash-empty, leaving credit union members unable to withdraw money from certain locations and causing panic in affected communities.

Credit unions scrambled to respond to the vendor’s collapse. About 50 credit unions joined an emergency call hosted by the Tennessee Credit Union League to assess the damage and coordinate next steps. They shared grim reports: some ATMs were still running on autopilot until they ran out of cash, while others were completely inaccessible – literally locked shut and loaded with cash that credit unions couldn’t retrieve. ATM Solutions had sole possession of the keys and service codes for many machines, meaning the credit unions could not even open their own ATMs to refill cash or transition to a new provider. “We understand this may create significant challenges… and we sincerely apologize for any disruption,” the vendor’s curt notice stated. But apology was little comfort to institutions suddenly stuck with dead machines and frustrated members.

Working quickly, credit unions sought alternative ATM service providers, but replacing hardware or moving to new cash couriers isn’t cheap or fast. One league-recommended vendor quoted $3,000 to $4,500 to install a temporary ATM, with lead times of 90–120 days for permanent replacements. With no quick fix in sight, credit unions took steps to ease the pain for members: They communicated proactively that the outage was caused by a third-party vendor failure, not an internal issue, and directed members to use surcharge-free ATMs in network. Many pledged to reimburse any fees incurred by members forced to withdraw cash from other banks’ ATMs during the crisis. The emphasis was on transparency and reassurance – that members’ money was safe and accessible through other channels, even as the affected ATMs remained out of service.

The ATM Solutions fiasco has sparked anger and urgency in the credit union community. For members in rural areas or underserved neighborhoods, a shuttered ATM isn’t just an inconvenience – it can mean no nearby access to cash for basic needs, stirring anxiety among those who rely on local machines. Credit union executives have also expressed outrage at the vendor’s sudden exit. Many are reviewing their contracts and contingency plans to ensure nothing like this happens again. As one operations manager put it, “This kind of collapse blindsides you – we never imagined our ATMs could just stop because a vendor disappeared overnight.” The incident stands as a cautionary tale in operational resilience, underscoring the need for backup plans when critical service partners fail without warning.