The decision by major banks to abolish automatic teller fees continues to cut into the business performance of Cardtronics - Australia's largest ATM operator - with the company indicating it may have to make further write downs on the carrying value of its domestic fleet.In its first quarter accounts, lodged recently with US and British regulators, the global ATM giant warned that its networks in Australia and New Zealand would take an earnings hit this year."The recent actions by the largest banks in Australia have resulted in a significant increase in the availability of free-to-use ATMs to Australian users, and while we are working on developing strategies to react to this unexpected market shift, we believe our revenues and profits in Australia will decline in the near-term," the company told US shareholders in its quarterly accounts."While the initial impact we have experienced has been somewhat limited, the impact of this action could increase over time as consumers' behaviour patterns change as a result of the introduction of a free-to-use network in Australia that did not exist previously."In the 12 months to the end of March, Cardtronics said that it reduced the number of proprietary ATMs in Australia and New Zealand by 688 - a decline of 7.7 per cent - to 8, 249.Despite the cull, Cardtronics remains the largest ATM owner in both countries, accounting for slightly less than one quarter of the machines in operation.The rationalisation of the fleet occurred as surcharge revenue on ATM transactions fell 8 per cent to $US24 million in the March quarter compared to the same period last year.Cardtronics entered the Australian market in January 2017 when it acquired a major global competitor Direct Cash Payment Inc for $US495 million.However, the company shocked investors in September when it revealed it had recognised $US215 million of impairments on goodwill and other intangible assets within the Australian and NZ reporting unit.The directors also warned of the potential for more writedowns."In the event we determine our goodwill or amortizable intangible assets are further impaired in the future, we may be required to record a significant charge to earnings in our consolidated financial statements, which would negatively impact our results of operations and that impact could be material," the company warned in 2017 full year accounts.Cardtronics has also encountered additional technical and cost challenges since entering the Australian market.The Reserve Bank's new generation bank note program has forced the company to invest in an upgrade of its software and machines because they were not able to accommodate the new $50 Australian note that will enter circulation on September 1."The redesigned banknotes include a raised tactile feature to help the blind and visually impaired community distinguish between different denominations of banknotes and a top-to-bottom clear window in which the banknote is transparent," the company said in its accounts."The new banknotes will require upgrades to the software and physical ATM components on our ATMs in Australia, and until all denominations of the banknotes have been released and are available for