(FORTUNE Magazine) – In Iowa City students use automated teller machines to pay college tuition, transferring money to the University of Iowa's account. In Texas and Louisiana, SouthWest Airlines sells standby tickets through ATMs in convenience stores. Along with shifting cash from a savings account to checking and other conveniences, these uses represent a logical progression in the proliferation of ATMs. But a recent 25-city study by Ohio-based Impact Resources shows the 70,000 ATMs in the U.S. are used far less than might be expected, even in major cities like Chicago (see table). Reason: In Illinois and some other states, banking laws designed to protect small banks have had the side effect of limiting the number of ATMs. California has more ATMs per person than anywhere else because regulations encourage banks to build a statewide presence. Cleveland's surprisingly strong showing is probably due to an ad campaign by Ameritrust that encouraged the elderly, usually reluctant, to use ATMs. F.H.K.

CHART: NOT AVAILABLE CREDIT: NO CREDIT CAPTION: WHERE ATMs ARE USED