Financial Update (April-June 2001)
ATM Fee Disclosure
ATM Fee Disclosure Now Mandatory
y October this year, when consumers use automated teller machines (ATMs), they will receive clearer notification of fees they may be charged.
This notification is now required by the Federal Reserve Board, which recently published a rule amending Regulation E (Electronic Fund Transfers) to implement provisions of the Gramm-Leach-Bliley Act.
Although some ATM operators already disclose information about fees, the amendment makes such disclosures mandatory for all ATM operators.
Under the new requirements, an ATM operator that imposes a fee for transactions must provide notice of that fact in a conspicuous location on or at each ATM. The ATM operator must also disclose the amount of the fee, either on the screen of the ATM or on a paper notice, before the consumer is committed to completing the transaction. An ATM cannot charge a fee unless proper notice is provided and the consumer chooses to complete the transaction.
Also, when the consumer contracts for a funds transfer service, the institution holding the consumer’s account must provide initial disclosures, including a notice that a fee may be imposed by an ATM operator not holding the account or by any national, regional or local network used to complete the transaction.
The revisions went into effect on March 1, 2001, and compliance is mandatory by Oct. 1, 2001. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010301.