Financial Update (Fourth Quarter 2005)



FEATURES

 Jack Guynn on
 Economic Growth,
 Hurricanes

 Payment Services
 Withstand Katrina’s
 Might

 Pat Barron on the
 Need to Improve
 Payment Systems

 Directo a México
 Promotes FedACH

 Webcast
 Introduces New
 Bank Secrecy
 Act Manual

 Credit Cards’
 Benefits Outweigh
 Identity Theft
 Risks

 Go Direct Campaign
 Encourages Direct
 Deposit

 New HMDA Data
 Include Loan Pricing

 Redesigned $10 Bill
 to Debut in ’06

 Conference
 Explores Latin
 American Bank
 Reform

 Final CRA Rules
 Take Effect

 Revisions
 Proposed to
 ATM Fee
 Disclosure

DEPARTMENTS

 Data Bank

 Circular Letters

STAFF

SUBSCRIBE ONLINE

Proposed Rules Would Clarify ATM Fee Notifications

 

The Federal Reserve Board is proposing revisions to how banks disclose certain fees associated with automated teller machine (ATM) transactions. The revisions to Regulation E, which implements the Electronic Fund Transfer Act, are intended to clarify ATM operators’ surcharge practices.

Under current rules, an ATM operator that charges a fee for initiating an electronic fund transfer or balance inquiry must post notices that a fee will be imposed. Alternatively, under the proposed ruling, ATM operators could provide a notice that a fee may be imposed for a transaction. The operator would specify the type of services for which a fee is imposed if there are circumstances under which some consumers would not be charged for a transaction.

Related
Press release on proposed revisions
Federal Register on revisions to Reg E

The revisions would not require ATM operators to post a complete schedule of fees associated with various types of transactions on their machines. Rather, this more detailed information would have to appear either on the machine’s screen or on a paper notice issued to the consumer prior to the completion of a transaction requiring a fee, and the consumer would have the option to cancel the transaction and not pay the fee.

 

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