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.
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.