Topic: Automated Teller Machines (ATMs)
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Do the ATM advertising restrictions in the Illinois Electronic Fund Transfer Act (EFTA) apply to nationally chartered banks? We have seen a few national banks advertise their products and services on the home screen of their ATMs, which is visible to non-customers.
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In our view, the advertising restrictions in the Illinois EFTA do not apply to national banks. The Illinois EFTA prohibits advertising to non-customers on ATM terminal screens, and this prohibition applies to banks “established under the laws of the United States.” However, a federal court of appeals (outside of Illinois) has determined that state laws…
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Under the Illinois Electronic Fund Transfer Act, are we prohibited from advertising our products on our ATM screens if the ATM can be accessed by non-customers?
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No, the Illinois Electronic Fund Transfer Act (EFTA) does not prohibit you from advertising your products and services on the screens of ATMs that may be accessed by non-customers, provided that the advertisement appears only to your customers after they insert a card issued by your bank. The Illinois EFTA generally prohibits a bank from…
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Our Funds Availability disclosure states that we will make cash deposits available on the same day. However, we provide same-day availability only for cash deposits made with tellers; for cash deposits made at an ATM, we make $200 available immediately, with the remainder available the next day. Do we need to revise our disclosure?
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Yes, we recommend revising your disclosure. The disclosure should accurately reflect your institution’s practices, and it would not be accurate to state that all cash deposits will be available on the day of deposit. For resources related to our guidance, please see: Regulation CC, 12 CFR 229.16(a) (“. . . a bank shall provide a…
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We make all cash deposits at ATMs available immediately. Since we do not distinguish between deposits at proprietary and nonproprietary ATMs, do we need to disclose a list of locations for our proprietary ATMs in our Regulation CC disclosure?
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No. Regulation CC requires you to disclose a list of the locations for your proprietary ATMs only if you delay the availability of cash deposits made at nonproprietary ATMs. For resources related to our guidance, please see: Regulation CC, 12 CFR 229.16(b)(5) (“The specific availability policy disclosure shall contain the following, as applicable . .…
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We are discontinuing the service of permitting deposits at our ATMs. Do we need to update our Regulation E disclosures and resend, or can we simply notify customers of the change in a statement message?
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Yes, Regulation E requires you to deliver a change in terms notice to customers because you are removing one of the types of electronic fund transfer services that previously was available to your customers. For resources related to our guidance, please see: Regulation E, 12 CFR 1005.8(a)(1)(iii) (“A financial institution shall mail or deliver a written notice…
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If a noncustomer experiences an error at our ATM (the individual was charged but did not receive any cash), are we subject to Regulation E’s error resolution procedures?
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No, you are not subject to Regulation E’s error resolution procedures in this case. Regulation E applies only to accounts that are subject to an agreement for EFT services between your institution and the consumer. Because you do not have an agreement for EFT services with the noncustomer, Regulation E’s error resolution procedures do not…
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If we wish to remove an ATM, do we need to obtain permission from our federal regulator or the Illinois Department of Financial and Professional Regulation (IDFPR)? Do we need to provide a 30-day public notice with alternative options?
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No, we are not aware of any requirement to obtain permission from your federal regulator or the IDFPR when you permanently remove an ATM. We also are not aware of any public notice requirements.
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If an ATM does not dispense the correct amount of cash, do the investigation time frames and consumer liability caps from Regulation E apply?
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Regulation E’s error resolution time frames do apply to incorrect ATM withdrawals. The 10-day and 45-day time limits on investigations apply to all “errors,” including a “consumer’s receipt of an incorrect amount of money” from an ATM. However, Regulation E’s consumer liability caps do not apply to incorrect ATM withdrawals. The consumer liability caps apply…
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Under Illinois law, does the owner of a privately owned ATM need to be licensed? We have customers that own ATMs, and they claim that they are not required to hold a license because another entity processes the ATM transactions.
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No, Illinois law does not require a license, but it does require the individual or non-bank entity that owns or establishes the ATM to register it with the IDFPR. For resources related to our guidance, please see: Illinois Electronic Fund Transfer Act, 205 ILCS 616/30(B) (“A person other than a financial institution or an affiliate…
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Are we required under Illinois law to have a sign on the outside of our ATMs about fees?
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No, you are not required to have a fee notice on the outside of your ATMs. The requirement to post a fee notice on ATMs has been eliminated from both federal and Illinois law. For resources related to our guidance, please see below: Illinois Electronic Fund Transfer Act, 205 ILCS 616/50(e) (requires fee notice to…