Topic: Automated Teller Machines (ATMs)
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We are considering offering an ATM that can move around to wherever local events are happening. Are there any banking regulations that would prevent us from using a mobile ATM?
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We are not aware of any Illinois or federal laws that would prohibit a national bank from establishing a mobile ATM (or a state bank, for that matter). The IDFPR has stated in an Interpretive Letter that mobile ATMs are permitted under Illinois law (Interpretive Letter 93-32 (December 22, 1993)). In addition, a mobile ATM…
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Are banks in Illinois required to get state approval before opening a “freestanding” ATM? We’re thinking about placing an ATM somewhere that would not be attached to a branch location. A third party vendor would service the ATM.
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We do not believe that you need to get any prior approval from the state before opening an ATM that is not attached to any branches or other premises of your institution. The IDFPR’s application and notice requirements apply only when you are opening new premises that fall under the Illinois Banking Act’s definition of…
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Does a company need to register with the State if it leases an ATM?
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We believe that non-bank ATMs must be registered with the Illinois Department of Financial and Professional Regulation by the businesses that “establish or own, in whole or in part,” the ATMs. 205 ILCS 616/30(B)
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Is there an Illinois law relating to ATM signage, or may we rely on the ATM signage bill signed into law in December of 2012 (H.R. 4367)?
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We believe that you can rely on the amendment to the federal law removing the ATM placard requirement. The Illinois Electronic Fund Transfer Act (EFTA) does require that banks post a fee notice on a sign on their ATMs (in addition to the onscreen notice). 205 ILCS 616/50
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Under Illinois law, are banks required to post ATM surcharge information on the access device and terminal screen?
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We believe that Illinois banks can rely on the amendment to the federal law removing the ATM placard requirement. The Illinois Electronic Fund Transfer Act (EFTA) does require that Illinois banks post a fee notice on a sign on their ATMs (in addition to the onscreen notice). 205 ILCS 616/50
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Under Regulation E, what kind of disclosure is necessary when a third party venue charges a service fee for use of an ATM that we own and operate, where we pass that fee on to the customer?
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We believe that you would be able to disclose fees charged by the proprietor of property in which you own an ATM, but we also recommend discussing the initial disclosure and any marketing language with bank counsel. (And, of course, all ATMs should on-screen notices that a fee will be charged and the amount of…
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Is there any law or regulation requiring us to post our name on all ATMs?
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We do not believe that you are required to post your name on your ATMs. Regulation E does not require that banks post their names on ATMs and requires only that they disclose any fees charged. See 12 CFR 1005.16
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Can we charge Link Card customers for using an ATM?
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Unfortunately, as we’ll explain below, this is one of those issues for which we think you should consult with your bank counsel. Looked at in isolation, Section 50 of the Illinois EFT Act would not allow you to charge a fee for Link Card withdrawals at ATMs in Illinois. 205 LCS 616/50(j). The Illinois Department of…
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Is a night deposit box allowable? What if a courier picked up deposits after hours?
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A night deposit box is certainly allowable, but it would be considered a branch (unless it is connected to an ATM). Interpretive Letter 94-10 (June 15, 1994)
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Do you have a listing of what disclosures banks are required to have on the outside of an ATM?
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Regulation E (at 12 CFR 1005.16(b)) a disclosure that “a fee will be imposed for providing electronic fund transfer services or a balance inquiry,” with the amount of the fee. This disclosure must appear on the ATM screen or on paper, but the rule no longer requires a physical placard on the ATM itself. The…