CUNA, NAFCU, Support ATM Notice Change

WASHINGTON – CUNA and NAFCU have lent their support to the possibility of changing a word on how ATM deployers disclose their fees to machine users. Currently, if an ATM deployer charges a fee for the use of the machine it must notify the user in a prominent and conspicuous way that a fee will be imposed for the transaction. But with the advent of more ATM programs which are fee-free to the cardholder, the Federal Reserve is considering allowing ATM deployers whose machines are part of such networks to replace the “will” with a “may.” Both associations, along with NASCUS, supported the possible change. “We believe that making a distinction between ATMs that charge fees for all transactions and those which only charge for certain transactions will better assist consumers in locating ATMs that may not charge a fee for transactions they may need,” CUNA wrote in its October 7 letter. In its comment letter, NASCUS states that the fee structure of a financial institution and the decision to determine what products will and will not incur fees should be determined by the institution. “It is legitimate that some customers may incur fees, while others may not,” states the NASCUS comment letter. “Consumers understand preferred pricing structures. Many industries practice preferred pricing, including airlines and grocery stories, to name a few.” NAFCU wrote that “the current regulation mandating the use of the term will in all cases, whether or not an ATM operator imposes a fee, is overly restrictive and likely to cause confusion in consumers. If signage posted on an ATM states that a fee will be charged even though certain transactions or consumers (due to network agreements) are surcharge-free, the consumer may not attempt a transaction thinking that there will be a surcharge.”