X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.