|For immediate release|
The Federal Reserve Board today published a final rule amending Regulation E (Electronic Fund Transfers) to implement provisions of the Gramm-Leach-Bliley Act (GLBA) requiring disclosure of automated teller machine (ATM) fees.
The GLBA amended the Electronic Fund Transfer Act by requiring disclosure of fees imposed by ATM operators (sometimes referred to as "surcharges"). Many ATM operators that impose such fees already disclose information about the fee to satisfy existing Regulation E and ATM interchange network requirements.
Under the GLBA amendments, an ATM operator that imposes a fee on a consumer for an electronic fund transfer (EFT) service is required to provide notice of that fact in a prominent and conspicuous location on or at the ATM where the EFT is initiated. The ATM operator must also disclose that a fee will be imposed together with the amount of the fee, either on the screen of the ATM or on a paper notice, before the consumer is committed to completing the transaction. No fee may be imposed unless proper notice is provided and the consumer elects to complete the transaction. In addition, when the consumer contracts for an EFT service, the financial institution holding the consumer's account must provide initial disclosures, including a notice that a fee may be imposed by an ATM operator not holding the consumer's account, or by any national, regional, or local network used to complete the transaction. The revisions are effective immediately; compliance is mandatory as of October 1, 2001.
The Board’s notice is attached.
2001 Banking and consumer regulatory policy