“In 1996, the US Federal government allowed private operators to own and maintain ATMs, breaking with long-standing regulations that only allowed financial institutions to operate ATMs. This deregulation led to a whole new industry of private businesses placing and operating ATMs in many different business venues. Following is the current regulatory framework with which Capitol ATM is in compliance: https://www.federalreserve.gov/supervisionreg/srletters/SR2118a4.pdf
https://www.govinfo.gov/content/pkg/FR-2013-03-26/pdf/2013-06861.pdf
Operating Rules and Regulations for Bank-Operated ATMs
Video Surveillance
Banks using an analog video surveillance system must follow federal law requirements. The systems must use videotape that is commercial or industrial grade. It is recommended that the tape only be used once from beginning to end and within a 30-day period. Once the tape is full, the bank must retain the video surveillance for a period of at least 45 days. After this time, the tapes can be recorded over, but they should not be used more than 12 times. Many ATMs are now sold with a built-in surveillance system, most of which are digital recording systems.
Safety Regulations
U.S. Federal Laws are in place for banks operating an ATM, mainly the Federal Electronic Funds Transfer Act and the Bank Protection Act. These laws are in place for security purposes; however, the laws address the security of the ATM itself, not the safety of the user. Although they must still abide by U.S. Federal Laws, many states have put their own regulations into place for the safety of their customers. States such as, California, Florida, and New York, to name just a few; have passed laws establishing security standards for ATM operators. Standards have been set for lighting, visibility, security, and landscaping at ATM locations.
Fees
According to the Electronic Fund Transfer Act (Regulation E), of the (ATM Regulatory Requirements) the owner of an ATM is required to both post a physical notification and an on-screen notification that a fee is charged for providing the service of its machine. The physical notice was to be posted on the machine or somewhere visible to a user at the machine. This was most commonly in the form of a sticker on the ATM. On December 20, 2012, the December 2012 Statutory Amendment was approved, which only requires the on-screen disclosure now. Most ATMs still post the physical notice, but they are no longer required to do so. Unlike the posted notification, an on-screen notification of fees must include the dollar amount of the charge. This notification offers the user the option to accept and continue the transaction or to deny the fee and end the transaction.
These are just some of the simple, most common regulations in place for bank owned ATMs. For more detailed information on these and other laws, you can research the Electronic Fund Transfer Act (EFTA), the Federal Electronic Funds Transfer Act, the Bank Protection Act, and U.S. Federal Laws regarding ATMs.
Operating Rules and Regulations for Non-Bank Owned ATMs
Non-bank-owned ATMs have a different set of ATM operating rules and regulations to follow; and are a lot simpler.
- These machines are only allowed to dispense cash; no deposits are accepted at these locations.
- They must display on the ATM the logos of the types of cards that are accepted at their machine.
- The owners of the ATM can charge customers a fee for their transaction; however, it must be clearly posted at the machine as well as on-screen during the withdrawal transaction.
- All non-bank-owned machine owners are required to file an annual notice of ownership, which is typically done through the ATM processor they signed up with.
- Some states have their own set of non-bank regulations; check with us to be sure they manage this process for you.
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John and Bing
CAPITOL ATM, LLC
California, United States
Email us at [email protected]
800-381-4055