ATMIA Welcomes New US Manager – The ATM Industry Association (ATMIA), the only international non-profit association for promoting the ATM industry, is pleased to welcome Cynthia Habeeb as its new US Manager. She joins the association after 11 years with Triton where she was a Marketing Manager. The Executive Board selected her from a shortlist for her strong work ethic and unique skills set.

"An opportunity like the one I found with ATMIA does not come along everyday. Even though it meant leaving Triton, a group of individuals that provided me with great growth and support throughout my tenure, the opportunity to contribute back to our industry was a great pull for me. I have made a number of friends in the industry and I look forward to helping the ATM industry grow," Cindy commented.

Cindy, who lives in Biloxi, Mississippi, has a Bachelor of Science degree from the University of South Alabama.

According to Lana Harmelink, the association’s International Director of operations, "We saw something very special in Cindy. She possesses the unique combination of experience, intelligence, personality, and entrepreneurship that we look for in each team member we hire. We believe that Cindy will absolutely thrive in the ATMIA environment, providing invaluable support to our US members."

Government Relations Committee – Next Meeting March 20th @ 11:30am Eastern

International Surcharging –

• Great News!! Wisconsin AB239 International Surcharge Bill was signed by Governor James Doyle (D) on February 11. The bill will take effect two months after the date of publication. Currently the bill is scheduled to be published February 22 and the bill will take effect April 1, 2008.
• Florida – H.B. 187 passed the House Financial Institutions Committee unanimously on February 21st. S.B. 966 Referred to Senate Commerce Committee March 6. Hearing scheduled March 11.  An amendment is expected to be proposed to make this measure the companion of H.B. 187. Public testimony will be accepted at the hearing.
• Hawaii – H.B.  2409 passed House February 28. Referred to Senate Committee on Commerce, Consumer Protection and Affordable Housing March 6. S.B. 2292 passed the Senate unanimously. Passed the Senate Committee on Commerce, Consumer Protection and Affordable Housing unanimously. 
• New Jersey - There has been interest in initiating this type of bill in New Jersey. The GRC will investigate further. 

Adverse Legislation – The following is a list of legislation that the GRC will be reviewing for further action:

• Illinois S.B.  2856:  Provides that no person operating an ATM terminal in this state shall impose any surcharge exceeding $2 on a consumer for the usage of that terminal. This was introduced and referred to Senate Rules Committee February 15, 2008. Referred to Senate Financial Institutions Committee February 28. Hearing held March 5. Hearing scheduled March 13. Legislative Committees are required to hear every measure that has been referred to committee. If this measure is not reported out of committee before the March 13 committee reporting deadline, it will be referred back to the Senate Rules Committee and may no longer be considered during the 2008 legislative session. This bill was not held for discussion during the March 5 committee hearing. The sponsor has already introduced a measure in 2007 which would regulate ATMs, S.B. 28, which has not yet been voted out of the Senate Financial Institutions Committee. The sponsor is a member of the majority party and is chair of the committee of referral. This measure has not garnered cosponsors. Cosponsorship is seen as vital to moving legislation through the Illinois Legislature.

ATMIA Initiated Legislation –

• New York S.B.  856:  Provides that buildings housing ATMs are included within covered buildings for purposes of the crime of burglary in the second degree. Passed Senate unanimously on February 25 and referred to Assembly Codes Committee.

• City and County ATM Registration – ATMIA will be initiating a New York State ATM registration bill to supersede any city/county registration ordinances.  This bill will be reviewed during the next GRC meeting.

Other GRC Actions –

• The GRC has been requested to approach the State of Wyoming in regards to the surcharge cap.  The current legislation allows for up to $2.00, but places the final decision in the hands of the banking commissioner who is evidently responsible for a $1.50 cap.
• Renewal of the Agreement for General Governmental Affairs Representation for the 2008 Calendar Year between ATMIA and March, Wassermann & Associates, LLP.

Sponsoring Financial Institutions Committee – Next Meeting March 19th @ 11:30am Eastern

Through discussions held during the New Orleans conference, the following high-priority areas were identified by ISOs for further examination.   

• Anti-Money Laundering Requirements
  • Re-evaluating requesting the FFIEC to modify its AML guidelines - involving EFTA
  • Certain banks are giving ISOs 30-day notices to those that use their bank to withdraw cash to load ATM’s, stating that due to a security risks they are forcing them to go to armored truck services.

• Inherent Economic Unfairness
  • Set up a meeting with ISOs, Networks, and SFIs to discuss frustrations versus filing a complaint with the FTC

Debit Council – Next Meeting March 12th @ 10am Eastern

• Mobile Phone Security Committee – this new sub-committee are beginning to research areas associated with mobile phone banking security, ensuring maximum mobility in mobile phone banking while at the same time providing security for users in a way which will be acceptable to both consumers and banks.  The group has defined their outputs as follows:
  • Draft best practices for mobile phone banking, incorporating a security lifecycle approach.
  • Provide a customer education program.
  • Liaise with relevant law enforcement officers to set up joint industry-police working groups.
  • Discuss linking into Cognito and its new police database, fraud alert system and fraud reference library.
• ATMIA is working with the Merchant Acquiring Committee (MAC) to come up possible strategic alliances in education and training.

Payment Myths – ISO’s have expressed concerns about the threat of cash backs to ISO ATMs.  According to a UK report called Payment Myths, about cash and other kinds of payments in the UK, from the respected APACS organization it was quite encouraging regarding ATMs being much stronger than cash backs. 

• In 2006, UK consumers withdrew £7.2 billion in cash backs compared to £180 billion in ATM withdrawals
• The average value of a cash back transaction is  £25 compared to £65 for an ATM withdrawal
• In 2006 only 1 in 6 UK adults took advantage of the cash back service using their debit card
• On average regular users of cash back in the UK make 35 cash back withdrawals in a year, averaging about £17 a week, compared to consumers using cash machines an average of 78 times in a year withdrawing £100 per week from ATMs
• Major supermarkets with their own branded ATMs on-site attach a low priority to promoting the cash back service

Perhaps the best counterattack is to allow retailers to brand the ATMs on-site with their own brands so they lose interest in offering the cash back service, wanting more ATM transactions.

Also, Mike Lee, CEO of ATMIA provided a presentation during the New Orleans event on Forecasting the Future of Cash:  Separating Fact from Myth, showing the following:

• Debit card transactions and e-commerce are growing rapidly, check usage is declining significantly and cash usage is increasing in expected and unexpected places!
• It is not possible for any one technology designed to be a substitute for cash, on its own, to successfully mimic all the qualities of cash. There is no one “magic” substitute for cash. Cash is much more than a payment means.
• Cash as a public asset, issued by central banks, is the only payment method and form of money still under the authority of the state. Taking cash out society may be tantamount to the privatisation of part of the money supply and monetary policy, a “realisation” of money production and supply – potentially a recipe for liquidity crises, price wars and financial instability.
• The check, first used extensively in Holland in the early 1500s, was invented to be a cash substitute. In 5 centuries it has failed to displace cash as the # 1 payment means. Now it is in retreat. Then the credit card was invented in New York in the 1950s, again to substitute for cash. In five decades, it has failed to replace cash. If cash is still standing in the # 1 position after sustained attacks from the mighty check and mighty credit card – what on earth can topple cash?