ATMIA U.S. Report

Inherit Economic Unfairness – ATMIA is continuing to engage a law firm to work with us in regards to reviewing banks' economic interest influencing the networks, by setting fees to competitors of the banks (namely, ISOs). This may be especially true of the tiered fee adjustments of Visa which are disadvantageous to cash dispensers as oppose to multifunctional ATMs.  In particular, we are looking to hire a lawyer to build the facts and prepare a paper for compelling case of inherit economic unfairness, with the expectation to present this paper to the Dept. of Justice, Federal Trade Commission or any state Attorney General.  These organizations would then investigate at their own expense if they felt there was a prima facie case.

FFIEC Anti-Money Laundering (AML) Requirements – The ATMIA Sponsoring Financial Institutions and ISO Committees are working towards a goal to collaboratively agree upon a position on the current requirements as outlined by the FFIEC for all to adopt.  These groups are currently reviewing a proposal provided by RSM McGladrey and the next steps.    

2007 ATM Legislation – ATM Legislative Monitoring Portal Client Login:  dakotacash

States Allowing International Surcharge:  Alabama , Arkansas, California, Colorado (Effective August 8, 2007), Georgia, Idaho, Louisiana, Maine, Mississippi, Montana, Nevada, Tennessee, Texas, Utah (Effective April 30, 2007), Washington and Wyoming

Pending States 

  • Florida HB 7087 – Has been sent to the Governor for signature.  Once the Governor formally receives this bill, he will have 15 days to act upon it or the measure will automatically become law. The Governor is expected to sign the bill as it passed both chambers overwhelmingly. This will then become effective October 1, 2007.
  • New York SB 2747 – S.B. 2747 was heard in the Senate Banks Committee May 2nd.  The measure was reported from committee unanimously and no amendments were proposed at the hearing. This bill will now be sent to the Senate floor for a vote.

This measure also has companion legislation in the Assembly (A.B. 6490). A.B. 6490 was heard in the Assembly Banks Committee May 7th.  The measure was reported from committee unanimously and no amendments were proposed at the hearing. 

Once either the Assembly bill or the Senate bill passes their chamber, the bills will be substituted into each other. This way the bill that will be the vehicle (the bill that passed chamber first) for this issue does not have to repeat the committee process that their counterpart already passed.

2007 Debit Legislation – Debit Legislative Monitoring Portal Client Login:  fastcash

The Federal Trade Commission came out with the first consent order on gift cards saying their gift card program was misleading and fraudulent - Kmart Settles With FTC Over Gift Card Sales Practices.  The complaint alleges that respondents have represented that the Kmart Gift Card never expires. In truth and in fact, after 24 months of non-use, the application of the Kmart Gift Card dormancy fee causes any Kmart Gift Card valued at less than $50.40 to expire. The complaint alleges that the representation that the Kmart Gift Card never expires is false and misleading.  This could be setting a precedent and become and invitation for lawsuits on bank issued cards.  As the agreement will be subject to public comment for 30 days, beginning March 12 and continuing through April 10, it was suggested that members of the Debit Council compile a response to address this issue during this comment period. 

New Litigation Update: Fair Credit Reporting Act Class Actions Seek Staggering Damages Awards (hyperlink to the attached Litigation pdf) – POS vendors who have supplied equipment and/or related software to retailers and restaurants that accept credit or debit cards and provide electronically printed receipts to the cardholder at the point of sale may have an interest in following these developments.  VISA, MasterCard, and certain financial institutions may also be interested in this issue. 

Since this Alert was issued, the number of class action lawsuits filed against retailers and restaurants under the Fair Credit Reporting Act had grown from just over 50 to over 100.  Though to date no POS vendor, credit card association, or financial institution has been named as a defendant in these actions, such entities may at some point be the subject of third-party subpoenas for documents and testimony in certain of these actions.  Accordingly, it may be worthwhile for you to review this litigation trend.

The group reviewed all of the bills currently moving specifically dealing with Abandoned Property, Escheats and Gift Cards and Certificates, and came up with the following action items for bills of concern:

The group is reviewing all of the bills currently moving specifically dealing with Abandoned Property, Escheats and Gift Cards and Certificates, and came up with the following action items for bills of concern:

Action Needed:  Prepare opposition responses for all the above for members to send to their appropriate representatives

The following bills do not include a gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card and that the card is not limited to use only with affiliated sellers of goods or services. 

Action Needed:  Prepare an opposition response requesting a carve out for multiple sellers

© 2007 ATM Industry Association. All Righs Reserved.