ATM Fee Reform Act of 1996

Summary: ATM Fee Reform Act of 1996 - Amends the Electronic Fund Transfer Act to mandate fee disclosures at the time of service by any host electronic terminal operator which imposes a fee for providing host transfer services to a consumer. 
Requires each agency responsible for compliance enforcement under the Act to report annually to the Congress on compliance and on regional and national trends in fees imposed by host ATM operators. 
Mandates the disclosure to consumers whenever an electronic means of accessing the consumer's account is issued of possible fees for initiating electronic fund transfers. 
Requires the Comptroller General to study the feasibility of prohibiting the imposition of an electronic fund transfer fee unless notice has been provided before the consumer is irrevocably committed to completing the transaction.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ATM Fee Reform Act of 1996''.

SEC. 2. ELECTRONIC FUND TRANSFER FEE DISCLOSURES AT ANY HOST ATM.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Fee disclosures at electronic terminals.--
                    ``(A) In general.--The regulations prescribed under 
                paragraph (1) shall require any host electronic 
                terminal operator who imposes a fee on any consumer for 
                providing host transfer services to such consumer to 
                provide notice in accordance with subparagraph (B) to 
                the consumer (at the time the service is provided) of--
                            ``(i) the fact that a fee is imposed by 
                        such operator for providing the service; and
                            ``(ii) the amount of any such fee.
                    ``(B) Notice requirements.--The notice required 
                under subparagraph (A) with respect to any fee 
                described in such subparagraph shall--
                            ``(i) be posted in a prominent and 
                        conspicuous location on or at the electronic 
                        terminal at which the electronic fund transfer 
                        is initiated by the consumer; and
                            ``(ii) appear on the screen of the 
                        electronic terminal, or on a paper notice 
                        issued from the terminal, after the transaction 
                        is initiated and before the consumer is 
                        irrevocably committed to completing the 
                        transaction.
                    ``(C) Prohibition on fees not properly disclosed 
                and explicitly assumed by consumer.--No fee may be 
                imposed by any host electronic terminal operator in 
                connection with any electronic fund transfer initiated 
                by a consumer for which a notice is required under 
                subparagraph (A), unless--
                            ``(i) the consumer receives such notice in 
                        accordance with subparagraph (B); and
                            ``(ii) the consumer elects to continue in 
                        the manner necessary to effect the transaction 
                        after receiving such notice.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Electronic fund transfer.--The term 
                        `electronic fund transfer' includes a 
                        transaction which involves a balance inquiry 
                        initiated by a consumer in the same manner as 
                        an electronic fund transfer, whether or not the 
                        consumer initiates a transfer of funds in the 
                        course of the transaction.
                            ``(ii) Host electronic terminal operator.--
                        The term `host electronic terminal operator' 
                        means any person who--
                                    ``(I) operates an electronic 
                                terminal at which consumers initiate 
                                electronic fund transfers; and
                                    ``(II) is not the financial 
                                institution which holds the account of 
                                any such consumer from which the 
                                transfer is made.
                            ``(iii) Host transfer services.--The term 
                        `host transfer services' means any electronic 
fund transfer made by a host electronic terminal operator in connection 
with a transaction initiated by a consumer at an electronic terminal 
operated by such operator.''.

SEC. 3. AGENCY REPORTS OF COMPLIANCE WITH REGULATION E.

    (a) In General.--Section 918 of the Electronic Fund Transfer Act 
(15 U.S.C. 1693p) is amended by adding at the end the following new 
subsection:
    ``(c) Compliance and Trends.--
            ``(1) Regulation e compliance reports.--Each agency 
        responsible under section 917 for enforcing compliance with the 
        requirements imposed under this title shall submit an annual 
        report to the Congress on the degree to which entities which 
        are subject to the jurisdiction of such agency under this title 
        are in compliance with regulations prescribed by the Board 
        under section 904(d).
            ``(2) Trends in fees imposed by host atm operators.--Each 
        report submitted by an agency pursuant to paragraph (1) shall 
        include a description of any discernible trend, in the Nation 
        as a whole and in each region--
                    ``(A) in the imposition of fees for which notices 
                are required under section 904(d)(2); and
                    ``(B) in the rate of compliance with regulations 
                prescribed pursuant to such section.
            ``(3) Separate submission not required.--The information 
        required to be submitted to the Congress under this subsection 
        may be included in any other annual report submitted to the 
        Congress by such agency.''.

SEC. 4. DISCLOSURE OF POSSIBLE FEES TO CONSUMERS WHEN ATM CARD IS 
              ISSUED.

    Section 911 of the Electronic Fund Transfer Act (15 U.S.C. 1693i) 
is amended by adding at the end the following new subsection:
    ``(d) Disclosure of Possible EFT Fees.--Whenever a card, code, or 
other means of access to a consumer's account is issued for the purpose 
of initiating electronic fund transfers from such account, the person 
issuing the card, code, or other means of access shall provide a 
written notice to the accountholder that a fee may be imposed by--
            ``(1) a host electronic terminal operator (as defined in 
        section 904(d)(2)(D)(ii)) if the consumer initiates a transfer 
        from an electronic terminal which is not operated by the person 
        issuing the card or other means of access; and
            ``(2) any national, regional, or local network utilized to 
        effect the transaction.''.

SEC. 5. FEASIBILITY STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the feasibility of prohibiting the imposition of any 
fee by any person in connection with any electronic fund transfer 
initiated by a consumer through the use of an electronic terminal 
unless--
            (1) a notice is provided to the consumer before the 
        consumer is irrevocably committed to completing the 
        transaction, which clearly states the amount of any fee which 
        will be imposed upon the consummation of the transaction by--
                    (A) any host electronic terminal operator (as 
                defined in section 904(d)(2)(D)(ii) of the Electronic 
                Fund Transfer Act) involved in the transaction;
                    (B) the financial institution holding the account 
                of the consumer;
                    (C) any national, regional, or local network 
                utilized to effect the transaction; and
                    (D) any other party involved in the transfer; and
            (2) the consumer elects to consummate the transaction after 
        receiving the notice described in paragraph (1).
    (b) Factors To Be Considered.--In conducting the study required 
under subsection (a) with regard to the notice requirement described in 
such subsection, the Comptroller General shall consider the following 
factors:
            (1) The availability of appropriate technology.
            (2) Implementation and operating costs.
            (3) The competitive impact any such notice requirement 
        would have on various sizes and types of institutions, if 
        implemented.
            (4) The period of time which would be reasonable for 
        implementing any such notice requirement.
            (5) The extent to which consumers would benefit from any 
        such notice requirement.
            (6) Any other factor the Comptroller General determines to 
        be appropriate in analyzing the feasibility of imposing any 
        such notice requirement.
    (c) Report to the Congress.--Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress containing--
            (1) the findings and conclusions of the Comptroller General 
        in connection with the study required under subsection (a); and
            (2) the recommendation of the Comptroller General with 
        regard to the question of whether a notice requirement 
        described in subsection (a) should be implemented and, if so, 
        how such requirement should be implemented.