I
105TH CONGRESS
1ST SESSION
H. R. 264
To amend the Electronic Fund Transfer Act to require notice of certain
fees imposed by the operator of an automated teller machine in connec-
tion with an electronic fund transfer initiated by a consumer at the
machine, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mrs. ROUKEMA (for herself and Mr. SCHUMER) introduced the following bill;
which was referred to the Committee on Banking and Financial Services
A BILL
To amend the Electronic Fund Transfer Act to require notice
of certain fees imposed by the operator of an automated
teller machine in connection with an electronic fund
transfer initiated by a consumer at the machine, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘ATM Fee Reform Act
of 1997’’.
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
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) FEE DISCLOSURES AT ELECTRONIC TERMI-
NALS.—
‘‘(A) IN GENERAL.—The regulations pre-
scribed 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 elec-
tronic terminal, or on a paper notice issued
from the terminal, after the transaction is
initiated and before the consumer is irrev-
ocably committed to completing the trans-
action.
‘‘(C) PROHIBITION
ON
FEES
NOT
PROP-
ERLY 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’ in-
cludes a transaction which involves a bal-
ance inquiry initiated by a consumer in the
same manner as an electronic fund trans-
fer, 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 ter-
minal operator’ means any person who—
‘‘(I) operates an electronic termi-
nal at which consumers initiate elec-
tronic fund transfers; and
‘‘(II) is not the financial institu-
tion which holds the account of any
such consumer from which the trans-
fer is made.
‘‘(iii) HOST
TRANSFER
SERVICES.—
The term ‘host transfer services’ means
any electronic fund transfer made by a
host electronic terminal operator in connec-
tion with a transaction initiated by a
consumer at an electronic terminal oper-
ated by such operator.’’.
SEC. 3. DISCLOSURE OF POSSIBLE FEES TO CONSUMERS
WHEN ATM CARD IS ISSUED.
Section 905(a) of the Electronic Fund Transfer Act
(12 U.S.C. 1693c(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(8);
(2) by striking the period at the end of para-
graph (9) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (9) the follow-
ing new paragraph:
‘‘(10) a notice to the consumer that a fee may
be imposed by—
‘‘(A) 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 is-
suing the card or other means of access; and
‘‘(B) any national, regional, or local net-
work utilized to effect the transaction.’’.
SEC. 4. FEASIBILITY STUDY.
(a) IN GENERAL.—The Comptroller General of the
United States shall conduct a study of the feasibility of
requiring, in connection with any electronic fund transfer
initiated by a consumer through the use of an electronic
terminal—
(1) a notice to be provided to the consumer be-
fore the consumer is irrevocably committed to com-
pleting 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 ac-
count of the consumer;
(C) any national, regional, or local network
utilized to effect the transaction; and
(D) any other party involved in the trans-
fer; and
(2) the consumer to elect 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 re-
quirement would have on various sizes and types of
institutions, if implemented.
(4) The period of time which would be reason-
able for implementing any such notice requirement.
(5) The extent to which consumers would bene-
fit from any such notice requirement.
(6) Any other factor the Comptroller General
determines to be appropriate in analyzing the fea-
sibility 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 enact-
ment of this Act, the Comptroller General shall submit
a report to the Congress containing—
(1) the findings and conclusions of the Comp-
troller 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 no-
tice requirement described in subsection (a) should
be implemented and, if so, how such requirement
should be implemented.
SEC. 5. NO LIABILITY IF POSTED NOTICES ARE DAMAGED.
Section 910 of the Electronic Fund Transfer Act (15
U.S.C. 1693h) is amended by adding at the end the follow-
ing new subsection:
‘‘(d) EXCEPTION FOR DAMAGED NOTICES.—If the
notice required to be posted pursuant to section
904(d)(2)(B)(i) by a host electronic terminal operator has
been posted by such operator in compliance with such sec-
tion and the notice is subsequently removed, damaged, or
altered by any person other than the operator of the auto-
mated teller machine, the operator shall have no liability
under this section for failure to comply with section
904(d)(2)(B)(i).’’.
SEC. 6. EFFECTIVE DATE.
This Act and the amendments made by this Act to
other provisions of law shall take effect at the end of the
6-month period beginning on the date of the enactment
of this Act.
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