I
104TH CONGRESS
2D SESSION
H. R. 3727
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
JUNE 26, 1996
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 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
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