Bill Would Require On-Screen Disclosure of ATM Charges

Cash machine operators would have to warn users about service charges or fees on the screen before a transaction and on a sign by ATMs, under a bill introduced Wednesday by lawmakers who said some users are unknowingly charged up to $6 a transaction.

The bill, proposed by Rep. Marge Roukema (R-N.J.) and Rep. Charles E. Schumer (D-N.Y.), would require automated teller machine operators to disclose any fees before the transaction.

“ATM users shouldn’t be asked to sign blank checks every time they want money,” said Roukema, chairwoman of the House Banking subcommittee on financial institutions and consumer credit.

Since April 1, ATM operators in 35 states have been allowed to charge customers an extra fee if they use machines outside their own banking system. That practice was already legal in 15 states.

The bill would require disclosure only of that machine operator’s fee, not the fee charged by a user’s own bank if the customer is using another bank’s machine.

The measure would also require banks to warn customers when they issue ATM cards that other banks may impose surcharges.

Rep. Cleo Fields (D-La.) said ATMs set up for special events at Mardi Gras in New Orleans have charged up to $6 a transaction.