ATM Compliance Handbook 2012
A comprehensive guide to the top legal, regulatory and financial challenges facing the ATM industry – with step-by-step solutions and checklists.
If your business deals with ATMs in any way, you simply must have this guide – keep it handy, as you will refer to it often. Purchase and download your copy today.
From the introduction:
Hardly a month goes by without the consumer press reporting another hack on a major card data network or yet another clever scheme to steal card numbers and PINs. The same holds true for business publishers when it comes to stories about regulations and guidelines to prevent additional card-related crimes. And for ATM deployers, the strictures are not tied exclusively to criminal felonies: One of the more daunting sets of regulations currently in front of them relates to the very basic facts of a machine’s location and other attributes that impact the ability of the disabled to use it.
Deployers who fall afoul of the guidelines and regulations—some of which have yet to be fully defined—face a nasty mix of potential fines, internal costs and downtime, and loss of public confidence.
The list of challenges is long.
Americans with Disabilities Act. In the U.S., compliance with the Americans with Disabilities Act holds the potential for significant costs for upgrades of machines and installations. Depending on the manufacturer and age, an ATM may require upgrades to meet the audio assistance, keypad and screen blanking mandates of the ADA, among other requirements.
Surcharge fee disclosure. Under the Electronic Funds Transfer Act., U.S. ATM operators are required to provide notice to customers of ATM transaction surcharge fees. Lack of a comprehensive surcharge fee disclosure notice program can open an operator up to costly legal fees.
EMV/Chip-and-PIN. Also on the horizon for the U.S. market is the implementation of the EMV, or chip-and-PIN, payment card security program. Visa Inc. announced its plans for merchants to upgrade the payment card infrastructure to accept EMV cards. In its announcement, Visa stated that liability, in the event of fraud, will shift from the card issuers to whichever party in the payment chain is not EMV compliant. Although ATMs were not mentioned specifically in the first announcements from Visa, the liability shift seems inevitable.
Anti-Money laundering. The current regulatory environment has seen the formation of new government agencies and implementation of new laws, as well as a continued rise in ATM fraud activity around the globe.
The flow of funds from illegal activities amounts to billions of dollars per year, moving among countries and bank accounts in an effort to make the funds appear legitimate. In the U.S., anti-money laundering rules currently apply only to FIs and designated money services businesses. Canada recently passed the Money-Services Business Act, requiring ATM operators, owners and lessees to pay licensing and insurance fees.
Currency design. To make U.S. Federal Reserve Notes more accessible for the seeing impaired, the U.S. Bureau of Engraving and Printing is changing the design of the nation’s currency. The challenge for ATM operators is accommodating the changes to the installed base of more than 400,000 ATMs.
The Office of Foreign Assets Control. OFAC, an office of the U.S. Department of the Treasury, administers and enforces the U.S. government’s sanctions programs. Depending on the particular restriction at issue, OFAC regulations can restrict exports and imports to blocked entities or countries, the provision or purchase of services, financial transactions with blocked countries or entities and restrictions on travel. Financial transactions involving sanctioned parties may be blocked or rejected.
Consumer Finance Protection Bureau. With the formation of this bureau, ATM operations will be under greater scrutiny than ever. A high-profile security breach, large-scale fraud and consumer dissatisfaction all could result in increased regulatory burdens that also raise costs for operators.
Durbin Amendment. Despite the lobbying of others that ATMs be included in the Durbin Amendment, ultimately ATM operators and networks were not part of the new regulations. However, beginning July 21, 2012, debit and general-purpose prepaid cards will not be exempt if the cardholder may be charged either an overdraft fee or a fee for the first withdrawal each month from ATMs in the issuer’s designated ATM network.
Insurance demands. From an insurance perspective, ATM operators face a wide range of risks, from acts of God to acts of unscrupulous employees. Companies an IAD does business with will want to see proof, in the form of insurance certificates, that the ATM and the cash are adequately protected against these kinds of risk. A comprehensive insurance program can help manage those risks and ensure compliance with requirements.
For all of these scenarios, we put together this handbook. We wanted to capture the most important regulations and like issues facing ATM operators and highlight those that are on the horizon.