MasterCard’s Role in ATM Access Fees

‘Investigation Into ATM Fees Ends” [July 2] creates a misperception about the circumstances surrounding the disclosure of ATM access fees. The story states: “ . . . the Clinton administration is pushing for legislation, over the opposition of banking lobbyists, to require prominent disclosure of fees ATMs charge.”

What the article does not report is that the disclosure requirements endorsed by the administration were originated and implemented by MasterCard and its ATM network, Cirrus. Specifically, the nationwide ATM networks require their participating ATMs to disclose access fees through physical signs on the ATMs as well as “on-screen” notifications. In addition, the operating rules mandate that consumers be given the right to cancel a transaction without incurring a fee.

While the administration’s proposal would not provide any additional disclosure or benefit to consumers, it could lock current technology into law. As demonstrated by the fact that Congress is just now changing Depression-era banking statutes, laws seldom keep pace with the technology of the times. With chip card technology, in the near future the closest ATM may be your home personal computer. So signage disclosures that make sense today may be absurd tomorrow.

The bottom line is the “banking lobbyists” do not oppose ATM disclosures. In fact, we invented and implemented them. What we oppose are legislative proposals which provide no consumer benefit but which inhibit technology and progress.

WILLIAM P. BINZEL

Vice President, Public Affairs

MasterCard International

Washington