OCEAN CITY -- Resort business owners and operators this week are being warned about posting clearly marked signs about transaction fees for ATM machines after a rash of lawsuits exploiting a little known loophole have been filed against several local establishments.
Under the federal Electronic Fund Transfer Act, which governs ATM transactions, there is specific language relating to the notification requirements for extra fees. Users of ATMs know there is typically a prompt on the screen advising the consumer of the transaction fee and the transaction can’t be completed until the user signs off on it.
However, what is not readily known is that owners and operators of the ubiquitous ATM machines are also required to post a written notice on or near the machines advising consumers of the transaction fees.
A rather innocuous clause in the statute requires a sign or notice of transaction “shall be posted in a prominent and conspicuous location on or at the ATM at which the electronic fund transfer is initiated by the consumer.”
At least one man, James Buechler, 47, of Sparrows Point in Baltimore, has clearly discovered the loophole and appears to be exploiting the posting requirement clause for personal gain.
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