Directs the department of financial services to study the issue of ATMs that accept EVM-enabled chip cards to determine which measures may be necessary and proper to ensure that the cards and corresponding personal data and information of consumers is protected from falling into the hands of others.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10157A
SPONSOR: Pellegrino TITLE OF BILL: An act to direct the department of financial services
to study consumer protection issues regarding ATMs that accept EVM-ena-
bled chip cards
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require the department of financial services to study
the very important consumer protection issues associated with chip-ena-
bled ATM's, which include the persistent and reoccurring issue of indi-
viduals leaving their cards in the machines-specifically the ones that
are designed to disburse the money first before printing a receipt and,
lastly, finally releasing the card-which is often locked in the machine
for the life of the transaction.
SUMMARY OF PROVISIONS:
Section 1 provides legislative intent outlining why the bill is neces-
sary, timely and needed.
Section 2 contains various definitions, including: "EVM Chip;" "Chip
Card;" "Dipping;" and "Department."
Section 3 authorizes and delineates the parameters of the DFS study on
this issue.
Section 4 requires the submission of .a report within 180 days of enact-
ment.
Section 5 empowers DFS to acquire information necessary for the report
form any instrumentality of the executive branch of government.
Section 6 provides an immediate effective date to commence the study and
report.
JUSTIFICATION:
In recent years, the prevalence of "chip cards" that contain Europay,
Visa, Mastercard (EVM) chips that store customer data, has led to new
problems that need to be addressed. One of these problems is customers
leaving their chip card in an ATM machine after taking their money from
the ATM. In the event that people forget to retrieve their card, a host
of negative outcomes may be visited upon consumers, including, without
limitation: the card may be taken by another for the purposes of theft,
larceny, fraud, identity assumption and other unlawful purposes.
This bill would address this issue, in part, by requiring a DFS study,
to focus on the prevalence, incidence and effect of this specific occur-
rence and in general, focus on what measures may be necessary and proper
to ensure that the cards and corresponding personal data of others is
protected from falling into the hands of others.
Among the issues for DFS to consider are:
1. The prevalence and incidence of people leaving their cards behind in
ATM machines.
2. To what extent the general public, including vulnerable populations
such as seniors and low-income individuals are affected by this issue.
3. The correlation, if any, between such cards being left behind and the
design of such ATM machines which hold the card within the very body of
the machine until the last step of the transaction.
4. The availability and efficacy of alternative ATM design that would
release the card earlier in the transaction or allow for dipping of the
cards, such as is available in most major stores and at gas stations and
other businesses, so that the card never leaves the consumers hands.
5. Any other related issues that the DFS Superintendent shall deem
advisable to create the report.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Instead of mandating that ATM companies prospectively change the design
and sequencing of their machines, this bill has DFS study the issue to
understand the true scope and nature of the underlying public policy
concern.
PRIOR LEGISLATIVE HISTORY:
This bill passed Assembly Banks, Codes and on the Floor 129-1 in 2018.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to state or local governments.
EFFECTIVE DATE:
This act shall take effect immediately and the DFS Report shall be
completed and submitted to the legislature within one hundred eighty
days.
