Here's a real puzzler for you Reg E gurus:

With regard to disclosures on periodic statements for EFTs, Reg E says at 205.9(b)(1)(iv) says the periodic statement has to include "the terminal location described in paragraph (a)(5) of this section". Paragraph (a)(5) says disclosure of the terminal location is accomplished by disclosing "the city and state or foreign country and one of the following: (i) the street address; or (ii) a generally accepted name for the specific location; or (iii) the name of the owner or operator of the terminal if other than the account-holding institution.

OK, it seems pretty clear so far. From what I read here (in the regulation itself) it seems we can be in compliance for a non-proprietary ATM transaction by disclosing on the periodic statement the street address and the city and state where the terminal is located, right?

Here comes the puzzler. In the commentary to 205.9(b)(1)(iv) it says: "An institution need not reflect on the periodic statement the street addresses, identification codes, or terminal numbers for transfers initiated in a shared or interchange system at a terminal operated by an institution other than the account-holding institution. The statement must, however, specify the entity that owns or operates the terminal, plus the city and state."

So how do we read this commentary in conjunction with the regulation text? At first read the two seem contradictory. The regulation says you can disclose the street address (205.9(a)(5)(i)) instead of the owner/operator (205.9(a)(5)(iii)). The commentary says you don't have to disclose the street address but must disclose the owner/operator. So which is it? Free umbrella drinks to the one with the the best logic to back up their answer.

I'd read the two apparently contradictory statements as saying that if you can't identify the street address, terminal number or identification codes, you must, at a minimum, be able to identify the party that owns or drives the terminal, plus the city and state. Naming the third party owning or driving the terminal will probably take care of the requirement to disclose the third party to or from whom funds were transferred for POS transactions. For those transactions, you need the merchant name on your statement.

Of course, in the very unlikely event that your customers can only use terminals in a given city (or state), you can omit those identifiers, too.

The overriding rule is the common-sense concept that the customer must be able reasonably to determine where the transfer is recorded as having taken place.

Doesn't it say the same? You have the option of using either the street address or generally accepted name OR name of owner or operator, but if you choose to use the entity that owns or operates the terminal, the commentary reminds you that the city & state must be included.

Reg says " shall include the city and state or foreign country and one of the following:
(i) The street address; or
(ii) A generally accepted name for the specific location; or
(iii) The name of the owner or operator of the terminal if other than the account-holding institution.

Commentary says: An institution need not reflect on the periodic statement the street addresses , identification codes , or terminal numbers for transfers initiated in a shared or interchange system at a terminal operated by an institution other than the account-holding institution. The statement must, however, specify the entity that owns or operates the terminal, plus the city and state.

Both state that the city and state is mandatory. And IF you don't use street addresses, ID codes or terminal numbers, you must specify the entity that owns or operates the terminal.