Charging ATM Surcharge Fee on VISA Cash Advance

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Question:

There was a question in the Infovault about charging non-customers a fee for performing a cash advance when using a VISA credit card, which appears to be prohibited per VISA participation rules. However, would there be any issue with charging an ATM surcharge to all non-customers making cash advances at an ATM using a credit card (so long as an onscreen notice for the amount of the surcharge allowing the customer to cancel, was present)?

Answer:

Yes, you may impose an ATM surcharge on a cash advance if you make the appropriate disclosures under Regulation E Section 205.16. There are card network prohibitions against such fees if the card is issued by a non-U.S. bank, but your ATM processor should be aware of that fact and not impose the fee in such cases.

First published on BankersOnline.com 1/24/11