Chapter DFI-Bkg 14

Register June 2004 No. 582

Chapter DFI-Bkg 14

CUSTOMER BANK COMMUNICATIONS TERMINAL JOINT RULES

DFI-Bkg 14.01   Customer bank communications terminal, definitions.

DFI-Bkg 14.02   Joint rules.

DFI-Bkg 14.04   Restrictions on access prohibited.

DFI-Bkg 14.05   Discriminatory rates or services prohibited.

DFI-Bkg 14.06   Confidentiality and security requirements.

DFI-Bkg 14.07   Allocation of liability.

DFI-Bkg 14.08   Customer service and disclosure requirements.

DFI-Bkg 14.10   Advertising restrictions.

DFI-Bkg 14.11   Filing of supplemental information.

Ch. DFI-Bkg 14 Note Note: Chapter Bkg 14 was renumbered Chapter DFI-Bkg 14 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, June, 1997, No. 498, eff. 7-1-97.

DFI-Bkg 14.01 DFI-Bkg 14.01 Customer bank communications terminal, definitions. In this chapter:

DFI-Bkg 14.01(1) (1) “Administrator” means the administrator of the division of banking in the department of financial institutions or his or her authorized representative.

DFI-Bkg 14.01(2) (2) “Days” means calendar days computed under s. 990.001 (4), Stats.

DFI-Bkg 14.01(3) (3) “Financial institution” means a state or federal savings and loan association, a state or national bank, a state or federal credit union or a mutual savings bank.

DFI-Bkg 14.01(4) (4) “Customer bank communications terminal” means a customer bank communications terminal as defined in s. 221.0303 (1), Stats., or a remote service unit as defined in s. 215.13 (46) (a), Stats., or a remote terminal as defined in s. 186.113 (15) (b), Stats.

DFI-Bkg 14.01(5) (5) “Supplier” means any person furnishing equipment, goods or services used to complete any function performed through a given customer bank communications terminal.

DFI-Bkg 14.01 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76; am. (3) and (4), Register, February, 1978, No. 266, eff. 3-1-78; correction in (4) made under s. 13.93 (2m) (b) 7., Stats., Register October 2001 No. 550; correction in (1) made under ss. 13.92 (4) (b) 6. and 35.17, Stats., Register March 2020 No. 771.

DFI-Bkg 14.02 DFI-Bkg 14.02 Joint rules. This chapter is promulgated as a joint rule by the division of banking and office of credit unions under s. 221.0303 (2), Stats.

DFI-Bkg 14.02 Note Note: See chs. DFI-CU 63, DFI-SB 12 and DFI-SL 12, Wis. Adm. Code.

DFI-Bkg 14.02 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76; corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register October 2001 No. 550; correction made under s. 13.92 (4) (b) 6., Stats., Register March 2020 No. 771; CR 23-039: am. Register March 2024 No. 819, eff. 4-1-24; correction made under s. 35.17, Stats., Register March 2024 No. 819.

DFI-Bkg 14.04 DFI-Bkg 14.04 Restrictions on access prohibited.

DFI-Bkg 14.04(1) (1) General provisions. Except as provided in sub.(2), no bank may directly or indirectly acquire, place, or operate a customer bank communications terminal, and no bank may participate in the acquisition, placement, or operation of a customer bank communications terminal, unless the terminal is available on a nondiscriminatory basis to all of the following financial institutions and their designated customers:

DFI-Bkg 14.04(1)(a) (a) Any financial institution that has its home office in this state.

DFI-Bkg 14.04(1)(b) (b) Any other savings and loan association which is qualified to do business in this state and has obtained the written consent of a savings and loan association that has its home office in this state and is making use of the terminal.

DFI-Bkg 14.04(1)(c) (c) Any other bank which is qualified to do business in this state and has obtained the written approval of a bank that has its home office in this state and is making use of the terminal.

DFI-Bkg 14.04(1)(d) (d) Any other credit union which is qualified to do business in this state and has obtained the written consent of a credit union that has its home office in this state and is making use of the terminal.

DFI-Bkg 14.04(2) (2) Exceptions. The temporary limitation of access to a customer bank communications terminal to designated customers of designated financial institutions for reasonable test periods determined by the administrator will not be deemed in violation of this section if approved by the administrator in writing. The administrator may approve such limitations if any of the following apply:

DFI-Bkg 14.04(2)(a) (a) The administrator considers it necessary or desirable to permit restricted operation during periods of testing or experimentation.

DFI-Bkg 14.04(2)(b) (b) The administrator determines that the accommodation of additional users is beyond the capacity of existing equipment and a good faith effort is being made to accommodate them within a reasonable period of time determined by the administrator.

DFI-Bkg 14.04 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76; am. (1) (b) and (c), cr. (1) (d), Register, February, 1978, No. 266, eff. 3-1-78; correction in (2) made under s. 13.92 (4) (b) 6., Stats., Register March 2020 No. 771; CR 23-039: am. (1) (intro,), (a) to (c), (2) (intro.), (a) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 14.05 DFI-Bkg 14.05 Discriminatory rates or services prohibited. A customer bank communications terminal will not be deemed available for use on a nondiscriminatory basis unless:

DFI-Bkg 14.05(1) (1) User fees. The fees charged to a financial institution for the use of the terminal by the institution or its customers are equitably apportioned and reasonably reflect the cost of the services actually provided to the institution or customer. Such fees may provide for the amortization of development costs and capital expenditures over a reasonable period of time.

DFI-Bkg 14.05(2) (2) Customer services. Each financial institution making use of the terminal may permit its customers to make use of all of the functions performed by the terminal at each location of the terminal or only those functions and locations that such institution elects to make available to its customers.

DFI-Bkg 14.05(3) (3) Technical information and specifications. Each supplier provides at reasonable cost such technical information and specifications as may be necessary to enable a financial institution that is eligible to use the terminal, or any data processor serving the accounts of such an institution, to obtain interface with the terminal.

DFI-Bkg 14.05(4) (4) Other requirements. No financial institution eligible to use the terminal is required to purchase from any supplier any goods, equipment or services not reasonably necessary to complete a transaction through the terminal.

DFI-Bkg 14.05 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76.

DFI-Bkg 14.06 DFI-Bkg 14.06 Confidentiality and security requirements. No bank may directly or indirectly acquire, place, or operate a customer bank communications terminal, and no bank may participate in the acquisition, placement, or operation of a customer bank communications terminal, unless the bank has implemented precautions, in a manner acceptable to the administrator, to address all of the following:

DFI-Bkg 14.06(1) (1) Preventing unauthorized access to, or use of, the terminal.

DFI-Bkg 14.06(2) (2) Preventing information regarding a transaction conducted through the terminal from being disclosed to any person other than any of the following:

DFI-Bkg 14.06(2)(a) (a) The customer making the transaction.

DFI-Bkg 14.06(2)(b) (b) Any other person who is a party to the transaction or is necessary to effect the transaction, but only to the extent that the information disclosed is necessary to effect the transaction.

DFI-Bkg 14.06(2)(c) (c) Those persons lawfully authorized to have access to the records of the bank or of parties to the transaction.

DFI-Bkg 14.06(3) (3) Ensuring that the plastic card or other means providing its customers access to the terminal is issued only under one or more of the following circumstances:

DFI-Bkg 14.06(3)(a) (a) In response to a request or application therefor.

DFI-Bkg 14.06(3)(b) (b) As a renewal of, or in substitution for an accepted card or other means of access, whether issued by the initial issuer or a successor.

DFI-Bkg 14.06 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76; correction in (intro.) made under s. 13.92 (4) (b) 6., Stats., Register March 2020 No. 771; CR 23-039: am. (intro.), (1), (2) (intro.), (a), (b), (3) (intro.), (a) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 14.07 DFI-Bkg 14.07 Allocation of liability.

DFI-Bkg 14.07(1) (1) Between bank and third parties. Each activity authorized under s. 221.0303, Stats., shall be conducted in accordance with a written agreement between the bank and any participating merchant, service center, data processor or other third party, setting out the manner in which liability from errors, malfunctions or the unauthorized use of a customer bank communications terminal will be allocated between the parties.

DFI-Bkg 14.07(2) (2) Limited customer liability for unauthorized use.

DFI-Bkg 14.07(2)(a) (a) The liability of a customer of a bank for the unauthorized use of a plastic card or other access device to a customer bank communications terminal shall be determined as follows:

DFI-Bkg 14.07(2)(a)3. 3. If the customer notifies the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer’s liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the bank.

DFI-Bkg 14.07(2)(a)4. 4. If the customer fails to notify the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer’s liability may not exceed the lesser of $500 or the sum of all of the following:

DFI-Bkg 14.07(2)(a)4.a. a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

DFI-Bkg 14.07(2)(a)4.b. b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the bank, if the bank establishes that these transfers would not have occurred had the customer notified the bank within that 2-day period.

DFI-Bkg 14.07(2)(am) (am)

DFI-Bkg 14.07(2)(am)1. 1. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a customer bank communications terminal that appears on a periodic statement within 60 days of the bank’s transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer’s liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the bank and that the bank establishes would not have occurred had the customer notified the bank within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in par. (a) 3. or 4., as applicable.

DFI-Bkg 14.07(2)(am)2. 2. If the customer’s delay in notifying the bank as provided in subd. 1. was due to extenuating circumstances, the bank shall extend the time specified in subd. 1. to a reasonable period.

DFI-Bkg 14.07(2)(am)3. 3. Notice to a bank is given when a customer takes steps reasonably necessary to provide the bank with the pertinent information, whether or not a particular employee or agent of the bank actually receives the information.

DFI-Bkg 14.07(2)(am)4. 4. A customer may notify the bank in person, by telephone, or in writing.

DFI-Bkg 14.07(2)(am)5. 5. Written notice to a bank is given when the customer mails the notice or delivers it for transmission to the bank by any other usual means. Notice may be considered constructively given when the bank becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer’s account has been or may be made.

DFI-Bkg 14.07(2)(am)6. 6. If an agreement between the customer and the bank imposes less liability than is provided by this section, the customer’s liability may not exceed the amount imposed under the agreement.

DFI-Bkg 14.07(2)(b) (b) A customer furnishing another person with a plastic card or other access device to the customer’s account through a customer bank communications terminal shall be deemed to authorize all transactions that may be accomplished by that means, until the customer has given actual notice to the bank that further transactions are unauthorized.

DFI-Bkg 14.07 History History: Cr. Register, November, 1976, No. 251, eff. 12-1-76; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register October 2001 No. 550; 2013 Wis. Act 136: am. (2) (a) (intro.), r. (2) (a) 1., 2., cr. (2) (a) 3. to 8., am. (2) (b) Register March 2014 No. 699, eff. 4-1-14; CR 23-039: renum. (2) (a) 5. 6., 7. a., b., c., 8. to (2) (am) 1. to 6. and, as renumbered, am. (2) (am) 1., 2., 5. Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 14.08 DFI-Bkg 14.08 Customer service and disclosure requirements.

DFI-Bkg 14.08(1) (1) Periodic statements. A bank shall provide each customer with a periodic statement of each account of the customer accessible through a customer bank communications terminal. The statement shall be provided on a monthly basis for each month in which a transaction occurs, or once every 3 months, whichever is more frequent. The statement shall identify the date, location, and nature of each transaction. An account statement issued under this subsection may include transactions made through a customer bank communications terminal or otherwise.

DFI-Bkg 14.08(2) (2) Transaction documentation. Except as provided in sub. (4), every transfer of funds through a customer bank communications terminal made by a customer of a bank shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer’s account, the amount of funds transferred, the type of transaction, and the date of the transaction. A customer may be required to re-enter an access device, such as a card, at a terminal in order to receive transaction documentation if all of the following conditions are met:

DFI-Bkg 14.08(2)(a) (a) The terminal simultaneously controls the distribution of products at several locations on the same site to more than one customer.

DFI-Bkg 14.08(2)(b) (b) Each customer must remove the access device from the terminal and move to another location in order to complete the transaction.

DFI-Bkg 14.08(2)(c) (c) The terminal cannot produce transaction documentation for a particular transaction until the customer completes distribution of the product and the amount of the transaction is known.

DFI-Bkg 14.08 Note Note: Paragraphs (a) to (c) apply, for example, to a terminal which monitors a series of gasoline pumps. Each customer must remove the card from the terminal in order to pump the gasoline and then re-enter the card in order to obtain a receipt.

DFI-Bkg 14.08(3) (3) Written disclosure of services and charges. Each customer of a bank whose account with the bank is accessible through a customer bank communications terminal shall be provided with a written statement of the terms and conditions governing the account. Such a statement shall be provided at the time that the customer is issued a card or other means affording access to the customer bank communications terminal, and whenever the terms and conditions governing the account are amended. The statement shall set out all of the following:

DFI-Bkg 14.08(3)(a) (a) Applicable limitations on the customer’s liability for unauthorized use of the means providing access to the customer bank communications terminal, and the address and telephone number of the person to be notified in the event that the means affording the customer access to the customer bank communications terminal is lost or stolen or the customer otherwise believes that unauthorized access to the account may be obtained.

DFI-Bkg 14.08(3)(b) (b) The customer’s right to a periodic statement of transactions affecting the account.

DFI-Bkg 14.08(3)(c) (c) An initial disclosure of the specific transactions which, subject to the capabilities of individual terminals, may be performed through the customer bank communications terminal.

DFI-Bkg 14.08(3)(d) (d) Any charges to the customer for account maintenance or for the use of the customer bank communications terminal.

DFI-Bkg 14.08(3)(e) (e) Any limitation imposed on the number of customer bank communications terminal transactions permitted within any given period of time.

DFI-Bkg 14.08(4) (4) Exception for written document in small-value transfers. A bank is not subject to the requirement to make available a written document under sub. (2) under any of the following circumstances: