What's happening
This bill requires new ATMs in New York to release chip cards before disbursing cash or receipts to enhance security.
Why it matters
Reduces card skimming risks. By requiring that chip cards be released before cash or receipts are dispensed, the bill addresses a common tactic used in ATM card skimming and theft, where fraudsters capture cards left in machines.
Shifts industry standards for new ATMs. The legislation only applies to newly installed ATMs, nudging banks and ATM operators to invest in updated, more secure technology without retrofitting older machines, balancing security upgrades with cost concerns.
Improves consumer experience and trust. Customers benefit from a more secure transaction process, likely reducing incidents where cards are forgotten or stolen, and increasing confidence in using ATMs for financial transactions.
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Who cares
Headline styles
Release Card Before Cash
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to banks
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.648
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2402
2019-2020 Regular Sessions
IN SENATE
January 24, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to requiring ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 75-b of the banking law is amended by adding four new subdivisions 10, 11, 12, and 13 to read as follows:
10. "EVM chip" means a data storage chip that implements the Europay, Mastercard and Visa technical standard.
11. "Chip card" means an automated teller machine card, credit card, or other form of secure-payment card with an EVM chip inset for the purposes of customer data storage.
12. "Card dipping" means the insertion of a chip card into a card reader to enable customer data to be read off the EVM chip.
13. "Chip enabled automatic teller machine" means an automatic teller machine that reads customer data from a chip card and uses card dipping.
§ 2. Section 75-c of the banking law is amended by adding a new subdivision 4 to read as follows:
4. Notwithstanding the provisions of section seventy-five-i of this article, no newly installed chip enabled automatic teller machine shall disburse cash or print a deposit receipt without first releasing the card to the customer and the customer withdrawing the card from the reader.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to any ATM installed after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08694-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to requiring ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt
Purpose or general idea of bill
This bill would require all newly installed chip-enabled ATM's to release the EVM chip card prior to disbursing cash or printing a deposit receipt in order to reduce the chance that a customer may leave their ATM card in the machine at the end of the transaction
Summary of provisions
This bill would amend the banking law to require all newly installed chip enabled ATM's to release the EVM chip card prior to disbursing cash or printing a deposit receipt.
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. This bill would address that issue by requiring the ATM to release the card from the machine before disbursing cash or printing the deposit receipt. Customers would be much less likely to leave their card behind since they will be to prompted to remove the card before waiting for their money or deposit slip to be disbursed. This simple change in the order of operation for ATM's is very consumer-friendly and an impor- tant piece of legislation to solve this common problem.
Prior legislative history
Senate Bill 8387 of 2017-18 | Referred to Banks.
Fiscal implications for state and local governments
None to the state.
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to any ATM installed after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.