Compliance Blog

Every once in a while, the NAFCU Compliance team gets asked about the requirements for providing transaction receipts. Back in the pre-COVID days, this used to be about when a member came into a branch and conducted a deposit or withdrawal at a teller window. These days, many transactions are conducted at ATMs or drive-up windows. This post takes a look at these scenarios. For more on the regulations that might apply to interactive teller machines (ITMs), check out this NAFCU Compliance Blog post.

Our starting point here is Regulation E. While other regulations, such as Regulation CC, might impact what disclosures must be posted on or provided through an ATM, none of these actually require a transaction receipt. Section 1005.9(a) of Regulation E does require credit unions to provide receipts for any electronic fund transfer (EFT) conducted at electronic terminals. Section 1005.2(h) explains an “electronic terminal” is any “electronic device, other than a telephone operated by a consumer, through which a consumer may initiate an electronic fund transfer.”

For EFTs conducted at a teller window, whether in a branch or via the drive-up, we have to look to the commentary to determine whether a receipt is required. Comment 3 to section 1005.2(h) explains that teller-operated terminals are not considered electronic terminals under the rule. However, if the member uses an access device, such as a debit card, to initiate EFTs through the teller operated terminal, then the terminal is an electronic terminal and a receipt will be required. If the member only uses the access device for identification purposes, then any transfers through the teller operated terminal are exempt.

For EFTs conducted at ATMs, receipts are required because section 1005.2(h) explains that ATMs are electronic terminals and section 1005.3(b)(1) explains transfers at ATMs are EFTs. When a receipt is required, section 1005.9(a) explains it must disclose:

• the amount and a date of the transfer;
• the type of transfer and type of account funds were transferred to or from;
• a number or code identifying the account or the access device used to initiate the transfer;
• the location of the terminal where the transfer was initiated; and
• the name of any third party funds were transferred to or from.

As you can see, not all transactions require a receipt. If the transaction is conducted at a teller operated terminal or does not involved an EFT, federal regulations do not require credit unions to provide a transaction receipt to the member. It is important to keep in mind though, while there may not be a federal requirement to provide a receipt, there may be one under your state law. As state law is outside the scope of NAFCU’s expertise, the credit union may want to reach out to its attorney for assistance in determining whether there are any applicable state laws.

If the credit union determines there are no state laws, then it will be up to the credit union to determine whether to provide a receipt and it may event allow the member to decide whether or not to receive a receipt. In this case, the credit union may also be able to allow the member to opt for an electronic receipt. The E-SIGN Act consent requirements only apply when a disclosure is required under federal or state law. If the receipt is not required under federal or state law, credit unions may provide them electronically without needing to comply with the E-SIGN Act.