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 14.03 Advance notice and approval required.
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 14.09 Chargebacks.
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) "Commissioner" means the commissioner of banking or authorized representative.
DFI-Bkg 14.01 Note
Note: 1995 Wis. Act 27 replaced the commissioner of banking with the division of banking in the department of financial institutions.
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(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.
DFI-Bkg 14.02
DFI-Bkg 14.02
Joint rules. This chapter is promulgated as a joint rule by the division of banking, office of credit unions and division of savings institutions pursuant to s.
221.0303, Stats.
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.
DFI-Bkg 14.03
DFI-Bkg 14.03
Advance notice and approval required. Each bank proposing to engage in an activity authorized under s.
221.0303, Stats., or proposing to change the place or manner in which it engages in such an activity shall file with the administrator of the division of banking an application containing such information as the administrator of the division of banking may from time to time prescribe. If the administrator of the division of banking regularly receives information on additions, deletions or changes in locations of customer bank communications terminals from a supplier, a bank is excused from filing an application merely to change the place at which it offers the services. No bank may commence any such activity unless the place and manner in which the activity is conducted has been approved by the administrator of the division of banking in writing or the administrator of the division of banking does not take written objection to the bank's completed application within 30 days after it has been filed under this section. A bank may not commence or continue to engage in any activity authorized under s.
221.0303, Stats., if, in the opinion of the administrator of the division of banking, the activity is beyond the financial or management capabilities of the bank, would result in unfair competition among financial institutions, or is otherwise in violation of this chapter.
DFI-Bkg 14.03 History
History: Cr.
Register, November, 1976, No. 251, eff. 12-1-76; am.
Register, October, 1988, No. 394, eff. 11-1-88; corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register October 2001 No. 550.
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 the following financial institutions and their designated customers:
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; and
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 of the division of banking will not be deemed in violation of this section if approved by the administrator of the division of banking in writing. The administrator of the division of banking may approve such limitations if:
DFI-Bkg 14.04(2)(a)
(a) The administrator of the division of banking considers it necessary or desirable to permit restricted operation during periods of testing or experimentation; or,
DFI-Bkg 14.04(2)(b)
(b) The administrator of the division of banking 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 of the division of banking.
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.
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 precautions acceptable to the administrator of the division of banking are provided to:
DFI-Bkg 14.06(1)
(1) Precautions against unauthorized access. Prevent unauthorized access to, or use of, the terminal.
DFI-Bkg 14.06(2)
(2) Precautions to assure confidentiality. Prevent information regarding a transaction conducted through the terminal from being disclosed to any person other than:
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) Unsolicited access to customer bank communications terminal prohibited. Ensure that the plastic card or other means providing its customers access to the terminal is issued only:
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.
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)(a)(a) The liability of a customer of a bank for the unauthorized use of a plastic card or other means providing the customer access to a customer bank communications terminal may not exceed the lesser of the following:
