N.D. seeks law permitting ATM fees on foreigners

Northwestern Financial Review, Feb 1-Feb 14, 2009

The North Dakota legislature, which meets during odd-numbered years, will consider legislation to give ATM owners the opportunity to charge a fee for transactions conducted by people who hold accounts in foreign countries.

A similar law was passed in Wisconsin last year. Currently 22 states, including Colorado, Minnesota, Montana and Wyoming, have such laws.

Typically, the agreement ATM owners sign with major card companies prohibit them from charging fees to conduct foreign transactions, unless the state in which the ATM is located has a specific law permitting such a fee. Don Forsberg, president of the Independent Community Banks of North Dakota, said banks which own ATMs in the state frequently get users from Canada.

Daryll Lund, president of the Community Bankers of Wisconsin, said the situation was similar in his state. "In the northern counties, we would see people coming from Canada using the terminals," he said. Lund noted that the legislation in 2008 had support from retailers as well as bankers, and little opposition in the legislature.

"States enacting this type of legislation are opening a new stream of revenue for their financial institution and ATM acquirers," stated an article appearing in a newsletter published by PULSE, an ATM network.