Most ATM customers are aware they will be charged a surcharge when withdrawing cash.

In a letter to Congress, seven ATM machine industry stakeholders, led by the National Association of Convenience Stores (NACS), have expressed their discontent for "frivolous" lawsuits against ATM owners regarding surcharge disclosure requirements. The letter cautions that consumers will ultimately suffer if merchants who purchase an ATM continue to be required to post signage explaining fees near their machines.

Even though most ATMs now demand users digitally accept transaction fees, the FDIC's Regulation E still requires owners to post separate signage informing ATM users of surcharges that come with cash withdrawal. This has led to lawsuits from consumers in 20 different U.S. states. Regulation E says that if ATM operators are found guilty, they could face up to a $500,000 fine, in addition to attorney fees.

In many instances, consumers sue any party involved in the process of running an ATM, ATM mini bank or outdoor ATM – merchants, financial institutions, ATM vendors and even service providers.

"It's sad that we have to play defense on this," ATM industry expert John Ettesvold told ATM Marketplace. "When [a change] happens we automatically have to try to figure out, okay, how are we going to prevent a lawsuit and you have to get creative, and unfortunately it's not cheap to do that."

ATM industry expert Bryan Bauer told the news source that when Regulation E was enacted in 1991, consumers were unfamiliar with surcharges and needed to be informed of them. He says that currently, though, consumers are well aware of fees.

Unless Regulation E is altered, Triton ATM owners need to protect themselves from lawsuits from consumers. They may consider posting signage on or around an ATM that is more difficult to remove. While this will cost some money, it should be effective in mitigating lawsuits. Owners may also regularly take time-stamped photographs of their machines in case they must prove in court that they were not negligent in posting signage.

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