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Assemblywoman Pellegrino Passes Legislation To Help Protect Consumers During ATM Transactions

Bill requires all newly installed chip-enabled ATMs to release cards prior to disbursing cash.

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Photo by: mrganso

Long Island, NY - May 9, 2018 - Assemblywoman Christine Pellegrino (D-Babylon/Islip/Oyster Bay) announced that her legislation requiring all newly installed chip-enabled ATMs to release cards prior to disbursing cash or printing a receipt passed the Assembly (A.10157). This would help reduce the likelihood of a customer leaving their ATM card in the machine after a transaction. 
“ATM cards contain sensitive information that could be dangerous in the wrong hands, and although designed to prevent fraud and identity theft, chip-card technology does not come without drawbacks,” Pellegrino said. “Since this technology requires the card be inserted during the transaction, cardholders can easily forget their card in the machine after receiving their money or receipts and leave themselves vulnerable to identity theft.” 
More cards are being made with Europay, MasterCard and Visa (EMV) chip technology to increase security and protect consumer information in the wake of several high-profile data breaches at major retailers. Cardholder data is stored on the microprocessor chip on the front of the card instead of the magnetic strip on the back. Most U.S. card issuers have switched to this technology, which requires the card be inserted into ATMs while the transaction is processed. Pellegrino’s legislation would help make ATM transactions more user-friendly by prompting cardholders to remove their card before receiving cash or receipts so that customers are less likely to leave their card – and sensitive bank information – in the machine.