Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Search BankersOnline
using Google









Alphabet Soup


Banker Store

Bankers Info Ntwk


Career Connect

Learning Connect

Guru Central


Ask a Guru

Bankers Threads

Contact Us

Give Us Feedback


About Our Sponsors

About Us

Print Friendly! Email This Article! Discuss NOW!

What is a Non-Proprietary ATM?
Answers by John Burnett, BOL Guru
Guru Bio

Question:   What is a non-proprietary ATM and how does it work?

Answer: Two banks, Bank East and Bank West, each have ATMs at their branches. Bank East's ATMs are proprietary ATMs to Bank East, but they are non-proprietary to Bank West. Bank West's ATMs are proprietary to Bank West, but non-proprietary to Bank East.

"Proprietary" simply signifies ownership and responsibility for operation and, in most cases, servicing.

If Bank East and Bank West agree to connect their ATMs in an ATM network (just the two banks or as part of a larger network, such as NYCE), if the network agrees to support deposits by cardholders across the network (so that Bank East customers can deposit at Bank West ATMs), and if Bank East and Bank West both agree to accept deposits from customers of other network banks, a Bank East customer could deposit his paycheck at a Bank West ATM.

The term "non-proprietary" is significant in Regulation CC because access to a deposit made by a bank's customer at a non-proprietary ATM can be delayed longer than access to a deposit made in the bank's proprietary ATMs. The theory is that the card-issuing bank would not know they types of checks being deposited at the non-proprietary machine.

First published on 10/17/11

Privacy Policy    Disclaimer   Recommend This Site !   Contact Us

BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.