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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 BankersOnline.com 10/17/11









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