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#2195936 - 10/19/18 01:08 PM ATM and Mobile deposit promotion
FFBT Offline
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Joined: Jul 2012
Posts: 110
Our bank is thinking about doing a promotion with loading $50 bills in our $20 ATM cassettes and whoever take money out and gets that $50, keeps it. We are also thinking of randomly picking 1 winner for 12 weeks of people who use mobile deposit. What my question is for both of these is, are there any regulatory disclosure or anything we may need to do with this? We just wanted to do something fun.

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Operations Compliance
#2195938 - 10/19/18 01:25 PM Re: ATM and Mobile deposit promotion FFBT
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,658
I absolutely love the ATM $50 idea and my first thought was this: "Where is this bank as I would gladly pay their ATM fee for the chance to win the extra $50! In fact, I may just have to take out several withdrawals...just like I was playing the lottery!"

So, even though I LOVE this creative idea...

Unfortunately, I think you are going to have a problem with this, because of the definition of a (prohibited) lottery:

(2) The term "lottery" includes any arrangement, other than a savings promotion raffle, whereby three or more persons (the "participants") advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the participants (the "winners") will receive[/b[ by reason of their advances [b]more than the amounts they have advanced, the identity of the winners being determined by any means which includes-

(A) a random selection;


(B) a game, race, or contest; or

(C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possibility that he may become a winner.


Paying an ATM fee for the chance to get a $50 instead of a $20 seems to perfectly fit the definition of a lottery - which, unfortunately, is prohibited.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2195944 - 10/19/18 01:51 PM Re: ATM and Mobile deposit promotion FFBT
FFBT Offline
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Joined: Jul 2012
Posts: 110
Thank you for the information. So even if we don't announce that this is what we are doing, would this still apply? We want to do it without advertising it.

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#2195947 - 10/19/18 02:04 PM Re: ATM and Mobile deposit promotion FFBT
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Of what value to the bank would that be besides just giving away money to possibly non-customers that are visiting from out of town and would never become a customer?
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#2195949 - 10/19/18 02:11 PM Re: ATM and Mobile deposit promotion FFBT
MScarn6942 Offline
Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
A couple things...

1) If you don't advertise it, you'll probably just have confused customers who either think they are getting away with something they shouldn't or feel like they need to return the extra cash.

2) what goal are you trying to accomplish? Driving more customers to the ATM and mobile deposit?
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"Pressure is something you feel when you don't know what you're doing" - Peyton Manning

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#2195950 - 10/19/18 02:21 PM Re: ATM and Mobile deposit promotion FFBT
FFBT Offline
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Joined: Jul 2012
Posts: 110
I know this sounds weird, but we just wanted to give back. Just a fun way to do that. We are not expecting anything from this.

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#2195952 - 10/19/18 02:35 PM Re: ATM and Mobile deposit promotion FFBT
MScarn6942 Offline
Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
I totally get that. This is just my $0.02, but it'd probably go further if you gave all of your customers some extra interest on their accounts or something along those lines. The big ($6B) credit union around here does that annually. You'll pick up some nice "good-will" advertising as well.
_________________________
"Pressure is something you feel when you don't know what you're doing" - Peyton Manning

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#2196413 - 10/25/18 01:40 PM Re: ATM and Mobile deposit promotion FFBT
FFBT Offline
100 Club
Joined: Jul 2012
Posts: 110
So I think the ATM thing might be out for us. However, can anyone tell me if it is legal for us to randomly choose winners for those who use mobile deposit and give them money? How it will work: Each week a list will be compiled for those who have used mobile deposit. A random number generator program will be used and a winner will be selected. They will receive a cash prize. Does this fall under the lottery definition as well? Any special advertising requirements?

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