I am a bank in Michigan, we are opening accounts for customers in California because the customers are telling us that no banks in California will bank customers that have privately owned ATMs (POATM). Did the law change in California regarding banking POATMs? Or is there Banks in California that has decided not to bank POATM?

And they are coming to you in Michigan. That alone is a huge red flag.

Like Randy said, huge red flag. California is a crazy place and the banks there are pretty flexible and usually make reasonable business decisions. I wouldn't touch them

I am also a bank in Michigan, and thankfully, have not heard of any of this happening near us.

I am in CA and I can attest that we have had several instances of customers opening accounts concealing that they were PATMO. We closed the accounts. The issue for us is that they are placing ATMs in MRB locations. The major banks won't open accounts for them and I've seen letters from Chase advising customers to find a new bank.

As the others said, consider this a red flag.

Any time someone tries to open an account with a bank that's more than a reasonable distance away from their home or place of work, red flags should be waving. The obvious exception that comes to mind is a bank that's advertising abnormally high interest rates in a quest for deposits, but even in those cases, banks typically avoid accepting interstate deposits that could throw their host state deposit ratios off.

You've received good advice, Megaman. I'd be re-thinking any new accounts you've accepted from California businesses, it I were in your place.