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S 4338

Requires ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt

2025 Regular Session Introduced by Leroy Comrie

Bill S 4338 mandates ATMs to release EMV chip cards before dispensing cash or receipts, enhancing security and reducing fraud risks for consumers.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · S 4338

Summary of Bill S 4338

Bill Number: S 4338
Title: Requires ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt
Status: Referred to Banks
Introduced: February 04, 2025
Classification: Bill

Purpose and Intent

Bill S 4338 aims to enhance the security and functionality of Automated Teller Machines (ATMs) by mandating that these machines release ATM cards equipped with EMV (Europay, MasterCard, and Visa) chips before dispensing cash or receipts. The primary intent of this legislation is to reduce the risk of card skimming and fraud, thereby protecting consumers' financial information and promoting safer banking practices.

Key Provisions

  • Mandatory Card Release: ATMs must be programmed to release the user's ATM card with an EMV chip before any cash withdrawal or receipt is issued.
  • Security Enhancement: The bill emphasizes the importance of EMV technology, which is designed to provide better security against unauthorized transactions compared to traditional magnetic stripe cards.
  • Compliance Timeline: While the bill does not specify a compliance timeline, it is expected that ATM operators will need to update their machines to meet these new requirements.

Affected Parties

  • Consumers: Individuals using ATMs will benefit from increased security measures, potentially reducing the incidence of fraud and unauthorized access to their accounts.
  • ATM Operators: Banks and financial institutions that operate ATMs will need to ensure their machines are compliant with the new requirements, which may involve technical upgrades and adjustments to existing systems.
  • Financial Technology Providers: Companies that manufacture or service ATMs may see increased demand for EMV-compliant technology and upgrades.

Procedural Aspects

  • Current Status: The bill was introduced on February 04, 2025, and has been referred to the Banks committee for further consideration.
  • Related Bills: This bill is part of a series of related legislation from prior sessions, including:
    • S 8387
    • S 2402
    • S 5848
    • S 2881

These related bills may provide context or additional measures aimed at improving ATM security and consumer protection.

Conclusion

Bill S 4338 represents a proactive approach to enhancing ATM security through the mandatory use of EMV chip technology. By requiring that cards be released before cash or receipts, the bill seeks to protect consumers from fraud and improve the overall safety of banking transactions. As the bill progresses through the legislative process, stakeholders will need to prepare for potential changes in ATM operations and technology standards.

Compiled from official sources — confirm details with the bill’s official record.

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