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  • NJ A4346
  • "Consumer ATM and Credit Card Protection Act."
Introduced
(12/5/2016)
In Committee
(2/27/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill requires operators of publicly accessible payment or withdrawal systems to take certain actions to protect customer information. This bill confronts the problem of "skimmers," or devices used to steal customers' personal information when they use their credit or debit cards at automatic teller machines or other card payment machines. If a customer's credit or debit card information is compromised in this fashion, it can lead to financial disaster; there are reports of thieves using skimmers to empty entire bank accounts. Specifically, the bill requires every operator of a publicly accessible credit or debit card payment machine, automated teller machine, or controlled access entry located in this State, that does not opt out of the provisions of the bill, to perform a daily inspection of those systems for any device intended to compromise the personal information of a customer, including, but not limited to, skimmers, unapproved cameras, or other foreign objects. If an operator of a payment or withdrawal system finds a device intended to compromise the personal information of a customer during a daily inspection, the operator must disable that system until the device has been removed and the system has been inspected and found to no longer compromise personal information. The operator must also send a notice to each person that used the payment or withdrawal system since the previous inspection was performed informing that person of the potential compromise of personal information and notify the Department of Banking and Insurance of the device and its removal. The bill also requires every payment or withdrawal system located in this State to have displayed on or near it, in a conspicuous place, a permanent, affixed label or a notice that appears on the screen of the system that is visible before a customer swipes a debit or credit card or enters any personal information that clearly indicates that the operator of the system: (1) inspects the system on a daily basis for devices intended to compromise the personal information of customers, and disables the system, if a device is found, until the device has been removed; or (2) does not inspect the system on a daily basis for devices intended to compromise the personal information of customers, and that customers use the system at their own risk. The bill requires every operator of a payment or withdrawal system located in this State that does not opt out of the provisions of the bill to submit to the Department of Banking and Insurance a certification that the operator has complied with the requirements of the bill every six months. The bill requires the Commissioner of Banking and Insurance to create a form on which the operator of a payment or withdrawal system located in this State may certify daily inspections, and to create procedures for the submission of that form. Violations of the bill are subject to a civil penalty of not more than $1,000 per day for each day that the party is in violation, which penalty may be collected by summary proceedings.
2nd Reading in the Assembly, Financial Institutions and Insurance
Reported out of Assembly Committee, 2nd Reading  (on 2/27/2017)
 
 

Date Chamber Action Description
2/27/2017 A Reported out of Assembly Committee, 2nd Reading
2/27/2017 Assembly Financial Institutions and Insurance Hearing (19:00 2/27/2017 )
12/5/2016 A Introduced, Referred to Assembly Financial Institutions and Insurance Committee
Date Motion Yea Nay Other
Detail 2/27/2017 Assembly Financial Institutions and Insurance Committee: Reported Favorably 11 0 2