With Dayo Benson

Kindly advise me on this issue. I operate a current account with one of the stable commercial banks. Like most account operators, I embraced the Automated Teller Machine (ATM), cash paying system when it was introduced.

I didn’t have any problem with using the machine except on one or two occasions when my account was debited when the machine failed to dispense the cash I requested for. I promptly lodged a formal complain and the error was rectified.

I worked into my bank one day after I found it difficult to use my ATM card to withdraw cash. I was told by the Customer Service officer that I needed to submit my card for upgrading against fraudsters.

Truly, I’ve heard several cases where people complained of huge withdrawals from their accounts via ATM by unknown persons. I submitted my card and I was told to pick the new one up in two weeks time. On getting to the bank after two weeks to collect my ATM card, I was told to fill a form.

On reading through the form, I saw a clause that stated that the bank would not be liable for any cash withdrawn by anybody from the account. I found this unacceptable and refused to fill the form. I want to know if it is compulsory I use the ATM card and is it right for the bank to include such clause in the form? – Ben

Use of ATM card is not actually compulsory, but it is usually recommended that commercial bank customers use it.

Essentially, it is meant to make withdrawal transactions easy for account holders by making their money more accessible. It is also aimed at decongesting banking halls and enhance security.

Much as account operators are expected to make use of the ATM for certain category of withdrawal, an individual is at liberty to decline the use of the facility if it is not convenient.

For instance, an illiterate person who may not understand the voice-prompt instructions in the ATM will be unable to use it.

Also, a literate person who finds the conditions attached to its use unacceptable may refuse to use it. What you found objectionable are the exclusion clauses in the form which absolve the bank of any liability in the event of loss of money in your account.

Your stance is not totally out of place because of recent cases of ATM frauds. It should however be noted that the exclusion clauses must be consistent with the “Central Bank of Nigeria CBN standard and guidelines on Automated Teller Machine (ATM) operations in Nigeria”.

Some of the standard and guidelines are “ATM Security

a. Every ATM shall have cameras which shall view and record all persons using

the machines and every activity at the ATM including but not limited to: card

insertion, PIN entry, transaction selection, cash withdrawal, card taking, etc.

However, such cameras should not be able to record the key strokes of

customers using the ATM.

b. Where a surveillance camera is used, it should be kept secretly to avoid thieves removing or damaging or compromising it.

c. Networks used for transmission of ATM transactions must be demonstrated to have data confidentiality and integrity.

d. Where the user of an ATM blocks his image for camera capture, the ATM shall be capable of aborting the transaction.

Liability Shift

a. Where a non EMV (Europay Master Card Visa) card is used on a non EMV Terminal and a fraud occurs, liability is on either the Card Issuer or the Card Holder. Proof has to be established on which party compromised card details.

Penalties

Sanctions, in the form of monetary penalties / or suspension of the acquiring/processing service (s) or both, would be imposed on erring institutions for failure to comply with any of the provisions of the ATM standards and guidelines or any other relevant guidelines issued by the CBN from time to time.’’