Article

50 shades of ADA

One year after implementation of new ADA guidelines, ATM deployers are in varying states of compliance.

March 28, 2013

I bank at a regional FI with 400-plus locations, including a nearby branch with a drive-up ATM. Recently, I noticed that the keypad had just one raised dot on the number five key — no Braille instructions elsewhere to tell users how to activate voice guidance. 

So … if the ATM inside the branch had Braille instructions, was it OK for this one not to?

"No," said ADA specialist Sam Ditzion, president and CEO of Tremont Capital Group. "An indoor location that has the same address as an outdoor location — for the purposes of this criteria, they're actually considered separate locations."

It seemed incredible that a sophisticated regional FI could be unaware of this — or that they would thumb their nose at the ADA. Ditzion said that it was probably the former.

"I would put money on it that they think they're in compliance, but they're not," he said. "And then they could get sued and they would be wrong."

What's the rush?

One year and two weeks after new ADA regulations took effect, the panic has died down — not because all ATMs are compliant, but because the deadline came and went and the ATM industry didn't blow up, Ditzion said.

"And all the sudden, March 15, 2012, comes along and people take a sigh of relief and say, 'Oh we made it. Maybe it's not the end of the world.'"

'Three ... two ... one ... '

Some operators started early and worked hard to achieve readiness before the new ADA regulations launched.

Dan Swain, vice president of financial institutions at refurbished ATM and parts provider ACG, said that most of the company's financial clients are in compliance with ADA regulations.

"Be it the potential for lawsuits, [or] the fact that compliance is 'built in' to their business through staff and regulatory bodies, the FIs that we have worked with have done an excellent job of upgrading machines to meet the ADA standards," Swain said.

'Shiny object!'

Some operators who had been fixated on compliance lost focus when the urgency died.

Deployers got distracted by other difficult and complicated issues, like the looming migration to EMV, said Corey King, a sales specialist at American Bank Equipment.

"[T]he EMV compliance deadline coming up … has created a ton of confusion on what is needed now, what should be done now and what the best solution is now," he said. "Adding to that are the Windows 7 software migration plans by a number of manufacturers, which means more confusion."

Pushing the string

Some ATM operators are still trying to get there.

Alex Karetas, director of U.S. sales at Triton Systems, said that while orders for upgrade kits and new equipment specifically designated for ADA had declined, he suspected that "a good percentage" of refurbished, and new unit orders could be connected to ADA.

Many Triton customers are still trying to get their customers into compliance, he said. "Initially, their effort was focused on upgrading the ATMs they owned and operated in their own portfolios. Now, the focus has shifted to the merchant owned equipment requiring updates, and unfortunately, the merchants do not always understand the potential impact if they don't upgrade."

ATM regulation roulette

Some operators have decided to take their chances on ADA enforcement.

"I think the small players really do not think [ADA lawsuits] will affect them," said Thomas Hailey, director of business development at Cord Financial Services, which caters to the retail market. He thinks that all the major ATM operators are now in compliance, but that overall, only 50 to 60 percent of the industry is meeting the new standards.

King said there just wasn't a sense of urgency now that the deadline has passed.

"It's been over a year since the deadline and the lack of any serious legal consequences has created a 'pause effect' on many that aren't compliant," he said. "I don't think lawsuits are a major concern of any one that has an explanation and plan in place."

A game of chicken

Some operators want to see how the Department of Justice handles ADA lawsuits before they act.

So far, the DoJ  hasn't gone after any ADA scofflaws, which is where the really big money can come into play, at $55,000 per month per non-compliant machine.

But there have been plenty of suits already brought and settled out of court, most notably in Pennsylvania. The awards aren't so big there, but the legal fees are no small expense.

And a worrisome piece of news: One law firm was previously known for filing EFTA suits has now lodged its first ADA suit in Atlanta.

'But, I thought … '

Finally, Some ATM owners — actually, a lot of them, Ditzion said — who mistakenly believe that their machines are in compliance.

Those operators should do three things, he said:

"My suggestion, number one, is make sure that your institution understands every technical detail of the regulations. And if you don't, get help from someone who does.

"And the second recommendation is put together a compliance plan, and if you don't know what you're doing, get help.

"And the third one is continuously audit your portfolio of ATMs and make sure that the ATMs stay in compliance, because the rules change, some of the ATMs change periodically, etcetera, and just because you're in compliance one day doesn't mean that you'll be in compliance a few months later."

Read more about ADA compliance.

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ACG

Industry leader since 1986, ACG operates offices in Atlanta, Las Vegas, London, and Poland. Providing ATM hardware and services to financial institutions, ATM service providers and gaming industries. ACG is proud to be a Master Distributor of the ATEC LTA-450, LTA-380 and LTA-100 Teller Cash Recyclers.

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Triton Systems

Triton FI based products • NO Windows 10™ Upgrade • Secured locked down system that is virus/malware resistant • Flexible configurations - Drive-up and Walk-up • Triton's high security standards • NFC, anti-skim card reader, IP camera and level 1 vaults are all options • Triton Connect monitoring • Lower cost

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