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Banking Interpretations

Personal Property Law 413

October 5, 2007

[---]

Dear Mr. [---]:

Your letter of September 4, 2007 to Superintendent Neiman, which concerns "convenience" fees for electronic credit and debit card payments and electronic ACH payments, has been referred to me for reply. In your letter you ask whether there are any New York laws, rules or regulations on the imposition of such fees by third party providers. These entities charge "convenience" fees to persons effectuating those payments for providing the service that delivers the electronic payment.

Neither the New York Banking Law nor the rules and regulations promulgated thereunder address the matter of these "convenience" fees. It would appear that this matter is within the purview of Federal Reserve Regulation E (12 CFR 205), which relates to electronic funds transfers. One particular section that may be on point is Part 205.7 of Regulation E, which contains certain disclosure requirements. If you have questions on the applicability of Regulation E, you should contact your local Federal Reserve Bank.

I trust that this letter is responsive to your inquiry.

Sincerely,

Steven Barras
First Assistant Counsel