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5/27/2026
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Senate OKs Vargas bill protecting consumers from unfair ATM charges
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STATE HOUSE – The Senate has approved legislation sponsored by Sen. Lammis J. Vargas requiring all ATMs to provide users with their account balance or a balance inquiry option without charge before any withdrawal and prohibiting fees for declined transactions to protect consumers from unnecessary fees.
The legislation, which passed the Senate unanimously yesterday and now goes to the House, is aimed at “white label” ATMs operated by independent parties rather than by banks and similar financial institutions, the sort often found at gas stations, entertainment venues, salons and other businesses. Such ATMs often charge fees as high as $4, even when a transaction is declined for insufficient funds.
“If someone’s card is declined at a grocery store, they’re not charged a fee, but some ATMs can charge a needless fee when they decline a transaction or even when someone just checks their balance,” said Senator Vargas (D-Dist. 28, Cranston, Providence). “Rhode Islanders who may be struggling financially shouldn’t fall deeper in a financial hole simply because they attempted a transaction that never occurred. No goods were provided and no cash was dispensed, so no one should be penalized for that.”
Under the bill (2026-S 2517A), such ATMS must provide the consumer with a free, real-time account balance display or balance inquiry option indicating the consumer’s available balance for the account being accessed before the user is prompted to select a withdrawal amount. The consumer must be allowed to cancel the transaction without any fee. The bill prohibits the assessment of any fee for any transaction that is declined.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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