The news story stated that Rep. Joseph Reyes wanted the Department of Commerce to investigate the ATM’s operated by Pacific Amusement, after he had some money deducted from his account following a failed transaction in which he didn’t receive any money from the ATM.
I would like to explain to the public, what transpired in this case, and what can happen from time to time with any ATM transaction, especially in remote locations such as Saipan or Guam. Most of the “off premise” ATM’s that operate in the CNMI and elsewhere use a dial-up modem to process the transaction. The ATM terminal will place a phone call to the processing company. Various codes are passed back and forth between the ATM and the processors switch (we use First Data Corp. in San Diego, and World Axcess Corp. in Florida to process our transactions). Once a transaction is initiated, the first thing that happens is that a “hold” is placed on the desired funds at the cardholders bank. The reason for this is so that if simultaneous transactions take place on the same account, the amount that is anticipated to be dispensed by the ATM is “reserved” for the ATM transaction.
Once in awhile, the communications will drop out or become noisy during the transaction. CUC interruptions or voltage spikes somewhere along the line could also be at fault. If a communication error happens during a transaction, depending on how far along the transaction proceeded before the error, there are two possible scenarios. The cardholder may not receive money and the transaction will automatically “reverse.” The reversal could take up to two banking days but it’s usually within a few hours. It all depends on how quick the cardholders bank responds to the automated systems. Occasionally a cardholder may not receive funds, and the “reversal” may not happen automatically. This is what happened in Mr. Reyes’ case.
Our team of ATM auditors verifies each and every transaction on a daily basis. Each transaction where money is dispensed is compared to each transaction that “processes”. If they do not match, we notify the processor immediately using various forms and scans of actual journals from the ATM. What is important to note, however, is that we have no knowledge of any cardholder information. We do not have access to any cardholder name, card number or any other information about the cardholder. That information is triple encrypted and transmitted to the processing company to effect the ACH, or automated clearing house, transactions. In the rare cases where a customer’s money is either blocked or withdrawn due to a failed ATM transaction, the only remedy is for the customer to go to his/her bank and file a Regulation E dispute. Once that is accomplished, the situation is rectified in very short order.
Another option is for the cardholder to contact our office (phone numbers are on every terminal), and in cases of hardship, and upon presentation of evidence that the money was deducted from the cardholders account, we can quickly verify the transaction and effect the cash refund directly from our office. In the case of Mr. Reyes, this is what we did (and the amount was $100, not $400 as stated in the news story).
Some of the comments stated in the article are inflammatory and really do not reflect the actual situation. For example, Pacific Amusement Inc. is a duly registered ISO, or Independent Service Operator. Our company underwent years of due diligence and the officers and stockholders were personally investigated to be able to qualify for ISO status. We are registered with First Data Corp. as our processing company and certified by MetaBank as our sponsoring bank. All transactions on our ATM’s are processed in exactly the same way as any bank owned ATM. Customers have all the protections and safety that they have on any ATM. MetaBank, a federally chartered bank stands behind every transaction and we are their duly authorized representatives.
The news story further states that Pacific Amusement only operates ATM’s in poker arcades. Nothing could be further from the truth. Pacific Amusement has operated ATM’s in the islands for eight years. We have over 50 terminals in operation in many convenient locations on Guam, Saipan and Tinian. Those locations include the Dynasty Casino, Hotels, Restaurants, Airports, Mini Marts, and many other places. Only three terminals are located in poker arcades.
Thank you for letting me clear up any misconceptions about our ATM’s. Pacific Amusement, Inc. has been providing services to Guam and the CNMI for over 25 years. We stand behind all of our products and service. If anyone has any questions whatsoever, about ATM’s or anything else for that matter, please don’t hesitate to call our office and speak with Jim, Cecile or me. 233-4397.
PAUL TROMBETTA
General Manager
Pacific Amusement Inc.
