What does the Electronic Funds Transfer Act cover?

The Electronic Fund Transfer Act (EFTA) is a federal law that protects consumers when they transfer funds electronically, including through the use of debit cards, automated teller machines (ATMs), and automatic withdrawals from a bank account.

What does the Electronic Fund Transfer Act do?

The Electronic Funds Transfer Act (EFTA), also known as Regulation E, created protections for consumers using certain electronic banking and financial services such as debit card transactions, electronic withdrawals, transfers, and deposits.

What transactions are covered by Regulation E?

Regulation E provides a basic framework that establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems such as automated teller machine transfers, telephone bill-payment services, point-of-sale (POS) terminal transfers in stores, and preauthorized transfers from or to …

What is considered an electronic funds transfer?

Deeper definition

An electronic funds transfer is a widely used method for moving funds from one account to another using a computer network. Electronic funds transfers replace paper-based transfers and human intermediaries, but provide the customer with the convenience of doing her own banking.

What types of transactions are not covered under Reg E?

Debit cards are issued by financial institutions and allow consumers to make purchases at businesses or online. These transactions with debit cards are covered by Regulation E. However, the law does not cover regular credit card payments, prepaid phone cards, gift cards, and stored-value cards.

Does Reg E cover wire transfers?

Some electronic transfers are excluded, however. For example, the CFPB doesn’t consider checks or wire transfers to meet the definition of electronic transfers, as covered under Regulation E.

Does Reg E cover online banking?

(emphasis added)Based on that definition, definitely internet banking transfers and billpayer activities, if conducted to or from a consumer’s account, are covered under Reg E, although there is one out for a specific type of bill-payer service described in the Official Staff Commentary to section 205-3.