Electronic Funds Transfers

The primary objective of Regulation E is to protect individual consumers who engage in electronic fund transfers. Electronic Funds Transfers (EFT) are ATM withdrawals, POS (point of Sale) transactions, direct deposits or withdrawals, telephone transfers and debit card transactions.

The key requirements of this Regulation are:
* The institution may issue an access device (such as a debit card) only if a consumer has requested it. 
* If the consumer notifies the institution about a loss or theft of the access device (such as a debit card) in a timely manner the consumer’s liability for unauthorized electronic fund transfers is limited to $50.
* If the consumer fails to notify the depository institution in a timely fashion, the amount may be $500 or unlimited.
* Institutions are required to disclose the consumer's liability for unauthorized EFTs, the types of EFTs available to the consumer, limits on the frequency or dollar amount, fees and error-resolution procedures.
* If there are adverse changes in fees, consumer's liability, types of EFTs available, or limits on transfers, the institution must provide at least 21 days notice before the changes go into effect.
* Consumers must be provided with terminal receipts and periodic statements. Both documents must include the type of electronic transfer; the amount and date of the transaction and the location of the terminal.
* The institution should provide notice when regularly scheduled transactions such as bill payment or direct deposit occurs.
* Errors such as unauthorized EFTs, incorrect EFTs and missing EFTs should be investigated and resolved by the institution within specified timelines.