Electronic Funds Transfer Act

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Bazing Business Network

How the Electronic Funds Transfer Act affects you

The Electronic Funds Transfer Act is a consumer protection law for accounts established primarily for personal, family, or household purposes. Non-consumer accounts, such as corporations, partnerships, trusts, etc. are excluded from coverage. Regulation E gives consumers a way to notify their financial institution that an EFT has been made on their account without their permission.

An Electronic Fund Transfer (EFT) is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions initiated through electronic-based systems. The term includes, but is not limited to:

  • Point-of-sale transfers
  • ATM transfers
  • Direct deposits or direct withdrawal of funds
  • Transfers initiated by telephone
  • Transfers resulting from debit card transactions
  • Transfers initiated through online banking / bill pay

Read The Electronic Fund Transfer Disclosure

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