EFTA Reg E Payment Regulation

United States

1978

Payments

Overview

The Electronic Fund Transfer Act (EFTA), implemented through Regulation E by the Consumer Financial Protection Bureau (CFPB), was enacted in 1978 to protect consumers engaging in electronic fund transfers (EFTs). It governs transactions such as ATM withdrawals, debit card payments, direct deposits, and peer-to-peer transfers.
The regulation applies to banks, credit unions, payment service providers, fintech apps, and electronic wallet platforms. It establishes rights and responsibilities for both consumers and financial institutions, focusing on error resolution, liability limits for unauthorized transactions, and required disclosures.

Key Obligations

Provide clear and accurate disclosures before and after EFT services begin
Limit consumer liability for unauthorized transfers to $50 if reported within 2 business days
Investigate and resolve reported errors within 10 business days (with possible extension)

Offer receipts for electronic transactions and periodic account statements
Ensure real-time fraud monitoring and notification for suspicious activity
Extend protections to prepaid accounts, digital wallets, and P2P payment apps

FAQ

Related Regulations

UDAAP Dodd-Frank Consumer Protection

GLBA Privacy Rule Regulation P

FedNow Reg J Instant Payments

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