No Job Name Fource 21100 Efta

User Manual: Fource 21100

Open the PDF directly: View PDF .
Page Count: 72

Download
Open PDF In Browser	View PDF

Regulation E

Electronic Fund Transfer Act

The Electronic Fund Transfer Act (EFTA) (15 U.S.C.
1693 et seq.) of 1978 is intended to protect
individual consumers engaging in electronic fund
transfers (EFTs) and remittance transfers. These
services include
• transfers through automated teller machines
(ATMs);
• point-of-sale (POS) terminals;
• automated clearinghouse (ACH) systems;
• telephone bill-payment plans in which periodic or
recurring transfers are contemplated;
• remote banking programs; and
• remittance transfers.
The EFTA is implemented through Regulation E,
which includes official interpretations.
In 2009, the Federal Reserve Board (Board)
amended Regulation E to prohibit institutions from
charging overdraft fees for ATM and one-time debit
card transactions, unless the consumer opts in or
affirmatively consents to the institution’s overdraft
services (74 Fed. Reg. 59033 (Nov. 17, 2009) and
75 Fed. Reg. 31665 (June 4, 2010)). The Board
also amended Regulation E to restrict fees and
expiration dates on gift cards and to require that
gift card terms be stated clearly (75 Fed. Reg.
16580 (April 1, 2010)).1
The Dodd−Frank Wall Street Reform and Consumer Protection Act (Dodd−Frank Act) transferred
rulemaking authority under the EFTA from the
Board of Governors of the Federal Reserve System
to the Consumer Financial Protection Bureau
(CFPB).2, 3 The Dodd−Frank Act also amended the
EFTA and created a new system of consumer
protections for remittance transfers sent by consumers in the United States to individuals and
businesses in foreign countries. In December
1. The Board also implemented a legislative extension of time
for complying with the gift card disclosure requirements until
January 31, 2011. 75 Fed. Reg. 50683 (August 17, 2010).
2. Dodd−Frank Act §§1002(12)(C), 1024(b)-(c), and 1025(b)(c); 12 U.S.C. §§5481(12)(C), 5514(b)-(c), and 5515(b)-(c).
Section 1029 of the Dodd−Frank Act generally excludes from this
transfer of authority, subject to certain exceptions, any rulemaking
authority over a motor vehicle dealer that is predominantly
engaged in the sale and servicing of motor vehicles, the leasing
and servicing of motor vehicles, or both. The transfer of authority
also did not include section 920 of EFTA, which concerns debit
card interchange fees charged to merchants. Section 920 of EFTA
is implemented by Board regulations at 12 CFR Part 235. Section
920 is not addressed here or in the accompanying examination
procedures and checklist.
3. The agency responsible for supervising and enforcing
compliance with Regulation E will depend on the person subject
to the EFTA (e.g., for financial institutions, jurisdiction will depend
on the size and charter of the institution).

Consumer Compliance Handbook

2011, the CFPB restated the Board’s implementing
Regulation E at 12 CFR Part 1005 (76 Fed. Reg.
81020) (December 27, 2011). In February 2012, the
CFPB added subpart B (Requirements for Remittance Transfers) to Regulation E to implement the
new remittance protections set forth in the Dodd−
Frank Act (77 Fed. Reg. 6194) (February 7, 2012),
effective on February 7, 2013.4 In July 2012, the
CFPB amended the February 2012 rule to effect
certain technical corrections primarily related to
formatting of the model forms in the rule. In August
2012, the CFPB again amended the February 2012
rule to modify the definition of ‘‘remittance transfer
provider.’’ The August amendment also revised
several aspects of the rule regarding remittance
transfers that are scheduled before the date of
transfer, including preauthorized remittance transfers (77 Fed. Reg. 50244) (August 20, 2012). In
January 2013, the rule’s February 21, 2013,
effective date was delayed pending finalization of a
proposal to address three specific issues in the
rule. In May 2013, the CFPB finalized the proposal,
which modified the disclosure requirements for
certain fees and foreign taxes, revised some
aspects of the error resolution requirements, and
established a new effective date of October 28,
2013 (78 Fed. Reg. 30661) (May 22, 2013).
Information in this narrative is provided for
subpart A and subpart B in the order listed below.
Note that the order, particularly as it relates to
subpart A, does not strictly follow the order of the
regulatory text. For ease of use by the examiner,
however, the examination procedures and checklist follow the order of the regulation.

Subpart A
I.

Scope and Key Definitions (12 CFR 1005.2,
1005.3, 1005.17, 1005.20)

II.

Disclosures (12 CFR 1005.4, 1005.7, 1005.8,
1005.16, 1005.17, 1005.20)

III.

Electronic Transaction Overdraft Service Opt
In (12 CFR 1005.17)

IV.

Issuance of Access Devices (12 CFR 1005.5,
1005.18)

V.

Consumer Liability and Error Resolution (12
CFR 1005.6, 1005.11)

VI.

Receipts and Periodic Statements (12 CFR
1005.9, 1005.18)

VII.

Gift Cards (12 CFR 1005.20)

4. The amendment designated 12 CFR 1005.1 through 1005.20
as subpart A.

Reg. E • 1 (11/13)

Electronic Fund Transfer Act

VIII. Other Requirements (12 CFR 1005.10,
1005.14, 1005.15)

Accepted access device is an access device
that a consumer

IX.

• requests and receives, signs, or uses (or authorizes another to use) to transfer money between
accounts or to obtain money, property, or
services

Relation to Other Laws (12 CFR 1005.12)

Subpart B
Requirements for remittance transfers
X.

Remittance Transfer Definitions (12 CFR
1005.30)

XI.

Disclosures (12 CFR 1005.31)

XII.

Estimates (12 CFR 1005.32)

XIII. Procedures for Resolving Errors (12 CFR
1005.33)
XIV. Procedures for Cancellation and Refund of
Remittance Transfers (12 CFR 1005.34)
XV.

Acts of Agents (12 CFR 1005.35)

XVI. Transfers Scheduled Before the Date of
Transfer (12 CFR 1005.36)

Sections Applicable to Both
Subpart A and Subpart B
XVII. Preemption
XVIII. Administrative Enforcement and Record Retention (12 CFR 1005.13)
XIX. Miscellaneous (EFTA provisions not reflected
in Regulation E)

• requests to be validated even if it was issued on
an unsolicited basis
• receives as a renewal or substitute for an
accepted access device from either the financial
institution that initially issued the device or a
successor (12 CFR 1005.2(a)(2))
Account includes the following:
• checking, savings, or other consumer asset
accounts held by a financial institution (directly or
indirectly), including certain club accounts, established primarily for personal, family, or household purposes
• payroll card account, established through an
employer (directly or indirectly), to which EFTs of
the consumer’s wages, salary, or other employee
compensation (such as commissions), are made
on a recurring basis. The payroll card account
can be operated or managed by the employer, a
third-party processor, a depository institution, or
any other person. All transactions involving the
transfer of funds to or from a payroll card account
are covered by the regulation (12 CFR 1005.2
(b)(2) and Comment 2(b)-2).
An account does not include:

SUBPART A

• an account held by a financial institution under a
bona fide trust agreement

I. Scope

• an occasional or incidental credit balance in a
credit plan

Key Definitions—12 CFR 1005.2
Access device is a card, code, or other means of
access to a consumer’s account or a combination
of these used by the consumer to initiate EFTs.
Access devices include debit cards, personal
identification numbers (PINs), telephone transfer
and telephone bill payment codes, and other
means to initiate an EFT to or from a consumer
account (12 CFR 1005.2(a)(1) and 12 CFR Part
1005, Supp. I, Comment 2(a)-1).
Access devices do not include either of the
following:
• magnetic tape or other devices used internally by
a financial institution to initiate electronic transfers
• a check or draft used to capture the MICR
(Magnetic Ink Character Recognition) encoding
or routing, account, and serial numbers to initiate
a one-time ACH debit (Comments 2(a)-1 and
2(a)-2)
2 (11/13) • Reg. E

• profit-sharing and pension accounts established
under a bona fide trust agreement
• escrow accounts such as for payments of real
estate taxes, insurance premiums, or completion
of repairs
• accounts for purchasing U.S. savings bonds (12
CFR 1005.2(b)(3) and Comment 2(b)-3)
A payroll card account does not include a card
used
• solely to disburse incentive-based payments
(other than commissions when they represent the
primary means through which a consumer is
paid) that are unlikely to be a consumer’s primary
source of salary or other compensation;
• solely to make disbursements unrelated to compensation, such as petty cash reimbursements or
travel per diem payments; or
• in isolated instances to which an employer
typically does not make recurring payments
Consumer Compliance Handbook

Electronic Fund Transfer Act

(Comment 2(b)-2).
Activity means any action that results in an
increase or decrease of the funds underlying a
certificate or card, other than the imposition of a
fee, or an adjustment due to an error or a reversal
of a prior transaction (12 CFR 1005.20(a)(7)).
ATM operator is any person that operates an
ATM at which a consumer initiates an EFT or a
balance inquiry and that does not hold the account
to or from which the transfer is made or about which
the inquiry is made (12 CFR 1005.16(a)).
Dormancy fee and inactivity fee mean a fee for
non-use of or inactivity on a gift certificate, store gift
card, or general-use prepaid card (12 CFR 1005.20
(a)(5)).
Electronic check conversion (ECK) transactions
are transactions where a check, draft, or similar
paper instrument is used as a source of information
to initiate a one-time electronic fund transfer from a
consumer’s account. The consumer must authorize
the transfer (12 CFR 1005.3(b)(2))
Electronic fund transfer (EFT) is a transfer of
funds initiated through an electronic terminal,
telephone, computer (including online banking) or
magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or
credit a consumer’s account. EFTs include, but are
not limited to, point-of-sale (POS) transfers; automated teller machine (ATM) transfers; direct deposits or withdrawals of funds; transfers initiated by
telephone; and transfers resulting from debit card
transactions, whether or not initiated through an
electronic terminal (12 CFR 1005.3(b)).
Electronic terminal is an electronic device, other
than a telephone call by a consumer, through
which a consumer may initiate an EFT. The term
includes, but is not limited to, point-of-sale terminals, automated teller machines, and cashdispensing machines (12 CFR 1005.2(h)).
Exclusions from gift card definition. The following
cards, codes, or other devices are excluded and
not subject to the substantive restrictions on
imposing dormancy, inactivity, or service fees, or
on expiration dates if they are (12 CFR 1005.20(b))
• usable solely for telephone services;
• reloadable and not marketed or labeled as a gift
card or gift certificate. For purposes of this
exception, the term ‘‘reloadable’’ includes a
temporary non-reloadable card issued solely in
connection with a reloadable card, code, or other
device;
• a loyalty, award, or promotional gift card (except
that these must disclose on the card or device
itself, information such as the date the funds
expire, fee information and a toll-free number) (12
Consumer Compliance Handbook

CFR 1005.20(a)(4) and (c)(4));
• not marketed to the general public;
• issued in paper form only; or
• redeemable solely for admission to events or
venues at a particular location or group of
affiliated locations, or to obtain goods or services
in conjunction with admission to such events or
venues, at the event or venue or at specific
locations affiliated with and in geographic proximity to the event or venue.
General-use prepaid card is a card, code, or
other device
• issued on a prepaid basis primarily for personal,
family, or household purposes to a consumer in a
specified amount, whether or not that amount
may be increased or reloaded, in exchange for
payment; and
• that is redeemable upon presentation at multiple,
unaffiliated merchants for goods or services, or
that may be usable at automated teller machines
(12 CFR 1005.20(a)(3)). See ‘‘Exclusions from gift
card definition.’’
Gift certificate is a card, code, or other device
issued on a prepaid basis primarily for personal,
family, or household purposes to a consumer in a
specified amount that may not be increased or
reloaded in exchange for payment and redeemable upon presentation at a single merchant or an
affiliated group of merchants for goods or services
(12 CFR 1005.20(a)(1)). See ‘‘Exclusions from gift
card definition.’’
Loyalty, award, or promotional gift card is a card,
code, or other device (1) issued on a prepaid basis
primarily for personal, family, or household purposes to a consumer in connection with a loyalty,
award, or promotional program; (2) that is redeemable upon presentation at one or more merchants
for goods or services, or usable at automated teller
machines; and (3) that sets forth certain disclosures, including a statement indicating that the
card, code, or other device is issued for loyalty,
award, or promotional purposes (12 CFR 1005.20
(a)(4)). See ‘‘Exclusions from gift card definition.’’
Overdraft services. A financial institution provides an overdraft service if it assesses a fee or
charge for paying a transaction (including a check
or other item) when the consumer has insufficient or
unavailable funds in the account to pay the
transaction. However, an overdraft service does
not include payments made from the following:
• a line of credit subject to Regulation Z, such as a
credit card account, a home equity line of credit,
or an overdraft line of credit;
• funds transferred from another account held
individually or jointly by the consumer; or
Reg. E • 3 (11/13)

Electronic Fund Transfer Act

• a line of credit or other transaction from a
securities or commodities account held by a
broker–dealer registered with the Securities and
Exchange Commission (SEC) or the Commodity
Futures Trading Commission (CFTC). (12 CFR
1005.17(a)).
Preauthorized electronic fund transfer is an EFT
authorized in advance to recur at substantially
regular intervals (12 CFR 1005.2(k)).
Service fee means a periodic fee for holding or
use of a gift certificate, store gift card, or generaluse prepaid card. A periodic fee includes any fee
that may be imposed on a gift certificate, store gift
card, or general-use prepaid card from time to time
for holding or using the certificate or card (12 CFR
1005.20(a)(6)). For example, a service fee may
include a monthly maintenance fee, a transaction
fee, an ATM fee, a reload fee, a foreign currency
transaction fee, or a balance inquiry fee, whether or
not the fee is waived for a certain period of time or
is only imposed after a certain period of time.
However, a service fee does not include a one-time
fee or a fee that is unlikely to be imposed more than
once while the underlying funds are still valid, such
as an initial issuance fee, a cash-out fee, a
supplemental card fee, or a lost or stolen certificate
or card replacement fee (Comment 20(a)(6)-1).
State means any state, territory, or possession of
the United States; the District of Columbia; the
Commonwealth of Puerto Rico; or any of their
political subdivisions (12 CFR 1005.2(l)).
Store gift card is a card, code, or other device
issued on a prepaid basis primarily for personal,
family, or household purposes to a consumer in a
specified amount, whether or not that amount may
be increased or reloaded, in exchange for payment, and redeemable upon presentation at a
single merchant or an affiliated group of merchants
for goods or services (12 CFR 1005.20(a)(2)). See
‘‘Exclusions from gift card definition.’’
Unauthorized electronic fund transfer is an EFT
from a consumer’s account initiated by a person
other than the consumer without authority to initiate
the transfer and from which the consumer receives
no benefit. This does not include an EFT initiated in
any of the following ways:
• by a person who was furnished the access
device to the consumer’s account by the consumer, unless the consumer has notified the
financial institution that transfers by that person
are no longer authorized;
• with fraudulent intent by the consumer or any
person acting in concert with the consumer; or
• by the financial institution or its employee (12
CFR 1005.2(m)).

4 (11/13) • Reg. E

Coverage—12 CFR 1005.3
Subpart A of Regulation E applies to any electronic
fund transfer (EFT) that authorizes a financial
institution to debit or credit a consumer’s account.
The requirements of subpart A of Regulation E
apply only to accounts for which there is an
agreement for EFT services to or from the account
between (i) the consumer and the financial institution or (ii) the consumer and a third party, when the
account-holding financial institution has received
notice of the agreement and the fund transfers
have begun (Comment 3(a)-1).
Regulation E applies to all persons, including
offices of foreign financial institutions in the United
States, that offer EFT services to residents of any
state, and it covers any account located in the
United States through which EFTs are offered to a
resident of a state, no matter where a particular
transfer occurs or where the financial institution is
chartered (Comment 3(a)-3). Regulation E does not
apply to a foreign branch of a U.S. financial
institution unless the EFT services are offered in
connection with an account in a state, as defined in
12 CFR 1005.2(l) (Comment 3(a)-3).

Exclusions from Coverage
12 CFR 1005.3(c) describes transfers that are not
EFTs and are therefore not covered by the EFTA
and Regulation E:
• transfers of funds originated by check, draft, or
similar paper instrument;
• check guarantee or authorization services that do
not directly result in a debit or credit to a
consumer’s account;
• any transfer of funds for a consumer within a
system that is used primarily to transfer funds
between financial institutions or businesses, e.g.,
Fedwire or other similar network;
• any transfer of funds that has as its primary
purpose the purchase or sale of securities or
commodities regulated by the SEC or the CFTC,
purchased or sold through a broker−dealer
regulated by the SEC or through a futures
commission merchant regulated by the CFTC, or
held in book-entry form by a Federal Reserve
Bank or federal agency;
• intra-institutional automatic transfers under an
agreement between a consumer and a financial
institution;
• transfers initiated by telephone between a consumer and a financial institution provided the
transfer is not a function of a written plan
contemplating periodic or recurring transfers. A
written statement available to the public, such as

Consumer Compliance Handbook

Electronic Fund Transfer Act

a brochure, that describes a service allowing a
consumer to initiate transfers by telephone constitutes a written plan; or
• preauthorized transfers to or from accounts at
financial institutions with assets of less than $100
million on the preceding December 31. Such
preauthorized transfers, however, remain subject
to the compulsory use prohibition under Section
913 of the EFTA and 12 CFR 1005.10(e), as well
as the civil and criminal liability provisions of
Sections 915 and 916 of the EFTA. A small
financial institution that provides EFT services
besides preauthorized transfers must comply
with the requirements of subpart A for those other
services (Comment 3(c)(7)-1). For example, a
small financial institution that offers ATM services
must comply with subpart A in regard to the
issuance of debit cards, terminal receipts, periodic statements, and other requirements.

Electronic Check Conversion (ECK) and
Collection of Returned-Item Fees
Subpart A covers electronic check conversion
(ECK) transactions. In an ECK transaction, a
consumer provides a check to a payee and
information from the check is used to initiate a
one-time EFT from the consumer’s account. Although transfers originated by checks are not
covered by subpart A, an ECK is treated as an EFT
and not a payment originated by check. Payees
must obtain the consumer’s authorization for each
ECK transaction. A consumer authorizes a onetime EFT for an ECK transaction when the consumer receives notice that the transaction will or
may be processed as an EFT and goes forward
with the underlying transaction5 (12 CFR 1005.3(b)
(2)(i) and (ii) and Comment 3(b)(2)-3).
If a payee re-presents electronically a check
that has been returned unpaid, the transaction is
not an EFT, and subpart A does not apply
because the transaction originated by check
(Comment 3(c)(1)-1).
However, subpart A applies to a fee collected
electronically from a consumer’s account for a
check or EFT returned unpaid. A consumer authorizes a one-time EFT from the consumer’s account
to pay the fee for the returned item or transfer if the
person collecting the fee provides notice to the
consumer stating the amount of the fee and that the
person may electronically collect the fee, and the
consumer goes forward with the underlying transaction6 (12 CFR 1005.3(b)(3)). These authorization
5. For POS transactions, the notice must be posted in a
prominent and conspicuous location and a copy of the notice
must be provided to the consumer at the time of the transaction
(12 CFR 1005.3(b)(2)(i) and (ii) and Comment 3(b)(2)-3).
6. For POS transactions, the notice must be posted in a
prominent and conspicuous location and a copy of the notice

Consumer Compliance Handbook

requirements do not apply to fees imposed by the
account-holding financial institution for returning
the check or EFT or paying the amount of an
overdraft (Comment 3(b)(3)-1).

II. Disclosures
Disclosures Generally—12 CFR 1005.4
Required disclosures must be clear and readily
understandable, in writing, and in a form the
consumer may keep. The required disclosures may
be provided to the consumer in electronic form, if
the consumer affirmatively consents after receiving
a notice that complies with the E-Sign Act (12 CFR
1005.4(a)(1)).
Disclosures may be made in a language other
than English, if the disclosures are made available
in English upon the consumer’s request (12 CFR
1005.4(a)(2)).
A financial institution has the option of disclosing
additional information and combining disclosures
required by other laws (for example, Truth in
Lending disclosures) with Regulation E disclosures
(12 CFR 1005.4(b)).
A financial institution may combine required
disclosures into a single statement if a consumer
holds two or more accounts at the financial
institution. Thus, a single periodic statement or
error resolution notice is sufficient for multiple
accounts. In addition, it is only necessary for a
financial institution to provide one set of disclosures
for a joint account (12 CFR 1005.4(c)(l) and (2)).
Two or more financial institutions that jointly
provide EFT services may contract among themselves to meet the requirements that the regulation
imposes on any or all of them. When making initial
disclosures (see 12 CFR 1005.7) and disclosures
of a change in terms or an error resolution notice
(see 12 CFR 1005.8), a financial institution in a
shared system only needs to make disclosures that
are within its knowledge and apply to its relationship with the consumer for whom it holds an
account (12 CFR 1005.4(d)).

Initial Disclosure of Terms and
Conditions—12 CFR 1005.7
Financial institutions must provide initial disclosures of the terms and conditions of EFT services
before the first EFT is made or at the time the
consumer contracts for an EFT service. They must
give a summary of various consumer rights under
the regulation, including the consumer’s liability for
unauthorized EFTs, the types of EFTs the consumer
must either be provided to the consumer at the time of the
transaction or mailed to the consumer’s address as soon as
reasonably practicable after the person initiates the EFT to collect
the fee (12 CFR 1005.3(b)(3)).

Reg. E • 5 (11/13)

Electronic Fund Transfer Act

may make, limits on the frequency or dollar amount,
fees charged by the financial institution, and the
error-resolution procedures. Appendix A to Part
1005 provides model clauses that financial institutions may use to provide the disclosures.
Timing of disclosures. Financial institutions must
make the required disclosures at the time a
consumer contracts for an electronic fund transfer
service or before the first electronic fund transfer is
made involving the consumer’s account (12 CFR
1005.7(a)).
Disclosures given by a financial institution earlier
than the regulation requires (for example, when the
consumer opens a checking account) need not be
repeated when the consumer later authorizes an
electronic check conversion or agrees with a third
party to initiate preauthorized transfers to or from
the consumer’s account, unless the terms and
conditions differ from the previously disclosed
term. This interpretation also applies to any notice
provided about one-time EFTs from a consumer’s
account initiated using information from the consumer’s check. On the other hand, if an agreement
for EFT services to be provided by an accountholding financial institution is directly between the
consumer and the account-holding financial institution, disclosures must be given in close proximity
to the event requiring disclosure, for example,
when the consumer contracts for a new service
(Comment 7(a)-1).
Where a consumer authorizes a third party to
debit or credit the consumer’s account, an accountholding financial institution that has not received
advance notice of the transfer or transfers must
provide the required disclosures as soon as
reasonably possible after the first debit or credit is
made, unless the financial institution has previously
given the disclosures (Comment 7(a)-2).
If a consumer opens a new account permitting
EFTs at a financial institution, and the consumer
has already received subpart A disclosures for
another account at that financial institution, the
financial institution need only disclose terms and
conditions that differ from those previously given
(Comment 7(a)-3).
If a financial institution joins an interchange or
shared network system (which provides access to
terminals operated by other financial institutions),
disclosures are required for additional EFT services
not previously available to consumers if the terms
and conditions differ from those previously disclosed (Comment 7(a)-4).
A financial institution may provide disclosures
covering all EFT services that it offers, even if some
consumers have not arranged to use all services
(Comment 7(a)-5).

6 (11/13) • Reg. E

Addition of EFT services. A financial institution
must make disclosures for any new EFT service
added to a consumer’s account if the terms and
conditions are different from those described in the
initial disclosures. ECK transactions may be a new
type of transfer requiring new disclosures (See
Appendix A-2 and Comment 7(c)-1).
Content of disclosures. 12 CFR 1005.7(b) requires a financial institution to provide the following
disclosures as they apply:
• Liability of consumers for unauthorized electronic
fund transfers. The financial institution must
include a summary of the consumer’s liability
(under 12 CFR 1005.6, state law, or other
applicable law or agreement) for unauthorized
transfers (12 CFR 1005.7(b)(1)). A financial
institution does not need to provide the liability
disclosures if it imposes no liability. If it later
decides to impose liability, it must first provide
the disclosures (Comment 7(b)(1)-1). The financial institution can choose to include advice on
promptly reporting unauthorized transfers or the
loss or theft of the access device (Comment
7(b)(1)-3).
• Telephone number and address. A financial
institution must provide a specific telephone
number and address, on or with the disclosure
statement, for reporting a lost or stolen access
device or a possible unauthorized transfer (Comment 7(b)(2)-2). Except for the telephone number
and address for reporting a lost or stolen access
device or a possible unauthorized transfer, the
disclosure may insert a reference to a telephone
number that is readily available to the consumer,
such as ‘‘Call your branch office. The number is
shown on your periodic statement’’ (Comment
7(b)(2)-2).
• Business days. The financial institution’s business days (12 CFR 1005.7(b)(3)).
• Types of transfers; limitations on frequency or
dollar amount. Limitations on the frequency and
dollar amount of transfers generally must be
disclosed in detail (12 CFR 1005.7(b)(4)). If the
confidentiality of certain details is essential to the
security of an account or system, these details
may be withheld (but the fact that limitations exist
must still be disclosed).7 A limitation on account
activity that restricts the consumer’s ability to
make EFTs must be disclosed even if the
restriction also applies to transfers made by

7. For example, if a financial institution limits cash ATM
withdrawals to $100 per day, the financial institution may disclose
that daily withdrawal limitations apply and need not disclose that
the limitations may not always be in force (such as during periods
when its ATMs are off-line) (Comment 7(b)(4)-1).

Consumer Compliance Handbook

Electronic Fund Transfer Act

non-electronic means.8 Financial institutions are
not required to list preauthorized transfers among
the types of transfers that a consumer can make
(Comment 7(b)(4)-3). Financial institutions must
disclose the fact that one-time EFTs initiated
using information from a consumer’s check are
among the types of transfers that a consumer can
make (See Appendix A-2 and Comment 7(b)(4)4).
• Fees. A financial institution must disclose all fees
for EFTs or for the right to make EFTs (12 CFR
1005.7(b)(5)). Other fees, for example, minimumbalance fees, stop-payment fees, account overdrafts, or ATM inquiry fees, may, but need not, be
disclosed under Regulation E (see Regulation
DD, 12 CFR Part 1030) and (Comment 7(b)(5)-1).
A per-item fee for EFTs must be disclosed even if
the same fee is imposed on non-electronic
transfers. If a per-item fee is imposed only under
certain conditions, such as when the transactions
in the cycle exceed a certain number, those
conditions must be disclosed. Itemization of the
various fees may be on the disclosure statement
or on an accompanying document referenced in
the statement (Comment 7(b)(5)-2).
A financial institution must disclose that networks used to complete the EFT as well as an
ATM operator, may charge a fee for an EFT or for
balance inquiries (12 CFR 1005.7(b)(11)).
• Documentation. A summary of the consumer’s
right to receipts and periodic statements, as
provided in 12 CFR 1005.9, and notices regarding preauthorized transfers as provided in 12
CFR 1005.10(a) and 1005.10(d) (12 CFR 1005.7
(b)(6)).
• Stop payment. A summary of the consumer’s
right to stop payment of a preauthorized electronic fund transfer and the procedure for placing
a stop-payment order, as provided in 12 CFR
1005.10(c) and 12 CFR 1005.7(b)(7).
• Liability of institution. A summary of the financial
institution’s liability to the consumer under Section 910 of the EFTA for failure to make or to stop
certain transfers (12 CFR 1005.7(b)(8)).
• Confidentiality. The circumstances under which,
in the ordinary course of business, the financial
institution may provide information concerning
the consumer’s account to third parties (12 CFR
1005.7(b)(9)). A financial institution must describe the circumstances under which any information relating to an account to or from which
EFTs are permitted will be made available to third
8. For example, Regulation D (12 CFR 1004) restricts the
number of payments to third parties that may be made from a
money market deposit account; a financial institution that does not
execute fund transfers in excess of those limits must disclose the
restriction as a limitation on the frequency of EFTs (Comment
7(b)(4)-2).

Consumer Compliance Handbook

parties, not just information concerning those
EFTs. Third parties include other subsidiaries of
the same holding company (Comment 7(b)(9)-1).
• Error resolution. The error-resolution notice must
be substantially similar to Model Form A-3 in
Appendix A of Part 1005. A financial institution
may use different wording so long as the
substance of the notice remains the same, may
delete inapplicable provisions (for example, the
requirement for written confirmation of an oral
notification), and may substitute substantive state
law requirements affording greater consumer
protection than Regulation E (Comment 7(b)(10)1). To take advantage of the longer time periods
for resolving errors under 12 CFR 1005.11(c)(3)
(for new accounts as defined in Regulation CC,
transfers initiated outside the United States, or
transfers resulting from POS debit card transactions), a financial institution must have disclosed
these longer time periods. Similarly, a financial
institution relying on the exception from provisional crediting in 12 CFR 1005.11(c)(2) for
accounts relating to extensions of credit by
securities brokers and dealers (Regulation T, 12
CFR Part 220) must disclose accordingly (Comment 7(b)(10)-2).
• ATM fees. A notice that a fee may be imposed by
an automated teller machine operator as defined
in §1005.16(a), when the consumer initiates an
electronic fund transfer or makes a balance
inquiry, and by any network used to complete the
transaction.

Change in Terms; Error Resolution
Notice—12 CFR 1005.8
If a financial institution contemplates a change in
terms, it must mail or deliver a written or electronic
notice to the consumer at least 21 days before the
effective date of any change in a term or condition
required to be disclosed under 12 CFR 1005.7(b) if
the change would result in any of the following:
• increased fees or charges;
• increased liability for the consumer;
• fewer types of available EFTs; or
• stricter limitations on the frequency or dollar
amounts of transfers (12 CFR 1005.8(a)(1)).
If an immediate change in terms or conditions is
necessary to maintain or restore the security of an
EFT system or account, the financial institution
does not need to give prior notice. However, if the
change is to be permanent, the financial institution
must provide notice in writing of the change to the
consumer on or with the next regularly scheduled
periodic statement or within 30 days, unless
disclosures would jeopardize the security of the
Reg. E • 7 (11/13)

Electronic Fund Transfer Act

system or account (12 CFR 1005.8(a)(2)).

be changed after purchase.

For accounts to or from which EFTs can be
made, the financial institution must mail, deliver, or
provide electronically to the consumer at least once
each calendar year, the error resolution notice in 12
CFR 1005 Appendix A—Model Form A-3, or one
substantially similar. Alternatively, the financial
institution may include an abbreviated error resolution notice substantially similar to the notice set
out in Appendix A (Model Form A-3) with each
periodic statement (12 CFR 1005.8(b)).

A number of disclosures must be made on the
actual card. Making such disclosures in an accompanying terms and conditions document, on packaging surrounding a certificate or card, or on a
sticker or other label affixed to the certificate or
card does not constitute a disclosure on the
certificate or card. Those disclosures include the
following:

Disclosures at Automated Teller
Machines—12 CFR 1005.16
An ATM operator that charges a fee is required to
provide notice that a fee will be imposed and
disclose the amount of the fee. The notice must be
provided either by showing it on the screen of the
automated teller machine or on paper before the
consumer is committed to paying a fee (12 CFR
1005.16(b) and (c)).
The ‘‘clear and readily understandable standard’’
under 12 CFR 1005.4(a) applies to the content of
the notice. The requirement that the notice be in a
retainable format only applies to printed notices
(not those on the ATM screen).
The fee may be imposed by the ATM operator
only if: (1) the consumer is provided the required
notice, and (2) the consumer elects to continue the
transaction or inquiry after receiving such notice
(12 CFR 1005.16(d)).
These fee disclosures are not required where a
network owner is not charging a fee directly to the
consumer (i.e., some network owners charge an
interchange fee to financial institutions whose
customers use the network) (Comment 7(b)(5)-3). If
the network practices change such that the network charges the consumer directly, these fee
disclosure requirements would apply to the network (12 CFR 1005.7(c)).

Overdraft Service Disclosures—12 CFR
1005.17
Disclosure requirements for overdraft services are
addressed in Section III of this document.

Gift Card Disclosures—12 CFR
1005.20(c)
Disclosures must be clear and conspicuous and
generally in a written or electronic form (except for
certain pre-purchase disclosures, which may be
given orally) that the consumer may retain. The fees
and terms and conditions of expiration that are
required to be disclosed prior to purchase may not
8 (11/13) • Reg. E

• the existence, amount, and frequency of any
dormancy, inactivity, or service fee;
• the expiration date for the underlying funds (or
the fact that the funds do not expire);
• a toll-free telephone number and (if any) a
website that the consumer may use to obtain a
replacement certificate or card if the certificate or
card expires while underlying funds are still
available;
• a statement that the certificate or card expires,
but the underlying funds do not expire or expire
later than the certificate or card, as well as a
statement that the consumer may contact the
issuer for a replacement card;9 and
• a toll-free telephone number and (if any) a
website that the consumer may use to obtain
information about fees.
Additional disclosure requirements regarding fees.
In addition to the disclosure requirements related to
dormancy, inactivity, or service fees, all other fees
must be disclosed as well. These disclosures must
be provided on or with the certificate or card and
disclosed prior to purchase. The certificate or card
must also disclose a toll-free telephone number
and website, if one is maintained, that a consumer
may use to obtain fee information or replacement
certificates or cards (12 CFR 1005.20(f)).
Disclosure requirements for loyalty, award,
promotional gift cards (12 CFR 1005.20(a)(4)).
qualify for the exclusion for loyalty, award,
promotional gift cards, the following must
disclosed:

or
To
or
be

• a statement indicating that the card, code, or
other device is issued for loyalty, award, or
promotional purposes, which must be included
on the front of the card, code, or other device;
• the expiration date for the underlying funds,
which must be included on the front of the card,
code, or other device;
• the amount of any fees that may be imposed in
connection with the card, code, or other device,
and the conditions under which they may be
9. This requirement does not apply to non-reloadable certificates or cards that expire seven years or more after the date of
manufacture.

Consumer Compliance Handbook

Electronic Fund Transfer Act

imposed, which must be provided on or with the
card, code, or other device; and
• a toll-free telephone number and, if one is
maintained, a website, that a consumer may use
to obtain fee information, which must be included
on the card, code, or other device.
Amendments to Regulation E were issued on
August 11, 2010. The amendments implemented
legislation that modified the effective date of certain
disclosure and card expiration requirements in the
gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 for
cards produced prior to April 1, 2010.
The disclosures and card expiration requirements are
1. disclosures required to be made prior to purchase (see 12 CFR 1005.20(c)(3));
2. disclosures that must be stated on the certificate
or card regarding the fees and expiration dates
(see 12 CFR 1005.20(d)(2), (e)(1) & (e)(3)); and
3. disclosures that may be provided on or with the
certificate or card (see 12 CFR 1005.20(f)).
Gift cards must comply with all other provisions
of the gift card rule.
Issuers must make the following disclosures on
in-store signs, messages during customer service
calls, websites, and general advertising:
• the funds underlying the gift card do not expire;
• consumers have the right to receive a free
replacement card, along with the packaging and
materials that typically accompany the gift card;
and
• the issuer will charge dormancy, inactivity, or
service fees only if the fee is permitted by the gift
card rule.
The issuer was required to make the disclosures
via customer service call center and website until
January 31, 2013. See 12 CFR 1005.20(h).

III. Electronic Transaction Overdraft
Services Opt-In—12 CFR 1005.17
In recent years overdraft protection services have
been extended to cover overdrafts resulting from
non-check transactions, including ATM withdrawals, debit card transactions at point of sale, online
transactions, preauthorized transfers, and ACH
transactions. Generally, institutions charge a flat
fee each time an overdraft is paid, although some
institutions have a tiered fee structure and charge
higher fees based on the amount of the negative
balance at the end of the day or as the number of
overdrafts increases. Institutions commonly charge
the same amount for paying check and ACH
overdrafts as they would if they returned the item
Consumer Compliance Handbook

unpaid. Some institutions also impose a fee for
each day the account remains overdrawn. For
debit card overdrafts, the[a0]dollar amount of the
fee and multiple assessments can exceed the
dollar amount of the overdrafts.
In 2005, the agencies10 issued guidance concerning the marketing, disclosure, and implementation of overdraft programs. The guidance also
covers safety and soundness considerations, and
establishes a number of best practices financial
institutions should incorporate into their overdraft
programs. The 2009 revisions to Regulation E
supersede portions of the guidance related to ATM
and one-time debit card overdraft transactions.
However, in addition to the revised Regulation E
requirements, institutions should incorporate their
agency’s overdraft guidance into their overdraft
protection programs.
12 CFR 1005.17 was added in the 2009 revision
to Regulation E.11 It provides consumers with a
choice to opt into their institution’s overdraft
protection program and be charged a fee for
overdrafts for ATM and one-time debit card transactions. It also requires disclosure of the fees and
terms associated with the institution’s overdraft
service. Before an institution may assess overdraft
fees, the consumer must opt in, or affirmatively
consent, to the overdraft service for ATM and
one-time debit card transactions, and the consumer has an ongoing right to revoke consent.
Institutions may not require an opt in for ATM and
one-time debit transactions as a condition to the
payment of overdrafts for checks and other transactions. The account terms, conditions and features must be the same for consumers who opt in
and for those who do not.
Opt-in requirement for overdraft services. The
financial institution may assess a fee for paying an
ATM or one-time debit card transaction pursuant to
an overdraft service only if it has met the following
requirements:
• the financial institution has provided the consumer with a written (or, if the consumer agrees,
electronic) notice, segregated from all other
information, describing the overdraft service;
• the financial institution has provided a reasonable opportunity for the consumer to affirmatively
consent (opt in) to the overdraft service for ATM
10. The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, and the National Credit Union Administration, collectively issued joint guidance concerning a service
offered by insured depository institutions commonly referred to as
‘‘bounced-check protection’’ or ‘‘overdraft protection.’’ This credit
service is sometimes offered on both consumer and small
business transaction accounts as an alternative to traditional
means of covering overdrafts. Joint Guidance on Overdraft
Protection Programs (February 18, 2005).
11. 74 Fed. Reg. 59033, Nov. 17, 2009; 75 Fed. Reg. 31665,
June 4, 2010.

Reg. E • 9 (11/13)

Electronic Fund Transfer Act

and one-time debit card transactions;
• the financial institution has obtained the consumer’s affirmative consent (opt in) for ATM and
one-time debit card transactions; and
• the financial institution has mailed or delivered
written (or, if the consumer agrees, electronic)
confirmation of the consent, including a statement informing the consumer of the right to
revoke consent. An institution complies if it
adopts reasonable procedures to ensure that it
assesses overdraft fees only for transactions
paid after mailing or delivering the confirmation to
the consumer (12 CFR 1005.17(b)(1); Comment
17(b)-7).
Fee prohibitions. As a general rule, an institution
may not charge overdraft fees for paying an ATM or
one-time debit card transaction unless the consumer has opted in. The fee prohibition also
applies to an institution that has a policy and
practice of not paying an ATM or one-time debit
card overdraft when it reasonably believes at the
time of the authorization request that the consumer
does not have sufficient funds available to pay the
transaction, although the institution does not have
to comply with the notice and opt-in requirements
(Comment17(b)-1(iv)).
Lack of consent does not prohibit the financial
institution from paying ATM or one-time debit card
overdrafts. However, the financial institution may
charge a fee only if the consumer has consented to
the institution’s overdraft service for ATM and
one-time debit card transactions (Comment 17(b)2). Conversely, the financial institution is not
required to pay an ATM or one-time debit card
overdraft even if the consumer has consented to
pay a fee (Comment 17(b)-3).
For a consumer who has not opted in, if a fee or
charge is based on the amount of the outstanding
negative balance, an institution may not charge a
fee for a negative balance that is solely attributable
to an ATM or one-time debit card transaction.
However, an institution may assess a fee if the
negative balance is attributable in whole or in part
to a check, ACH transaction or other type of
transaction not subject to the prohibition on assessing overdraft fees (Comment 17(b)-8).
For a consumer who has not opted in, the
institution may not assess daily or sustained
negative balance, overdraft, or similar fees for a
negative balance, based solely on ATM or one-time
debit card transactions. However, if the negative
balance is attributable in part to a check, ACH
transaction, or other type of transaction not subject
to the prohibition on assessing overdraft fees, the
institution may charge a daily or sustained overdraft or similar fee, even if the consumer has not
opted in. The date the fee may be charged is
10 (11/13) • Reg. E

based on the date on which the check, ACH, or
other type of transaction is paid into overdraft
(Comment 17(b)-9).
Contents and format of notice. The notice
describing the overdraft service must be substantially similar to Model Form A-9. The notice must
include all of the following items and may not
contain any other information not expressly specified or otherwise permitted:
• a brief description of the overdraft service and
the types of transactions for which the financial
institution may charge a fee;
• the dollar amount of any fee that may be charged
for an ATM or one-time debit card transaction,
including any daily or other overdraft fees;12
• the maximum number of fees that may be
charged per day, or, if applicable, that there is no
limit;
• an explanation of the right to affirmatively consent
to the overdraft service, including the methods by
which the consumer may consent;13 and
• the availability of a line of credit or a service that
transfers funds from another account to cover
overdrafts, if the financial institution offers those
alternatives14 (12 CFR 1005.17(d)(1) through
(d)(5)).
The financial institution also may (but is not
required to) include the following information, to the
extent applicable:
• disclosure of the right to opt into, or out of, the
payment of overdrafts for other types of transactions (e.g., checks, ACH transactions, or automatic bill payments) and a means for the
consumer to exercise such choices;
• disclosure of the financial institution’s returned
item fee, as well as the fact that merchants may
charge additional fees; and
• disclosure of the right to revoke consent (12 CFR
1005.17(d)(6)).
Reasonable opportunity to consent. The financial
12. If the amount of the fee may vary based on the number of
times the consumer has overdrawn the account, the amount of the
overdraft, or other factors, the financial institution must disclose
the maximum fee.
13. Institutions may tailor the response portion of Model Form
A-9 to the methods offered. For example, a tear-off portion of
Model Form A-9 is not necessary if consumers may only opt in by
telephone or electronically (Comment 17(d)-3).
14. If the institution offers both a line of credit subject to
Regulation Z (12 CFR Part 1026) and a service that transfers funds
from another account of the consumer held at the institution to
cover overdrafts, the institution must state in its opt-in notice that
both alternative plans are offered. If the institution offers one, but
not the other, it must state in its opt-in notice the alternative plan
that it offers. If the institution does not offer either plan, it should
omit the reference to the alternative plans (Comment 17(d)-5). If
the financial institution offers additional alternatives for paying
overdrafts, it may (but is not required to) disclose those
alternatives (12 CFR 1005.17(d)(5)).

Consumer Compliance Handbook

Electronic Fund Transfer Act

institution must provide a reasonable opportunity to
consent. Reasonable methods of consent include
mail, if the financial institution provides a form for
the consumer to fill out and mail; telephone, if the
financial institution provides a readily available
telephone line that the consumer may call; electronic means, if the financial institution provides a
form that can be accessed and processed at its
website, where the consumer may click on a box to
consent and click on a button to affirm consent; or
in person, if the financial institution provides a form
for the consumer to complete and present at a
branch or office (Comment 17(b)-4). The financial
institution may provide the opportunity to consent
and require the consumer to make a choice as a
step to opening an account (Comment 17(b)-5).
Affirmative consent is necessary. An important
feature of the opt in is that the consumer’s
affirmative consent is necessary before the institution may charge overdraft fees for paying an ATM
or one-time debit card transaction (12 CFR 1005.17
(b)(iii)). The consent must be separate from other
consents or acknowledgments (including a consent to receive disclosures electronically). Check
boxes are allowed, but the check box and the
consumer’s signature may only apply to the
consumer’s consent to opt in. Preprinted disclosures about the overdraft service provided with a
signature card or contract do not constitute affirmative consent (Comment 17(b)-6).
Confirmation and consumer’s right to revoke. Not
only must the consumer affirmatively consent, but
the institution must mail or deliver to the consumer
a written confirmation (or electronic, if the consumer agrees) that the consumer has consented,
along with a statement informing the consumer of
the right to revoke the consent at any time (12 CFR
1005.17(b)(iv) and Comment 17(b)-7). An institution complies with the confirmation requirement if it
has adopted reasonable procedures to ensure that
overdraft fees are assessed only on transactions
paid after the confirmation is mailed or delivered to
the consumer (Comment 17(b)-7)).
Assessing fees. For consumers who have not
opted in, institutions are prohibited from charging
overdraft fees for paying those transactions. This
prohibition applies to daily or sustained overdraft,
negative balance, or similar fees. However, the rule
does not prohibit an institution from assessing
these fees if the negative balance is attributable, in
whole or part, to a check, ACH or other transaction
not subject to the fee prohibition. However, if the
negative balance is attributable in part to an ATM
transaction, for example, and in part to a check, a
fee may be assessed based on the date when the
check is paid into overdraft, not the date of the ATM
or one-time debit transaction.
Conditioning payment of other overdrafts. The
Consumer Compliance Handbook

financial institution may not condition the payment
of other types of overdraft transactions on the
consumer’s affirmative consent, and the financial
institution may not decline to pay other types of
overdraft transactions because the consumer has
not affirmatively consented to the payment of ATM
and one-time debit card overdrafts (12 CFR
1005.17(b)(2)). In other words, the financial institution may not use different criteria for paying other
types of overdraft transactions for consumers who
have consented and for consumers who have not
consented (Comment 17(b)(2)-1).
Same account terms, conditions, and features. In
addition, the financial institution must provide to
consumers who do not affirmatively consent the
same account terms, conditions, and features
(except the payment of ATM and one-time debit
overdrafts) that are available to consumers who do
affirmatively consent (12 CFR 1005.17(b)(3)). That
requirement includes, but is not limited to
• interest rates paid;
• fees assessed;
• the type of ATM or debit card provided to the
depositor;15
• minimum balance requirements; and
• online bill
17(b)(3)-1).

payment

services

(Comment

Joint accounts. Any one account holder may
consent, or revoke consent, for payment of ATM or
one-time debit card transactions from a joint
account (12 CFR 1005.17(e)).
Continuing right to consent or revoke. A consumer may consent to the payment of ATM and
one-time debit card overdrafts at any time. A
consumer may also revoke consent at any time.
The financial institution must implement a revocation as soon as reasonably practicable (12 CFR
1005.17(f)). The financial institution need not waive
overdraft fees assessed before it implements the
consumer’s revocation (Comment 17(f)-1).
Duration of consent. Consent remains effective
until the consumer revokes it, unless the financial
institution terminates the overdraft service (12 CFR
1005.17(g)). The financial institution may terminate
the overdraft service, for example, if the consumer
makes excessive use of the service (Comment
17(g)-1).
Effective date. The overdraft services rule became effective on January 19, 2010, and compliance became mandatory on July 1, 2010. For
accounts opened on or after July 1, 2010, the
15. For example, the financial institution may not provide a
PIN-only debit card to consumers who do not opt in and a debit
card with both PIN and signature-debit features to consumers who
do opt in.

Reg. E • 11 (11/13)

Electronic Fund Transfer Act

financial institution must obtain consent before
charging a fee for payment of any ATM or one-time
debit overdraft. However, for accounts opened
before July 1, 2010, the financial institution may not
charge a fee for paying any ATM or one-time debit
overdraft on or after August 15, 2010, unless it has
obtained consent (See 12 CFR 1005.17(c)).

IV. Issuance of Access Devices—
12 CFR 1005.5 and 1005.18
In general, a financial institution may issue an
access device to a consumer only in the following
cases:
• the consumer requested it in writing or orally.16
• it is a renewal of, or a substitute for, an accepted
access device (as defined in 12 CFR 1005.2(a)).
See 12 CFR 1005.5(a).
Only one renewal or substitute device may
replace a previously issued device. A financial
institution may provide additional devices at the
time it issues the renewal or substitute access
device provided the institution complies with the
requirements for issuing unsolicited access devices for the additional devices (Comments 5(a)
(2)-1 and 5(b)-5).
A financial institution may issue an unsolicited
access device only if the access device meets all
of the following criteria. The access device is
• not validated—that is, it cannot be used to initiate
an EFT.
• accompanied by the explanation that it is not
validated and how the consumer may dispose of
it if the consumer does not wish to validate it.
• accompanied by a complete disclosure, in
accordance with 12 CFR 1005.7, of the consumer’s rights and liabilities that will apply if the
access device is validated.
• validated only upon oral or written request from
the consumer and after a verification of the
consumer’s identity by some reasonable means
(12 CFR 1005.5(b)).
The financial institution may use any reasonable
means of verifying the consumer’s identity, but the
consumer is not liable for any unauthorized transfers if an imposter succeeds in validating the
access device (Comment 5(b)-4).
Payroll card access devices. Consistent with 12
CFR 1005.5(a), a financial institution may issue a
payroll card access device only in response to an
oral or written request for the device or as a renewal
or substitute for an accepted access device. A
16. For a joint account, a financial institution may issue an
access device to each account holder for whom the requesting
holder specifically requests an access device (Comment
5(a)(1)-1).

12 (11/13) • Reg. E

consumer is deemed to request an access device
for a payroll account when the consumer chooses
to receive salary or other compensation through a
payroll card account (Comment 18(a)-1).
EFT added to credit card. The EFTA and
Regulation E apply when the capability to initiate
EFTs is added to an accepted credit card (as
defined under Regulation Z). The EFTA and
Regulation E also apply to the issuance of an
access device that permits credit extensions under
a preexisting agreement between the consumer
and a financial institution to extend credit only to
cover overdrafts (or to maintain a specified minimum balance). The Truth in Lending Act and
Regulation Z govern the addition of a credit feature
to an accepted access device, and except as
discussed above, the issuance of a credit card that
is also an access device. For information on the
relationship of Regulation E to other laws, including
Truth in Lending, see 12 CFR 1005.12.

V. Consumer Liability and Error
Resolution
Liability of Consumers for Unauthorized
Transfers—12 CFR 1005.6
A consumer may be liable for an unauthorized EFT
(defined in 12 CFR 1005.2(m)) depending on when
the consumer notifies the financial institution and
whether an access device was used to conduct the
transaction. Under the EFTA, there is no bright-line
time limit within which consumers must report
unauthorized EFTs (71 Fed. Reg. 1638, 1653 (Jan.
10, 2006)).
The extent of the consumer’s liability is determined solely by the consumer’s promptness in
notifying the financial institution (Comment 6(b)-3).
Other factors may not be used as a basis to hold
consumers liable. 12 CFR 1005.6 expressly prohibits the following factors as the basis for imposing
greater liability than is permissible: the consumer
was negligent (e.g., wrote a PIN on an ATM card),
an agreement between the consumer and the
financial institution provides for greater liability, or
the consumer is liable for a greater amount under
state law (Comment 6(b)-2 and 6(b)-3).
A consumer may only be held liable for an
unauthorized transaction, within the limitations set
forth in 12 CFR 1005.6(b), if
• the financial institution has provided all of the
following written disclosures to the consumer:
– a summary of the consumer’s liability for
unauthorized EFTs
– the telephone number and address for reporting that an unauthorized EFT has been or may
be made
Consumer Compliance Handbook

Electronic Fund Transfer Act

– the financial institution’s business days
• any access device used to affect the EFT was an
accepted access device (as defined in 12 CFR
1005.2(a)).
• the financial institution has provided a means to
identify the consumer to whom the access device
was issued (12 CFR 1005.6(a)).
12 CFR 1005.6 allows, but does not require, the
financial institution to provide a separate means to

identify each consumer of a multiple-user account
(Comment 6(a)-2).
The limitations on the amount of consumer
liability for unauthorized EFTs, the time limits within
which consumers must report unauthorized EFTs,
and the liability for failing to adhere to those time
limits, are listed in the chart below. The financial
institution may impose less consumer liability than
is provided by 12 CFR 1005.6 based on state law or
the deposit agreement (12 CFR 1005.6(b)(6)).

Consumer Liability for Unauthorized Transfers
Timing of Consumer Notice to
Financial Institution

Event
Loss or theft of access device

Maximum Liability

Within two business days after
learning of loss or theft

Lesser of $50 or total amount of
unauthorized transfers

Loss or theft of access device

More than two business days
after learning of loss or theft up
to 60 calendar days after
transmittal of statement showing
first unauthorized transfer made
with access device

Lesser of $500 or the sum of:
(a) $50 or the total amount of
unauthorized transfers
occurring in the first two
business days, whichever is
less, and
(b) The amount of unauthorized
transfers occurring after two
business days and before
notice to the financial
institution.2

Loss or theft of access device

More than 60 calendar days after
transmittal of statement showing
first unauthorized transfer made
with access device

For transfers occurring within the
60-day period, the lesser of $500
or the sum of
(a) Lesser of $50 or the amount
of unauthorized transfers in
first two business days, and
(b) The amount of unauthorized
transfers occurring after two
business days.
For transfers occurring after the
60-day period, unlimited liability
(until the financial institution is
notified).3

Unauthorized transfer(s) not
involving loss or theft of an
access device

Within 60 calendar days after
transmittal of the periodic
statement on which the
unauthorized transfer first
appears

No liability.

Unauthorized transfer(s) not
involving loss or theft of an
access device

More than 60 calendar days after Unlimited liability for
unauthorized transfers occurring
transmittal of the periodic
60 calendar days after the
statement on which the
periodic statement and before
unauthorized transfer first
notice to the financial institution.
appears

1

1. Includes a personal identification number (PIN) if used
without a card in a telephone transaction, for example.
2. Provided the financial institution demonstrates that these
transfers would not have occurred had notice been given within
the two-business-day period.

Consumer Compliance Handbook

3. Provided the financial institution demonstrates that these
transfers would not have occurred had notice been given within
the 60-day period.

Reg. E • 13 (11/13)

Electronic Fund Transfer Act

Knowledge of loss or theft. The fact that a
consumer has received a periodic statement
reflecting an unauthorized transaction is a factor,
but not conclusive evidence, in determining whether
the consumer had knowledge of a loss or theft of
the access device (Comment 6(b)(1)-2).

• If the unauthorized use of a combined access
device−credit card involves only an EFT, for
example, debit card purchases or cash withdrawals at an ATM from a checking account, only the
error resolution provisions of 12 CFR 1005.6 and
1005.11 will apply.

Timing of notice. If a consumer’s delay in
notifying a financial institution was due to extenuating circumstances, such as extended travel or
hospitalization, the time periods for notification
specified above must be extended to a reasonable
time (12 CFR 1005.6(b)(4); Comment 6(b)(4)-1).

• If a combined access device−credit card is
stolen and unauthorized transactions are made
by using the card as both a debit card and a
credit card, 12 CFR 1005.6 and 1005.11 will
apply to the unauthorized transactions in which
the card was used as a debit card, and
Regulation Z will apply to the unauthorized
transactions in which the card was used as a
credit card.

Notice to the financial institution. A consumer
gives notice to a financial institution about unauthorized use when the consumer takes reasonable
steps to provide the financial institution with the
pertinent information, whether or not a particular
employee actually receives the information (12 CFR
1005.6(b)(5)(i)). Even if the consumer is unable to
provide the account number or the card number,
the notice effectively limits the consumer’s liability if
the consumer sufficiently identifies the account in
question, for example, by giving the name on the
account and the type of account (Comment
6(b)(5)-3). At the consumer’s option, notice may be
given in person, by telephone, or in writing (12 CFR
1005.6(b)(5)(ii)). Notice in writing is considered
given at the time the consumer mails the notice or
delivers the notice for transmission by any other
usual means to the financial institution. Notice may
also be considered given when the financial
institution becomes aware of circumstances leading to the reasonable belief that an unauthorized
transfer has been or may be made (12 CFR
1005.6(b)(5)(iii)).
Relation of error resolution to Truth in Lending.
The liability and error resolution provisions in 12
CFR 1005.6 and 1005.11 apply to an extension of
credit that occurs under an agreement between the
consumer and a financial institution to extend credit
when the consumer’s account is overdrawn, to
maintain a specified minimum balance in the
consumer’s account, or under an overdraft service
(12 CFR 1005.12(a)(1)(ii)). As provided in 12 CFR
1005.12 and related commentary, for transactions
involving access devices that also function as
credit cards, the liability and error resolution
provisions in 12 CFR 1005.6 and 1005.11 or
Regulation Z will apply depending on the nature of
the transaction:
• If the unauthorized use of a combined access
device−credit card solely involves an extension
of credit, other than an extension of credit
described under 12 CFR 1005.12(a)(1)(iii), and
does not involve an EFT, for example, when the
card is used to draw cash advances directly from
a credit line, only the error resolution provisions of
Regulation Z will apply.
14 (11/13) • Reg. E

Procedures for Resolving Errors—
12 CFR 1005.11
This section defines the term error and describes
the steps the consumer must take when asserting
an error in order to receive the protection of the
EFTA and 12 CFR 1005.11, and the procedures
that a financial institution must follow to resolve an
alleged error under this section.
An error includes any of the following:
• an unauthorized EFT
• an incorrect EFT to or from the consumer’s
account
• the omission from a periodic statement of an EFT
to or from the consumer’s account that should
have been included
• a computational or bookkeeping error made by
the financial institution relating to an EFT
• the consumer’s receipt of an incorrect amount of
money from an electronic terminal
• an EFT not identified in accordance with the
requirements of 12 CFR 1005.9 or 1005.10(a)
• a consumer’s request for any documentation
required by 12 CFR 1005.9 or 1005.10(a) or for
additional information or clarification concerning
an EFT (12 CFR 1005.11(a)(1))
The term error does not include:
• a routine inquiry about the balance in the
consumer’s account or a request for duplicate
copies of documentation or other information that
is made only for tax or other record-keeping
purposes (12 CFR 1005.11(a)(2)(i), (ii), and (iii))
• the fact that a financial institution does not make
a terminal receipt available for a transfer of $15 or
less in accordance with 12 CFR 1005.9(e)
(Comment 11(a)-6)
A financial institution must comply with the error
resolution procedures in 12 CFR 1005.11 with
respect to any oral or written notice of error from the
Consumer Compliance Handbook

Electronic Fund Transfer Act

consumer that
• the financial institution receives not later than 60
days after sending a periodic statement or other
documentation first reflecting the alleged error
(see 12 CFR 1005.14 and 1005.18)
• enables the financial institution to identify the
consumer’s name and account number
• indicates why the consumer believes the error
exists and, to the extent possible, the type, date,
and amount of the error (12 CFR 1005.11(b)(1))
A financial institution may require a consumer to
give written confirmation of an error within 10
business days of giving oral notice. The financial
institution must provide the address where confirmation must be sent (12 CFR 1005.11(b)(2)).
Error resolution procedures. After receiving a
notice of error, the financial institution must do all of
the following:
• promptly investigate the oral or written allegation
of error;
• complete its investigation within 10 business
days (12 CFR 1005.11(c)(1));
• report the results of its investigation within three
business days after completing its investigation;
• correct the error within one business day after
determining that an error has occurred.
The financial institution may take up to 45
calendar days (12 CFR 1005.11(c)(2)) to complete
its investigation provided it
• provisionally credits the funds (including interest,
where applicable) to the consumer’s account
within the 10 business-day period
• advises the consumer within two business days
of the provisional crediting
• gives the consumer full use of the funds during
the investigation
A financial institution need not provisionally
credit the account to take up to 45 calendar days to
complete its investigation if the consumer fails to
provide the required written confirmation of an oral
notice of error, or if the notice of error involves an
account subject to the margin requirements or
other aspects of Regulation T (Securities Credit by
Brokers and Dealers, 12 CFR Part 220) (12 CFR
1005.11(c)(2)(i)(B)).
However, where an error involves an unauthorized EFT, the financial institution must comply with
the requirements of the provisions relating to
unauthorized EFTs before holding the consumer
liable, even if the consumer does not provide a
notice of error within the time limits in 12 CFR
1005.11(b) (Comment 11(b)(1)-7).
When investigating a claim of error, the financial
Consumer Compliance Handbook

institution need only review its own records if the
alleged error concerns a transfer to or from a third
party, and there is no agreement between the
financial institution and the third party for the type of
EFT involved (12 CFR 1005.11(c)(4)). However, the
financial institution may not limit its investigation
solely to the payment instructions where other
information within the financial institution’s records
pertaining to a particular account may help to
resolve a consumer’s claim (Comment 11(c)(4)-5).
If, after investigating the alleged error, the
financial institution determines that an error has
occurred, it must promptly (within one business
day after such determination) correct the error,
including the crediting of interest if applicable. The
financial institution must provide within three business days of the completed investigation an oral or
written report of the correction to the consumer
and, as applicable, notify the consumer that the
provisional credit has been made final (12 CFR
1005.11(c)(2)(iii) and (iv)).
If the financial institution determines that no error
occurred or that an error occurred in a different
manner or amount from that described by the
consumer, the financial institution must mail or
deliver a written explanation of its findings within
three business days after concluding its investigation. The explanation must include a notice of the
consumer’s rights to request the documents upon
which the financial institution relied in making its
determination (12 CFR 1005.11(d)).
Upon debiting a provisionally credited amount,
the financial institution must notify the consumer of
the date and amount of the debit and of the fact that
the financial institution will honor (without charge)
checks, drafts, or similar paper instruments payable to third parties and preauthorized debits for
five business days after transmittal of the notice.
The financial institution need honor only items that it
would have paid if the provisionally credited funds
had not been debited. Upon request from the
consumer, the financial institution must promptly
mail or deliver to the consumer copies of documents upon which it relied in making its determination (12 CFR 1005.11(d)(2)).
If a notice involves an error that occurred within
30 days after the first deposit to the account was
made, the time periods are extended from 10 and
45 days, to 20 and 90 days, respectively. If the
notice of error involves a transaction that was not
initiated in a state or resulted from a point-of-sale
debit card transaction, the 45-day period is extended to 90 days (12 CFR 1005.11(c)(3)).
If a financial institution has fully complied with the
investigation requirements, it generally does not
need to reinvestigate if a consumer later reasserts
the same error. However, it must investigate a claim
Reg. E • 15 (11/13)

Electronic Fund Transfer Act

of error asserted by a consumer following receipt of
information provided pursuant to 12 CFR 1005.11
(a)(1)(vii) and 12 CFR 1005.11(e).

VI. Receipts and Periodic Statements
Documentation of Transfers—12 CFR
1005.9
Electronic terminal receipts. Receipts must be
made available at the time a consumer initiates an
EFT at an electronic terminal (12 CFR 1005.9(a)).
Financial institutions may provide receipts only to
consumers who request one (Comment 9(a)-1).
The receipt must include, as applicable:
• Amount of the transfer—a charge for making the
transfer may be included in the amount, provided
the charge is disclosed on the receipt and on a
sign posted on or at the terminal.

the name of the party is provided by the
consumer in a manner the terminal cannot
duplicate on the receipt, such as on a payment
stub (12 CFR 1005.9(a)(6) and Comment
9(a)(6)-1).
Receipts are not required for EFTs of $15 or less
(12 CFR 1005.9(e)).
Periodic statements. Periodic statements must
be sent for each monthly cycle in which an EFT has
occurred, and at least quarterly if no EFT has
occurred (12 CFR 1005.9(b)). For each EFT made
during the cycle, the statement must include, as
applicable:
• amount of the transfer—if a charge was imposed
at an electronic terminal by the owner or operator
of the terminal, that charge may be included in
the amount
• date the transfer was posted to the account

• Date—the date the consumer initiates the transfer.

• type of transfer(s) and type of account(s) to or
from which funds were transferred

• Type of transfer and type of account—
descriptions such as ‘‘withdrawal from checking’’
or ‘‘transfer from savings to checking’’ are
appropriate. This is true even if the accounts are
only similar in function to a checking account
(such as a share draft or NOW account) or a
savings account (such as a share account). If the
access device used can only access one
account, the type of account may be omitted
(Comments 9(a)(3)-1; 9(3)-2; 9(3)-4; and 9(3)-5).

• for each transfer (except deposits of cash, or a
check, draft or similar paper instrument to the
consumer’s account) initiated at an electronic
terminal, the terminal location as required for the
receipt under 12 CFR 1005.9(a)(5)

• Number or code identifying the consumer’s
account(s) or the access device used to initiate
the transfer—the number and code need not
exceed four digits or letters.
• Location of the terminal—The location of the
terminal where the transfer is initiated or an
identification, such as a code or terminal number.
If the location is disclosed, except in limited
circumstances where all terminals are located in
the same city or state, the receipt must include
the city and state or foreign country and one of
the following:
– street address of the terminal;
– generally accepted name for the location of the
terminal (such as an airport, shopping center,
or branch of a financial institution); or
– name of the entity (if other than the financial
institution providing the statement) at whose
place of business the terminal is located, such
as a store, and the city, state, or foreign
country (12 CFR 1005.9(a)(5)).
• Third party—Name of any third party to or from
whom funds are transferred—a code may be
used to identify the party if the code is explained
on the receipt. This requirement does not apply if
16 (11/13) • Reg. E

• name of any third-party payee or payor
• account number(s)
• total amount of any fees and charges, other than
a finance charge as defined by Regulation Z,
assessed during the period for making EFTs, the
right to make EFTs, or for account maintenance
• balance in the account at the beginning and
close of the statement period
• address and telephone number to be used by the
consumer for inquiries or notice of errors. If the
financial institution has elected to send the
abbreviated error notice with every periodic
statement, the address and telephone number
may appear on that document.
• if the financial institution has provided a telephone number which the consumer can use to
find out whether or not a preauthorized transfer
has taken place, that telephone number

Exceptions to the periodic statement
requirement for certain accounts
• Passbook accounts. Where a consumer’s passbook may not be accessed by an EFT other than
preauthorized transfers to the account, a periodic
statement need not be sent, provided that the
financial institution updates the consumer’s passbook or provides the required information on a
separate document at the consumer’s request.
To update the passbook, the amount and date of
Consumer Compliance Handbook

Electronic Fund Transfer Act

each EFT made since the passbook was last
presented must be listed (12 CFR 1005.9(c)(1)
(i)). For other accounts that may be accessed
only by preauthorized transfers to the account,
the financial institution must send a periodic
statement at least quarterly (12 CFR 1005.9(c)(1)
(ii)).
• Transfers between accounts. If a transfer occurs
between two accounts of the consumer at the
same financial institution, the transfer need only
be documented for one of the two accounts (12
CFR 1005.9(c)(2)). A preauthorized transfer between two accounts of the consumer at the same
financial institution is subject to the 12 CFR
1005.9(c)(1) rule on preauthorized transfers and
not the 12 CFR 1005.9(c)(2) rule on intrainstitutional transfers (12 CFR 1005.9(c)(3)).
• Documentation for foreign-initiated transfers. If
an EFT is initiated outside the United States, the
financial institution need not provide a receipt or
a periodic statement reflecting the transfer if it
treats an inquiry for clarification or documentation
as a notice of error (12 CFR 1005.9(d)).

Alternatives to Periodic Statements for
Financial Institutions Offering Payroll Card
Accounts—12 CFR 1005.18
This section provides an alternative to providing
periodic statements for payroll card accounts if
financial institutions make the account information
available to consumers by specific means. In
addition, this section clarifies how financial institutions that do not provide periodic statements for
payroll card accounts can comply with the subpart
A requirements relating to initial disclosures, the
annual error resolution notice, liability limits, and
the error resolution procedures.
Typically, employers and third-party service
providers do not meet the definition of a ‘‘financial
institution’’ subject to the regulation because they
neither (i) hold payroll card accounts nor (ii) issue
payroll cards and agree with consumers to provide
EFT services in connection with payroll card
accounts. However, to the extent an employer or a
service provider undertakes either of these functions, it would be deemed a financial institution
under the regulation (Comment 18(a)-2).
Alternative to Periodic Statements. A financial
institution does not need to furnish periodic statements required by 12 CFR 1005.9(b) if the financial
institution makes available to the consumer the
following:

consumer electronically accesses the account
• a written history of the account transactions
provided promptly in response to an oral or
written request and covering at least 60 days
preceding the date the financial institution receives the consumer’s request (12 CFR 1005.18
(b)(1))
The history of account transactions must include
the same type of information required on periodic
statements under 12 CFR 1005.9(b) (12 CFR
1005.18(b)(2)).
Requirements to comply with Regulation E. If a
financial institution provides an alternative to periodic statements under 12 CFR 1005.18(b), it must
comply with the following:
• Modify the initial disclosures under 12 CFR
1005.7(b) by disclosing:
– a telephone number that the consumer may
call to obtain the account balance; the means
by which the consumer can obtain an electronic account history, such as the address of
an Internet website; and a summary of the
consumer’s right to receive a written account
history upon request (in place of the summary
of the right to receive a periodic statement
required by 12 CFR 1005.7(b)(6)), including a
telephone number to call to request a history.
The disclosure required by 12 CFR 1005.18(c)
(1)(i) may be made by providing a notice
substantially similar to the notice contained in
paragraph A-7(a) in Appendix A of Part 1005.
– a notice concerning error resolution that is
substantially similar to the notice contained in
paragraph A-7(b) in Appendix A, in place of
the notice required by 12 CFR 1005.7(b)(10)
• Provide an annual error resolution notice that is
substantially similar to the notice contained in
paragraph (b) to A-7—Model Clauses for Financial Institutions Offering Payroll Card Accounts in
Appendix A of Part 1005, in place of the notice
required by 12 CFR 1005.8(b). Alternatively, a
financial institution may include on or with each
electronic and written history provided in accordance with 12 CFR 1005.18(b)(1), a notice
substantially similar to the abbreviated notice for
periodic statements contained in paragraph
A-3(b) in Appendix A, modified as necessary to
reflect the error-resolution provisions set forth in
this section.
• Limits on consumer liability.

• the account balance, through a readily available
telephone line

– For purposes of 12 CFR 1005.6(b)(3), the
60-day period for reporting any unauthorized
transfer begins on the earlier of:

• an electronic history of account transactions
covering at least 60 days preceding the date the

• the date the consumer electronically accesses the consumer’s account under 12

Consumer Compliance Handbook

Reg. E • 17 (11/13)

Electronic Fund Transfer Act

CFR 1005.18(b)(1)(ii), provided that the electronic history made available to the consumer reflects the transfer; or
• the date the financial institution sends a
written history of the consumer’s account
transactions requested by the consumer
under 12 CFR 1005.18(b)(1)(iii) in which the
unauthorized transfer is first reflected.
– A financial institution may limit the consumer’s
liability for an unauthorized transfer as provided under 12 CFR 1005.6(b)(3) for transfers
reported by the consumer within 120 days after
the transfer was credited or debited to the
consumer’s account.
• Comply with error resolution requirements.
– An error notice is considered timely, and the
financial institution must comply with the requirements of 12 CFR 1005.11, if the financial
institution receives notice from the consumer
no later than the earlier of:
• 60 days after the date the consumer electronically accesses the consumer’s account
under 12 CFR 1005.18(b)(1)(ii), provided
that the electronic history made available to
the consumer reflects the alleged error; or
• 60 days after the date the financial institution
sends a written history of the consumer’s
account transactions requested by the consumer under 12 CFR 1005.18(b)(1)(iii) in
which the alleged error is first reflected.
– Alternatively, a financial institution complies
with the error resolution requirements in 12
CFR 1005.11 if it investigates any oral or written
notice of an error from the consumer that is
received by the financial institution within 120
days after the transfer allegedly in error was
credited or debited to the consumer’s account.

VII. Gift Cards—12 CFR 1005.20
A gift card is a type of prepaid card that is
designed to be purchased by one consumer and
given to another consumer as a present or
expression of appreciation or recognition. When
provided in the form of a plastic card, a user of a
gift card is able to access and spend the value
associated with the device by swiping the card at a
POS terminal, much as a person would use a debit
card.
Scope of the gift card rule. The rule is generally
limited to gift certificates, store gift cards, or
general-use prepaid cards sold or issued to
consumers primarily for personal, family, or household purposes. It generally does not apply to cards,
codes, or other devices that are reloadable and not
marketed or labeled as a gift card or gift certificate
and loyalty, award, and promotional gift cards. See
18 (11/13) • Reg. E

also the exclusions from the gift card definitions,
described above.
Restrictions on dormancy, inactivity, or service
fees—12 CFR 1005.20(d). No person may impose
a dormancy, inactivity, or service fee with respect
to a gift certificate, store gift card, or general-use
prepaid card, unless three conditions are satisfied:
1. There has been no activity with respect to the
certificate or card within the one-year period
prior to the imposition of the fee;
2. Only one such fee is assessed in a given
calendar month; and
3. Disclosures regarding dormancy, inactivity, or
service fees are clearly and conspicuously
stated on the certificate or card, and the person
issuing or selling the certificate or card has
provided these disclosures to the purchaser
before the certificate or card is purchased. See
the disclosure section, above, for additional
information.
Expiration date restrictions—12 CFR 1005.20(e).
A gift certificate, store gift card, or general-use
prepaid card may not be sold or issued unless the
expiration date of the funds underlying the certificate or card is no less than five years after the date
of issuance (in the case of a gift certificate) or five
years after the date of last load of funds (in the case
of a store gift card or general-use prepaid card). In
addition, information regarding whether funds underlying a certificate or card may expire must be
clearly and conspicuously stated on the certificate
or card and disclosed prior to purchase.
No person may sell or issue a certificate or card
with an expiration date unless the person has
established policies and procedures to provide
consumers with a reasonable opportunity to purchase a certificate or card that has an expiration
date that is at least five years from the date of
purchase. A person who has established policies
and procedures to prevent the sale of a certificate
or card with less than five years from the date of
purchase satisfies this requirement.
A certificate or card generally must include a
disclosure alerting consumers to the difference
between the certificate or card expiration date and
the funds expiration date, if any, and that the
consumer may contact the issuer for a replacement
card. This disclosure must be stated with equal
prominence and in close proximity to the certificate
or card expiration date. Non-reloadable certificates
or cards that bear an expiration date on the
certificate or card that is at least seven years from
the date of manufacture need not include this
disclosure. See the disclosure section, above, for
additional information.
To ensure that consumers are able to access the
Consumer Compliance Handbook

Electronic Fund Transfer Act

underlying funds for the full five-year period, fees
may not be imposed for replacing an expired
certificate or card if the underlying funds remain
valid (unless the card has been lost or stolen). In
lieu of sending a replacement certificate or card,
issuers may remit, without charge, the remaining
balance of funds to the consumer.

VIII. Other Requirements
Preauthorized Transfers—12 CFR
1005.10
A preauthorized transfer may be either a credit to,
or a debit from, an account.
Preauthorized transfers to a consumer’s account.
When an account is scheduled to be credited by a
preauthorized EFT from the same payor at least
once every 60 days, the financial institution must
provide some form of notice to the consumer so
that the consumer can find out whether or not the
transfer occurred (12 CFR 1005.10(a)). The notice
requirement will be satisfied if the payor provides
notice to the consumer that the transfer has been
initiated. If the payor does not provide notice, the
financial institution must adopt one of three alternative procedures for giving notice:
1. The financial institution may give the consumer
oral or written notice within two business days
after a preauthorized transfer occurs.
2. The financial institution may give the consumer
oral or written notice, within two business days
after the preauthorized transfer was scheduled
to occur, that the transfer did not occur.
3. The financial institution may establish a readily
available telephone line17 that the consumer
may call to find out whether a preauthorized
transfer has occurred. If the financial institution
selects this option, the telephone number must
be disclosed on the initial disclosures and on
each periodic statement.
The financial institution need not use any specific
language to give notice but may not simply provide
the current account balance (Comment 10(a)(1)-1).
The financial institution may use different methods
of notice for different types of preauthorized
transfers and need not offer consumers a choice of
notice methods (Comment 10(a)(1)-2).
The financial institution that receives a preauthorized transfer must credit the consumer’s account
17. The telephone line must be ‘‘readily available’’ so that
consumers calling to inquire about transfers are able to have their
calls answered reasonably promptly during normal business
hours. During the initial call in most cases and within two business
days after the initial call in all cases, the financial institution should
be able to verify whether the transfer was received (Comment
10(a)(1)-5). Within its primary service area, a financial institution
must provide a local or toll-free telephone number (Comment
10(a)(1)-7).

Consumer Compliance Handbook

as of the day the funds are received (12 CFR
1005.10(a)(3)).
Preauthorized transfers from a customer’s account. Preauthorized transfers from a consumer’s
account may only be authorized by the consumer
in writing and signed or similarly authenticated by
the consumer (12 CFR 1005.10(b)). Signed, written
authorizations may be provided electronically,
subject to the E-Sign Act (Comment 10(b)-5). In all
cases, the party that obtains the authorization from
the consumer must provide a copy to the consumer. If a third-party payee fails to obtain an
authorization in writing or fails to provide a copy to
the consumer, the third-party payee and not the
financial institution has violated subpart A (Comment 10(b)-2).
Stop payments. Consumers have the right to
stop payment of preauthorized transfers from
accounts. The consumer must notify the financial
institution orally or in writing at any time up to three
business days before the scheduled date of the
transfer (12 CFR 1005.10(c)(1)). If the debit item is
resubmitted, the institution must continue to honor
the stop-payment order. (Comment 10(c)-1) The
financial institution may require written confirmation
of an oral stop payment order to be made within 14
days of the consumer’s oral notification. If the
financial institution requires a written confirmation,
it must inform the consumer at the time of the oral
stop payment order that written confirmation is
required and provide the address to which the
confirmation should be sent. If the consumer fails to
provide written confirmation, the oral stop payment
order ceases to be binding after 14 days (12 CFR
1005.10(c)(2)).
Notice of transfers varying in amount. If a
preauthorized transfer from a consumer’s account
varies in amount from the previous transfer under
the same authorization or the preauthorized amount,
either the financial institution or the designated
payee must send to the consumer a written notice,
at least 10 days before the scheduled transfer date,
of the amount and scheduled date of the transfer
(12 CFR 1005.10(d)(1)). The consumer may elect to
receive notice only when the amount varies by
more than an agreed amount or falls outside a
specified range (12 CFR 1005.10(d)(2)). The range
must be an acceptable range that the consumer
could reasonably anticipate (Comment 10(d)(2)-1).
The financial institution does not violate Regulation
E if the payee fails to provide sufficient notice
(Comment 10(d)-1).
Compulsory use. The financial institution may not
make it a condition for an extension of credit that
repayment will be by means of preauthorized EFT,
except for credit extended under an overdraft
credit plan or extended to maintain a specified
minimum balance in the consumer’s account (12
Reg. E • 19 (11/13)

Electronic Fund Transfer Act

CFR 1005.10(e)(1)). The financial institution may
offer a reduced APR or other cost-related incentive
for an automatic payment feature as long as the
creditor offers other loan programs for the type of
credit involved (Comment 10(e)(1)-1).18

Services Offered by Provider Not
Holding consumer’s Account—12 CFR
1005.14
A person who provides EFT services to a consumer
but does not hold the consumer’s account is a
service provider subject to 12 CFR 1005.14 if the
person issues an access device that the consumer
can use to access the account and no agreement
exists between the person and the account-holding
financial institution. Transfers initiated by a service
provider are often cleared through an automated
clearinghouse (ACH).
The responsibilities of the service provider are
set forth in 12 CFR 1005.14(b)(l) and (2). The duties
of the account-holding financial institution with
respect to the service provider are found in 12 CFR
1005.14(c)(l) and (2).

Electronic Fund Transfer of Government
Benefits—12 CFR 1005.15
12 CFR 1005.15 contains the rules that apply to
electronic benefit transfer (EBT) programs. It provides that government agencies must comply with
modified rules on the issuance of access devices,
periodic statements, initial disclosures, liability for
unauthorized use, and error resolution notices.

IX. Relation to Other Laws—12 CFR
1005.12
This section describes the relationship between the
EFTA and the Truth in Lending Act (TILA). The
section also provides procedures for states to
apply for exemptions from the requirements of the
EFTA or Regulation E for any class of EFTs within
the state.
The EFTA governs the following:
• the issuance of debit cards and other access
devices with EFT capabilities;
• the addition of EFT features to credit cards; and
• the issuance of access devices whose only credit
feature is a pre-existing agreement to extend
18. This section also prohibits anyone from requiring the
establishment of an account for receipt of EFTs with a particular
financial institution either as a condition of employment or the
receipt of a government benefit (12 CFR 1005.10(e)(2)). However,
the employer may require direct deposit of salary, as long as the
employee may choose the financial institution that will accept the
direct deposit, or limit direct deposits to one financial institution as
long as the employee may choose to receive salary by other
means (e.g., check or cash) (Comment 10(e)(2)-1).

20 (11/13) • Reg. E

credit to cover account overdrafts or to maintain
a minimum account balance, or is an overdraft
service.
The TILA governs all of the following:
• the issuance of credit cards as defined in
Regulation Z;
• the addition of a credit feature to a debit card or
other access device, other than an overdraft
service; and
• the issuance of dual debit/credit cards, except
for access devices whose only credit feature is a
pre-existing agreement to cover account overdrafts or to maintain a minimum account balance,
or is an overdraft service.

SUBPART B—REQUIREMENTS FOR
REMITTANCE TRANSFERS
Subpart B provides new disclosures, error resolution, and cancellation and refund rights to consumers who send remittance transfers to be received
by other consumers or businesses in a foreign
country.

X. Remittance Transfer
Definitions—12 CFR 1005.30
The definitions in subpart A (12 CFR 1005.2) also
apply to subpart B unless specifically modified or
limited by subpart B. The definitions in subpart B
(12 CFR 1005.30) are applicable only to subpart B.
Agent is an agent, authorized delegate, or
person affiliated with a remittance transfer provider,
as defined under state or other applicable law,
when that person acts for a remittance transfer
provider. A person is not deemed a remittance
transfer provider when it performs activities as an
agent on behalf of a remittance transfer provider
(Comment 30(f)-1).
A business day is any day that the offices of a
remittance transfer provider are open to the public
for carrying on ‘‘substantially all business functions.’’
Preauthorized remittance transfer is a remittance
transfer authorized in advance to recur at substantially regular intervals.
Remittance transfer is an electronic transfer of
funds requested by a consumer in a state to a
designated recipient that is sent by a remittance
transfer provider. The term applies whether or not
the consumer holds an account and whether or not
the transfer is an electronic fund transfer.
An electronic transfer of funds occurs when
a. a provider makes an electronic book entry
between different settlement accounts to make
Consumer Compliance Handbook

Electronic Fund Transfer Act

the remittance transfer.
b. a payment is made under a bill-payment
service available to a consumer via computer or
other electronic means, except in certain circumstances where a check, draft, or similar
paper instrument drawn on a consumer’s account under the bill-payment service is mailed
abroad.
An electronic transfer of funds does not occur
where a sender mails funds directly to a recipient,
or funds are provided to a courier for delivery to a
foreign country (Comment 30(e)-1)).
Transactions of $15 or less and certain transactions in connection with securities and commodities
transfers that are excluded from the definition of an
EFT are not remittance transfers (12 CFR 1005.30
(e)(2) and 12 CFR 1005.3(c)(4)).
Remittance transfers include
a. transfers in cash or by another method conducted through a money transmitter or a
financial institution;
b. consumer wire transfers conducted by a financial institution upon a sender’s request to wire
money from the sender’s account to a designated recipient;
c. an addition of funds to a prepaid card by a
participant in a prepaid card program, such as
a prepaid card issuer or its agent, that is
directly engaged with the sender to add these
funds, where the prepaid card is sent or was
previously sent by a participant in the prepaid
card program to a person in a foreign country,
even if a sender retains the ability to withdraw
such funds;
d. international ACH transactions sent by the
sender’s financial institution at the sender’s
request;
e. online bill payments and other electronic transfers that a sender schedules in advance,
including preauthorized remittance transfers,
made by the sender’s financial institution at the
sender’s request to a designated recipient
(Comment 30(e)-3).
Sender is a consumer in a state, who requests a
remittance transfer primarily for personal, family, or
household purposes. For account-based transfers,
the location of the consumer’s account will determine whether the consumer is located in a state.
For transfers not made from an account that are
requested by telephone or electronically, the
remittance transfer provider may make the determination of whether a consumer is located in a
state based on information provided by the consumer and any records associated with the consumer (Comment 30(g)-1).
Consumer Compliance Handbook

A designated recipient is any person identified
by the name provided by a sender to receive a
remittance transfer at a location in a foreign
country. A designated recipient can be either a
natural person or an organization such as a
corporation (Comment 30(c)-1). Similar to the
definition of ‘‘sender,’’ for transfers to a designated
recipient’s account, where funds are to be received
depends on where the recipient’s account is
located.
‘‘Remittance transfer provider’’ or ‘‘provider’’ is
any person that provides remittance transfers for a
consumer in the normal course of its business,
regardless of whether the consumer holds an
account with such person (12 CFR 1005.30(f)(1)).
Whether a person provides remittance transfers
in the ‘‘normal course of business’’ depends on the
facts and circumstances, including the total number and frequency of remittance transfers sent by
the provider. The rule also provides a safe harbor
for a person that provided 100 or fewer remittance
transfers in the previous calendar year and provides 100 or fewer remittance transfers in the
current calendar year (a total via all channels).
Such a person is deemed not to be providing
remittance transfers in the normal course of its
business and is therefore not subject to the rule’s
requirements. In determining whether a person
qualifies for the safe harbor, any transfers that are
excluded from the definition of ‘‘remittance transfer’’ such as small value transactions or certain
securities and commodities transfers are excluded.
If a person exceeds the safe harbor criteria and is
providing remittance transfers for consumers in the
normal course of its business, that person has a
reasonable period of time, not to exceed six
months, to begin complying with subpart B (12 CFR
1005.30(f)(2) and Comment 30(f)-2).
‘‘Covered third-party fees’’ means any fees that
are imposed on the remittance transfer by a person
other than the remittance transfer provider that are
not non-covered third-party fees. Fees imposed on
the remittance transfer include only those fees that
are charged to the designated recipient and are
specifically related to the remittance transfer (Comment 30(h)-1). Examples include fees imposed on
a remittance transfer by intermediary institutions in
connection with a wire transfer (sometimes referred
to as ‘‘lifting fees’’) and fees imposed on a
remittance transfer by an agent of the provider at
pick-up for receiving the transfer (Comment 30(h)2).
‘‘Non-covered third-party fees’’ means any fees
imposed by the designated recipient’s institution
for receiving a remittance transfer into an account
except if the institution acts as an agent of the
remittance transfer provider. For example, a fee
imposed by the designated recipient’s institution
Reg. E • 21 (11/13)

Electronic Fund Transfer Act

for receiving an incoming transfer into an account
is a non-covered third-party fee if the institution is
not acting as the agent of the remittance transfer
provider. A designated recipient’s account does
not include a credit card, prepaid card, or a virtual
account held by an Internet-based or mobile
telephone company that is not a bank, savings
association, credit union, or equivalent institution
(Comment 30(h)-3).

XI. Disclosures—12 CFR 1005.31
Providers must give senders disclosures at certain
stages of the remittance transfer process. The rule
requires providers to give senders a prepayment
disclosure when a transfer request is made, but
prior to payment for the transfer. Providers must
also provide a receipt when payment is made for
the transfer. Model disclosure forms are provided
in Appendix A.

General Form of Disclosures—12 CFR
1005.31(a)
Required disclosures or disclosures permitted by
12 CFR 1005.31(b)(1)(viii) or 12 CFR 1005.33(h)(3)
must be clear and conspicuous and generally be
provided to the sender in writing. Disclosures may
contain commonly accepted or readily understandable abbreviations or symbols. Disclosures are
clear and conspicuous if they are readily understandable and, in the case of written and electronic
disclosures, the location and type size are readily
noticeable to senders. Oral disclosures are clear
and conspicuous when they are given at a volume
and speed sufficient for a sender to hear and
comprehend them (12 CFR 1005.31(a); Comments
31(a)(1)-1 and 31(a)(2)-2).

telephone or by mobile application or text messaging (12 CFR 1005.31(a)(3)(iv) and (a)(5)(iv)).

Disclosure Requirements—12 CFR
1005.31(b)
Disclosures provided as applicable. The required
disclosures need to be provided only to the extent
applicable. A remittance transfer provider may
choose to omit an item of information if it is
inapplicable to a particular transaction. Alternatively, a provider may disclose a term and state that
an amount or item is ‘‘not applicable,’’ ‘‘N/A,’’ or
‘‘None’’ (Comment 31(b)-1).
Substantially similar terms, language, and notices. Certain disclosures must be described using
the terms set forth in 12 CFR 1005.31(b) or
substantially similar terms. Terms may be more
specific than those provided. For example, a
remittance transfer provider sending funds may
describe fees imposed by an agent at pick-up as
‘‘Pick-up Fees’’ in lieu of describing them as ‘‘Other
Fees.’’ Foreign language disclosures must contain
accurate translations of the required terms, language, and notices as well as the disclosures
permitted by 12 CFR 1005.31(b)(1)(viii) and
1005.33.(h)(3) (Comment 31(b)-2).

Prepayment disclosures—12 CFR
1005.31(b)(1)
A remittance transfer provider must provide the
prepayment disclosure when the sender requests
the remittance transfer but prior to payment for the
transfer. The provider must disclose:
a. the amount to be transferred (transfer amount),

Prepayment disclosures may be provided electronically without E-SIGN consent, if the sender
electronically requests the provider to send the
transfer. However, the receipt for the transaction
may be provided electronically only with E-SIGN
consent (12 CFR 1005.31(a)(2); Comment 31(a)(2)1).

b. front-end fees imposed by the provider and any
taxes collected on the remittance transfer by
the provider (transfer fees and transfer taxes),

Written and electronic disclosures generally
must be made in a retainable form. Prepayment
disclosures provided via mobile application or text
message (to the extent permitted by the rule) need
not be retainable. In some cases, disclosures may
be disclosed orally. For example, prepayment
disclosures may be disclosed orally if the transaction is conducted orally and entirely by telephone
and the remittance transfer provider complies with
certain other disclosure requirements (12 CFR
1005.31(a)(2) and (a)(3)).

e. any covered third-party fees (other fees),

Additional requirements apply for certain transfers scheduled at least three days before the date
of transfer that are conducted orally over the
22 (11/13) • Reg. E

c. total amount of the transaction (the sum of the
transfer amount and front-end fees and taxes),
d. the exchange rate,
f. the total amount to be received by the designated recipient (total amount of the transaction
minus covered third-party fees), and
g. a statement that non-covered third-party fees or
taxes collected on the remittance transfer by a
third person may apply to the remittance
transfer and result in the designated recipient
receiving less than the amount disclosed. In this
statement, a provider also may, but is not
required, to disclose in the currency in which
the funds will be received, any applicable
non-covered third-party fees or taxes collected
by a person other than the provider.
Consumer Compliance Handbook

Electronic Fund Transfer Act

Transfer amount. Two transfer amount disclosures are required in the prepayment disclosures.
1. The transfer amount in the currency in which the
sender funds the remittance transfer to show the
calculation of the total amount of the transaction.
2. The transfer amount in the currency in which the
funds will be made available to the designated
recipient. This second transfer amount need not
be disclosed if covered third-party fees are not
imposed on the remittance transfer. The terms
used to describe each transfer amount should
be the same (Comment 31(b)(1)-2).
Fees and taxes. Fees imposed and taxes
collected on the remittance transfer by a provider
must be disclosed in the currency in which the
transaction is funded, as applicable. Taxes collected on the remittance transfer by the provider
include taxes imposed on the remittance transfer
by a state or other governmental body (Comment
31(b)(1)-1(i)).
The fees and taxes required to be disclosed by
12 CFR 1005.31(b)(1)(ii) include all fees imposed
and all taxes collected on the remittance transfer
by the provider and include only those that are
specifically related to the remittance transfer. For
example, a provider must disclose any service fees
imposed by an agent at the time of the transfer and
any state taxes collected on the remittance transfer
(Comment 31(b)(1)-1(ii)).
Applicable exchange rate. If the designated
recipient will receive funds in a currency other than
the currency in which the remittance transfer is
funded, a remittance transfer provider must disclose the exchange rate to be used by the provider
for the remittance transfer (Comment 31(b)(1)(iv)1).
Rounding. The exchange rate disclosed for the
remittance transfer is required to be rounded on the
disclosure. The provider may round to two, three, or
four decimal places, at its option, but this must be
done consistently for each currency. (Comment
31(b)(1)(iv)-2). However, the exchange rate used to
calculate: (a) the transfer amount, (b) the fees and
taxes imposed on the remittance transfer by a
person other than the provider, and (c) the amount
received by the designated recipient, is prior to any
rounding. If an exchange rate need not be
rounded, a provider must use that exchange rate to
calculate these disclosures (Comment 31(b)(1)-3).
Exchange rate used. The exchange rate used by
the provider for the remittance transfer need not
have been set by the provider. For example, an
exchange rate set by an intermediary institution
and applied to the remittance transfer would be the
exchange rate used for the remittance transfer and
must be disclosed by the provider (Comment
31(b)(1)(iv)-3).
Consumer Compliance Handbook

Disclosure of covered third-party fees. Covered
third-party fees must be disclosed in the currency
in which the funds will be received by the
designated recipient, using the applicable exchange rate, or an estimated exchange rate to the
extent permitted, prior to any rounding of the
exchange rate. If a provider does not have specific
knowledge regarding the currency in which the
funds will be received, the provider may rely on a
sender’s representation as to the currency in which
funds will be received. If a sender does not know
the currency in which funds will be received, the
provider may assume that the currency in which
funds will be received is the currency in which the
remittance transfer is funded (Comment 31(b)(1)
(vi)-1).
Amount received. The remittance transfer provider is required to disclose the amount that will be
received by the designated recipient in the currency in which the funds will be received. The
amount received must reflect the exchange rate, all
fees imposed and all taxes collected on the
remittance transfer by the remittance transfer
provider, as well as any covered third-party fees
required to be disclosed. The disclosed amount
received must be reduced by the amount of any
fees or taxes (except non-covered third-party fees
or taxes collected on the remittance transfer by a
person other than the provider) imposed on the
remittance transfer that affect the amount received
even if that amount is imposed or itemized
separately from the transaction amount. (Comment
31(b)(1)(vii)-1).
Required disclaimer when non-covered thirdparty fees and taxes collected by a person other
than the provider may apply. The provider is
required to include a disclaimer that non-covered
third-party fees or taxes may apply to the remittance transfer if such taxes and fees apply to a
particular transfer or the provider does not know
whether they apply. This disclosure may only be
provided to the extent applicable. For example, if
the designated recipient’s institution is an agent of
the provider and thus non-covered third-party fees
cannot apply to the transfer, the provider must
disclose all fees imposed on the remittance transfer
and may not provide the disclaimer regarding
non-covered third-party fees (Comment 31(b)(1)
(viii)-1).
Optional disclosure of non-covered third-party
fees and taxes collected by a person other than the
provider. The provider is permitted to disclose any
non-covered third-party fees or taxes collected on
the remittance transfer by a person other than the
provider that will apply to a particular transaction if
it knows the amount of such fees and taxes.
Additionally, the provider is permitted to disclose
an estimate of such fees and taxes, provided any
Reg. E • 23 (11/13)

Electronic Fund Transfer Act

estimates are based on reasonable source of
information (Comment 31(b)(1)(viii)-2; 12 CFR
1005.32(b)(3) and Comment 32(b)(3)-1).

Receipt—12 CFR 1005.31(b)(2)
When payment is made, a remittance transfer
provider must provide a receipt to a sender
disclosing all applicable information required in the
prepayment disclosure. The receipt must also
disclose, as applicable:
a. the date of availability of the funds (date
available);
b. the name and, if provided by the sender, the
telephone number and/or address of the designated recipient (recipient);
c. a statement about the sender’s error resolution
and cancellation;
d. specified contact information for the remittance
transfer provider; and
e. the transfer date for remittance transfers scheduled at least three business days in advance, or
the first transfer in a series of of preauthorized
transfers.
The provider must also provide a statement that
the sender can contact the state agency that
licenses or charters the remittance transfer provider with respect to the particular transfer (if
applicable), and the Consumer Financial Protection
Bureau (CFPB) for questions or complaints about
the remittance transfer provider. The statement
must include the name of the agency(ies), telephone number(s), and website address(es).
Date funds will be available. The provider must
disclose the date in the foreign country on which
the funds will be available to the designated
recipient, using the term ‘‘Date Available’’ or a
substantially similar term. If a provider does not
know the exact date on which funds will be
available, the provider may disclose the latest date
on which the funds will be available. The provider
may also disclose that funds ‘‘may be available
sooner’’ or use a substantially similar term to inform
senders that funds may be available to the
designated recipient on a date earlier than the date
disclosed (Comment 31(b)(2)-1).
Agencies required to be disclosed. The provider
must disclose information about a state agency that
licenses or charters the provider with respect to the
particular remittance transfer. If a financial institution is solely regulated by a federal agency, the
institution does not need to disclose information
about a state agency. However, information about
the CFPB must be provided whether or not the
CFPB is the provider’s primary federal regulator.
(Comment 31(b)(2)-2). If a provider is licensed in
24 (11/13) • Reg. E

multiple states, and the state agency that licenses
the provider with respect to the remittance transfer
is determined by the sender’s location, a provider
may make the determination of the sender’s state
based on information provided by the sender and
on any records associated with the sender. A
state-chartered bank must disclose information
about the state agency that granted its charter,
regardless of the location of the sender (Comment
31(b)(2)-3).
Date of transfer on receipt. For remittance
transfers scheduled at least three business days in
advance, or the first transfer in a series of
preauthorized transfers, the date of transfer for the
remittance transfer must be disclosed on the
receipt. Additional disclosures apply to subsequent preauthorized remittance transfers, as described below regarding 12 CFR 1005.36(d) (Comment 31(b)(2)-4).
Cancellation disclosure. The provider may provide the three-business-day right-to-cancel notice
(for transfers scheduled three or more business
days before the transfer date) and the 30-minute
right-to-cancel notice (for transfers scheduled fewer
than three business days in advance), on the same
disclosure, with a checkbox or other method to
clearly designate the applicable cancellation period. For transfers scheduled three or more business days before the transfer date, the cancellation
disclosure should be phrased and formatted in
such a way that it is clear to the sender which
cancellation period is applicable to the date of
transfer disclosed on the receipt (Comment 31(b)
(2)-6).

Combined disclosure—12 CFR
1005.31(b)(3)
As an alternative to providing separate prepayment and receipt disclosures, a remittance
transfer provider may provide the information in the
receipt in a single disclosure when the sender
requests the remittance transfer, but prior to
payment for the transfer. If this combined disclosure is provided and the sender completes the
transfer, the remittance transfer provider must
provide the sender with proof of payment when
payment is made for the remittance transfer. For
one-time transfers scheduled at least five business
days in advance, or for the first in a series of
preauthorized transfers, the provider may provide
confirmation that the transaction has been scheduled in lieu of the proof of payment if payment is not
processed at the time the remittance transfer is
scheduled. No further proof of payment is required
when payment is later processed.
Proof of payment/confirmation of scheduling. The
proof of payment or confirmation of scheduling
Consumer Compliance Handbook

Electronic Fund Transfer Act

must be clear and conspicuous, provided in writing
or electronically, and provided in a retainable form.
The proof of payment for the transaction may be
provided on the same piece of paper as the
combined disclosure or on a separate piece of
paper. A provider may also provide this additional
information to a sender on a separate piece of
paper when payment is made (12 CFR 1005.31(b)
(3)(ii) and Comment 31(b)(3)-1).

Long-form error resolution and cancellation
notice—12 CFR 1005.31(b)(4)
At the sender’s request, a remittance transfer
provider is required promptly to provide a notice
describing the sender’s error resolution and cancellation rights, using language set forth in Model
Form A-36 of Appendix A or substantially similar
language. For any remittance transfer scheduled
by the sender at least three business days before
the date of the transfer, the description of the rights
of the sender regarding cancellation must instead
reflect the requirements of 12 CFR 1005.36(c).

Specific Format of Disclosures—12 CFR
1005.31(c)
Grouping of disclosed information. Disclosures
related to transfer amount, transfer fees and taxes
imposed by the provider, and the total amount of
the transaction generally must be grouped together. Similarly, disclosures related to the transfer
amount in the currency to be made available to the
designated recipient, covered third-party fees,
taxes collected on the remittance by the provider,
the total amount to be received by the designated
recipient, and the disclaimer statement generally
must be grouped together. Information is grouped
together if multiple disclosures are in close proximity to one another and a sender can reasonably
calculate the total amount of the transaction and
the amount that will be received by the designated
recipient (12 CFR 1005.31(c)(1) and Comment
31(c)(1)-1).
Proximity of disclosed information. The exchange
rate used for the remittance transfer generally must
be disclosed in close proximity to the other
information required in the prepayment disclosure.
Disclosures on error resolution and cancellation
rights must generally be disclosed in close proximity to the other disclosures required on the receipt
(12 CFR 1005.31(c)(2)).
Prominence and size of disclosures. Disclosures
required by subpart B or permitted by 12 CFR
1005.31(b)(1)(viii) that are provided in writing or
electronically, other than disclosures permitted to
be provided via mobile application or text message, must be in a minimum of eight-point font and
Consumer Compliance Handbook

in equal prominence to each other. They must be
provided on the front of the page on which the
disclosures are printed (12 CFR 1005.31(c)(3)).
Segregation of disclosures from other information. Disclosures that are provided in writing or
electronically, other than disclosures permitted to
be provided via mobile application or text message, must be segregated from everything else
and must contain only information that is ‘‘directly
related’’ to the disclosures (12 CFR 1005.31(c)(4)).
The following is ‘‘directly related’’ information:
a. the date and time of the transaction;
b. the sender’s name and contact information;
c. the location at which the designated recipient
may pick up the funds;
d. the confirmation or other identification code;
e. a company name and logo;
f. an indication that a disclosure is or is not a
receipt or other indicia of proof of payment;
g. a designated area for signatures or initials;
h. a statement that funds may be available sooner;
i.

instructions regarding the retrieval of funds,
such as the number of days the funds will be
available to the recipient before they are
returned to the sender;

j.

a statement that the provider makes money
from foreign currency exchange; and

k. disclosure of any non-covered third-party fees
and any taxes collected by a person other than
the provider (Comment 31(c)(4)-2).
Terms used in the case of estimated disclosures.
A remittance transfer provider may provide estimates of the amounts required to be disclosed in
the prepayment disclosure, receipt, and combined
disclosure to the extent permitted by 12 CFR
1005.32. An estimate must be described using the
term ‘‘Estimated’’ or a substantially similar term in
close proximity to the estimated term or terms. For
example, a remittance transfer provider could
describe an estimated disclosure as ‘‘Estimated
Transfer Amount,’’ ‘‘Other Estimated Fees and
Taxes,’’ or ‘‘Total to Recipient (Est.)’’ (12 CFR
1005.31(d) and Comment 31(d)-1).
Request to send a remittance transfer. Determining whether a consumer has requested a remittance transfer depends on the facts and circumstances. A sender who asks a provider to send a
remittance transfer, and provides transactionspecific information to the provider in order to send
funds to a designated recipient, has requested a
remittance transfer. However, a consumer who
solely inquires about that day’s rates and fees to
send to a particular country has not requested the
Reg. E • 25 (11/13)

Electronic Fund Transfer Act

provider to send a remittance transfer (Comment
31(e)-1).
When payment is made. Payment is made when
a sender provides cash to the remittance transfer
provider or when payment is authorized (Comment
31(e)-2).
Disclosures related to mobile application and
text message transactions. If a transaction is
conducted entirely by telephone via mobile application or text message, a receipt may be mailed or
delivered to the sender pursuant to the timing
requirements for transfers conducted entirely by
telephone (Comment 31(e)-4).
Accuracy of disclosures—when payment is
made. Disclosures required by subpart B or
permitted by 12 CFR 1005.31(b)(1)(viii) must be
accurate when a sender makes payment for the
remittance transfer, except to the extent estimates
are permitted. A remittance transfer provider is not
required to guarantee the terms of the remittance
transfer in the prepayment disclosures for any
specific period of time. However, if any of these
disclosures are not accurate when a sender makes
payment for the remittance transfer, the provider
must give new disclosures before accepting payment (12 CFR 1005.31(f) and Comment 31(f)-1).

Foreign language disclosures
Written and electronic disclosures required by
subpart B or permitted by 12 CFR 1005.31(b)(1)
(viii) generally must be provided in English and in
each foreign language principally used to advertise, solicit, or market remittance transfer services
at the office in which a sender conducts a
transaction or asserts an error. Alternatively, written
and electronic disclosures can be provided in
English and in the foreign language primarily used
by the sender with the remittance transfer provider,
provided such foreign language is principally used
to advertise, solicit, or market remittance transfers
at the office in which a sender conducts a
transaction or asserts an error. For transfers
requested orally, by text message, or mobile
application, the disclosures must be in the language primarily used by the sender to communicate with the transfer provider (12 CFR 1005.31(g)).
Number of foreign languages used in written
disclosure. There is no limit to the number of
languages that may be used on a single document,
but such disclosures must be clear and conspicuous. If the remittance transfer provider chooses to
provide written and electronic disclosures in English and in the foreign language primarily used by
the sender with the remittance transfer provider, it
may provide disclosures in a single document with
both languages or in two separate documents with

26 (11/13) • Reg. E

one document in English and the other document in
the applicable foreign language (Comment 31(g)1).
Language ‘‘primarily used.’’ The language primarily used by the sender with the remittance
transfer provider to conduct the transaction is the
primary language used by the sender with the
remittance transfer provider to convey the information necessary to complete the transaction. Similarly, the language primarily used by the sender
with the remittance transfer provider to assert the
error is the primary language used by the sender
with the remittance transfer provider to provide the
information required to assert an error (Comment
31(g)-2).
Language ‘‘principally’’ used. Whether a foreign
language is principally used by the remittance
transfer provider to advertise, solicit, or market is
determined from all relevant facts and circumstances, including
a. the frequency with which the foreign language
is used in advertising, soliciting, or marketing of
remittance transfer services at that office;
b. the prominence of the advertising, soliciting, or
marketing of remittance transfer services in that
foreign language at that office; and
c. the specific foreign language terms used in the
advertising soliciting, or marketing of remittance transfer services at that office (Comment
31(g)(1)-1(i)).
Language used to advertise, solicit, or market.
Any commercial message in a foreign language,
appearing in any medium, that promotes directly or
indirectly the availability of remittance transfer
services constitutes advertising, soliciting, or marketing in such foreign language (Comment 31(g)
(1)-2).
Office. An office includes any physical location,
telephone number, or website of a remittance
transfer provider where a sender may conduct a
remittance transfer or assert an error for a remittance transfer (Comment 31(g)(1)-3).
At the office. Any advertisement, solicitation, or
marketing is considered to be made at the office in
which a sender conducts a transaction or asserts
an error if it is posted, provided, or made: at a
physical office, on a website of a remittance
transfer provider that may be used by senders to
conduct remittance transfers or assert errors,
during a telephone call with a remittance transfer
provider that may be used by senders to conduct
remittance transfers or assert errors, or via mobile
application or text message if the mobile application or text message may be used by senders to
conduct remittance transfers or assert errors (Com-

Consumer Compliance Handbook

Electronic Fund Transfer Act

ment 31(g)(1)-4).

XII. Estimates—12 CFR 1005.32
Disclosures for which estimates may be used.
Estimates may be used in certain circumstances
for certain information required in prepayment
disclosures, receipts, and combined disclosures.

Temporary Exception for Insured
Institutions—12 CFR 1005.32(a)
Estimates may be provided for certain amounts
required to be disclosed in the prepayment disclosures, receipts and combined disclosures if
a. the remittance transfer provider cannot determine the exact amounts for reasons beyond its
control;
b. the remittance transfer provider is an insured
institution; and
c. the remittance transfer is sent from the sender’s
account with the institution.
An insured institution means an insured depository institution (including an uninsured U.S branch
and agency of a foreign depository institution) and
an insured credit union (12 CFR 1005.32(a)(3)).
Control. An insured institution cannot determine
exact amounts ‘‘for reasons beyond its control’’
when a person other than the insured institution or
with which the insured institution has no correspondent relationship sets the exchange rate or imposes a covered third-party fee required to be
disclosed. For example, if an insured institution has
a correspondent relationship with an intermediary
financial institution in another country and that
intermediary institution sets the exchange rate or
imposes a fee for remittance transfers sent from the
insured institution to the intermediary institution,
then this exception is not applicable and the
insured institution must determine exact amounts
for the disclosures because the determination of
those amounts are not beyond the insured institution’s control (Comment 32(a)(1)-1).
Covered third-party fees. An insured institution
cannot determine the exact covered third-party
fees to disclose if, for example, an intermediary
institution with which the insured institution does
not have a correspondent relationship imposes a
transfer or conversion fee. However, an insured
institution can determine the exact covered thirdparty fees required to be disclosed if it has agreed
upon the specific fees with an intermediary correspondent institution, and this correspondent institution is the only institution in the transmittal route to
the designated recipient’s institution (Comments
32(a)(1)-2(ii) and -3(ii)).
The temporary exception is available for insured
institutions until July 21, 2015.
Consumer Compliance Handbook

Permanent Exception for Transfers to
Certain Countries—12 CFR
1005.32(b)(1)
Estimates may be provided in prepayment disclosures, receipts, or combined disclosures for transfers to certain countries if a remittance transfer
provider cannot determine the exact amounts at
the time the disclosure is required either because
a. the laws of the recipient country do not permit
such a determination, or
b. the method by which transactions are made in
the recipient country does not permit such
determination.
Laws of the recipient country. The laws of the
recipient country do not permit a remittance
transfer provider to determine exact amounts
required to be disclosed when a law or regulation
of the recipient country (e.g., currency exchange or
certain privacy laws) do not allow the person
making funds directly available to the designated
recipient to determine the exact amounts at the
time the disclosure is required. A typical example is
where the law requires an exchange rate to be
either
a. set by the government of the recipient country
after the remittance transfer provider sends the
remittance transfer; or
b. set when the designated recipient receives the
funds (Comment 32(b)(1)-1).
Method by which transactions are made in the
recipient country. The method by which transactions are made in the recipient country does not
permit a remittance transfer provider to determine
exact amounts required to be disclosed when
transactions are sent via international ACH on
terms negotiated between the United States government and the recipient country’s government,
under which the exchange rate is a rate set by the
recipient country’s central bank or other governmental authority after the provider sends the
remittance transfer (Comment 32(b)(1)-3).
Safe harbor list. The remittance transfer provider
may rely on a list of countries published by the
CFPB to determine whether estimates may be
provided for the exchange rate, the transfer
amounts, covered third-party fees, and total amount
to the recipient. If a country is on the CFPB’s list, the
provider may give estimates under this section,
unless it has information that a country on the list
legally permits the provider to determine exact
disclosure amounts. If a country does not appear
on the CFPB’s list, the provider may provide
estimates if it determines that the recipient country
does not legally permit or the method by which
transactions are conducted in that country does not
permit the provider to determine exact disclosure
Reg. E • 27 (11/13)

Electronic Fund Transfer Act

amounts (Comments 32(b)(1)-5 and 32(b)(1)-6).
Change in laws of recipient country. If the laws of
a recipient country change such that a remittance
transfer provider can determine exact amounts, the
remittance transfer provider must begin providing
exact amounts for the required disclosures as soon
as reasonably practicable. If the laws of a recipient
country change such that the provider cannot
determine exact disclosure amounts, the provider
may provide estimates even if that country does not
appear on the list published by the CFPB (Comment 32(b)(1)-7).

Permanent Exception for Transfers
Scheduled before the Date of
Transfer—12 CFR 1005.32(b)(2)
For remittance transfers scheduled five or more
business days before the date of the transfer,
estimates may be provided for the exchange rate,
transfer amount, covered third-party fees (where
the exchange rate is also estimated and affects
such fees), and the total amount to recipient, if at
the time the sender schedules such a transfer, the
provider agrees to a sender’s request to fix the
amount to be transferred in the currency in which
the remittance transfer will be received and not the
currency in which it is funded. For example, if a
sender schedules a wire transfer to be sent from
the sender’s bank account denominated in U.S.
dollars but to be paid to the recipient in euro
transfer, the provider is allowed to estimate the
transfer amount, front-end fees or taxes collected
by the provider (if based on the amount transferred), and the total amount of the transaction. The
provider is also allowed to estimate any covered
third-party fees if the exchange rate is also
estimated and the estimated exchange rate affects
the amount of fees. (12 CFR 1005.32(b)(2) and
Comment 32(b)(2)-1).

Permanent Exception for Optional
Disclosure of Non-covered Third-Party
Fees and Taxes Collected on the
Remittance Transfer by a Person Other
Than the Provider—12 CFR
1005.32(b)(3)
The remittance transfer provider may provide
estimates (as part of the required disclaimer
statement) for applicable non-covered third-party
fees and taxes collected on the remittance transfer
by a person other than the provider, if such
estimates are based on reasonable sources of
information. Reasonable sources of information
may include, for example: information obtained
from recent transfers to the same institution or the
same country or region; fee schedules from the
recipient institution; fee schedules from the recipient institution’s competitors; surveys of recipient
28 (11/13) • Reg. E

institution fees in the same country or region as the
recipient institution; information provided or surveys of recipient institutions’ regulators or taxing
authorities; commercially or publicly available databases, services or sources; and information or
resources developed by international nongovernmental organizations or intergovernmental organizations (Comment 32(b)(3)-1).

Bases for Estimates—12 CFR 1005.32(c)
and (d)
If a remittance transfer provider qualifies for either
the temporary or permanent exception, the rule
allows two bases for estimating information in the
disclosures:
1. The estimates must generally be based on any
of the approaches listed in the rule (12 CFR
1005.32(c)(1)).
2. Alternatively, the estimates may be based on an
approach that is not listed, provided that the
designated recipient receives the same, or
greater, amount of funds than the remittance
transfer provider disclosed.
For remittance transfers scheduled five or more
business days before the date of the transfer,
estimates must be based on the exchange rate or,
where applicable, the estimated exchange rate that
the provider would have used or did use that day to
provide disclosures to a sender requesting such a
remittance transfer to be made on the same day.

Approaches listed in the rule
Estimates of the exchange rate. For remittance
transfers sent via international ACH, the estimate
must be based on the most recent exchange rate
set by the recipient country’s central bank or other
governmental authority and reported by a Federal
Reserve Bank. For any remittance transfers for
which estimates are permitted, the exchange rate
may be estimated based on the most recent
publicly available wholesale exchange rate and
any applicable spread that the remittance transfer
provider or its correspondent typically applies for
remittance transfers for that currency or the most
recent exchange rate offered or used by the person
making funds available directly to the designated
recipient or by the person setting the exchange
rate (12 CFR 1005.32(c)(1)).
Where the exchange rate for a remittance
transfer sent via international ACH that qualifies for
the permanent exception is set the following
business day, the most recent exchange rate
available for a transfer is the exchange rate set for
the day that the disclosure is provided, i.e. the
current business day’s exchange rate (Comment
32(c)(1)-1).
Consumer Compliance Handbook

Electronic Fund Transfer Act

Publicly available. Examples of publicly available
sources of information containing the most recent
wholesale exchange rate for a currency include
U.S. news services, such as Bloomberg, the Wall
Street Journal, and the New York Times; a recipient
country’s national news services, and a recipient
country’s central bank or other government agency
(Comment 32(c)(1)-2).
Spread applied to the wholesale exchange rate.
An estimate for disclosing the exchange rate based
on the most recent publicly available wholesale
exchange rate must also reflect any spread the
remittance transfer provider typically applies to the
wholesale exchange rate for remittance transfers
for a particular currency (Comment 32(c)(1)-3).
Most recent exchange rate. If the exchange rate
with respect to a particular currency is published or
provided multiple times throughout the day because the exchange rate fluctuates throughout the
day, a remittance transfer provider may use any
exchange rate available on that day to determine
the most recent exchange rate (Comment 32(c)(1)4).
Estimates of the transfer amount and covered
third-party fees in the currency in which funds will
be received by the designated recipient. Estimates
of the transfer amount in the currency in which the
funds will be received by the designated recipient
as well as covered third-party fees imposed as a
percentage of the amount transferred must be
based on the estimated exchange rate, prior to any
rounding (12 CFR 1005.32(c)(2) and (3)(i)).
Estimates of the fees imposed by intermediary or
final institution. Estimates for covered third-party
fees imposed by intermediary or final institutions
that act as intermediaries or by the designated
recipient’s institution must be based on the remittance transfer provider’s most recent remittance
transfer to the designated recipient’s institution or a
representative transmittal route identified by the
remittance transfer provider (12 CFR 1005.32(c)(3)
(ii).
Estimates of the amount of currency that will be
received by the designated recipient. Estimates for
the amount of currency that will be received by the
designated recipient must be based on the estimates provided in accordance with 12 CFR
1005.31(c)(1) through (3) as applicable for the
transaction (12 CFR 1005.32(c)(4)).

XIII. Procedures for Resolving
Errors—12 CFR 1005.33
Definition of Error—12 CFR 1005.33(a)

in connection with a remittance transfer;
b. a computational or bookkeeping error made by
the remittance transfer provider relating to the
remittance transfer;
c. the failure, generally, to make available to a
designated recipient the amount of currency
required to be disclosed under 12 CFR 1005.31
(b)(vii) and stated in the disclosure provided to
the sender unless the disclosure stated an
estimate of the amount paid and the difference
results from application of the actual exchange
rate, fees, and taxes, rather than any estimated
amount;
d. the failure, generally, to make funds available to
a designated recipient by the date of availability
stated in the disclosure provided to the sender;
or
e. the sender’s request for documentation required by 12 CFR 1005.31 or for additional
information or clarification concerning a remittance transfer, including a request a sender
makes to determine whether an error exists.
(See more detailed discussion of errors and
exceptions below.)
Error due to incorrect amount of currency paid by
sender. This type of error covers circumstances in
which a sender pays an amount that differs from
the total amount of the transaction, including fees
imposed in connection with the transfer stated in
the receipt or combined disclosure provided.
However, there is no error if the disclosure
appropriately stated an estimate of the amount
paid by the sender and the difference results from
application of the actual exchange rate, fees, and
taxes rather than any estimated amounts (12 CFR
1005.33(a)(1)(i) and Comment 33(a)-1).
Error due to incorrect amount of currency
received. This type of error covers circumstances
in which the designated recipient receives an
amount of currency that differs from the amount of
currency identified on the disclosures provided to
the sender. It also covers circumstances in which
the remittance transfer provider transmits an amount
that differs from the amount requested by the
sender. There are three general exceptions to this.
There is no error if
a. the disclosure appropriately, under one of the
two exceptions under 12 CFR 1005.32, stated
an estimate of the amount of currency to be
received and the difference results from application of the actual exchange rate, fees, and
taxes rather than any estimated amounts, or

In connection with an error asserted under 12 CFR
1005.33, the term error means

b. the failure was caused by extraordinary circumstances outside the remittance transfer provider’s control; or

a. generally, an incorrect amount paid by a sender

c. the difference results from the application of

Consumer Compliance Handbook

Reg. E • 29 (11/13)

Electronic Fund Transfer Act

non-covered third-party fees or taxes collected
on the remittance transfer by a person other
than the provider and the provider provided the
required disclaimer.
A designated recipient may receive an amount of
currency that differs from the amount of currency
disclosed and an error has occurred if for example
a. an exchange rate other than the disclosed rate
is applied to the remittance transfer, or
b. the provider provides the sender a receipt
stating an amount of currency that will be
received by the designated recipient, which
does not reflect additional covered third-party
fees that are imposed by the receiving agent in
the destination country. However, if the designated recipient will receive less than the amount
of currency disclosed on the receipt due solely
to the additional foreign taxes that the provider
was not required to disclose, no error has
occurred (Comment 33(a)-3(ii)).
Exception for extraordinary circumstances outside the remittance transfer provider’s control. If the
provider fails to make the amount of currency
disclosed available to the designated recipient,
such an occurence is not an error if such failure
was caused by extraordinary circumstances outside the remittance transfer provider’s control that
could not have been reasonably anticipated.
Examples of extraordinary circumstances outside
the remittance transfer provider’s control that could
not have been reasonably anticipated include war
or civil unrest, natural disaster, garnishment or
attachment of some of the funds after the transfer is
sent, and government actions or restrictions that
could not have been reasonably anticipated by the
remittance transfer provider, such as the imposition
of foreign currency controls or foreign taxes
unknown at the time the receipt or combined
disclosure is provided (Comment 33(a)-4). Note
that foreign taxes are not required to be disclosed.
However, if a provider, believing that there is no
applicable foreign tax, elects not to provide a
disclaimer pursuant to 1005.31(b)(1)(viii), no error
has occurred if a new tax is imposed that could not
have been reasonably anticipated at the time the
receipt or combined disclosure was required to be
given.
Error due to failure to make funds available by
disclosed date of availability. This error generally
covers disputes about the failure to make remittance transfer funds available to a designated
recipient by the disclosed date of availability.
Examples of errors for failure to make funds
available by the disclosed date of availability
include, late or non-delivery of a remittance transfer, delivery of funds to the wrong account, the
fraudulent pick-up of a remittance transfer in a
30 (11/13) • Reg. E

foreign country by a person other than the designated recipient, and the recipient agent or institution’s retention of the remittance transfer, instead of
making the funds available to the designated
recipient.
There is no error if funds were not made available
by the disclosed date due to:
a. extraordinary circumstances outside the remittance transfer provider’s control that could not
have been reasonably anticipated;
b. delays related to the remittance transfer provider’s fraud screening procedures or in accordance with the Bank Secrecy Act, Office of
Foreign Assets Control requirements, or similar
laws or requirements; or
c. the remittance transfer was made with fraudulent intent by the sender or any person acting in
concert with the sender (i.e., friendly fraud); or
d. the sender provided the remittance transfer
provider an incorrect account number or recipient institution identifier for the designated
recipient’s account or institution, and the remittance transfer provider
i.

can demonstrate that the sender provided
an incorrect account number or recipient
institution identifier to the provider in connection with the remittance transfer;

ii.

prior to or when sending the transfer, used
reasonably available means to verify (for
recipient institution identifier errors only)
that the recipient institution identifier provided by the sender corresponded to the
recipient institution name provided by the
sender;

iii. provided notice to the sender (prior to
payment for the remittance transfer) that, in
the event the sender provided an incorrect
account number or recipient institution
identifier, the sender could lose the transfer
amount.
iv. the incorrect account number or recipient
institution identifier resulted in the deposit of
the remittance transfer into a customer’s
account that is not the designated recipient’s account; and
v. promptly used reasonable efforts to recover
the amount that was to be received by the
designated recipient.
Account number or recipient institution identifier.
Account number and recipient institution identifier
refer to alphanumerical account or institution identifiers other than names or addresses, such as
account numbers, routing numbers, Canadian
transit numbers, International Bank Account Numbers, Business Identifier Codes, and other similar
Consumer Compliance Handbook

Electronic Fund Transfer Act

account or institution identifiers used to route a
transaction. Designated recipient’s account refers
to an asset account but does not include a credit
card, prepaid card, or a virtual account held by an
Internet-based or mobile telephone company that
is not a bank, savings association, credit union, or
equivalent institution (Comment 33(a)-8).
Reasonable methods of verification. Reasonably
available means may include accessing a directory
of Business Identifier Codes and verifying that the
code provided by the sender matches the provided
institution name, and, if possible, the specific
branch or location provided by the sender. A
provider may also rely on other commercially
available databases or directories to check other
recipient institution identifiers. The requirement to
verify would be met if no reasonably available
means exist to verify the accuracy of the recipient
institution identifier if the other conditions are
satisfied (Comment 33(h)-1).
Reasonable efforts. Whether a provider has used
reasonable efforts does not depend on whether the
provider is ultimately successful in recovering the
amount that was to be received by the designated
recipient. If the remittance transfer provider is
requested to provide documentation or other
supporting information in order for the pertinent
institution or authority to obtain the proper authorization for the return of the incorrectly credited
amount, reasonable efforts to recover the amount
include timely provision of any such documentation
to the extent that it is available and permissible
under law (Comment 33(h)-2).
Promptness of reasonable efforts. Whether a
provider acts promptly to use reasonable efforts
depends on the facts and circumstances. For
example, if, before the disclosed date of availability
the sender informs the provider that the sender
provided a wrong account number, the provider
will have acted promptly if it attempts to contact the
recipient’s institution before the date of availability
(Comment 33(h)-3).
Failure to make funds available by disclosed
date of availability due to circumstances outside
the remittance transfer provider’s control. A remittance transfer provider’s failure to deliver or
transmit a remittance transfer by the disclosed date
of availability is not an error if such failure was
caused by extraordinary circumstances outside the
remittance transfer provider’s control that could not
have been reasonably anticipated. Examples of
such circumstances include war or civil unrest,
natural disaster, garnishment or attachment of
funds after the transfer is sent, and government
actions or restrictions that could not have been
reasonably anticipated by the remittance transfer
provider, such as the imposition of foreign currency
controls (Comment 33(a)-6).
Consumer Compliance Handbook

Issues that are not considered errors under
subpart B
The following are not errors:
a. an inquiry about the status of a remittance
transfer except where the funds from the
transfer were not made available to a designated recipient by the disclosed date of availability;
b. a request for information for tax or other
record-keeping purposes;
c. a change requested by the designated recipient that the remittance transfer provider or
others involved in the remittance transfer decide to accommodate; or
d. a change in the amount or type of currency
received by the designated recipient from the
amount or type of currency stated in the
disclosure provided to the sender if the remittance transfer provider relied on information
provided by the sender (12 CFR 1005.33(a)(2)
and Comment 33(a)-10).

Notice of Error from Sender—12 CFR
1005.33(b)
Person asserting or discovering error. The error
resolution procedures apply only when a notice of
error is received from the sender (Comment
33(b)-1).
Timing of error notice. The notice of error must be
received by the remittance transfer provider within
180 days of the disclosed date of availability of the
remittance transfer (12 CFR 1005.33(b)(1)). But if
the notice of error is based on documentation,
additional information, or clarification provided by
the remittance transfer provider, then notice is
timely if it is received by the remittance transfer
provider the later of
a. 180 days after the disclosed date of availability
of the remittance transfer, or
b. 60 days after the provider sent the documentation, information, or clarification that had been
requested (12 CFR 1005.33(b)(2)).
Content of error notice. Errors may be reported
orally or in writing. The notice of error is effective so
long as the remittance transfer provider is able to
identify
a. the sender’s name and telephone number or
address (or e-mail address);
b. the recipient’s name and, if known, telephone
number and address;
c. the remittance transfer to which the notice of
error applies; and
d. why the sender believes an error exists and, if
Reg. E • 31 (11/13)

Electronic Fund Transfer Act

possible, the type, date, and amount of the
error, except for errors involving requests for
documentation, additional information, or clarification.
For example, the sender could provide the
confirmation number or code that would be used
by the designated recipient to pick up the transfer,
or other identification number or code supplied by
the remittance transfer provider in connection with
the transfer, if the number or code is sufficient for
the remittance transfer provider to identify the
sender (and contact information), designated recipient, and the transfer in question (Comment
33(b)-2 and 3).
Effect of late notice. A remittance transfer
provider is not required to comply with the error
resolution requirements for any notice of error from
a sender that is received more than 180 days from
the disclosed date of availability of the remittance
transfer or, if applicable, more than 60 days after a
provider sent documentation, additional information, or clarification requested by the sender
(Comment 33(b)-4).
Notice of error provided to agent. A notice of
error provided by a sender to an agent of the
remittance transfer provider is deemed to be
received by the provider when the agent receives it
(Comment 33(b)-5).
Consumer notice of error resolution rights. In
addition to the requirement to provide an abbreviated notice of the consumer’s error resolution rights
on the receipt or combined notice, the remittance
transfer provider must make available to a sender,
upon request, a notice providing a full description
of the sender’s error resolution rights, using
language set forth in Appendix A (Model Form
A-36) or substantially similar language (Comment
33(b)-6).

Time Limits and Extent of
Investigation—12 CFR 1005.33(c)
A remittance transfer provider must investigate
promptly and determine whether an error occurred
within 90 days of receiving a notice of error. The
remittance transfer provider must report the results
to the sender within three business days after
completing its investigation and include notice of
any remedies available for correcting any error that
the provider determines has occurred. If the
remittance transfer provider determines during its
investigation that an error occurred as described
by the sender, the remittance provider may inform
the sender of its findings either orally or in writing.
However, if the provider determines that no error or
a different error occurred, the provider must
provide a written explanation of the findings, and
note the sender’s right to request the documents on
32 (11/13) • Reg. E

which the provider relied in making its determination (Comment 33(c)-1).

Remedies
If the remittance transfer provider determines an
error (as defined in subpart B) occurred and the
error relates to
a. an incorrect amount paid by the sender,
b. a computational or bookkeeping error made by
the remittance transfer provider, or
c. failure to make the amount of currency stated in
the disclosures available to the designated
recipient.
the provider must either
a. refund the amount of funds provided by the
sender in connection with a remittance transfer
which was not properly transmitted or the
amount appropriate to resolve the error, or
b. make available to the designated recipient, the
amount appropriate to resolve the error without
additional cost to the sender or the designated
recipient (12 CFR 1005.33(c)(2)(i)).
If the error relates to a sender’s request for
documentation or additional information or clarification to determine whether an error exists, the
remittance transfer provider must provide the
requested information (12 CFR 1005.33(c)(2)(iv)).

Remedy in the case of failure to make funds
available by the disclosed date of
availability.
a. Where failure to make funds available by the
disclosed date of availability occurred due to
incorrect or insufficient information provided by
the sender:
The remittance transfer provider is required to
refund to the sender the amount of funds that
was not properly transmitted, or the amount
appropriate to resolve the error, within three
business days of providing the written explanation of findings. However, the provider may
agree to the sender’s request, upon receiving
the results of the error investigation, to apply the
funds toward a new remittance transfer, rather
than be refunded, if the provider has not yet
processed a refund.
In such an instance, the provider may deduct
from the amount refunded or applied toward a
new transfer any fees actually imposed by a
person other than the provider (except those
that will ultimately be refunded to the provider)
on or, to the extent not prohibited by law, taxes
actually collected on the remittance transfer as
part of the first unsuccessful remittance transfer
Consumer Compliance Handbook

Electronic Fund Transfer Act

attempt and inform the sender of the deduction
and reason. The agreement to apply the funds
toward a new transfer is treated as a new
remittance transfer, and the provider must
provide new disclosures in accordance with 12
CFR 1005.31 and all other applicable provisions of subpart B (12 CFR 1005.33(c)(2)(iii))
and Comments 33(c)-11 and -12).
b. All other instances of failure to make funds
available by the disclosed date of availability:
As applicable, the remittance transfer provider
must either
i.

refund to the sender, the amount of funds
which was not properly transmitted or the
amount appropriate to resolve the error; or

ii.

make available to the designated recipient
the amount appropriate to resolve the error
without additional cost to the sender or to
the designated recipient; and
refund to the sender any fees imposed and,
to the extent not prohibited by law, taxes
collected on the remittance transfer (12
CFR 1005.33(c)(2)(ii).

Designation of requested remedy. The provider
may request that the sender indicate the preferred
remedy when providing the notice of the error. If the
provider does so, it should indicate that a resend
remedy may be unavailable if the error occurred
because the sender provided incorrect or insufficient information. If the sender does not indicate
the desired remedy at the time of providing notice
of error, the remittance transfer provider must notify
the sender of any available remedies in the written
explanation of findings (Comment 33(c)-3).
Default remedy (except where the sender provided incorrect or insufficient information). The
provider may set a default remedy that the
remittance transfer provider will use if the sender
does not designate a remedy within a reasonable
time after receiving the written explanation of
findings. If a default remedy is provided, the
remittance transfer provider must correct the error
within one business day or as soon as reasonably
practicable, after the reasonable time for the
sender to designate the remedy has passed. For
purposes of designating a remedy, 10 days is
deemed a reasonable time (Comment 33(c)-4).
Amount appropriate to resolve the error. The
amount appropriate to resolve the error is the
specific amount of transferred funds that should
have been received if the remittance transfer had
taken place without error. It does not include
consequential damages (Comment 33(c)-5).
Form of refund. Where a refund may be issued, a
remittance transfer provider may generally, at its
discretion, issue a refund either in cash or in the
Consumer Compliance Handbook

same form of payment that was initially provided by
the sender for the remittance transfer (Comment
33(c)-6).
Remedies for incorrect amount paid. If an error
relates to the payment of an incorrect amount, the
sender may request a refund of the amount
necessary to resolve the error or request that the
remittance transfer provider make the amount
necessary to resolve the error available to the
designated recipient at no additional cost (Comment 33(c)-7).
Correction of an error if funds were not not
available by disclosed date. If the remittance
transfer provider determines an error related to
failure to make funds available by the disclosed
date occured, it must correct the error and refund
any fees imposed by the provider or a third party
involved in sending the transfer, such as an
intermediary bank involved in sending a wire
transfer or the institution from which the funds are
picked up (unless the sender provided incorrect or
insufficient information to the remittance transfer
provider in connection with the remittance transfer)
(Comment 33(c)-8).
Charges for error resolution. If an error occurred,
whether as alleged or in a different amount or
manner, the remittance transfer provider may not
impose a charge related to any aspect of the error
resolution process (including charges for documentation or investigation) (Comment 33(c)-9).
Correction without investigation. A remittance
transfer provider may correct an error, without
investigation, in the amount or manner alleged by
the sender, or otherwise determined, to be in error,
but must comply with all other applicable requirements (Comment 33(c)-10).

Procedures if Remittance Transfer
Provider Determines No Error or
Different Error Occurred—12 CFR
1005.33(d)
If the remittance transfer provider determines that
no error occurred or that an error occurred in a
manner or amount different from that described by
the sender, its report of the results of the investigation must include a written explanation of the
provider’s findings and shall note the sender’s right
to request the documents on which it relied in
making its determination. The explanation should
also address the specific complaint of the sender.
Upon the sender’s request, the remittance transfer
provider must also promptly provide copies of the
documents on which it relied to make its error
determination (12 CFR 1005.33(d)).
Error different from that alleged. If a remittance
transfer provider determines that an error occurred
Reg. E • 33 (11/13)

Electronic Fund Transfer Act

in a manner or amount different from that described
by the sender, it must comply with the requirements
of both 12 CFR 1005.33(c) (concerning the investigation) and (d) (procedures if remittance transfer
provider determines no error or different error
occurred), as applicable. The provider may give
the notice of correction and the explanation
separately or in a combined form (Comment
33(d)-1).

Reassertion of Error—12 CFR 1005.33(e)
A remittance transfer provider that has fully complied with the error resolution requirements of this
section generally has no further responsibilities
should the sender later reassert the same error,
except in the case of an error asserted by the
sender following receipt of additional information
requested from the provider (12 CFR 1005.33(e)).
Withdrawal of error; right to reassert. The remittance transfer provider has no further error resolution responsibilities if the sender voluntarily withdraws the notice alleging an error. A sender who
has withdrawn an allegation of error has the right to
reassert the allegation unless the remittance transfer provider had already complied with all of the
error resolution requirements before the allegation
was withdrawn. The sender must do so, however,
within the original 180-day period from the disclosed date of availability or, if applicable, the
60-day period for a notice of error based on
documentation or clarification that the sender
previously requested (Comment 33(e)-1).

Relation to Other Laws—12 CFR
1005.33(f)
Relation to Regulation E for incorrect EFTs from a
sender’s account (12 CFR 1005.11). If an alleged
error involves an incorrect electronic fund transfer
from a sender’s account in connection with a
remittance transfer, and the sender provides a
notice of error to the account-holding institution, the
requirements of 12 CFR 1005.11 governing error
resolution apply if the account-holding institution is
not also the remittance transfer provider. However,
if the remittance transfer provider is also the
account holding institution, then the error-resolution
provisions of 12 CFR 1005.33 apply when the
sender provides such notice of error (12 CFR
1005.33(f)(1)).
Concurrent error obligations. A remittance transfer provider that holds the sender’s account may
have error obligations under both 12 CFR 1005.11
and 1005.33, depending on the relationship with
the sender and the nature of the error. For example,
if a sender asserts an error under 12 CFR 1005.11
with a remittance transfer provider that holds the
34 (11/13) • Reg. E

sender’s account, and the error is not also an error
under 12 CFR 1005.33 (such as the omission of an
EFT on a periodic statement), then the errorresolution provisions of 12 CFR 1005.11 exclusively
apply to the error. However, if a sender asserts an
error under 12 CFR 1005.33 with a remittance
transfer provider that holds the sender’s account,
and the error is also an error under 12 CFR 1005.11
(such as when the amount the sender requested to
be deducted from the sender’s account and sent
for the remittance transfer differs from the amount
that was actually deducted from the account and
sent), then the error-resolution provisions of 12 CFR
1005.33 exclusively apply to the error (Comment
33(f)-1).
Relation to Truth in Lending Act and Regulation
Z. If an alleged error involves an incorrect extension of credit in connection with a remittance
transfer, an incorrect amount received by the
designated recipient that is an extension of credit
for property or services not delivered as agreed, or
the failure to make funds available by the disclosed
date of availability that is an extension of credit for
property or services not delivered as agreed, and
the sender provides a notice of error to the creditor
extending the credit, the error resolution provisions
of Regulation Z, 12 CFR 1026.13 apply to the
creditor, rather than the requirements of 12 CFR
1005.33, even if the creditor is the remittance
transfer provider. However, if the creditor is the
remittance transfer provider, the error resolution
requirements of 12 CFR 1005.33(b) will apply
instead of 12 CFR 1026.13(b). If the sender instead
provides a notice of error to the remittance transfer
provider that is not also the creditor, then the
error-resolution provisions of 12 CFR 1005.33 apply
to the remittance transfer provider (12 CFR 1005.33
(f)(2)).
Unauthorized remittance transfers. If an alleged
error involves an unauthorized electronic fund
transfer for payment in connection with a remittance transfer, 12 CFR 1005.6 and 1005.11 apply
with respect to the account-holding institution. If an
alleged error involves an unauthorized use of a
credit account for payment in connection with a
remittance transfer, the provisions of Regulation Z,
12 CFR 1026.12(b), if applicable, and 12 CFR
1026.13, apply with respect to the creditor (12 CFR
1005.33(f)(3)).
Holder in due course. The error resolution
provisions in subpart B do not affect a sender’s
rights to assert claims and defenses against a card
issuer concerning property or services purchased
with a credit card under Regulation Z, 12 CFR
1026.12(c)(1), as applicable (Comment 33(f)-2).
Assertion of the same error with multiple parties.
If a sender receives credit to correct an error of an
incorrect amount paid in connection with a remitConsumer Compliance Handbook

Electronic Fund Transfer Act

tance transfer from either the remittance transfer
provider or account-holding institution (or creditor),
and subsequently asserts the same error with
another party, that party has no further responsibilities to investigate the error if the error has been
corrected. In addition, nothing prevents an accountholding institution or creditor from reversing
amounts it has previously credited to correct an
error if a sender receives more than one credit to
correct the same error (Comment 33(f)-3).

Error Resolution Standards and
Recordkeeping Requirements—12 CFR
1005.33(g)
Compliance program. A remittance transfer provider must develop and maintain written policies
and procedures that are designed to ensure
compliance with the error resolution requirements
applicable to remittance transfers.
Policies and procedures must address the
retention of records related to error investigations
(12 CFR 1005.33(g)(1) and (2)).
Record retention requirements. Remittance transfer providers are subject to the record retention
requirements under subpart A (12 CFR 1005.13
and Comment 33(g)-1). See also section XVIII
below.

XIV. Procedures for Cancellation and
Refund of Remittance Transfers—
12 CFR 1005.34
Sender’s right of cancellation and refund
Except for certain remittance transfers scheduled
in advance subject to 12 CFR 1005.36(c), a
remittance transfer provider generally must comply
with any oral or written request to cancel a
remittance transfer from the sender that is received
by the provider no later than 30 minutes after the
sender makes payment in connection with the
remittance transfer if
a. the request to cancel enables the provider to
identify the sender’s name and address or
telephone number and the particular transfer to
be cancelled; and
b. the transferred funds have not been picked up
by the designated recipient or deposited into an
account of the designated recipient (12 CFR
1005.34(a)).
Content of cancellation request. A request to
cancel a remittance transfer is valid so long as the
remittance transfer provider is able to identify the
remittance transfer in question (Comment 34(a)-1).
Notice of cancellation right. A remittance transfer
Consumer Compliance Handbook

provider is required to include an abbreviated
notice of the sender’s right to cancel a remittance
transfer on the receipt or combined disclosure
provided to the sender. In addition, the remittance
transfer provider must make available to a sender
upon request, a notice providing a full description
of the right to cancel a remittance transfer (Comment 34(a)-2). See also Model Form 36 in Appendix
A.
Thirty-minute cancellation right. Except for certain remittance transfers scheduled in advance
subject to 12 CFR 1005.36(c), a remittance transfer
provider must comply with the cancellation and
refund requirements if the cancellation request is
received no later than 30 minutes after the sender
makes payment (Comment 34(a)-3).
Cancellation request provided to agent. A cancellation request provided by a sender to an agent
of the remittance transfer provider is deemed to be
received by the provider when received by the
agent (Comment 34(a)-4).
Time limits and refund requirements. If a sender
provides a timely request to cancel a remittance
transfer, a remittance transfer provider must, within
three business days of receiving the request,
refund all funds provided by the sender in connection with the remittance transfer, including any fees
and, to the extent not prohibited by law, taxes that
have been imposed for the transfer, whether the fee
or tax was assessed by the provider or a third
party, such as an intermediary institution, the agent
or bank in the recipient country, or a state or other
governmental body (12 CFR 1005.34(b) and Comment 34(b)-2).
Form of refund. A remittance transfer provider
generally may issue a refund either in cash or in the
same form of payment that was initially provided by
the sender for the remittance transfer (Comment
34(b)-1).

XV. Acts of Agents—12 CFR 1005.35
A remittance transfer provider is strictly liable for a
violation by an agent, when such agent acts on its
behalf. Remittance transfer providers must comply
with the requirements of subpart B, even if an agent
or other person performs functions for the remittance transfer provider and regardless of whether
the provider has an agreement with a third party
that transfers or otherwise makes funds available to
a designated recipient (12 CFR 1005.35 and
Comment 35-1).
Agencies responsible for enforcing the requirements of EFTA section 919 and subpart B of
Regulation E may consider, in any action or other
proceeding against a remittance transfer provider,
the extent to which the provider had established
and maintained policies or procedures for compliReg. E • 35 (11/13)

Electronic Fund Transfer Act

ance, including policies, procedures, or other
appropriate oversight measures designed to assure compliance by an agent or authorized delegate acting for such provider (EFTA section
919(f)(2)).

XVI. Transfers Scheduled before the
Date of Transfer—12 CFR 1005.36
Applicability of subpart B. The requirements set
forth in subpart B apply to remittance transfers
scheduled before the transfer date, unless modified by 12 CFR 1005.36. For example, the foreign
language disclosure requirements apply to disclosures provided in connection with transfers scheduled in advance (Comment 36-1).

Timing—12 CFR 1005.36(a)
For one-time transfers scheduled five or more
business days in advance or for the first in a series
of transfers authorized in advance to recur at
substantially regular intervals (preauthorized remittance transfers), the remittance transfer provider
must provide either a prepayment disclosure and a
receipt or a combined disclosure at the time the
sender requests the transfer but prior to payment. If
any of the disclosures provided contain estimates,
the provider must mail or deliver an additional
receipt no later than one business day after the
date of the transfer. If the transfer involves the
transfer of funds from the sender’s account held by
the provider, this additional receipt may be provided on or with the next periodic statement for that
account or within 30 days after the date of the
transfer if a periodic statement is not provided.
Subsequent preauthorized remittance transfers.
For each subsequent preauthorized remittance
transfer, the provider must provide an updated
receipt if any of the information (other than temporal
disclosures) on the most recent receipt is no longer
accurate for reasons other than as permitted in the
estimates provisions of 12 CFR 1005.32. The
receipt must clearly and conspicuously indicate
that it contains updated disclosures and must be
mailed or delivered to the sender within a reasonable time prior to the scheduled date of the next
subsequent preauthorized remittance transfer. If
the disclosure is mailed no later than 10 business
days or delivered by hand or electronically no later
than 5 business days before the scheduled date of
the transfer, the provider is deemed to have
provided the disclosure within a reasonable time
(12 CFR 1005.36(a)(2)(i) and Comments 36(a)
(2)-1, -2, and -3).
For each subsequent preauthorized transfer, the
remittance transfer provider must mail or deliver to
the sender a receipt no later than one business day
after the date of the transfer. This is not required in
36 (11/13) • Reg. E

situations where an updated receipt that contained
no estimates was provided prior to the scheduled
date of the next subsequent preauthorized remittance transfer. If the remittance transfer involves
the transfer of funds from the sender’s account held
by the provider, the receipt may be provided on or
with the next periodic statement for that account, or
within 30 days after the date of the transfer if a
periodic statement is not provided (12 CFR 1005.36
(a)(2)(ii)).

Accuracy—12 CFR 1005.36(b)
For a one-time transfer scheduled five or more
business days in advance or for the first in a series
of preauthorized remittance transfers, disclosures
provided must be accurate when a sender makes
payment except to the extent estimates are permitted. Unless estimates are permitted, for each
subsequent preauthorized remittance transfer, the
most recent receipt provided must generally be
accurate as of when such transfer is made except
to the extent estimates are permitted. Temporal
elements in the disclosures like the date of
availability and the transfer date must only be
accurate if the transfer is the first transfer after the
disclosure was provided (12 CFR 1005.36(b)).

Cancellation—12 CFR 1005.36(c)
Cancellation of transfers scheduled at least three
days in advance. A remittance transfer provider
must comply with any oral or written request to
cancel any remittance transfer scheduled by the
sender at least three business days before the date
of the remittance transfer if the request to cancel
a. enables the provider to identify the sender’s
name and address or telephone number and
the particular transfer to be cancelled, and
b. is received by the provider at least three
business days before the scheduled date of the
remittance transfer (12 CFR 1005.36(c)).
The right of cancellation applies when a remittance transfer is scheduled by the sender at least
three business days before the date of the transfer,
regardless of whether the sender schedules a
preauthorized remittance transfer or a one-time
transfer. For transfers scheduled less than three
business days before the date of transfer the 30
minute cancellation deadline in 12 CFR 1005.34
applies (Comment 36(c)-1).
Cancelled preauthorized remittance transfers.
For preauthorized remittance transfers, the provider must assume the request to cancel applies to
all future preauthorized remittance transfers, unless
the sender specifically indicates that it should
apply only to the next scheduled transfer (Comment 36(c)-2).
Consumer Compliance Handbook

Electronic Fund Transfer Act

Concurrent cancellation obligations. A financial
institution that is also a remittance transfer provider
may have both stop payment obligations under 12
CFR 1005.10 and cancellation obligations under 12
CFR 1005.36. If a sender cancels a remittance
transfer under 12 CFR 1005.36 with a remittance
transfer provider that holds the sender’s account,
and the transfer is a preauthorized transfer, 12 CFR
1005.36 applies exclusively (Comment 36(c)-3).

Additional Requirements for Subsequent
Preauthorized Remittance Transfers—
12 CFR 1005.36(d)
Disclosure requirement. For any subsequent transfer in a series of preauthorized remittance transfers,
the remittance transfer provider must disclose
a. the date of the subsequent transfer using the
term ‘‘Future Transfer Date’’ or a substantially
similar term,
b. a statement of the sender’s cancellation rights,
and
c. the name, telephone number(s), and website of
the remittance transfer provider (12 CFR
1005.36(d)(1)).
The disclosures must be provided no more than
12 months, and no less than 5 business days prior
to, the date of the subsequent preauthorized
remittance transfer. For any subsequent preauthorized remittance transfer for which the date of
transfer is 4 or fewer business days after the date
payment is made, the disclosure must generally be
provided on or with the receipt for the initial transfer
in that series (12 CFR 1005.36(d)(2)).
A remittance transfer provider has some flexibility in determining how and when the disclosures
required by 12 CFR 1005.36(d)(1) may be provided
to senders. They may be provided as a separate
disclosure, or on or with any other disclosure
required by subpart B related to the same series of
preauthorized remittance transfers, provided that
the disclosure and timing requirements in 12 CFR
1005.36(d)(2) and other applicable provisions in
subpart B are satisfied (Comment 36(d)-1).
If any of the information provided in these
disclosures change, the provider must provide an
updated disclosure with the revised information
that is accurate as of when the transfer is made (12
CFR 1005.36(d)(1) and (4) and Comments 36(d)-2,
-3 and -4).
For any subsequent preauthorized remittance
transfer, the future date of transfer must be
provided on any receipt provided for the initial
transfer in that series of preauthorized remittance
transfers. If the provider discloses the dates of
subsequent preauthorized remittance transfers and
Consumer Compliance Handbook

the applicable cancellation period on either the
receipt provided when payment is made or on a
second receipt, the disclosure must be phrased
and formatted in such a way that it is clear to the
sender which cancellation period is applicable to
any date of transfer on the receipt (Comments
31(b)(2)-4 and -5).

THE FOLLOWING SECTIONS ARE
APPLICABLE TO BOTH SUBPART A
AND SUBPART B.

XVII. Preemption
The EFTA and Regulation E preempt inconsistent
state laws but only to the extent of the inconsistency. The CFPB is given the authority to determine
whether or not a state law is inconsistent. An entity,
state, or other interested party may request the
CFPB to make such a determination. A state law will
not be deemed inconsistent if it is more protective
of the consumer than the EFTA or Regulation E.
Upon application, the CFPB has the authority to
exempt any state from the requirements of the
EFTA or the regulation for any class of EFTs within
a state, with the exception of the civil liability
provision (EFTA section 922 and 12 CFR 1005.12(b)
and (c)).

XVIII. Administrative Enforcement
and Record Retention—12 CFR
1005.13
Section 918 of the EFTA sets forth the federal
agencies responsible for enforcing compliance
with the provisions of the law and its implementing
regulation.
Record retention. Any person subject to the
EFTA and Regulation E must maintain evidence of
compliance with the EFTA and Regulation E for at
least two years from the date the disclosures are
required to be made or action is required to be
taken. The agency supervising the person may
extend this period. The period may also be
extended if the person is subject to an action filed
under Sections 910, 915, or 916(a) of the EFTA,
which generally apply to the person’s liability under
the EFTA and Regulation E. Persons subject to the
EFTA who have actual notice that they are being
investigated or subject to an enforcement proceeding must retain records until disposition of the
proceeding (12 CFR 1005.13 and 1005.33(g)).
Records may be stored on microfiche, microfilm,
magnetic tape, or in any other manner capable of
accurately retaining and reproducing the information.
Reg. E • 37 (11/13)

Electronic Fund Transfer Act

XIX. Miscellaneous
The EFTA contains several additional provisions
that are not directly reflected in the language of
Regulation E. Most significantly, 15 U.S.C. 1693l
provides that the consumer may not waive by
agreement any right conferred, or cause of action
created, by the EFTA. However, the consumer and
another person may provide by agreement greater
consumer protections or additional rights or remedies than those provided by the EFTA. In addition,
the consumer may sign a waiver in settlement of a
dispute.
If a third-party payee has agreed to accept
payment by EFT, the consumer’s obligation to pay
is suspended during any period in which a system
malfunction prevents an EFT from occurring (15
U.S.C. 1693j). However, the payee may avoid that
suspension by making a written request for payment by means other than EFT.
Failure to comply with the requirements of the
EFTA can result in civil and criminal liability, as
outlined in 15 U.S.C. 1693m and 15 U.S.C. 1693n.
Financial institutions may also be liable for damages under 15 U.S.C. 1693h due to failure to
complete an EFT or failure to stop a preauthorized
transfer when instructed to do so.

Appendix A—Model Disclosure
Clauses and Forms—12 CFR 1005
Appendix A of Regulation E contains model
clauses and forms that entities may use to comply
with the requirement disclosure requirements of
Regulation E. Use of the model forms is optional
and an entity may make certain changes to the
language or format of the model forms without
losing the protection from civil and criminal liability
under Sections 915 and 916 of the EFTA. The
model forms are

For subpart A:
A-1 Model Clauses for Unsolicited Issuance (12
CFR 1005.5(b)(2))
A-2 Model Clauses for Initial Disclosures (12 CFR
1005.7(b))
A-3 Model Forms for Error Resolution Notice (12
CFR 1005.7(b)(10) and 1005.8(b))
A-4 Model Form for Service-Providing Institutions
(12 CFR 1005.14(b)(1)(ii))

A-7 Model Clauses for Financial Institutions Offering Payroll Card Accounts (12 CFR 1005.18
(c))
A-8 Model Clause for Electronic Collection of
Returned Item Fees (12 CFR 1005.3(b)(3))
A-9 Model Consent Form for Overdraft Services
(12 CFR 1005.17)

For subpart B:
A-30(a) Model Form for Prepayment Disclosures
for Remittance Transfers Exchanged into
Local Currency, including a disclaimer
where non-covered third-party fees and
foreign taxes may apply (12 CFR 1005.31
(b)(1))
A-30(b) Model Form for Prepayment Disclosures
for Remittance Transfers Exchanged into
Local Currency, including a disclaimer
with estimate for non-covered third-party
fees (12 CFR 1005.31(b)(1) and 12 CFR
1005.32(b)(3))
A-30(c) Model Form for Prepayment Disclosures
for Remittance Transfers Exchanged into
Local Currency, including a disclaimer
with estimate for foreign taxes (12 CFR
1005.31(b)(1) and 12 CFR 1005.32(b)(3))
A-30(d) Model Form for Prepayment Disclosures
for Remittance Transfers Exchanged into
Local Currency, including a disclaimer
with estimates for non-covered third-party
fees and foreign taxes (12 CFR 1005.31
(b)(1) and 12 CFR 1005.32(b)(3))
A-31 Model Form for Receipts for Remittance
Transfers Exchanged into Local Currency (12
CFR 1005.31(b)(2))
A-32 Model Form for Combined Disclosures for
Remittance Transfers Exchanged into Local
Currency (12 CFR 1005.31(b)(3))
A-33 Model Form for Prepayment Disclosures for
Dollar-to-Dollar Remittance Transfers (12 CFR
1005.31(b)(1))
A-34 Model Form for Receipts for Dollar-to-Dollar
Remittance Transfers (12 CFR 1005.31(b)(2))
A-35 Model Form for Combined Disclosures for
Dollar-to-Dollar Remittance Transfers (12 CFR
1005.31(b)(3))

A-5 Model Forms for Government Agencies (12
CFR 1005.15(d)(1) and(2))

A-36 Model Form for Error Resolution and Cancellation Disclosures (Long) (12 CFR 1005.31(b)
(4))

A-6 Model Clauses for Authorizing One-Time Electronic Fund Transfers Using Information from a
Check (12 CFR 1005.3(b)(2))

A-37 Model Form for Error Resolution and Cancellation Disclosures (Short) (12 CFR 1005.31(b)
(2)(iv) and (b)(2)(vi))

38 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act

A-38 Model Form for Prepayment Disclosures for
Remittance Transfers Exchanged into Local
Currency—Spanish (12 CFR 1005.31(b)(1))
A-39 Model Form for Receipts for Remittance
Transfers Exchanged into Local Currency—
Spanish (12 CFR 1005.31(b)(2))
A-40 Model Form for Combined Disclosures for
Remittance Transfers Exchanged into Local
Currency—Spanish (12 CFR 1005.31(b)(3))
A-41 Model Form for Error Resolution and Cancellation Disclosures (Long)—Spanish (12 CFR
1005.31(b)(4))

References
Laws
15 U.S.C. 1693 et seq., Electronic Fund Transfer
Act
15 U.S.C. 7001 et seq., Electronic Signatures in
Global and National Commerce

Regulations
Consumer Financial Protection Bureau
Regulations (12 CFR)
Part 1005 Electronic Fund Transfers (Regulation E)

Consumer Compliance Handbook

Reg. E • 39 (11/13)

Electronic Fund Transfer Act

Examination Procedures

These examination procedures are divided into
three sections:
• Section I covers management and policy related
procedures for both financial institutions and
other entities that may be remittance transfer
providers (referred to herein as ‘‘entity’’).
• Section II covers electronic fund transfers conducted by financial institutions.
• Section III applies to remittance transfer providers (including financial institutions).
Each examination should be risk-based and may
not require an examiner to complete all three
sections. In addition, each agency may have its
own supervisory strategy that will dictate which
sections of these examination procedures are
required to be completed.

EXAMINATION OBJECTIVES
In general, a Regulation E examination is conducted to

(e.g., written policies and procedures, management’s self-assessments, customer complaints,
prior examination reports) and any compliance
audit material, including work papers and reports, determine whether
a. there are any weaknesses or other risks in
the business model
b. the scope of the audit addresses all provisions of Regulation E as applicable
c. the scope of the audit addresses all key
business processes and functions, including
those carried out by third-party service
providers or key business partners, as appropriate
d. management has taken corrective actions to
follow up on previously identified deficiencies
e. as applicable, testing includes risk-based
samples covering product types and decision centers

A. determine the entity’s compliance with Regulation E

f. there is an audit trail that supports the
findings and conclusions of the work performed

B. assess the quality of the entity’s compliance risk
management systems and its policies and
procedures for implementing Regulation E

g. significant deficiencies and their causes are
included in reports to management and/or to
the board of directors or principal(s)

C. determine the level of reliance that can be
placed on the entity’s internal controls and
procedures for monitoring the entity’s compliance with Regulation E

h. the frequency of review is appropriate

D. as appropriate, direct corrective action when
violations of law are identified or when the
entity’s policies or internal controls are deficient

3. Through discussions with management and
review of available information, determine
whether the entity’s internal controls are adequate to ensure compliance with respect to the
Regulation E area under review. Consider among
other things
a. organizational charts;

EXAMINATION PROCEDURES

b. process flowcharts;
c. policies and procedures;

Section I—Management and
policy-related examination
procedures
1. Through a review of all available information
(e.g., board minutes, management reports, monitoring reports, etc.) and discussions with management, determine that the board and management have set clear expectations about
compliance with Regulation E, not only within the
entity but also concerning key business partners, including agents, correspondent banks,
and software providers, to the extent relevant.
2. Through a review of all available information

Consumer Compliance Handbook

d. account (if applicable) and transaction documentation;
e. checklists; and
f. computer program documentation.
4. Through a review of the entity’s training materials
and discussions with management, determine
whether:
a. the entity provides appropriate training to
employees and other persons responsible
for Regulation E compliance and operational
procedures
b. the training is comprehensive and covers the

Reg. E • 41 (11/13)

Electronic Fund Transfer Act: Examination Procedures

sections of Regulation E that apply to the
individual entity’s product offerings and operations including, to the extent appropriate,
those functions carried out by third-party
service providers or other business partners,
such as agents and correspondent banks

customer liability. The deposit agreement
may not impose greater liability than Regulation E provides but may provide for less
consumer liability (12 CFR 1005.6).
f. preauthorized debits and credits comply
with the regulation (12 CFR 1005.10)

Section II—Subpart A
Based on the materials reviewed within Section I,
and as applicable, complete Section II to determine the financial institution’s compliance with
Regulation E.

Transaction-related examination procedures
Conduct transaction testing, using the following
examination procedures:
1. Obtain and review copies of the following:
a. disclosure forms;
b. advertising and scripts for overdraft opt-ins;
c. account agreements;
d. procedural manuals and written policies;
e. merchant agreements;
f. automated teller machine receipts and
periodic statements;
g. error resolution statements/files;
h. form letters used in case of errors or
questions concerning an account;
i.

any agreements with third parties allocating
compliance responsibilities; and

j.

consumer complaint files.

Policies and procedures
2. Determine the extent and adequacy of the
financial institution’s policies, procedures, and
practices for ensuring compliance with the
regulation. In particular, verify that
a. access devices are issued in compliance
with the regulation (12 CFR 1005.5(b))
b. required disclosures are given at time the
account is opened or prior to the first
electronic funds transfer (‘‘EFT’’) (12 CFR
1005.4 and 1005.7(c))
c. unauthorized transfer claims are processed
in compliance with the regulation (12 CFR
1005.6 and 1005.11)
d. liability for unauthorized transfer claims is
assessed in compliance with the regulation
(12 CFR 1005.6)
e. negligence is not a factor in determining

42 (11/13) • Reg. E

Disclosures, notices, receipts, periodic
statements, and preauthorized transfers
3. If the financial institution has changed the
terms or conditions of initial disclosures for EFT
services since the last examination that required a written notice to the customer, determine that the institution provided the proper
notice in a timely manner (12 CFR 1005.8(a)).
4. Review a sample of periodic statements for
each type of account in which electronic fund
transfers occur to determine that they contain
sufficient information for the consumer to
identify transactions adequately and that they
otherwise comply with regulatory requirements
(12 CFR 1005.9).
5. Verify that the financial institution does not
require compulsory use of EFTs, except as
authorized (12 CFR 1005.10(e)).
6. For unauthorized transfers, lost or stolen ATM
cards, and EFT consumer complaints, and their
respective periodic statements, determine
whether:
a. the financial institution is incompliance with
its error resolution procedures to isolate any
apparent deficiencies in the financial institution’s operations to ensure that the institution follows its policies for unauthorized
transfers (12 CFR 1005.6 and 1005.11)
b. the financial institution investigates alleged
errors and notifies consumers of the results
within allotted time frames and, when appropriate, provisionally re-credits the account (12 CFR 1005.11(c))
c. the financial institution follows regulatory
procedures after it completes its investigation and determines either that an error
occurred (12 CFR 1005.11(c)(1)) or that no
error occurred (12 CFR 1005.11(d))
7. Review ATM and point-of-sale transfer receipts
to determine whether they provide a clear
description of the transaction (12 CFR 1005.9
(a)).
8. Determine that the financial institution is maintaining records of compliance for a period of
not less than two years from the date disclosures are required to be made or action is

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Procedures

required to be taken (12 CFR 1005.13(b)).

Payroll cards and ATMs
9. If the financial institution maintains payroll card
accounts and does not provide periodic statements under 12 CFR 1005.9(b) for these
accounts, verify that the institution makes
available the account balance by telephone, an
electronic history of account transactions, and
(upon request) a written history of account
transactions (12 CFR 1005.18(b)).
10. If the financial institution maintains payroll card
accounts, verify that the financial institution
complies with the modified requirements with
respect to the required initial disclosures, error
resolution notices, limitations on liability, and
error resolution procedures (12 CFR 1005.18
(c)).
11. If the financial institution operates one or more
ATMs for which it charges a fee for use,
determine that the financial institution provides
notice of the fee and the amount of the fee on
the screen of the ATM or on paper before the
consumer is committed to paying the fee (12
CFR 1005.16).

Overdrafts
12. Determine that the financial institution holding a
consumer’s account does not assess a fee or
charge on a consumer’s account for paying an
ATM or one-time debit card transaction pursuant to the institution’s overdraft service,19
unless the institution (12 CFR 1005.17(b)(1))
a. provides the consumer with a notice in
writing (or if the consumer agrees, electronically), that is segregated from all other
information and describes the institution’s
overdraft service;
b. provides a reasonable opportunity for the
consumer to affirmatively consent, or opt in,
to the service for ATM and one-time debit
card transactions;
c. obtains the consumer’s affirmative consent,
or opt-in, to the institution’s payment of ATM
or one-time debit card transactions; and
d. provides the consumer with confirmation of
the consumer’s consent in writing (or if the
consumer agrees, electronically), which
includes a statement informing the con19. The term ‘‘overdraft service’’ means a service under which
a financial institution assesses a fee or charge on a consumer’s
account held by the financial institution for paying a transaction
(including a check or other item) when the consumer has
insufficient or unavailable funds in the account (12 CFR 1005.17
(a)). ‘‘Overdraft service’’ does not include a service that transfers
funds from another account held by a consumer or a line of credit.

Consumer Compliance Handbook

sumer of the right to revoke such consent.
NOTE: An institution does not have to meet the
notice requirements described above if it has a
policy and practice of declining to authorize and
pay any ATM or one-time debit card transactions
when it has a reasonable belief at the time of the
authorization request that the consumer does not
have sufficient funds available to cover the transaction. However, it is still prohibited from charging
fees for paying an ATM or one-time debit transaction overdraft (12 CFR 1005, and Comment 1005.17
(b)-1(iv)).
13. Determine that in assessing overdraft fees for
consumers who have not opted in, the institution charges fees only for negative balances,
daily, or sustained overdraft, or similar fees,
when the negative balance is attributable in
whole or in part to checks, automated clearing
house (ACH) or other transactions not subject
to the fee prohibition, and that the fee is
assessed based on the date when the check is
paid into overdraft, not the date of the ATM or
one-time debit transaction (Comment 1005.17
(b)-9).
14. Determine that the financial institution does not
(12 CFR 1005.17(b)(2))
a. condition the payment of any overdrafts for
checks, ACH transactions, and other types
of transactions on the consumer affirmatively consenting to the institution’s payment of ATM and one-time debit card
transactions pursuant to the institution’s
overdraft service; or
b. decline to pay checks, ACH transactions,
and other types of transactions that overdraw the consumer’s account because the
consumer has not affirmatively consented
to the institution’s overdraft service for ATM
and one-time debit card transactions.
15. Determine that the financial institution provides
to consumers who do not affirmatively consent
to the institution’s overdraft service for ATM and
one-time debit card transactions the same
account terms, conditions, and features that it
provides to consumers who affirmatively consent, except for the overdraft service for ATM
and one-time debit card transactions (12 CFR
1005.17(b)(3)).
16. Ensure that the notice required by 12 CFR
1005.17(b)(1)(i) is substantially similar to Model
Form A-9 (Model Consent Form for Overdraft
Services), includes all applicable items in the
following list, and does not contain any additional information (12 CFR 1005.17(d) and
Comments 1005.17(d)-1 through 1005.17(d)-5):
a. Overdraft service. A brief description of the
Reg. E • 43 (11/13)

Electronic Fund Transfer Act: Examination Procedures

financial institution’s overdraft service and
the types of transactions for which a fee or
charge for paying an overdraft may be
imposed, including ATM and one-time debit
card transactions.
b. Fees imposed. The dollar amount of any
fees or charges assessed by the financial
institution for paying an ATM or one-time
debit card transaction pursuant to the
institution’s overdraft service, including any
daily or other overdraft fees. If the amount of
the fee is determined on the basis of the
number of times the consumer has overdrawn the account, the amount of the
overdraft, or other factors, the institution
must disclose the maximum fee that may be
imposed.
c. Limits on fees charged. The maximum
number of overdraft fees or charges that
may be assessed per day, or, if applicable,
that there is no limit.
d. Disclosure of opt-in right. An explanation of
the consumer’s right to affirmatively consent to the financial institution’s payment of
overdrafts for ATM and one-time debit card
transactions pursuant to the financial institution’s overdraft service, including the
methods by which the consumer may
consent to the service; and

consent. The response portion of Model Form A-9
may be tailored to the methods offered for opting in
and may include reasonable methods to identify
the account, such as a bar code.
17. Determine that, when two or more consumers
jointly hold an account, the financial institution
treats the affirmative consent of any of the joint
consumers as affirmative consent for that
account and treats a revocation of affirmative
consent by any of the joint consumers as
revocation of consent for that account (12 CFR
1005.17(e)).
18. Ensure that a consumer may affirmatively
consent to the financial institution’s overdraft
service at any time in the manner described in
the institution’s (12 CFR 1005.17(b)(1)(i)) notice, and that a consumer may also revoke
consent at any time in the manner made
available to the consumer for providing consent (12 CFR 1005.17(f)).
19. Determine that the financial institution implements a consumer’s revocation of consent as
soon as reasonably practicable (12 CFR 1005
(17)(f)).
20. Determine that a consumer’s affirmative consent to the institution’s overdraft service is
effective until revoked by the consumer or until
the financial institution terminates the service
(12 CFR 1005.17(g)).

e. Alternative plans for covering overdrafts. If
the institution offers both a line of credit
subject to Regulation Z (12 CFR Part 1026)
and a service that transfers funds from
another account of the consumer held at
the institution to cover overdrafts, the institution must state in its opt-in notice that both
alternative plans are offered. If the institution offers one, but not the other, it must
state in its opt-in notice the alternative plan
that it offers. If the institution does not offer
either plan, it should omit the reference to
the alternative plans. If the financial institution offers additional alternatives for paying
overdrafts, it may (but is not required to)
disclose those alternatives.

21. Determine that the financial institution’s overdraft protection program incorporates your
agency’s guidance as applicable.

NOTE: Permitted modifications and additional content. If applicable, the institution may modify the
content required by 12 CFR 1005.17(d) to indicate
that the consumer has the right to opt into, or opt
out of, the payment of overdrafts under the
institution’s overdraft service for other types of
transactions, such as checks, ACH transactions, or
automatic bill payments; to provide a means for the
consumer to exercise this choice; and to disclose
the associated returned-item fee and that additional merchant fees may apply. The institution may
also disclose the consumer’s right to revoke

c. 12 CFR 1005.20(e)(3) (expiration date or
phone and web regarding replacement);
and

44 (11/13) • Reg. E

Gift card disclosures
22. Determine that the disclosures required by the
sections listed below are made on the certificate or card, or in the case of a loyalty, award,
or promotional gift card, on the card, code, or
other device:
a. 12 CFR 1005.20(a)(4)(iii) (loyalty, award, or
promotional gift card);
b. 12 CFR 1005.20(d)(2) (dormancy, inactivity,
or service fees);

d. 12 CFR 1005.20(f)(2) (phone and web
regarding fees).
NOTE: A disclosure made in an accompanying
terms and conditions document, on packaging
surrounding a certificate or card, or on a sticker or
other label affixed to the certificate or card does not
constitute a disclosure on the certificate or card.
If the certificate or card is electronic, determine
Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Procedures

that disclosures are provided electronically on the
certificate or card provided to the consumer.

prominence and in close proximity to the
certificate or card expiration date, that:

If an issuer provides a code or confirmation to a
consumer orally, determine that the issuer provides
to the consumer a written or electronic copy of the
code or confirmation promptly and the applicable
disclosures are provided on the written copy of the
code or confirmation (12 CFR 1005.20(c)(4)).

i.

the certificate or card expires, but the
underlying funds either do not expire or
expire later than the certificate or card,
and

ii.

the consumer may contact the issuer
for a replacement card (12 CFR 1005.20
(e)(3)).

23. Determine that the following are stated, as
applicable, clearly and conspicuously on the
gift certificate, store gift card, or general-use
prepaid card:
a. the amount of any dormancy, inactivity, or
service fee that may be charged;
b. how often such fee may be assessed; and
c. that such fee may be assessed for inactivity
(12 CFR 1005.20(d)(2)).
24. Determine that the following disclosures and
information are provided in connection with a
gift certificate, store gift card, or general-use
prepaid card as applicable. For each type of
fee that may be imposed in connection with the
certificate or card (other than a dormancy,
inactivity, or service fee, which are discussed
above) the following information must be provided on or with the certificate or card:
a. the type of fee;
b. the amount of the fee (or an explanation of
how the fee will be determined);
c. the conditions under which the fee may be
imposed; and
d. a toll free number, and if one is maintained,
a website that a consumer may use to
obtain information about the fees described
in paragraphs 12 CFR 1005.20(d)(2) and 12
CFR 1005.20(f)(1) (described immediately
above) of this section must be disclosed on
the certificate or card (12 CFR 1005.20(f)).
25. If an expiration date applies to a certificate or
card, determine that the following disclosures
are provided on the certificate or card, as
applicable:
a. the expiration date for the underlying funds
or, if the underlying funds do not expire, that
fact;
b. a toll-free telephone number and, if one is
maintained, a website that a consumer may
use to obtain a replacement certificate or
card after the certificate or card expires if
the underlying funds may be available; and
c. except where a non-reloadable certificate
or card bears an expiration date that is at
least seven years from the date of manufacture, a statement, disclosed with equal
Consumer Compliance Handbook

26. Determine that a loyalty, award, or promotional
gift card sold or issued by the examined
institution sets forth the following disclosures,
as applicable: (12 CFR 1005.20(a)(4)(iii))
a. a statement on the front of the card, code,
or other device, indicating that the card,
code, or other device is issued for loyalty,
award, or promotional purposes;
b. the expiration date for the underlying funds
on the front of the card, code, or other
device;
c. the amount of any fees that may be
imposed in connection with the card, code,
or other device, and the conditions under
which they may be imposed. This disclosure must be provided on or with the card,
code, or other device; and
d. a toll-free telephone number and, if one is
maintained, a website that a consumer may
use to obtain fee information on the card,
code, or other device.
27. Determine that a person (examined institution)
that issues or sells a gift certificate, store gift
card, or general-use prepaid card discloses to
the consumer, prior to purchase, the information required by 12 CFR 1005.20(d)(2) (dormancy, inactivity, or service fees), 12 CFR
1005.20(e)(3) (expiration date or phone and
web regarding replacement), and 12 CFR
1005.20(f)(1) (other fees). (12 CFR 1005.20(c)
(3))
28. Determine that the fees, terms, and conditions
of expiration that are required to be disclosed
prior to purchase are not changed after
purchase. (12 CFR 1005.20(c)(3))
29. Determine that no person (examined institution)
imposes a dormancy, inactivity, or service fee
with respect to a gift certificate, store gift card,
or general-use prepaid card, unless (12 CFR
1005.20(d))
a. there has been no activity with respect to
the certificate or card, in the one year
period ending on the date on which the fee
is imposed;
b. required disclosures are provided; and
Reg. E • 45 (11/13)

Electronic Fund Transfer Act: Examination Procedures

c. not more than one dormancy, inactivity, or
service fee is imposed in any given calendar month.
30. Determine that the person (examined institution) does not sell or issue a gift certificate,
store gift card, or general-use prepaid card
with an expiration date unless (12 CFR 1005.20
(e))
a. required expiration date disclosures are
provided on the certificate or card, as
applicable;
b. it has established policies and procedures
to provide consumers with a reasonable
opportunity to purchase a certificate or card
with at least five years remaining until the
certificate or card expiration date;
c. the expiration date for the underlying funds
is at least the later of
i.

five years after the date the gift certificate was initially issued, or the date on
which funds were last loaded to a store
gift card or general-use prepaid card;
or

ii.

the certificate or card expiration date, if
any; and

d. no fee or charge is imposed on the
cardholder for replacing the gift certificate,
store gift card, or general-use prepaid card
or for providing the certificate or card
holder with the remaining balance in some
other manner prior to the funds expiration
date, unless such certificate or card has
been lost or stolen.

Section III—Subpart B: Requirements
for remittance transfers
If an entity provides remittance transfers in its
‘‘normal course of business,’’ it is a remittance
transfer provider subject to the rule and should be
examined based on the following procedures.20

relates to the provider’s remittance program.
Examples of this include but are not limited to:
a. list of divisions or departments involved in
offering or providing remittance transfers (e.g.
retail, high net worth, prepaid cards, bill payment, online or mobile banking, foreign exchange and/or treasury departments);
b. remittance transfer products offered;
c. disclosure forms in all languages (as applicable);
d. list of foreign countries to which the provider
sends remittance transfers;
e. list of all foreign currencies in which remittance
transfers sent by the provider may be received
where there are limitations on such currencies,
and identification of the currencies in which the
provider controls the exchange rate;
f. list of all third-party service providers or business partners involved in remittance transfers,
including correspondent banks, payment networks, payment processors, software providers, foreign currency providers, agents in the
United States or abroad, or similar entities;
g. locations of U.S. and foreign agents;
h. applicable documentation related to remittance
transfer operations (e.g., transaction logs, agent/
correspondent agreements, advertising and
marketing material including any done in foreign languages, and documentation regarding
calculation or estimates of fees, taxes, exchange rates, and dates included on disclosures);
i.

procedural manuals and written policies;

j.

error resolution files;

k. form letters used in case of errors or questions
concerning a remittance transfer (including any
provided in foreign languages);
l.

any agreements with third parties allocating
compliance responsibilities; and

Transaction-related examination
procedures

m. consumer complaint files.

As applicable, conduct transaction testing using
the following examination procedures.

General form of disclosures—12 CFR
1005.31

Obtain and review all available information as it
20. Subpart B does provide for a 100-transfer ‘‘safe harbor.’’
For an entity to qualify for this ‘‘safe harbor,’’ it must have provided
100 or fewer remittance transfers in the current calendar year and
the previous calendar year. If an entity crosses the 100-transfer
threshold either in the previous calendar year or the current
calendar year, it is deemed to be providing remittance transfers in
its ‘‘normal course of business’’ and it must begin complying with
the rule within a reasonable period of time (not to exceed six
months) unless, under the facts and circumstances, it would not
be deemed a provider.

46 (11/13) • Reg. E

1. Obtain and review a sample of the provider’s
disclosure forms for the provider’s various
remittance transfer products. Include disclosures as provided for various products and
through various channels (e.g., in-person,
through a website, by telephone, through a
mobile phone application, text message). From
your review, verify that:
a. disclosures are in the appropriate form and
Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Procedures

are clear and conspicuous;
b. written and electronic disclosures are in a
retainable form (except where expressly
permitted not to be retainable);
c. the provider’s policy for providing oral
disclosures is appropriate for the related
transactions;
d. copies of scripts used for oral disclosures
comply with the regulation;
e. disclosures comply with the format requirements regarding grouping of like items,
proximity, prominence and size, and segregation from other information; and
f. disclosure of amounts required to be disclosed under 12 CFR 1005.31(b) (1), (2),
and (3), use the appropriate terms (e.g.,
transfer amount, transfer taxes, currency) or
substantially similar terms.
2. If applicable, determine whether the provider
complies with the foreign language disclosure
requirements as outlined under 12 CFR
1005.31(g).

Prepayment disclosures—12 CFR
1005.31(b)(1)
3. Based on a review of the provider’s policies
and if appropriate, sampled transactions, determine that it appropriately categorizes thirdparty fees as covered or non-covered.
4. Based on a review of the provider’s policies on
prepayment disclosures and if appropriate,
sampled prepayment disclosures and related
documentation, determine whether the provider appropriately calculates and discloses
a. in the currency in which the remittance
transfer is funded:
i.

ii.

the amount that will be transferred to
the designated recipient, using the term
‘‘Transfer Amount’’ or a substantially
similar term;
fees imposed and taxes collected on
the remittance transfer by the provider,
using the terms ‘‘Transfer Fees’’ and
‘‘Transfer Taxes’’ or substantially similar
terms; and

iii. the total amount of the transaction using
the term ‘‘Total’’ or a substantially
similar term;
b. the exchange rate used by the provider for
the remittance transfer using the term
‘‘Exchange Rate’’ or a substantially similar
term;
c. in the currency in which the funds will be
Consumer Compliance Handbook

received by the designated recipient:
i.

the transfer amount in the currency but
only if covered third-party fees are
imposed using the term ‘‘Transfer
Amount’’ or a substantially similar term;

ii.

any covered third-party fees imposed
on the remittance transfer using the
term, ‘‘Other Fees’’ or a substantially
similar term;

iii. the amount that will be received by the
designated recipient (total amount of
the transaction minus covered thirdparty fees) using the term ‘‘Total to
Recipient’’ or a substantially similar
term; and
iv. if applicable, a statement that noncovered third-party fees or taxes collected on the remittance transfer by a
third person may apply to the remittance transfer and result in the designated recipient receiving less than the
amount disclosed.
d. If the provider includes in the statement
under (c)(iii) above, the optional estimated
disclosure of applicable non-covered thirdparty fees or taxes, determine if the estimates are based on reasonable sources.
NOTE: The exchange rate used to calculate the
amounts under (c) is prior to any rounding.

Receipt disclosures—12 CFR
1005.31(b)(2)
5. Review policies on receipt disclosures, sample
receipts, and related documentation to determine whether the provider appropriately calculates and discloses:
a. information disclosed in the prepayment
disclosure;
b. the date in the foreign country on which
funds will be available to the designated
recipient, using the term ‘‘Date Available’’ or
a substantially similar term;
c. the name and, if provided by the sender,
the telephone number and/or address of
the designated recipient, using the term
‘‘Recipient’’ or a substantially similar term;
d. a statement about the rights of the sender
regarding the resolution of errors and
cancellation;
e. the name, telephone number(s), and website of the remittance transfer provider; and
f. a statement that the sender can contact the
Consumer Financial Protection Bureau
Reg. E • 47 (11/13)

Electronic Fund Transfer Act: Examination Procedures

(CFPB) and if applicable, the state agency
that licenses or charters the remittance
transfer provider with respect to the remittance transfer and for questions or complaints about the remittance transfer provider, as well as their telephone number(s)
and website addresses.

b. For amounts that are not estimates, confirm
that the disclosed amounts were accurate
at the time that payment was made.

NOTE: For any remittance transfer scheduled by
the sender at least three business days before the
date of the transfer, the statement about the rights
of the sender regarding cancellation must state that
the sender must request the cancellation, at least
three business days before the next scheduled
transfer. The statement must also note that the
request must enable the provider to identify the
sender’s contact information and the particular
transfer to be cancelled.

d. In the case of estimates pursuant to 1005.32
(a), (b)(1), and (b)(2) that are based on an
approach that is not one of the listed bases
in 1005.32(c), determine that the recipient
received the same, or greater, amount of
funds than what was disclosed.

Combined disclosures—12 CFR
1005.31(b)(3)
NOTE: Complete this section only if the provider
provides combined disclosures as an alternative to
the prepayment and receipt disclosures.
6. Review policies on combined disclosures,
sample disclosures and related documentation
to
a. determine that they contain all the information required for the prepayment disclosure
and receipt disclosure as described above;

c. For amounts that are estimates, determine
whether the estimates were calculated
correctly, in accordance with the applicable
bases outlined in 12 CFR 1005.32.

8. Review processes and procedures or records,
as appropriate, to determine whether the
required disclosures are provided in accordance with the timing requirements in 12 CFR
1005.31(e).
a. Determine whether prepayment disclosures
are provided when the sender requests the
remittance transfer, but prior to payment.
b. Determine whether receipts are provided
when payment is made, or in accordance
with 1005.31(e)(2) for transactions conducted by telephone.

Long-form error resolution and
cancellation notice—12 CFR
1005.31(b)(4)

b. determine that the provider provides a
proof of payment after payment is made for
each transaction; and

9. Determine the provider’s policy for providing
long-form error resolution and cancellation
notices to senders upon request.

c. determine that the proof of payment is clear
and conspicuous, provided in writing or
electronically, and provided in a retainable
form.

10. Review the provider’s records of senders’
requests and determine that a long-form error
resolution and cancellation notice is promptly
provided in response to each request.

Accuracy and timing—12 CFR
1005.31(e) and (f)
7. Review, as appropriate, all available information including transactions or investigation/
trace logs/records or similar documents to
verify (subject to the disclaimer statement with
respect to non-covered third-party fees and
third-party taxes) the accuracy of disclosures
provided to consumers.
a. In instances in which prepayment disclosures and receipts are provided that do not
contain estimates, confirm with respect to
any transaction for which payment was
made, that the information on the most
recent prepayment disclosure for that transaction and the information on the receipt for
that transaction are the same.
48 (11/13) • Reg. E

11. Review sample notices to determine that they
use language set forth in Model Form A-36
(Model Form for Error Resolution and Cancellation Disclosures (Long) of Appendix A to
subpart B) or substantially similar language.

Estimates—12 CFR 1005.32
Temporary exception for insured
institutions—12 CFR 1005.32(a)
12. Determine that the remittance transfer provider
is an insured institution within the definition of
the rule. If it is, review the appropriate information including transaction log/records, etc., to
identify remittance transfer transactions that
were sent from the sender’s account with the
institution. From the list, identify transactions for
which estimates were used.
Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Procedures

NOTE: An insured institution acting as an agent on
behalf of another in connection with a remittance
transfer is not a remittance transfer provider.

remittance transfer-related disclosures to determine if the provider relied on the list in
making estimates.

13. Review transactions for which estimates were
used, as well as related disclosures, and any
other relevant procedures, processes, and
documentation of information included in disclosures, as appropriate, to

16. Determine whether the provider gave estimates
for transactions to a country that is not on the
list provided by the CFPB. Review related
documentation to confirm that the recipient
country does not legally permit, or the method
by which transactions are conducted in that
country does not permit determination of exact
amounts.

a. assess the adequacy of the provider’s
policy and procedures for determining that
a provider could not determine exact
amounts for reasons beyond its control;
b. determine that estimates were used only in
cases when the provider could not determine the exact amounts for reasons beyond
its control;

17. Review records to determine
a. the bases used for the estimates under 12
CFR 1005.32 (c) and their appropriateness:
i.

If estimates were provided in accordance with one of the bases listed in 12
CFR 1005.32(c), review documentation
to confirm that inputs to estimates are
appropriate; or

ii.

If estimates are based on an approach
that is not one of the listed bases,
determine as appropriate, that the designated recipient received the same, or
greater, amount of funds than the
remittance transfer provider disclosed.

c. determine the bases used for the estimates
under 12 CFR 1005.32(c) and consider
their appropriateness, and
i.

if estimates were provided in accordance with one of the bases listed in
Regulation E (12 CFR 1005.32(c)), review documentation to confirm that
inputs to estimates are appropriate;

ii.

if estimates are based on an approach
that is not one of the listed bases,
determine as appropriate, that the designated recipient received the same, or
greater, amount of funds than the
remittance transfer provider disclosed.

d. determine that the estimated amounts are
appropriately labeled with the term ‘‘Estimated’’ or a substantially similar term,
placed in close proximity to the term
described; and
e. determine that related calculations were
performed appropriately.
NOTE: Unless extended by the CFPB, this exception will not apply after July 21, 2015.

Permanent exception for transfers to certain
countries—12 CFR 1005.32(b)(1)
14. Review and assess the adequacy of the
provider’s policy for determining that

b. that the estimated amounts are appropriately labeled with the term ‘‘Estimated’’ or a
substantially similar term, placed in close
proximity to the term described.

Permanent exception for transfers scheduled
before the date of transfer—12 CFR
1005.32(b)(2)
18. Review and assess the adequacy of the
provider’s policy and procedures for using
estimates in the case of transfers scheduled
five or more business days before the date of
transfer.
19. Review and assess transactions for which
estimates were used as well as related disclosures (required by 12 CFR 1005.36(a)) and any
other relevant documentation, as appropriate,
to determine compliance with 12 CFR 1005.32
(b)(2).

a. the laws of the recipient country do not
permit a determination of the exact amount;
or

Procedures for resolving errors—12 CFR
1005.33

b. the methods by which transactions are
made in the recipient country do not permit
such determination.

20. Review the provider’s policies and procedures
on error resolution.

15. Review the provider’s transaction log/records
to identify remittance transactions that were
sent to countries on the list provided by the
CFPB for which estimates may be provided on
Consumer Compliance Handbook

21. Review relevant error resolution statements/
files, consumer complaints, form letters, etc.,
used in addressing errors or questions concerning remittance transfer transactions.
22. Assess the provider’s compliance program to
Reg. E • 49 (11/13)

Electronic Fund Transfer Act: Examination Procedures

determine whether it has developed and maintains adequate written policies and procedures
designed to ensure compliance with the error
resolution requirements applicable to remittance transfers.
Consider:
a. the procedures for receiving complaints of
error from branches, agents, or other locations where a consumer may lodge a
complaint;
b. the procedures for identifying complaints
alleging ‘‘errors’’ as identified in 12 CFR
1005.33(a); and
c. the procedures for investigating, responding to, and resolving complaints.
23. Determine the extent of the provider’s compliance with its policies and procedures on error
resolution.
24. Determine the provider’s compliance with the
regulatory requirements regarding investigation of alleged errors and notification of consumers within the allotted time frames.
25. Determine the timeliness and adequacy of
remedies the provider provides to address
identified errors.

i.

an incorrect amount paid by the sender;

ii.

a computational or bookkeeping error
made by the remittance transfer provider; or

iii. failure to make the amount of currency
stated in the disclosures available to
the designated recipient.
26. Determine whether the provider either
a. refunds the amount of funds provided by
the sender (in case of a transaction that was
not properly transmitted) or the amount
appropriate to resolve the error; or
b. makes available to the designated recipient
the amount appropriate to resolve the error
without additional cost to the sender or the
designated recipient.
c. If the error relates to the failure to make
funds available to the designated recipient
by the disclosed date of availability (other
than an error resulting from incorrect or
insufficient information provided by the
sender), determine whether the provider
i.

1. refunds the amount of funds that was
not properly transmitted or the
amount appropriate to resolve the
error to the sender; or

a. For errors other than those that occurred
because the sender provided incorrect or
insufficient information, consider
i.

if the provider provided the sender
notice regarding the error investigation;

ii.

if the sender requested a remedy,
determine whether the provider provides the remedy selected by the
sender. If a default remedy is provided,
determine whether the sender had a
reasonable time to designate a remedy
after receiving a report of the error.

iii. if the remedy is delivery of the amount
appropriate to correct the error, determine whether the provider corrects the
error within one business day, or as
soon as reasonably practicable, applying the same exchange rate, fees, and
taxes stated in the disclosure provided
in connection with the remittance transfer with respect to which the error was
made;
iv. if the remedy is a refund, determine
whether the provider refunds the appropriate amount within one business day
or as soon as reasonably practicable
thereafter.
b. If the provider determines that an error
occurred that relates to
50 (11/13) • Reg. E

either:

2. makes available to the designated
recipient the amount appropriate to
resolve the error; and
ii.

refunds to the sender any fees and, to
the extent not prohibited by law, taxes
collected on the remittance transfer.

d. In the case of errors involving incorrect or
insufficient information provided by the
sender for the transfer
i.

determine whether the provider refunds
to the sender the amount of funds that
was not properly transmitted, or the
amount appropriate to resolve the error,
within three business days of providing
the written explanation of findings;

ii.

alternatively, if the provider has not yet
processed a refund and agrees to the
sender’s request to apply the funds
toward a new remittance transfer, instead of a refund, determine whether
the provider treats the request as a new
remittance transfer, provides the appropriate disclosures, and appropriately
deducts those fees and taxes actually
collected for the original unsuccessful
transaction.

27. Determine that the provider is maintaining
Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Procedures

records of compliance for a period of not less
than two years from the date a notice of error
was submitted to the provider or action was
required to be taken by the provider.

Procedures for cancellation and refund
of remittance transfers—12 CFR 1005.34
and 12 CFR 1005.36(c)
28. Review and assess the provider’s policies and
procedures regarding cancellation and refund
of remittance transfer transactions, including:
a. the procedures for receiving requests of
cancellation from branches, agents, or
other locations where a consumer may
request cancellation
b. the procedures for identifying which transactions are eligible for cancellation
c. the procedures for issuing refunds
29. Determine the extent of the provider’s compliance with its own policies and procedures on
cancellation and refund.
30. Determine the provider’s compliance with the
regulatory requirements regarding senders’
request for cancellation and refund.
31. Determine whether the provider complies with
any oral or written request to cancel any
remittance transfer scheduled by the sender at
least three business days before the date of the
remittance transfer.

Acts of agents—12 CFR 1005.35
NOTE: Complete this section if the provider uses
agent(s) to conduct any element of remittance
transfer transactions.
32. Review the provider’s agreements with agents
used for remittance transfers to determine
whether they are appropriate for the activities
delegated.
33. Determine whether the provider has established appropriate internal controls and review
procedures in relation to the work done by
agents on its behalf to ensure compliance with
the regulatory requirements. Consider
a. the extent to which the provider has established and maintained policies or procedures for compliance, including policies,
procedures, or other appropriate oversight
measures designed to assure compliance
by an agent or authorized delegate acting
for such provider including:
i.

the degree of control the agent exercises over the remittance transfer activities performed on the provider’s behalf;

Consumer Compliance Handbook

ii.

the quality and frequency of training
provided to ensure that agents are
aware of the regulatory requirements
and the provider’s internal policy guidelines; and

iii. the adequacy of the provider’s oversight of agents’ activities.
34. Select a sample of agents used by the provider
and review their records in addition to relevant
records held by the provider directly to determine that the activities performed by the agent
on the provider’s behalf are in compliance with
the regulatory requirements.

Transfers scheduled before the date of
transfer—12 CFR 1005.36
35. Review and assess the adequacy of the
provider’s policies and procedures regarding
transfers scheduled before the date of transfer.
36. As appropriate, select a sample of records of
transfers scheduled in advance to determine
whether the provider complies with the timing
of disclosures, accuracy of disclosures (and
estimates pursuant to 1005.32(b)(2)), and the
sender’s request for cancellation. Use the
same methods identified in the sections above,
regarding other disclosures. Consider the following:
a. For one-time transfers scheduled five or
more business days in advance or for the
first in a series of preauthorized remittance
transfers, determine whether the provider
provides either a prepayment disclosure
and a receipt or a combined disclosure at
the time the sender requests the transfer
but prior to payment.
(NOTE: If any of the disclosures provided contain
estimates as permitted by 12 CFR. 1005.32(b)(2),
the provider must mail or deliver an additional
receipt no later than one business day after the
date of the transfer. If the transfer involves the
transfer of funds from the sender’s account held by
the provider, this additional receipt may be provided on or with the next periodic statement for that
account or within 30 days after the date of the
transfer if a periodic statement is not provided).
b. For each subsequent preauthorized remittance transfer, determine whether the provider provides an updated receipt if any of
the information (other than temporal disclosures or disclosures that are permitted to
be estimated) on the most recent receipt is
no longer accurate.
(NOTE: The receipt must clearly and conspicuously
indicate that it contains updated disclosures and
Reg. E • 51 (11/13)

Electronic Fund Transfer Act: Examination Procedures

must be mailed or delivered to the sender within a
reasonable time prior to the scheduled date of the
next subsequent preauthorized remittance transfer.
A disclosure that is mailed no later than 10
business days or hand or electronically delivered
no later than 5 business days is deemed to have
been provided within a reasonable time).
c. If there is no updated information and the
remittance transfer does not involve the
transfer of funds from the sender’s account
held by the provider, determine whether the
provider mails or delivers a receipt to the
sender no later than one business day after
the date of the transfer for each subsequent
preauthorized transfer.
d. If there is no updated information and the
remittance transfer involves the transfer of
funds from the sender’s account held by the
provider, determine whether the receipt is
provided on or with the next periodic
statement for that account, or within 30
days after the date of the transfer if a
periodic statement is not provided.
e. For any subsequent transfer in a series of
preauthorized remittance transfers, determine whether the provider discloses the
information required by 12 CFR 1005.36
(d)(1) no more than 12 months, and no less
than 5 business days, prior to the date of
the subsequent preauthorized remittance
transfer.
(NOTE: While the rule generally provides flexibility
as to when and where future transfer dates may be
disclosed, for any subsequent preauthorized remittance transfer for which the date of transfer is four
or fewer business days after the date payment is
made, the disclosure must generally be provided
on or with the receipt for the initial transfer in that
series).

Examiner’s Summary,
Recommendations, and Comments

52 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act (Regulation E)

Examination Checklist

This questionnaire can be used to review audit workpapers, to evaluate financial institution policies, to
perform transaction testing, and to train as appropriate. Complete only those aspects of the checklist that
specifically relate to the issue being reviewed, evaluated, or tested, and retain those completed sections in
the workpapers.
When reviewing audits, evaluating financial institution policies, or performing transaction testing, a ‘‘No’’
answer indicates a possible exception/deficiency, and you should explain it in the workpapers. If a line item
is not applicable within the area you are reviewing, indicate by using ‘‘NA.’’

Subpart A
Issuance of Access Devices—12 CFR 1005.5
1. Do the financial institution’s policies, practices, and procedures allow that
validated access devices are issued only:
• In response to oral or written requests (12 CFR 1005.5(a)(1))

Yes

No

NA

Yes

No

NA

• Not validated? (12 CFR 1005.5(b)(1))

Yes

No

NA

• Accompanied by a clear explanation that they are not validated and how
they may be disposed of if validation is not desired? (12 CFR 1005.5(b)(2))

Yes

No

NA

• Accompanied by the initial disclosures required by 12 CFR 1005.7? (12
CFR 1005.5(b)(3))

Yes

No

NA

• Validated only in response to a consumer’s request and after the financial
institution has verified the consumer’s identity by reasonable means (e.g.,
photograph, fingerprint, personal visit, and signature)? (12 CFR 1005.5
(b)(4) and Staff Commentary)

Yes

No

NA

or
• As a renewal or substitution for an accepted access device? (12 CFR
1005.5(a)(2))
2. Do the financial institution’s policies, practices, and procedures allow that
unsolicited access devices are issued only when the devices are:

Consumer Liability for Unauthorized Electronic Fund Transfers (EFTs)—12 CFR 1005.6
3. Does the financial institution impose liability on the consumer for unauthorized transfers only if: (12 CFR 1005.6(a))
• Any access device that was used was an accepted access device?

Yes

No

NA

• The institution has provided a means to identify the consumer to whom it
was issued?

Yes

No

NA

• The institution has provided the disclosures required by 12 CFR
1005.7(b)(l), (2), and (3)?

Yes

No

NA

4. Does the financial institution not rely on consumer negligence or the deposit
agreement to impose greater consumer liability for unauthorized EFTs than is
permitted under Regulation E? (12 CFR Part 1005, Supp. 1, Comments
1005.6(b)-1 and -2)

Yes

No

NA

5. If a consumer notifies the financial institution within two business days after
learning of the loss or theft of an access device, does the financial institution
limit the consumer’s liability for unauthorized EFTs to the lesser of $50 or
actual loss? (12 CFR 1005.6(b)(1))

Yes

No

NA

Consumer Compliance Handbook

Reg. E • 53 (11/13)

Electronic Fund Transfer Act: Examination Checklist

6. If a consumer does not notify the financial institution within two business days
after learning of the loss or theft of an access device, does the institution limit
the consumer’s liability for unauthorized EFTs to the lesser of $500 or the sum
of (12 CFR 1005.6(b)(2)):
• $50 or the amount of unauthorized EFTs that occurred within the two
business days, whichever is less;

Yes

No

NA

• The amount of unauthorized EFTs that occurred after the close of two
business days and before notice to the financial institution (provided the
financial institution establishes that these transfers would not have
occurred had the consumer notified the financial institution within that
two-day period)?

Yes

No

NA

7. If a consumer notifies the financial institution of an unauthorized EFT within 60
calendar days of transmittal of the periodic statement upon which the
unauthorized EFT appears, does the financial institution not hold the
consumer liable for the unauthorized transfers that occur after the 60-day
period? (12 CFR 1005.6(b)(3))

Yes

No

NA

8. If a consumer does not notify the financial institution of an unauthorized EFT
within 60 calendar days of transmittal of the periodic statement upon which
the unauthorized EFT appears, does the financial institution ensure that the
consumer’s liability does not exceed the amount of the unauthorized transfers
that occur after the close of the 60 days and before notice to the financial
institution, if the financial institution establishes that the transfers would not
have occurred had timely notice been given? (12 CFR 1005.6(b)(3))

Yes

No

NA

9. If a consumer notifies the financial institution of an unauthorized EFT within
the time frames discussed in questions 7 or 8 and the consumer’s access
device is involved in the unauthorized transfer, does the financial institution
hold the consumer liable for amounts as set forth in 12 CFR 1005.6(b)(1) or
(2) (discussed in questions 5 and 6)? (12 CFR 1005.6(b)(3))

Yes

No

NA

10. Does the financial institution extend the 60-day time period by a reasonable
amount if the consumer’s delay in notification was due to an extenuating
circumstance? (12 CFR 1005.6(b)(4))

Yes

No

NA

11. Does the financial institution consider notice to be made when the consumer
takes steps reasonably necessary to provide the institution with pertinent
information, whether or not a particular employee or agent of the institution
actually received the information? (12 CFR 1005.6(b)(5)(i))

Yes

No

NA

12. Does the financial institution allow the consumer to provide notice in person,
by telephone, or in writing? (12 CFR 1005.6(b)(5)(ii))

Yes

No

NA

13. Does the financial institution consider written notice to be given at the time the
consumer mails or delivers the notice for transmission to the institution by any
other usual means? (12 CFR 1005.6(b)(5)(iii))

Yes

No

NA

14. Does the financial institution consider notice given when it becomes aware of
circumstances leading to the reasonable belief that an unauthorized transfer
to or from the consumer’s account has been or may be made? (12 CFR
1005.6(b)(5)(iii))

Yes

No

NA

15. Does the financial institution limit the consumer’s liability to a lesser amount
than provided by 12 CFR 1005.6, when state law or an agreement between
the consumer and the financial institution provide for such an amount? (12
CFR 1005.6(b)(6))

Yes

No

NA

Plus

NOTE: The first two tiers of liability (as set forth in 12 CFR 1005.6(b)(1) and (2)
and discussed in questions 5 and 6) do not apply to unauthorized transfers
from a consumer’s account made without an access device. (Comment
1005.6(b)(3)-2)

54 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

Initial Disclosures—12 CFR 1005.7
16. Does the financial institution provide the initial disclosures at the time a
consumer contracts for an EFT service or before the first EFT is made
involving the consumer’s account? (12 CFR 1005.7(a))

Yes

No

NA

• A summary of the consumer’s liability for unauthorized transfers under 12
CFR 1005.6 or under state or other applicable law or agreement? (12 CFR
1005.7(b)(1))

Yes

No

NA

• The telephone number and address of the person or office to be notified
when the consumer believes that an unauthorized EFT has been or may be
made? (12 CFR 1005.7(b)(2))

Yes

No

NA

• The financial institution’s business days? (12 CFR 1005.7(b)(3))

Yes

No

NA

• The type of EFTs the consumer may make and any limits on the frequency
and dollar amount of transfers? (If details on the limits on frequency and
dollar amount are essential to maintain the security of the system, they
need not be disclosed.) (12 CFR 1005.7(b)(4))

Yes

No

NA

• Any fees imposed by the financial institution for EFTs or for the right to make
transfers? (12 CFR 1005.7(b)(5))

Yes

No

NA

• A summary of the consumer’s right to receive receipts and periodic
statements, as provided in 12 CFR 1005.9, and notices regarding
preauthorized transfers as provided in 12 CFR 1005.10(a) and 1005.10(d)?
(12 CFR 1005.7(b)(6))

Yes

No

NA

• A summary of the consumer’s right to stop payment of a preauthorized EFT
and the procedure for placing a stop payment order, as provided in 12 CFR
1005.10(c)? (12 CFR 1005.7(b)(7))

Yes

No

NA

• A summary of the financial institution’s liability to the consumer for its failure
to make or to stop certain transfers under the Electronic Fund Transfer Act?
(12 CFR 1005.7(b)(8))

Yes

No

NA

• The circumstances under which the financial institution, in the ordinary
course of business, may disclose information to third parties concerning
the consumer’s account? (12 CFR 1005.7(b)(9))

Yes

No

NA

• An error resolution notice that is substantially similar to Model Form A-3 in
Appendix A? (12 CFR 1005.7(b)(10))

Yes

No

NA

• A notice that a fee may be imposed by an ATM operator (as defined in 12
CFR 1005.16(a)) when the consumer initiates an EFT or makes a balance
inquiry and by any network used to complete the transaction? (12 CFR
1005.7(b)(11))

Yes

No

NA

18. Does the financial institution provide disclosures at the time a new EFT
service is added, if the terms and conditions of the service are different than
those initially disclosed? (12 CFR 1005.7(c))

Yes

No

NA

Yes

No

NA

17. Do the financial institution’s initial disclosures provide the following
information, as applicable:

Change-in-Terms Notice; Error Resolution Notice—12 CFR 1005.8
19. If the financial institution made any changes in terms or conditions required
to be disclosed under 12 CFR 1005.7(b) that would result in increased fees,
increased liability, fewer types of available EFTs, or stricter limits on the
frequency or dollar amount of transfers, did the financial institution provide a
written notice to consumers at least 21 days prior to the effective date of such
change? (12 CFR 1005.8(a))

Consumer Compliance Handbook

Reg. E • 55 (11/13)

Electronic Fund Transfer Act: Examination Checklist

20. Does the financial institution provide either the long-form error resolution
notice at least once every calendar year or the short-form error resolution
notice on each periodic statement? (12 CFR 1005.8(b))

Yes

No

NA

Yes

No

NA

• The amount of the transfer? (12 CFR 1005.9(a)(1))

Yes

No

NA

• The date the transfer was initiated? (12 CFR 1005.9(a)(2))

Yes

No

NA

• The type of transfer and the type of account to or from which funds were
transferred? (12 CFR 1005.9(a)(3))

Yes

No

NA

• A number or code that identifies the consumer’s account or the access
device used to initiate the transfer? (12 CFR 1005.9(a)(4))

Yes

No

NA

• The terminal location where the transfer is initiated? (12 CFR 1005.9(a)(5))

Yes

No

NA

• The name or other identifying information of any third party to or from whom
funds are transferred? (12 CFR 1005.9(a)(6))

Yes

No

NA

23. Does the financial institution send a periodic statement for each monthly
cycle in which an EFT has occurred? If no EFT occurred, does the financial
institution send a periodic statement at least quarterly? (12 CFR 1005.9(b))

Yes

No

NA

Receipts at Electronic Terminals; Periodic Statements—12 CFR 1005.9
21. Does the financial institution make receipts available to the consumer at the
time the consumer initiates an EFT at an electronic terminal? The financial
institution is exempt from this requirement for EFTs of $15 or less. (12 CFR
1005.9(a) and (e))
22. Do the receipts contain the following information, as applicable:

24. Does the periodic statement contain the following information, as applicable:
• Transaction information for each EFT occurring during the cycle, including
the amount of transfer, date of transfer, type of transfer, terminal location,
and name of any third-party transferor or transferee? (12 CFR 1005.9(b)(1))

Yes

No

NA

• Account number? (12 CFR 1005.9(b)(2))

Yes

No

NA

• Fees? (12 CFR 1005.9(b)(3))

Yes

No

NA

• Account balances? (12 CFR 1005.9(b)(4))

Yes

No

NA

• Address and telephone number for inquiries? (12 CFR 1005.9(b)(5))

Yes

No

NA

• Telephone number to ascertain preauthorized transfers, if the financial
institution provides telephone notice under 12 CFR 1005.10(a)(1)(iii)? (12
CFR 1005.9(b)(6))

Yes

No

NA

• Provide oral or written notice, within two business days, after the transfer
occurs? (12 CFR 1005.10(a)(1)(i))

Yes

No

NA

• Provide oral or written notice, within two business days after the transfer
was scheduled to occur, that the transfer did or did not occur? (12 CFR
1005.10(a)(1)(ii))

Yes

No

NA

• Provide a readily available telephone line that the consumer can call to
determine if the transfer occurred and that telephone number is disclosed
on the initial disclosure of account terms and on each periodic statement?
(12 CFR 1005.10(a)(1)(iii))

Yes

No

NA

Preauthorized Transfers—12 CFR 1005.10
25. If a consumer’s account is to be credited by a preauthorized EFT from the
same payor at least once every 60 days (and the payor does not already
provide notice to the consumer that the transfer has been initiated) (12 CFR
1005.10(a)(2)), does the financial institution do one of the following:

56 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

26. Does the financial institution credit the amount of a preauthorized transfer as
of the date the funds for the transfer are received? (12 CFR 1005.10(a)(3))

Yes

No

NA

27. Does the financial institution ensure that an authorization is obtained for
preauthorized transfers from a consumer’s account by a written, signed or
similarly authenticated authorization, and is a copy of the authorization
provided to the consumer? (12 CFR 1005.10(b))

Yes

No

NA

28. Does the financial institution allow the consumer to stop payment on a
preauthorized EFT by oral or written notice at least three business days
before the scheduled date of the transfer? (12 CFR 1005.10(c)(1))

Yes

No

NA

29. If the financial institution requires that the consumer give written confirmation
of an oral stop-payment order within 14 days, does the financial institution
inform the consumer, at the time they give oral notification, of the requirement
and provide the address where they must send the written confirmation?

Yes

No

NA

Yes

No

NA

Yes

No

NA

• The notice contains the amount and date of transfer?

Yes

No

NA

• The notice is sent at least 10 days before the scheduled date of transfer?
(12 CFR 1005.10(d)(1))

Yes

No

NA

32. Does the financial institution not condition an extension of credit to a
consumer on the repayment of loans by preauthorized EFT, except for credit
extended under an overdraft credit plan or extended to maintain a specified
minimum balance in the consumer’s account? (12 CFR 1005.10(e)(1))

Yes

No

NA

33. Does the financial institution not require a consumer to establish an account
for EFTs with a particular institution as a condition of employment or receipt
of government benefits? (12 CFR 1005.10(e)(2))

Yes

No

NA

34. Does the financial institution have procedures to investigate and resolve all
oral or written notices of error received no later than 60 days after the
institution sends the periodic statement or provides passbook documentation? (12 CFR 1005.11(b)(2))

Yes

No

NA

35. If the financial institution requires written confirmation of an error within 10
business days of an oral notice, does the financial institution inform the
consumer of this requirement and provide the address where the written
confirmation must be sent? (12 CFR 1005.11(b)(2))

Yes

No

NA

36. Does the financial institution have procedures to investigate and resolve
alleged errors within 10 business days, except as otherwise provided in 12
CFR 1005.11(c)? (12 CFR 1005.11(c)(1))

Yes

No

NA

NOTE: An oral stop-payment order ceases to be binding after 14 days if the
consumer fails to provide the required written confirmation. (12 CFR
1005.10(c)(2))
30. Does the financial institution inform, or ensure that third-party payees inform,
the consumer of the right to receive notice of all varying transfers?
or
Does the financial institution give the consumer the option of receiving notice
only when a transfer falls outside a specified range of amounts or differs from
the most recent transfer by an agreed-upon amount? (12 CFR 1005.10(d)(2))
31. If the financial institution or third-party payee is obligated to send the
consumer written notice of the EFT of a varying amount, does the financial
institution ensure that:

Procedures for Resolving Errors—12 CFR 1005.11

NOTE: The time period is extended in certain circumstances. (12 CFR
1005.11(c)(3))

Consumer Compliance Handbook

Reg. E • 57 (11/13)

Electronic Fund Transfer Act: Examination Checklist

37. Does the financial institution report investigation results to the consumer
within three business days after completing its investigation and correct any
error within one business day after determining that an error occurred? (12
CFR 1005.11(c)(1))

Yes

No

NA

• Does the financial institution provisionally credit the consumer’s account in
the amount of the alleged error (including interest, if applicable) within 10
business days of receiving the error notice (however, if the financial
institution requires, but does not receive, written confirmation within 10
business days, the financial institution is not required to provisionally credit
the consumer’s account)?

Yes

No

NA

• Within two business days after granting any provisional credit, does the
financial institution inform the consumer of the amount and date of the
provisional credit and gives the consumer full use of the funds during the
investigation?

Yes

No

NA

• Within one business day after determining that an error occurred, does the
financial institution correct the error?

Yes

No

NA

• Does the financial institution report the results to the consumer within three
business days after completing its investigation including, if applicable,
notice that provisional credit has been made final? (12 CFR 1005.11(c))

Yes

No

NA

39. If a billing error occurred, does the financial institution not impose a charge
related to any aspect of the error-resolution process? (Comment 1005.11
(c)-3)

Yes

No

NA

40. If the financial institution determines that no error occurred (or that an error
occurred in a manner or amount different from that described by the
consumer), does the financial institution send a written explanation of its
findings to the consumer and note the consumer’s right to request the
documents the financial institution used in making its determination? (12 CFR
1005.11(d)(1))

Yes

No

NA

41. When the financial institution determines that no error (or a different error)
occurred, does the financial institution notify the consumer of the date and
amount of the debiting of the provisionally credited amount and the fact that
the financial institution will continue to honor checks and drafts to third parties
and preauthorized transfers for five business days (to the extent that they
would have been paid if the provisionally credited funds had not been
debited)? (12 CFR 1005.11(d)(2))

Yes

No

NA

Yes

No

NA

Yes

No

NA

38. If the financial institution is unable to complete its investigation within 10
business days, does the financial institution have procedures to investigate
and resolve alleged errors within 45 calendar days of receipt of a notice of
error; and:

NOTE: The time period is extended in certain circumstances. (12 CFR
1005.11(c)(3))

Record Retention—12 CFR 1005.13
42. Does the financial institution maintain evidence of compliance with the
requirements of the Electronic Fund Transfer Act and Regulation E for a
period of two years? (12 CFR 1005.13(b))

Disclosures at Automated Teller Machines (ATM)—12 CFR 1005.16
43. If the financial institution operates an ATM and imposes a fee on a consumer
for initiating an EFT or balance inquiry, does the financial institution provide
notice that a fee will be imposed and disclose the amount of the fee? (12 CFR
1005.16(b))

58 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

44. Does the financial institution provide the notice required by 12 CFR
1005.16(b) either by showing it on the ATM screen or by providing it on paper
before the consumer is committed to paying a fee? (12 CFR 1005.16(c))

Yes

No

NA

45. Does the financial institution’s Overdraft Protection Program incorporate any
guidance issued by its federal regulator, as applicable?

Yes

No

NA

46. Does the financial institution’s Overdraft Protection Program provide
‘‘overdraft services,’’ i.e., charge fees for paying ATM and one-time debit
overdrafts? (12 CFR 1005.17(a)) If no, do not complete this section.

Yes

No

NA

• Provide the consumer with a notice in writing, or if the consumer agrees,
electronically, that is segregated from all other information and describes
the institution’s overdraft service (12 CFR 1005.17(b)(1)(i));

Yes

No

NA

• Provide a reasonable opportunity for the consumer to affirmatively consent,
or opt-in, to the institution’s payment of ATM and one-time debit card
transactions (12 CFR 1005.17(b)(1)(ii));

Yes

No

NA

• Obtain the consumer’s affirmative consent, or opt-in, to the institution’s
payment of ATM or one-time debit card transactions (12 CFR 1005.17(b)
(1)(iii)); and

Yes

No

NA

• Provide the consumer with confirmation of the consumer’s consent in
writing, or if the consumer agrees, electronically, which includes a
statement informing the consumer of the right to revoke such consent? (12
CFR 1005.17(b)(1)(iv))

Yes

No

NA

48. Does the financial institution ensure that it does not condition the payment of
any overdrafts for checks, ACH transactions, and other types of transactions
on the consumer affirmatively consenting to the institution’s payment of ATM
and one-time debit card transactions pursuant to the institution’s ‘‘overdraft
services’’? (12 CFR 1005.17(b)(2)(i))

Yes

No

NA

49. Does the financial institution pay checks, ACH transactions, and other types
of transactions that overdraw the consumer’s account regardless of whether
the consumer has affirmatively consented to the institution’s overdraft
protection service for ATM and one-time debit card transactions? (12 CFR
1005.17(b)(2)(ii))

Yes

No

NA

50. For consumers who have not opted in, and if an overdraft fee or charge is
based on the amount of the outstanding negative balance, does the
institution only assess fees where the negative balance is attributable in
whole or in part to a check, ACH, or other type of transaction not subject to
the prohibition on assessment of overdraft fees?

Yes

No

NA

For consumers who have not opted in, does the financial institution only
assess daily or sustained overdraft, negative balance, or similar fees or
charges where the negative balance is attributable in whole or in part to a
check, ACH, or other type of transaction not subject to the prohibition on
assessment of overdraft fees?

Yes

No

NA

Does the institution base the date on which such a daily or sustained
overdraft, negative balance, or similar fee or charge is assessed on the date
on which the check, ACH, or other type of transaction was paid into overdraft?
(Comment 1005.17(b)-9)

Yes

No

NA

Requirements for Overdraft Services—12 CFR 1005.17

47. If the financial institution assesses a fee or charge (NOTE: fees or charges
may generally be assessed only on transactions paid after the confirmation
has been mailed or delivered) on the consumer’s account for paying an ATM
or one-time debit card transaction pursuant to the financial institutions
overdraft service, does the financial institution first (12 CFR 1005.17(b)(1)):

Consumer Compliance Handbook

Reg. E • 59 (11/13)

Electronic Fund Transfer Act: Examination Checklist

51. Does the financial institution provide consumers who do not affirmatively
consent to the institution’s overdraft service for ATM and one-time debit card
transactions the same account terms, conditions, and features that it
provides to consumers who affirmatively consent, except for the overdraft
service for ATM and one-time debit card transactions? (12 CFR 1005.17(b)
(3))

Yes

No

NA

52. Is the notice required by (12 CFR 1005.17(b)(1)(i)) substantially similar to
Model Form A-9 set forth in Appendix A of (12 CFR 1005.17), including
applicable items from the list below, and does it not contain any additional
information? (12 CFR 1005.17(d))

Yes

No

NA

• Overdraft service—Does the notice provide a brief description of the
overdraft service and the types of transactions for which a fee or charge for
paying an overdraft may be imposed, including ATM and one-time debit
card transactions? (12 CFR 1005.17(d)(1))

Yes

No

NA

• Fees imposed—Does the notice contain the dollar amount of any fees or
charges assessed by the financial institution for paying an ATM or one-time
debit card transaction pursuant to the financial institution’s overdraft
service, including any daily or other overdraft fees?

Yes

No

NA

• Limits on fees charged—Does the notice disclose the maximum number of
overdraft fees or charges that may be assessed per day or, if applicable,
that there is no limit? (12 CFR 1005.17(d)(3))

Yes

No

NA

• Disclosure of opt-in right—Does the notice explain the consumer’s right to
affirmatively consent to the financial institution’s payment of overdrafts for
ATM and one-time debit card transactions pursuant to the institution’s
overdraft service, including the methods by which the consumer may
consent to the service? (12 CFR 1005.17(d)(4))

Yes

No

NA

• Alternative plans for covering overdrafts—As applicable, does the
institution’s opt-in notice appropriately address the alternative methods for
covering overdrafts?

Yes

No

NA

• If the institution offers both a line of credit subject to Regulation Z (12 CFR
Part 1026) and a service that transfers funds from another account of the
consumer held at the institution to cover overdrafts, does the notice state
that both alternative plans are offered?

Yes

No

NA

• If the institution offers one alternative plan, but not the other, does the notice
state which alternative plan it offers? If the institution does not offer either a
line of credit subject to Regulation Z (12 CFR Part 1026) or a service that
transfers funds from another account of the consumer held at the institution
to cover overdrafts plan, does the notice exclude information regarding
either of these plans?

Yes

No

NA

• If the financial institution offers additional alternatives for paying overdrafts,
at its option the institution may (but is not required to) disclose those
alternatives. Does its notice describe those alternatives?

Yes

No

NA

• Permitted modifications and additional content—If the institution modifies
the notice, are the modifications permitted: to indicate that the consumer
has the right to opt into, or out of, the payment of overdrafts under the
institution’s overdraft service for other types of transactions, such as
checks, ACH transactions, or automatic bill payments; to provide a means
for the consumer to exercise this choice; and to disclose the associated
returned item fee and that additional merchant fees may apply?

Yes

No

NA

NOTE: If the amount of the fee is determined on the basis of the number of
times the consumer has overdrawn the account, the amount of the
overdraft, or other factors, the institution must disclose the maximum fee
that may be imposed. (12 CFR 1005.17(d)(2))

60 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

NOTE: The institution may also disclose the consumer’s right to revoke
consent. The response portion of Model Form A-9 may be tailored to the
methods offered for opting in and may include reasonable methods to identify
the account, such as a bar code. (12 CFR 1005.17(d)(6) and Comments
1005.17(d)-1 through -5))
53. Joint accounts—When two or more consumers jointly hold an account, does
the financial institution treat the affirmative consent of any of the joint
consumers as affirmative consent for that account, and treat the revocation of
affirmative consent by any of the joint consumers as revocation of consent for
that account? (12 CFR 1005.17(e))

Yes

No

NA

54. Continuing right to opt-in or to revoke opt-in—Does the financial institution
allow the consumer to affirmatively consent to the financial institution’s
overdraft service at any time in the manner described in the notice required
under (12 CFR 1005.17(b)(1)(i)) and allow a consumer to revoke consent at
any time in the manner made available to the consumer for providing
consent? (12 CFR 1005.17(f))

Yes

No

NA

55. Does the financial institution implement a consumer’s revocation of consent
as soon as reasonably practicable? (12 CFR 1005.17(f))

Yes

No

NA

56. Is the consumer’s affirmative consent to the overdraft service effective until
revoked by the consumer, or unless the financial institution terminates the
service? (12 CFR 1005.17(g))

Yes

No

NA

• The account balance, through a readily available telephone line, and

Yes

No

NA

• An electronic history of the consumer’s account transactions, such as
through an Internet website, that covers at least 60 days preceding the
date the consumer electronically accesses the account, and

Yes

No

NA

Yes

No

NA

• A telephone number that the consumer may call to obtain the account
balance, the means by which the consumer can obtain an electronic
account history, such as the address of a website, and a summary of the
consumer’s right to receive a written account history upon request,
including a telephone number to call to request a history, and

Yes

No

NA

• A notice concerning error resolution? (12 CFR 1005.18(c)(1))

Yes

No

NA

Yes

No

NA

Payroll Card Accounts—12 CFR 1005.18
57. If the financial institution offers payroll card accounts, does the financial
institution either provide periodic statements as required by 12 CFR
1005.9(b) or make available to the consumer:

• A written history of the consumer’s account transactions that is provided
promptly in response to an oral or written request and that covers at least
60 days preceding the date the financial institution receives the consumer’s
request? (12 CFR 1005.18(b))
NOTE: The history of account transactions must include the information set
forth in 12 CFR 1005.9(b).
58. Does the financial institution provide initial disclosures that include, at a
minimum:

59. Does the financial institution provide an annual notice concerning error
resolution or, alternatively, an abbreviated notice with each electronic and
written history? (12 CFR 1005.18(c)(2))

Consumer Compliance Handbook

Reg. E • 61 (11/13)

Electronic Fund Transfer Act: Examination Checklist

60. Does the financial institution begin the 60-day period for reporting any
unauthorized transfer under 12 CFR 1005.6(b)(3) on the earlier of the date the
consumer electronically accesses the consumer’s account after the electronic history made available to the consumer reflects the transfer, or the date
the financial institution sends a written history of the consumer’s account
transactions requested by the consumer in which the unauthorized transfer is
first reflected? (12 CFR 1005.18(c)(3))

Yes

No

NA

Yes

No

NA

Yes

No

NA

• Gift certificates—which may not be increased or reloaded in exchange for
payment; and are redeemable upon presentation at a single merchant or
an affiliated group of merchants for goods and services? (12 CFR
1005.20(a)(1))

Yes

No

NA

• Store gift cards—which may be increased or reloaded, in exchange for
payment; and are redeemable upon presentation at a single merchant or
an affiliated group of merchants for goods and services? (12 CFR
1005.20(a)(2))

Yes

No

NA

• General-use prepaid cards—which may be increased or reloaded, in
exchange for payment; and are redeemable upon presentation at multiple,
unaffiliated merchants for goods or services, or usable at automated teller
machines? (12 CFR 1005.20(a)(3))

Yes

No

NA

• A statement indicating that the card, code, or other device is issued for
loyalty, award, or promotional purposes, which must be included on the
front of the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(A));

Yes

No

NA

• The expiration date for the underlying funds, which must be included on the
front of the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(B));

Yes

No

NA

NOTE: A financial institution may comply with the provision above by limiting
the consumer’s liability for an unauthorized transfer as provided under 12
CFR 1005.6(b)(3) for any transfer reported by the consumer within 120 days
after the transfer was credited or debited to the consumer’s account.
61. Does the financial institution comply with the error resolution requirements in
response to an oral or written notice of an error from the consumer that is
received by the earlier of 60 days after the date the consumer electronically
accesses the consumer’s account after the electronic history made available
to the consumer reflects the alleged error, or 60 days after the date the
financial institution sends a written history of the consumer’s account
transactions requested by the consumer in which the alleged error is first
reflected? (12 CFR 1005.18(c)(4))
NOTE: The financial institution may comply with the requirements for resolving
errors by investigating any oral or written notice of an error from the consumer
that is received by the institution within 120 days after the transfer allegedly in
error was credited or debited to the consumer’s account.

Requirements for Gift Cards and Gift Certificates—12 CFR 1005.20
62. Does the institution offer gift certificates, store gift cards, general-use prepaid
cards, loyalty, award, or promotional gift cards? If no, do not complete this
section.
63. Determine if the institution offers consumers, primarily for personal, family, or
household purposes, in a specified amount, a card, code, or other device on
a prepaid basis, the following:

64. Do loyalty, award, or promotional gift cards as defined by (12 CFR
1005.20(a)(4)) contain the following disclosures as applicable?

62 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

• The amount of fees that may be imposed in connection with the card, code,
or other device, and the conditions under which they may be imposed,
which must be provided with the card, code, or other device (12 CFR
1005.20(a)(4)(iii)(C)); and

Yes

No

NA

• A toll-free telephone number and, if one is maintained, a website, that a
consumer may use to obtain fee information, which must be included on or
with the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(D))?

Yes

No

NA

• Has there been activity with respect to the certificate or card, in the
one-year period ending on the date on which the fee was imposed (12 CFR
1005.20(d)(1));

Yes

No

NA

• As applicable, are the following, clearly and conspicuously stated on the
gift certificate, store gift card, or general-use prepaid card

Yes

No

NA

− The amount of any dormancy, inactivity, or service fee that may be
charged (12 CFR 1005.20(d)(2)(i));

Yes

No

NA

− How often such a fee may be assessed (12 CFR 1005.20(d)(2)(ii)); and

Yes

No

NA

− That such fee may be assessed for inactivity (12 CFR 1005.20(d)(2)(iii))?

Yes

No

NA

• Is the dormancy, inactivity, or service fee imposed limited to one in any
given calendar month (12 CFR 1005.20(d)(3))?

Yes

No

NA

• Has the financial institution established policies and procedures to provide
consumers with a reasonable opportunity to purchase a certificate or card
with at least five years remaining until the certificate or card expiration date
(12 CFR 1005.20(e)(1))?

Yes

No

NA

• The expiration date for the underlying funds is at least the later of five years
after the date the gift certificate was initially issued, or the date on which
funds were last loaded to a store gift card or general-use prepaid card; or
the certificate or card expiration date, if any (12 CFR 1005.20(e)(2))?

Yes

No

NA

• The expiration date for the underlying funds, or if the underlying funds do
not expire, the fact that the funds do not expire (12 CFR 1005.20(e)(3)(i));

Yes

No

NA

• A toll-free number and, if one is maintained, a website that a consumer may
use to obtain a replacement certificate or card after the certificate or card
expires if the underlying funds may be available (12 CFR 1005.20(e)(3)(ii));
and

Yes

No

NA

• Except where a non-reloadable certificate or card bears an expiration date
that is at least seven years from the date of manufacture, a statement,
disclosed with equal prominence and in close proximity to the certificate or
card expiration date, that:

Yes

No

NA

– The certificate or card expires, but the underlying funds either do not
expire or expire later than the certificate or card (12 CFR 1005.20(e)(3)
(iii)(A));

Yes

No

NA

– The consumer may contact the issuer for a replacement card (12 CFR
1005.20(e)(3)(iii)(B)); and

Yes

No

NA

65. If the terms of the gift certificate, store gift card, or general-use prepaid card
impose a dormancy, inactivity, or service fee as defined under (12 CFR
1005.20(a)), please answer the following:

66. If the financial institution sells or issues a gift certificate, store gift card, or
general-use prepaid card with an expiration date, please answer the
following:

67. If the financial institution sells or issues a gift certificate, store gift card, or
general-use prepaid card with an expiration date, then are the following
disclosures provided on the certificate or card, as applicable:

Consumer Compliance Handbook

Reg. E • 63 (11/13)

Electronic Fund Transfer Act: Examination Checklist

– No fee or charge is imposed on the cardholder for replacing the gift
certificate, store gift card, or general-use prepaid card or for providing
the certificate or card holder with the remaining balance in some manner
prior to the funds expiration date unless such certificate or card has
been lost or stolen. (12 CFR 1005.20(e)(4)).

Yes

No

NA

– The type of fee (12 CFR 1005.20(f)(1)(i));

Yes

No

NA

– The amount of the fee (or an explanation of how the fee will be
determined) (12 CFR 1005.20(f)(1)(ii)); and

Yes

No

NA

– The conditions under which the fee may be imposed (12 CFR
1005.20(f)(1)(iii)).

Yes

No

NA

• A toll-free telephone number and, if one is maintained, a website, that a
consumer may use to obtain information about dormancy, inactivity,
service, or each type of fee that may be imposed in connection with the
certificate or card (12 CFR 1005.20(f)(2)).

Yes

No

NA

1. Does the provider offer remittance transfers in the normal course of
business?

Yes

No

NA

If the provider deems itself to not offer remittance transfers in the normal
course of business as a result of the 100-transfer safe harbor, are the
provider’s method for counting transactions appropriate?

Yes

No

NA

2. Does the provider have written policies and operating procedures that
govern its remittance transfer operations?

Yes

No

NA

3. Do these policies and procedures adequately address the requirements of
subpart B?

Yes

No

NA

4. Are the provider’s personnel who are involved in remittance transfer
operations knowledgeable about the requirements of subpart B?

Yes

No

NA

68. Are the following disclosures provided in connection with a gift certificate,
store gift card, or general-use prepaid card, as applicable:
• For each type of fee that may be imposed in connection with the gift
certificate or card (other than a dormancy, inactivity, or service fee subject
to the disclosure requirements under (12 CFR 1005.20(d)(2)), the following
information must be provided on or with the certificate or card:

Subpart B—Requirements for Remittance Transfers

Complete the rest of the checklist if the provider offers remittance transfers in the
normal course of business.

Disclosures—12 CFR 1005.31
(Unless otherwise indicated, the disclosure requirements apply to all remittance transfer transactions,
including those scheduled before the date of transfer.)
5. Does the provider provide prepayment disclosures and receipts or combined
disclosures to its remittance transfer customers (12 CFR 1005.31(b)(1), (2),
and (3))?

Yes

No

NA

• in the appropriate form (12 CFR 1005.31(c))

Yes

No

NA

• clear and conspicuous (12 CFR 1005.31(a)(1))

Yes

No

NA

• in retainable form (12 CFR 1005.31(a)(2))?

Yes

No

NA

NOTE: Specific content of disclosures are addressed below.
6. Are written disclosures:

64 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

7. Are written and electronic disclosures provided in compliance with the
foreign language requirements of 12 CFR 1005.31(g)?

Yes

No

NA

8. If the provider uses scripts to provide oral disclosures for remittance transfer
transactions and error resolution procedures conducted over the telephone,
do the contents of the scripts comply with the requirements of 12 CFR
1005.31(a)(3) and (a)(4)?

Yes

No

NA

9. Do disclosures related to telephone, mobile application, or text message
transactions comply with the disclosure requirements with respect to foreign
languages and notice of cancellation rights? (12 CFR 1005.31(g)(2) and 12
CFR 1005.31(b)(2)(iv)

Yes

No

NA

10. Does information in written or electronic disclosures comply with the
grouping requirements of 12 CFR 1005.31(c)(1)?

Yes

No

NA

11. Is the exchange rate used for the remittance transfer generally disclosed in
close proximity to the other information in the prepayment disclosures? (12
CFR 1005.31(c)(2))

Yes

No

NA

12. In case of a disclosure that includes the disclaimer statement under 12 CFR
1005.31(b)(1)(viii), is the disclaimer in close proximity to the Total to
Recipient? (12 CFR 1005.31(c)(2))

Yes

No

NA

13. Are disclosures on error resolution and cancellation rights generally
disclosed in close proximity to the other disclosures on the receipt? (12 CFR
1005.31(c)(2))

Yes

No

NA

14. Are disclosures that are provided in writing or electronically provided in a
minimum of eight-point font, in equal prominence to each other, and on the
front of the page on which the disclosures are printed? (12 CFR
1005.31(c)(3))

Yes

No

NA

• do they contain only information directly related to the disclosures, and

Yes

No

NA

• are they segregated from everything else? (12 CFR 1005.31(c)(4))

Yes

No

NA

16. Are estimated amounts in the disclosures appropriately described using the
term ‘‘estimated’’ or a substantially similar term in close proximity to the term
described? (12 CFR 1005.31(d))

Yes

No

NA

17. Are disclosures provided in compliance with the timing requirements of 12
CFR 1005.31(e)?

Yes

No

NA

18. Do disclosures comply with the accuracy requirements of 12 CFR 1005.31(f)?

Yes

No

NA

Yes

No

NA

Yes

No

NA

15. For disclosures that are provided in writing or electronically:

NOTE: For a one-time transfer scheduled five or more business days in
advance or for the first in a series of preauthorized remittance transfers,
disclosures must be accurate when a sender makes payment except to the
extent estimates are permitted. For any subsequent transfer in a series of
preauthorized remittance transfers, disclosures must be accurate as of the
date the preauthorized remittance transfer to which it pertains is made.
(12 CFR 1005.36(b).)

Prepayment disclosures—12 CFR 1005.31(b)(1)
19. Does the provider appropriately distinguish between covered and noncovered third-party fees?
20. Do the provider’s prepayment disclosures appropriately disclose to the
recipient the following information as applicable, using the terms in quotes (or
substantially similar terms) listed below:
• ‘‘Transfer Amount’’ both in the currency in which transaction is funded and
in the currency in which the funds will be made available to the recipient;

Consumer Compliance Handbook

Reg. E • 65 (11/13)

Electronic Fund Transfer Act: Examination Checklist

• ‘‘Transfer Fees’’ and ‘‘Transfer Taxes’’;

Yes

No

NA

• ‘‘Other Fees’’;

Yes

No

NA

• ‘‘Exchange Rate’’;

Yes

No

NA

• ‘‘Total to Recipient’’; and

Yes

No

NA

• If applicable, a disclaimer statement that non-covered third-party fees or
taxes collected on the remittance transfer by a third person may apply,
resulting in the designated recipient receiving less than the amount
disclosed? (12 CFR 1005.31(b)(1))

Yes

No

NA

• all the information required to be provided in the prepayment disclosure;

Yes

No

NA

• ‘‘Date Available’’;

Yes

No

NA

• ‘‘Recipient’’;

Yes

No

NA

• name, telephone number(s), and website of the provider;

Yes

No

NA

• a statement that the sender can contact the state agency that licenses or
charters the remittance transfer provider with respect to the particular
transfer (if applicable) and the Consumer Financial Protection Bureau
(CFPB), for questions or complaints about the remittance transfer provider
using language set forth in Model Form A-37 of Appendix A or substantially
similar language; and

Yes

No

NA

Yes

No

NA

Receipt—12 CFR 1005.31(b)(2)
21. Do the provider’s receipts appropriately calculate and disclose to the
recipient the following information as applicable, using the terms in quotes (or
substantially similar terms) listed below, as applicable:

• a statement about the sender’s error resolution and cancellation rights,
using language set forth in Model Form A-37 of Appendix A or substantially
similar language;
NOTE: If the transfer is scheduled at least three business days before the
date of the transfer, the statement about the sender’s cancellation rights
should reflect the requirements of 12 CFR1005.36(c).

NOTE: The statement must include the name, telephone number(s), and
website of the state agency and the name, toll-free telephone number(s),
and website of the CFPB.
• the transfer date (only for transfers scheduled at least three business days
in advance, or the first transfer in a series of preauthorized remittance
transfers)?

Combined disclosure—12 CFR 1005.31(b)(3)
Complete this section if the provider provides combined disclosures as an alternative to prepayment
disclosures and receipts.
22. Does the combined disclosure contain all the information required to be
provided on the receipt?

Yes

No

NA

23. Does the provider provide the combined disclosure when the sender
requests the remittance transfer, but prior to payment for the transfer; and
provide a proof of payment when payment is made for the transfer?

Yes

No

NA

66 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

NOTE:
1. The proof of payment must be clear and conspicuous, provided in writing
or electronically, and provided in a retainable form.
2. For one-time transfers scheduled five or more business days in advance or
for the first in a series of preauthorized transfers, the provider may provide
confirmation that the transaction has been scheduled in lieu of the proof of
payment if payment is not processed at the time the remittance transfer is
scheduled. No further proof of payment is required when payment is later
processed.

Long-form error resolution and cancellation notice—12 CFR 1005.31(b)(4)
24. Does the provider promptly provide, at the sender’s request, a notice
describing the sender’s error resolution and cancellation rights, using
language set forth in Model Form A-36 of Appendix A or substantially similar
language? (12 CFR 1005.31(b)(4))

Yes

No

NA

25. If the remittance transfer provider is an insured institution (as defined by 12
CFR 1005.32(a)(3)), does the institution use estimates in its disclosures for
transactions sent from the sender’s account with the institution?

Yes

No

NA

26. If so, can the financial institution not determine the exact amounts for reasons
beyond its control because a person other than the institution or with which
the institution has no correspondent relationship sets the exchange rate
required to be disclosed or imposes a fee required to be disclosed? (12 CFR
1005.32(a) and Comment 32(a)(1)-1)

Yes

No

NA

NOTE: For a remittance transfer scheduled at least three business days
before the date of the transfer, the description of the rights of the sender
regarding cancellation must instead reflect the requirements of 12 CFR
1005.36(c).

Estimates—12 CFR 1005.32
Temporary exception for insured institutions—12 CFR 1005.32(a)

Permanent exception for transfers to certain countries—12 CFR 1005.32(b)(1)
27. Does the provider appropriately rely on the list provided by the CFPB when
using estimates under the permanent exception set forth under 12 CFR
1005.32(b)(1) for transactions to those countries?

Yes

No

NA

28. If the provider provides estimates for transactions in a country which does not
appear on the safe harbor list published by the CFPB, does the entity
appropriately determine that the laws of or the method by which transactions
are conducted in the recipient country do not permit the determination of
exact amounts? (12 CFR 1005.32(b)(1)(ii) and Comment 32(b)-5)

Yes

No

NA

No

NA

NOTE: A provider cannot rely on the CFPB list if it has information that the laws
of a country on the list permit exact disclosures.

Permanent exception for transfers scheduled before the date of transfer—12 CFR
1005.32(b)(2)
29. For transfers scheduled five or more business days before the date of the
transfer for which estimates may be provided, does the provider comply with
the requirements of 12 CFR 1005.32(b)(2)?

Consumer Compliance Handbook

Yes

Reg. E • 67 (11/13)

Electronic Fund Transfer Act: Examination Checklist

Permanent exception for optional disclosure of non-covered third-party fees and taxes
collected by a third party—12 CFR 1005.32(b)(3)
30. If the provider includes in the disclaimer statement required by 12 CFR
1005.31(b)(1)(viii), an optional estimated disclosure of applicable noncovered third-party fees or taxes, are the estimates based on reasonable
sources? (12 CFR 1005.32(b)(3)?

Yes

No

NA

Yes

No

NA

• exchange rate;

Yes

No

NA

• transfer amount in which funds will be received;

Yes

No

NA

• covered third-party fees; and

Yes

No

NA

• the amount of currency that will be received by the designated recipient?

Yes

No

NA

33. If estimates are based on an approach that is not one of the listed bases,
does the designated recipient receive the same, or greater, amount of funds
than the remittance transfer provider disclosed?

Yes

No

NA

34. Does the provider have adequate policies and procedures to address the
error resolution requirements applicable to remittance transfers (12 CFR
1005.33(g))?

Yes

No

NA

35. Do the policies and procedures adequately state what constitutes an error
and what does not as defined in 12 CFR 1005.33(a)?

Yes

No

NA

• timing and content of the sender’s notice of error (12 CFR 1005.33(b)(1));

Yes

No

NA

• provider’s request for additional information or clarification (12 CFR
1005.33(b)(2));

Yes

No

NA

• time limits for investigation, reporting results, and correcting an error (12
CFR 1005.33(c));

Yes

No

NA

• sender’s request for documentation that the provider relied on to make a
decision (12 CFR 1005.33(d)); and

Yes

No

NA

• the retention of records related to error investigations (12 CFR 1005.33
(g)(2) and (12 CFR 1005.13))?

Yes

No

NA

37. Does the provider complete its investigation of alleged errors and determine
whether an error occurred within 90 days of receiving notice of the error (12
CFR 1005.33(c))?

Yes

No

NA

38. Does the provider report investigation results to the sender within three
business days after completing its investigation and include notice of any
remedies available for correcting any error determined to have occurred and
provide remedy within one business day (12 CFR 1005.33(c))?

Yes

No

NA

Bases for Estimates—12 CFR 1005.32(c)
31. Are the bases used to derive the estimates under 12 CFR 1005.32(a), (b)(1),
and (b)(2) in compliance with the method for disclosing estimates set forth in
12 CFR 1005.32(c)?
NOTE: For transfers scheduled five or more business days before the date of
the transfer for which estimates may be provided, the requirements of 12 CFR
1005.32(d) apply.
32. Does the provider use the approaches listed in the rule to estimate:

Procedures for Resolving Errors—12 CFR 1005.33

36. Do the policies and procedures specifically address:

68 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

NOTE: The provider can ask the sender to designate a preferred remedy at
the time the sender provides notice of the error but must indicate that a
resend remedy may be unavailable if the error occurred because the sender
provided incorrect or insufficient information.
39. If the sender provided an incorrect account number or recipient institution
identifier, does the provider comply with the requirements of 12 CFR
1005.33(h) in determining that no error occurred?

Yes

No

NA

40. If the provider determines that no error or a different error occurred, does it
provide a written explanation of the findings, and note the sender’s right to
request the documents upon which the provider relied in making its
determination (12 CFR 1005.33(d))?

Yes

No

NA

41. If the provider provides a default remedy, does it correct the error within one
business day or as soon as reasonably practicable, after the reasonable time
(deemed to be 10 business days) or the sender to designate the remedy has
passed?

Yes

No

NA

Yes

No

NA

43. If the sender requests delivery of the amount appropriate to correct the error
and the error did not occur because the sender provided incorrect or
insufficient information, does the provider correct the error within one
business day, or as soon as reasonably practicable, applying the same
exchange rate, fees, and taxes stated in the disclosure provided in
connection with the unsuccessful remittance transfer attempt (Comment
33(c)-3)?

Yes

No

NA

44. In the case of errors involving incorrect or insufficient information provided by
the sender for the transfer, does the provider comply with the requirements of
12 CFR 1005.33(c)(2)(iii)?

Yes

No

NA

45. If the provider determines that an error occurred that relates to:

Yes

No

NA

Yes

No

NA

NOTE: A default remedy is not applicable where the sender provided
incorrect or insufficient information.
42. If the sender requests a refund (for errors other than those related to failure
to deliver by the disclosed date where the sender provided incorrect or
insufficient information), does the provider refund within one business day or
as soon as reasonably practicable thereafter (12 CFR 1005.33(c)(2)(A))?
NOTE: The provider may generally, at its discretion, issue a refund either in
cash or in the same form of payment that was initially provided by the sender
for the remittance transfer.

• an incorrect amount paid by the sender;
• a computational or bookkeeping error made by the remittance transfer
provider; or
• failure to make the amount of currency stated in the disclosures available
to the designated recipient,
does the provider either:
• refund the amount of funds provided by the sender (in case of a transaction
that was not properly transmitted);
• refund the amount appropriate to resolve the error; or
• make available to the designated recipient, the amount appropriate to
resolve the error without additional cost to the sender or the designated
recipient (12 CFR 1005.33(c)(2)(i))?
46. If the error relates to the failure to make funds available to the designated
recipient by the disclosed date of availability (except in cases where the
sender provided incorrect or insufficient information), does the provider

Consumer Compliance Handbook

Reg. E • 69 (11/13)

Electronic Fund Transfer Act: Examination Checklist

• either (i) refund the amount of funds that was not properly transmitted, or
the amount appropriate to resolve the error to the sender; or (ii) make
available to the designated recipient the amount appropriate to resolve the
error;
and
• refund to the sender any fees and, to the extent not prohibited by law, taxes
imposed for the remittance transfer? (12 CFR 1005.33(c)(2)(ii))
47. If an error occurred, does the provider impose a charge related to any aspect
of the error resolution process (including charges for documentation or
investigation)? (Comment 33(c)-9) If so, is the provider in violation of 12 CFR
1005.33(c)?

Yes

No

NA

48. Does the provider retain policies and procedures and documentation,
including those related to error investigations, for a period of not less than two
years from the date a notice of error was submitted to the provider or action
was required to be taken by the provider (12 CFR 1005.33(g) and 1005.13)?

Yes

No

NA

Procedures for Cancellation and Refund of Remittance Transfers—12 CFR 1005.34
49. Does the provider comply with any oral or written request to cancel a
remittance transfer (except for transfers scheduled three or more business
days before the date of transfer) from the sender that is received no later than
30 minutes after the sender makes payment in connection with the remittance
transfer? (12 CFR 1005.34(a))

Yes

No

NA

Yes

No

NA

Yes

No

NA

• the degree of control the agent exercises over the remittance transfer
activities performed on the provider’s behalf;

Yes

No

NA

• the quality and frequency of training provided to ensure that agents are
aware of the regulatory requirements and the provider’s internal policy
guidelines; and

Yes

No

NA

• the adequacy of the provider’s oversight of agents’ activities.

Yes

No

NA

NOTE: The request to cancel must enable the provider to identify the sender’s
name and address or telephone number and the particular transfer to be
cancelled; and the transferred funds must not have been picked up by the
designated recipient or deposited into an account of the designated
recipient. (12 CFR 1005.34(a)(1) and (2))
50. If a sender provides a timely request to cancel a remittance transfer, does the
provider refund all funds provided by the sender in connection with the
remittance transfer at no additional cost to the sender, within three business
days of receiving the request? (12 CFR 1005.34(b))
NOTE: The funds to be refunded include any fees and, to the extent not
prohibited by law, taxes that have been imposed for the transfer, whether the
fee or tax was assessed by the provider or a third party, such as an
intermediary institution, the agent or bank in the recipient country, or a state
or other governmental body (12 CFR 1005.34(b)).

Acts of Agents—12 CFR 1005.35
51. Has the provider established and maintained policies or procedures,
including policies, procedures for compliance, or other appropriate oversight
measures designed to assure compliance by an agent or authorized
delegate acting for such provider?
Consider:

70 (11/13) • Reg. E

Consumer Compliance Handbook

Electronic Fund Transfer Act: Examination Checklist

Transfers Scheduled before the Date of Transfer—12 CFR 1005.36
52. For one-time transfers scheduled five or more business days in advance or
for the first in a series of preauthorized remittance transfers, does the
provider provide either a prepayment disclosure and a receipt or a combined
disclosure at the time the sender requests the transfer but prior to payment?
(12 CFR 1005.36(a)(1)(i))

Yes

No

NA

Yes

No

NA

54. If there is no updated information and the remittance transfer does not involve
the transfer of funds from the sender’s account held by the provider, does the
provider mail or deliver to the sender a receipt no later than one business day
after the date of the transfer for each subsequent preauthorized transfer? (12
CFR 1005.36(a)(2)(ii))

Yes

No

NA

55. If there is no updated information and the remittance transfer involves the
transfer of funds from the sender’s account held by the provider, is the
receipt provided on or with the next periodic statement for that account, or
within 30 days after the date of the transfer if a periodic statement is not
provided? (12 CFR 1005.36(a)(2)(ii))

Yes

No

NA

56. For any subsequent transfer in a series of preauthorized remittance transfers,
does the provider disclose the date of the subsequent transfer using the term
‘‘Future Transfer Date’’ or a substantially similar term, a statement of the
sender’s cancellation rights, and the name, telephone number(s), and
website of the remittance transfer provider no more than 12 months, and no
less than 5 business days prior to, the date of the subsequent preauthorized
remittance transfer? (12 CFR 1005.36(d))

Yes

No

NA

Yes

No

NA

NOTE: If any of the disclosures provided contain estimates, the provider must
mail or deliver an additional receipt no later than one business day after the
date of the transfer. If the transfer involves the transfer of funds from the
sender’s account held by the provider, this additional receipt may be
provided on or with the next periodic statement for that account or within 30
days after the date of the transfer if a periodic statement is not provided. (12
CFR 1005.36(a)(1)(ii))
53. For each subsequent preauthorized remittance transfer, does the provider
provide an updated receipt if any of the information (other than temporal
disclosures or disclosures that are permitted to be estimated) on the most
recent receipt is no longer accurate? (12 CFR 1005.36(a)(2)(i))
NOTE: The receipt must clearly and conspicuously indicate that it contains
updated disclosures and must be mailed or delivered to the sender within a
reasonable time prior to the scheduled date of the next subsequent
preauthorized remittance transfer. A disclosure that is mailed no later than 10
business days or hand or electronically delivered no later than 5 business
days is deemed to have been provided within a reasonable time. (12 CFR
1005.36(a)(2)(i) and Comment 36(a)(2)-3)

NOTE: While the rule generally provides flexibility as to when and where future
transfer dates may be disclosed, for any subsequent preauthorized
remittance transfer for which the date of transfer is four or fewer business
days after the date payment is made, the disclosure must generally be
provided on or with the receipt for the initial transfer in that series. (12 CFR
1005.36(d)(2)(ii))
57. Does the provider comply with any oral or written request to cancel any
remittance transfer scheduled by the sender at least three business days
before the date of the remittance transfer? (12 CFR 1005.36(c))
NOTE: The request to cancel must
• enable the provider to identify the sender’s name and address or telephone
number and the particular transfer to be cancelled; and

Consumer Compliance Handbook

Reg. E • 71 (11/13)

Electronic Fund Transfer Act: Examination Checklist

• be received by the provider at least three business days before the
scheduled date of the remittance transfer. (12 CFR 1005.36(c))

Comments

72 (11/13) • Reg. E

Consumer Compliance Handbook



---

Source Exif Data:

File Type                       : PDF
File Type Extension             : pdf
MIME Type                       : application/pdf
PDF Version                     : 1.4
Linearized                      : No
XMP Toolkit                     : Adobe XMP Core 5.4-c005 78.147326, 2012/08/23-13:03:03
Producer                        : GPL Ghostscript 8.63
Modify Date                     : 2014:01:07 14:13:16-05:00
Create Date                     : 2014:01:06 13:02:49-05:00
Creator Tool                    : XyEnterprise XPP 8.4C.1  SP #1
Metadata Date                   : 2014:01:07 14:13:16-05:00
Document ID                     : 4d791d89-af19-11ee-0000-46588aff1585
Instance ID                     : uuid:2572163a-f73f-4b09-a827-ef8fa1fe2520
Format                          : application/pdf
Title                           : No Job Name
Page Mode                       : UseOutlines
Page Count                      : 72
Creator                         : XyEnterprise XPP 8.4C.1  SP #1

EXIF Metadata provided by EXIF.tools