What Is Regulation E in Electronic Fund Transfers (EFTs)?

The Electronic Fund Transfer Act (EFTA) was enacted by Congress in 1978 to protect consumers from fraud, errors, and other problems related to electronic fund transfers (EFTs). The act established the Federal Trade Commission (FTC) as the primary regulator of EFTs.

Regulation E is the set of rules that implements the EFTA. It applies to all electronic fund transfers initiated by consumers, except for those made through a point-of-sale (POS) terminal or a wire transfer. Regulation E covers a wide range of transactions, including:

• Automated teller machine (ATM) withdrawals
• Debit card purchases
• Direct deposits
• Preauthorized payments
• Telephone bill payments
• Online banking

Regulation E provides consumers with a number of protections, including:

• The right to receive a written disclosure of your rights and responsibilities under Regulation E
• The right to receive a receipt for each electronic fund transfer
• The right to dispute any unauthorized electronic fund transfer
• The right to stop payment on a preauthorized payment
• The right to receive compensation for any losses caused by an unauthorized electronic fund transfer

If you believe that you have been the victim of an unauthorized electronic fund transfer, you should contact your financial institution immediately. You may also file a complaint with the FTC.