A man paying with his phone

    This month, we are highlighting Regulation E: The Electronic Funds Transfer Act.

    What is an electronic fund transfer? Any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape. Examples include point-of-sale transactions, ATM transfers, direct deposits or withdrawals, transfers initiated by telephone, and transfers resulting from debit card transactions.

    How do we comply? Credit unions are required to provide members certain disclosures including: initial disclosures, ATM surcharge notices, and receipts at electronic terminals. Credit unions are also required to provide members a periodic statement.

    How does Home Branching fit into Regulation E? For a member to be enrolled in e-statements a member must have full access to their online statement and have accepted the ESIGN Agreement.

    How is the member protected? The member has 60 days after receiving a periodic statement to notify the credit union that an error has occurred on their account. At the time the credit union is made aware of the error the credit union must investigate the claim and respond appropriately. Errors could include unauthorized EFTs, incorrect EFTs to or from a member’s account, omission on an EFT from a member’s statement, a computational error made by the credit union, or a member’s receipt of an incorrect amount from an electronic terminal.

    Helpful Resources:

    Find the full text of Regulation E here.



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