FEDERAL RESERVE SYSTEM
12 CFR Part 205
[Regulation E; Docket Nos. R-1210 and R-1234]
Electronic Fund Transfers
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; official staff interpretation.
SUMMARY: The Board is amending Regulation E, which implements the Electronic Fund
Transfer Act, and the official staff commentary to the regulation. The commentary interprets the
requirements of Regulation E to facilitate compliance primarily by financial institutions that
offer electronic fund transfer services to consumers.
The revisions address the regulation’s coverage of electronic check conversion services.
Under the final rule, merchants and other payees that initiate electronic check conversion
transactions must obtain a consumer’s authorization for each transaction. In addition,
commentary revisions address preauthorized transfers, error resolution, and other matters.
DATES: The final rule is effective [Insert date 30 days from the date of publication in the
Federal Register.] The mandatory compliance date is January 1, 2007.
FOR FURTHER INFORMATION CONTACT: Ky Tran-Trong, Senior Attorney, or Daniel
G. Lonergan, David A. Stein or John C. Wood, Counsels, Division of Consumer and Community
Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, at (202)
452-2412 or (202) 452-3667. For users of Telecommunications Device for the Deaf (TDD) only,
contact (202) 263-4869.
I. Statutory Background
The Electronic Fund Transfer Act (EFTA or Act) (15 U.S.C. 1693 et seq.), enacted in
1978, provides a basic framework establishing the rights, liabilities, and responsibilities of
participants in electronic fund transfer (EFT) systems. The EFTA is implemented by the Board’s
Regulation E (12 CFR part 205). Examples of types of transfers covered by the Act and
regulation include transfers