Electronic Fund Transfer Act

Electronic Fund Transfer Act
Great Seal of the United States
Other short titles
  • Financial Institutions Regulatory and Interest Rate Control Act of 1978
  • Change in Bank Control Act
  • Change in Savings and Loan Control Act
  • Depository Institution Management Interlocks Act
  • Export-Import Bank Act Amendments
  • Federal Financial Institutions Examination Council Act
  • National Credit Union Central Liquidity Facility Act
  • Right to Financial Privacy Act
Long title An Act to extend the authority for the flexible regulation of interest rates on deposits and accounts in depository institutions.
Nicknames American Arts Gold Medallion Act
Enacted by the 95th United States Congress
Effective November 10, 1978
Public law 95-630
Statutes at Large 92 Stat. 3641 aka 92 Stat. 3728
Titles amended
U.S.C. sections amended
Legislative history

The Electronic Fund Transfer Act was passed by the U.S. Congress in 1978 and signed by President Jimmy Carter, to establish the rights and liabilities of consumers as well as the responsibilities of all participants in electronic funds transfer activities.[1]

The act was implemented in Federal Reserve Board Regulation E.

Rights of consumers

The EFT Act recognizes their right to nominate the financial institution to which such payments are to be made.[2]

The EFT Act also prohibits a creditor or lender from requiring a consumer to repay a loan or other credit by electronic fund transfer, except when there is an overdraft on checking plans.[3]

Financial institution liability

The financial institution must give the customer notice of their liability in case the card is lost or stolen. This must include a phone number for reporting the loss and a description of its error resolution process.[2]

Limit to customer liability on loss or theft of card

If a customer reports to the financial institution that their card is missing before any transactions takes place, they are not held responsible for any transaction that takes place after the report of a missing/stolen card.

A customer can be liable for unauthorized withdrawals if their card is lost or stolen and they do not follow certain criteria:

EFT Errors

EFT is not a perfect system; therefore customers should still be diligent in reviewing their EFT statements for possible errors as they would with any other type of transaction. Should a customer notice that there has been an error in an electronic fund transfer relating to their account certain steps must be taken:

Under the Act, the customer must:

Under the Act, the financial institution must:

What the EFT Act Covers

See also


  1. 1 2 3 4 5 "Electronic Fund Transfers". Consumer Handbook to Credit Protection Laws. US Federal Reserve. Archived from the original on August 30, 2009. Retrieved 2009-09-01.
  2. http://www.ftc.gov/bcp/conline/pubs/credit/elbank.htm

Further reading

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