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 Board of Governors of the Federal Reserve System (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 implement provisions in the Credit Card Accountability 

Responsibility and Disclosure Act of 2009 that restricted 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 of 2010 (Dodd-Frank Act) 

generally transferred rule-making authority under the EFTA from the Board to the Consumer 

Financial Protection Bureau (CFPB or Bureau).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 2011, the 

CFPB restated the Board’s implementing Regulation E at 12 CFR Part 1005 (76 Fed. Reg. 

81020) (Dec. 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 

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 rule making 

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 depository institutions, jurisdiction will depend on the size and charter of the institution). 

EFTA 1 
 

 

 

 

 

 

 

 

 

 

the Dodd-Frank Act (77 Fed. Reg. 6194) (Feb. 7, 2012).4 Regulation E has since been amended 

several times to address both substantive and technical issues. See 77 Fed. Reg. 40459 (July 10, 

2012); 77 Fed. Reg. 50244 (Aug. 20, 2012); 78 Fed. Reg. 6025 (Jan. 29, 2013); (78 Fed. Reg. 

30661) (May 22, 2013); 78 Fed. Reg. 49365 (Aug. 14, 2013); 79 Fed. Reg. 55970 (Sept. 18, 

2014); 81 Fed. Reg. 70319 (Oct. 12, 2016); 81 Fed. Reg. 83934 (Nov. 22, 2016); 82 Fed. Reg. 

18975 (Apr. 25, 2017); 83 Fed. Reg. 6364 (Feb. 13, 2018). 

In March 2013, the CFPB issued a final rule implementing Public Law 112-216, which amended 

EFTA to remove the requirement, where applicable, for a disclosure “on or at” an ATM where 

an ATM fee is imposed (78 Fed. Reg. 18221) (March 26, 2013). 

In November 2016, the CFPB issued a final rule amending Regulation E as well as Regulation Z, 

the regulation implementing the Truth in Lending Act (TILA), to extend protections to prepaid 

accounts. In Regulation E, tailored provisions governing disclosures, limited liability and error 

resolution, and periodic statements were adopted for prepaid accounts, along with new 

requirements regarding the posting and submission of prepaid account agreements. In addition, 

this rulemaking addressed regulation of credit features that may be offered under certain 

circumstances in conjunction with prepaid accounts. (See TILA discussion for Regulation Z 

provisions regarding the regulation of credit features offered in conjunction with prepaid 

accounts.) Together these amendments are known as the Prepaid Accounts Rule (81 Fed. Reg. 

83934) (Nov. 22, 2016). Regulation E, along with Regulation Z, was subsequently amended to 

modify several aspects of the Prepaid Accounts Rule, including error resolution and limited 

liability protections on unverified prepaid accounts and to establish a new overall effective date 

of April 1, 20195

 (83 Fed. Reg. 6364) (Feb. 13, 2018). 

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 - General 

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, 1005.15, 1005.16, 1005.17, 1005.18, 

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, 1005.18) 

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

5 This was the second effective date delay for the Prepaid Accounts Rule. The first had extended the general effective date of the 

rule to April 1, 2018. 82 Fed. Reg. 18975 (Apr. 25, 2017). 

EFTA 2 
 

VI. Receipts and Periodic Statements (12 CFR 1005.9, 1005.15, 1005.18) 

VII. Gift Cards (12 CFR 1005.20) 

VIII. Requirements for Financial Institutions Offering Prepaid Accounts (12 CFR 1005.18) 

IX. Internet Posting of Prepaid Account Agreements (12 CFR 1005.19) 

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

XI. Relation to Other Laws (12 CFR 1005.12) 

Subpart B - Requirements for Remittance Transfers 

XII. Remittance Transfer Definitions (12 CFR 1005.30) 

XIII. Disclosures (12 CFR 1005.31) 

XIV. Estimates (12 CFR 1005.32) 

XV. Procedures for Resolving Errors (12 CFR 1005.33) 

XVI. Procedures for Cancellation and Refund of Remittance transfers (12 CFR 1005.34) 

XVII. Acts of Agents (12 CFR 1005.35) 

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

Sections Applicable to Both Subpart A and Subpart B 

XIX. Preemption 

XX. Administrative Enforcement and Record Retention (12 CFR 1005.13) 

XXI. Miscellaneous (EFTA Provisions Not Reflected in Regulation E) 

EFTA 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o	 

 

Subpart A 

I. Scope 

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).
 

Accepted access device is an access device that a consumer: 

•	 Requests and receives, signs, or uses (or authorizes another to use) to transfer money 

between accounts or to obtain money, property, or services. 

•	 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 account held by a financial institution 

(directly or indirectly), including certain club accounts, established primarily for
 

personal, family, or household purposes (12 CFR 1005.2(b)(1));
 

•	 A prepaid account (12 CFR 1005.2(b)(2)), including: 

a payroll card account, which is an account established directly or indirectly through 

an employer, to which EFTs of the consumer’s wages, salary, or other employee 

compensation (such as commissions), are made on a recurring basis6; 

6 The payroll card account can be operated or managed by the employer, a third-party payroll processor, a depository institution, 

or any other person. 

EFTA 4 
o	 

o	 

o	 

 

 

 

 

a government benefit account, which is an account established by a government 

agency for distributing government benefits to a consumer electronically7 (12 CFR 

1005.15(a)(2)); 

an account that is marketed or labeled as “prepaid” and that is redeemable upon 

presentation at multiple, unaffiliated merchants for goods or services or usable at 

ATMs; or 

an account (1) that is issued on a prepaid basis in a specified amount or not issued on 

a prepaid basis but capable of being loaded with funds thereafter, (2) whose primary 

function is to conduct transactions with multiple, unaffiliated merchants for goods or 

services or at ATMs, or to conduct person-to-person transfers, and (3) that is not a 

checking account, share draft account, or negotiable order of withdrawal account. 

An account does not include, for example: 

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

•	 An occasional or incidental credit balance in a credit plan. 

•	 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 or improvements. 

•	 Accounts for purchasing U.S. savings bonds (12 CFR 1005.2(b)(2) and Comment 2(b)­

2). 

A prepaid account does not include, for purposes of 12 CFR 1005.2(b)(3)(i)(C) and (D): 

•	 An account that is loaded only with funds from a health savings account, flexible 

spending arrangement, medical savings account, health reimbursement arrangement, 

dependent care assistance program, or transit or parking reimbursement arrangement; 

•	 An account that is directly or indirectly established through a third party and loaded only 

with qualified disaster relief payments; 

•	 The person-to-person functionality of an account established by or through the United 

States government whose primary function is to conduct closed-loop transactions on U.S. 

military installations or vessels, or similar government facilities; 

•	 A gift certificate as defined in 12 CFR 1005.20(a)(1) and (b); a store gift card as defined 

in 12 CFR 1005.20(a)(2) and (b); a loyalty, award, or promotional gift card as defined in 

12 CFR 1005.20(a)(4), or that satisfies the criteria in 12 CFR 1005.20(a)(4)(i) and (ii) 

and is excluded from 12 CFR 1005.20 pursuant to 12 CFR 1005.20(b)(4); or a general7 Electronic delivery can include through ATMs or POS terminals, but does not include an account for distributing needs-tested 

benefits in a program established under state or local law or administered by a state or local agency. 

EFTA 5 
 

 

 

 

 

use prepaid card as defined in 12 CFR 1005.20(a)(3) and (b) that is both marketed and 

labeled as a gift card or gift certificate; or 

•	 An account established for distributing needs-tested benefits in a program established 

under state or local law or administered by a state or local agency (12 CFR 

1005.2(b)(3)(ii)). 

A payroll 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 

(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 on-line 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, POS transfers; 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, POS terminals, 

ATMs, and cash-dispensing machines (12 CFR 1005.2(h)). 

EFTA 6 
 

 

 

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)) 

•	 Useable 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 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 ATMs (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.” 

EFTA 7 
 

 

 

 

 

 

 

 

 

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 (12 CFR 1005.17(a)): 

•	 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; 

•	 A service that transfers funds from another account held individually or jointly by the 

consumer, such as a savings account; 

•	 A line of credit or other transaction in securities or commodities accounts in which credit 

is extended by a broker-dealer registered with the Securities and Exchange Commission 

(SEC) or the Commodity Futures Trading Commission (CFTC), as provided in 12 CFR 

1026.3(d); or 

•	 A covered separate credit feature accessible by a hybrid prepaid-credit card as defined in 

Regulation Z, 12 CFR 1026.61, or credit extended through a negative balance on the 

asset feature of the prepaid account that meets the conditions of 12 CFR 1026.61(a)(4). 

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 actual 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: 

EFTA 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•	 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)). 

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 which 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 brokerdealer 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 

EFTA 9 
 

 

 

 

 

 

 

 

transfers. A written statement available to the public, such as 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 concerning 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 onetime 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 one-time 

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 transaction8

 (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 transaction9 (12 CFR 

1005.3(b)(3)). These authorization requirements do not apply to fees imposed by the accountholding financial institution for returning the check or EFT or paying the amount of an overdraft 

(Comment 3(b)(3)-1). 

8 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). 

9 For POS transactions, the notice must be posted in a prominent and conspicuous location and a copy of the notice 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)). 

EFTA 10 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 ESign 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, TILA 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. The 

disclosures must include a summary of various consumer rights under the regulation, including 

the consumer’s liability for unauthorized EFTs, the types of EFTs the consumer may make, 

limits on the frequency or dollar amount, fees charged by the financial institution, and the errorresolution procedures. Appendix A to Part 1005 provides model clauses that financial institutions 

may use to provide the disclosures (12 CFR 1005.7(a) and (b)). 

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 

EFTA 11 
 

 

 

 

 

 

 

 

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 account-holding 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). 

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 (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 

EFTA 12 
 

 

 

 

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)). 

NOTE: The term “day” as used in Regulation E refers to calendar days unless specified as a 

“business day” (12 CFR 1005.2(d)). 

•	 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).10 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 nonelectronic means.11 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, minimum-balance 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)). 

10 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). 

11 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). 

EFTA 13 
 

 

 

 

 

 

 

 

 

 

 

 

 

•	 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 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 12 CFR 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 (12 CFR 

1005.7(b)(11)). 

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 

EFTA 14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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)). 

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) (12 CFR 1005.16(c)). 

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. 

Prepaid Account Disclosures - 12 CFR 1005.15 and 12 CFR 

1005.18 

EFTA 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure requirements specific to prepaid accounts are addressed in Section VIII 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 be changed after purchase. 

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 (12 CFR 1005.20(c)(4)). Those disclosures include the following: 

•	 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;12 and 

•	 A toll-free telephone number and (if any) a website that the consumer may use to obtain 

information about fees (12 CFR 1005.20(e)(3)). 

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, or Promotional Gift Cards (12 

CFR 1005.20(a)(4)). To qualify for the exclusion for loyalty, award, or promotional gift 

cards, the following must be disclosed: 

12 This requirement does not apply to non-reloadable certificates or cards that expire seven years or more after the date of 

manufacture. 

EFTA 16 
 

 

 

 

•	 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 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 

EFTA 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, on-line 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 unpaid. Some 

institutions also impose a fee for each day the account remains overdrawn. For debit card 

overdrafts, the dollar amount of the fee and multiple assessments can exceed the dollar amount 

of the overdrafts. 

In 2005, the agencies13 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.14 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. 

13 The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal 

Deposit Insurance Corporation, and 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). 

14 74 Fed. Reg. 59033, Nov. 17, 2009; 75 Fed. Reg. 31665, June 4, 2010. 

EFTA 18 
 

 

 

 

 

 

 

 

 

 

 

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 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. Generally, 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 based on the date on which the check, ACH, or 

other type of transaction is paid into overdraft (Comment 17(b)-9). 

EFTA 19 
 

 

 

 

 

 

 

 

 

 

 

Content 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;15 

•	 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;16 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 alternatives17 (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 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 

15 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. 

16 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). 

17 If the institution offers both a line of credit subject to Regulation Z (12 CFR 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). 

EFTA 20 
 

 

 

 

 

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 (Comment17(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 component of the opt-in feature 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)(1)(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)(1)(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 onetime debit transaction (Comment 17(b)-9). 

Conditioning Payment of Other Overdrafts. The 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: 

EFTA 21 
 

 

 

 

 

 

• Interest rates paid; 

• Fees assessed; 

• The type of ATM or debit card provided to the depositor;18 

• Minimum balance requirements; and 

• On-line bill payment services (Comment 17(b)(3)-1). 

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 

financial institution must obtain consent before charging a fee for payment of any ATM or onetime 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)). 

18 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. 

EFTA 22 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.19 

•	 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 instructions on 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). 

Prepaid Account Access Devices. Consistent with 12 CFR 1005.5(a), and except as 

provided, as applicable, in 12 CFR 1005.5(b), a financial institution may issue an 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 consumer is deemed to request an access device for a payroll card 

account when the consumer chooses to receive salary or other compensation through a payroll 

card account, or for a government benefit account when the consumer applies for government 

benefits that an agency disburses or will disburse by means of an EFT. A consumer is deemed to 

request an access device for a prepaid account when, for example, the consumer acquires a 

19 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). 

EFTA 23 
 

 

 

 

 

 

 

 

 

 

 

o	 

prepaid account offered for sale at a retail location or applies for a prepaid account by telephone 

or online. If an access device for a prepaid account is provided on an unsolicited basis where the 

prepaid account is used for disbursing funds to a consumer, and the financial institution or third 

party making the disbursement does not offer any alternative means for the consumer to receive 

those funds in lieu of accepting the prepaid account, in order to satisfy 12 CFR 1005.5(b)(2), the 

financial institution must inform the consumer that the consumer has no other means by which to 

initially receive the funds in the prepaid account other than by accepting the access device, as 

well as the consequences of disposing of the access device (12 CFR 1005.15(b) and 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 (other than an access device for a 

prepaid account) 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 TILA 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 TILA, see Section XI of this document, and 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. 

EFTA 24 
o	 

o	 

 

 

 

 

 

The telephone number and address for reporting that an unauthorized EFT has been 

or may be made. 

The financial institution’s business days. 

•	 Any access device used to initiate 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)). 

For prepaid accounts that are not payroll card accounts or government benefit accounts, a 

financial institution is not required to comply with the liability limits and error resolution 

requirements in 12 CFR 1005.6 and 1005.11 for any prepaid account for which it has not 

successfully completed its consumer identification and verification process, provided certain 

disclosures are given (12 CFR 1005.18(e)(3)). 

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 (12 CFR 1005.6(b)). 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 

Event Timing of Consumer 

Notice to Financial Institution 

Maximum liability 

Loss or theft of access 

device20 

Within two business days after learning of 

loss or theft 

Lesser of $50, OR total amount of 

unauthorized transfers that occur before 

notice to the financial institution. 

Loss or theft of access 

device 

More than two business days after 

learning of loss or theft up to 60 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 

20 Includes a PIN if used without a card in a telephone transaction, for example. 

EFTA 25 
 

 

 

 

 

 

 

 

 

institution.21 

Loss or theft of access 

device 

More than 60 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).

22 

Unauthorized 

transfer(s) not involving 

loss or theft of an 

access device 

Within 60 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 days after transmittal of the 

periodic statement on which the 

unauthorized transfer first appears. 

Unlimited liability for unauthorized 

transfers occurring 60 days after the 

periodic statement and before notice to 

the financial institution. 

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). 

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). 

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 

21 Provided the financial institution demonstrates that these transfers would not have occurred had notice been given within the 

two-business-day period. 

22 Provided the financial institution demonstrates that these transfers would not have occurred had notice been given within the 

60-day period. 

EFTA 26 
 

 

 

 

 

 

 

 

 

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)). 

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 recordkeeping 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 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. 

EFTA 27 
 

 

 

 

 

•	 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. 

•	 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 (12 

CFR 1005.11(c)(1)). 

The financial institution may take up to 45 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 days to complete 

its investigation if the consumer fails to provide the required written confirmation of an oral 

notice of error within 10 business days, 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)). 

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 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). 

EFTA 28 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)(1) & (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 (12 CFR 1005.11(d)(2)). 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)(1)). 

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-ofsale 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 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. 

•	 Date — the date the consumer initiates the transfer. 

EFTA 29 
 

 

 

 

 

 

 

 

○	 

○	 

○	 

•	 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). 

•	 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 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. 

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

•	 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). 

•	 Name of any third party payee or payor. 

EFTA 30 
 

 

 

 

 

 

 

 

 

 

 

 

•	 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 (Comment 9(b)(3)). 

•	 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 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 intra-institutional 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 Prepaid Accounts - 12 CFR 1005.15 

and 1005.18 

12 CFR 1005.18 provides an alternative to providing periodic statements for prepaid accounts if 

financial institutions make account information available to consumers by specific means. In 

EFTA 31 
 

 

 

 

 

 

 

 

 

addition, 12 CFR 1005.18 clarifies how financial institutions that do not provide periodic 

statements for prepaid accounts can comply with the subpart A requirements relating to initial 

disclosures, the annual error resolution notice, liability limits, and 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 prepaid accounts (including 

payroll card accounts) nor (ii) issue prepaid cards and agree with consumers to provide EFT 

services in connection with prepaid 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). 

12 CFR 1005.15 contains similar provisions for government benefit accounts, as defined in 12 

CFR 1005.15(a)(2). A government agency is deemed to be a “financial institution” subject to the 

regulation if it directly or indirectly issues an access device to a consumer for use in initiating an 

EFT of government benefits from an account, other than needs-tested benefits in a program 

established under state or local law or administered by a state or local agency (12 CFR 

1005.15(a)(1)). 

Alternative to Periodic Statements. A financial institution (which may include 

government agencies as defined by 12 CFR 1005.15(a)(1)) need not furnish periodic statements 

required by 12 CFR 1005.9(b) if the financial institution makes available to the consumer the 

following23: 

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

benefit accounts only, also at a terminal. 

•	 An electronic history of account transactions, such as through a website, covering at least 

12 months preceding the date the consumer electronically accesses the account; and 

•	 A written history of account transactions provided promptly in response to an oral or 

written request and covering at least 24 months preceding the date the financial 

institution receives the consumer’s request (12 CFR 1005.15(d)(1) and 1005.18(c)(1)). 

For prepaid accounts that are not payroll card accounts or government benefit accounts, a 

financial institution is not required to provide a written history of the consumer’s account 

transactions pursuant to 12 CFR 1005.18(c)(1)(iii) for any such account for which the financial 

institution has not completed its consumer identification and verification process (12 CFR 

1005.18(c)(2)). 

23 If, on April 1, 2019, a financial institution does not have readily accessible the data necessary to make available 12 months of 

electronic account transaction history or to provide 24 months of written account transaction history upon request, the financial 

institution may make available or provide such histories using the data for the time period it has until the financial institution has 

accumulated the data necessary to comply in full with those requirements (12 CFR 1005.18(h)(3)(i)). 

EFTA 32 
 

 

 

 

 

 

 

 

o	 

o	 

o	 

The electronic and written histories of account transactions must include the same information 

required on periodic statements under 12 CFR 1005.9(b) (12 CFR 1005.15(d)(2) and 

1005.18(c)(3)). 

Modifications to Other Regulation E Requirements. If a financial institution 

provides an alternative to periodic statements under 12 CFR 1005.18(c)(1) (or government agency 

provides an alternative to periodic statements under 12 CFR 1005.15(d)(1)), it must comply with 

the following pursuant to 12 CFR 1005.18(d) and 1005.15(e): 

•	 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 a website; and a summary of the consumer’s right to receive a written 

account transaction 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. This disclosure may be made by providing a 

notice substantially similar to the notice contained in paragraph A-7(a) in Appendix 

A. For government benefit accounts, the disclosure required by 12 CFR 

1005.15(e)(1)(i) may be made by providing a notice substantially similar to the notice 

contained in paragraph A-5(a) in Appendix A. 

A notice concerning error resolution that is substantially similar to the notice contained 

in paragraph A-7(b) in Appendix A, or paragraph A-5(b) in Appendix A for 

government benefit accounts, in place of the notice required by 12 CFR 1005.7(b)(10). 

Alternatively, for prepaid account programs for which the financial institution does not 

have a consumer identification and verification process, a description of the financial 

institution’s error resolution process and limitations on consumers’ liability for 

unauthorized transfers or, if none, a statement that there are no such protections (12 

CFR 1005.18(d)(1)(ii)). 

•	 Provide an annual error resolution notice 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 

1005.8(b). Alternatively, a financial institution (which may include government agencies 

as defined by 12 CFR 1005.15(a)(1)) may include on or with each electronic and written 

account transaction history provided in accordance with 12 CFR 1005.18(c)(1), or 12 

CFR 1005.15(d)(1) for government benefit accounts, 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 12 CFR 

1005.18(e) or 1005.15(e)(3). 

•	 Comply with modified timing provisions for limited liability requirements as follows: 

For purposes of 12 CFR 1005.6(b)(3), the 60-day period for reporting any 

unauthorized transfer begins on the earlier of (12 CFR 1005.18(e)(1)(i) and 

1005.15(e)(3)(i)): 

EFTA 33 
 

 

 

 

 

 

○	 

o	 

 The date the consumer electronically accesses the consumer’s account under 12 

CFR 1005.18(c)(1)(ii), or under 12 CFR 1005.15(d)(1)(ii) for a government 

benefit account, provided that the electronic account transaction history made 

available to the consumer reflects the unauthorized transfer; or 

 The date the financial institution (including an agency) sends a written history of 

the consumer’s account transactions requested by the consumer under 12 CFR 

1005.18(c)(1)(iii), or under 12 CFR 1005.15(d)(1)(iii) for a government benefit 

account, in which the unauthorized transfer is first reflected. 

Alternatively, a financial institution (including an agency)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 (12 CFR 1005.15(e)(3)(ii) and 1005.18(e)(1)(ii)). 

•	 Comply with modified timing provisions for error resolution requirements as follows: 

A written or oral error notice is considered timely, and the financial institution 

(including an agency) must comply with the requirements of 12 CFR 1005.11, if the 

financial institution receives notice from the consumer by the earlier of (12 CFR 

1005.18(e)(2)(i) and 1005.15(e)(4)(i)): 

 60 days after the date the consumer electronically accesses the consumer’s 

account under 12 CFR 1005.18(c)(1)(ii), or 12 CFR 1005.15(d)(1)(ii) for a 

government benefit account, provided that the electronic history made available to 

the consumer reflects the alleged error; or 

 60 days after the date the financial institution (including an agency) sends a 

written history of the consumer’s account transactions requested by the consumer 

under 12 CFR 1005.18(c)(1)(iii), or under 12 CFR 1005.15(d)(1)(iii) for a 

government benefit account, in which the alleged error is first reflected. 

Alternatively, a financial institution (including an agency) 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 (12 CFR 

1005.15(e)(4)(ii) and 1005.18(e)(2)(ii)). 

•	 Regardless of whether periodic statements are provided or the alternative followed: once 

a financial institution successfully completes its consumer identification and verification 

process with respect to a prepaid account (other than payroll card accounts or government 

benefit accounts), the financial institution must limit the consumer’s liability for 

unauthorized transfers and resolve errors that occur following verification in accordance 

with 12 CFR 1005.6 or 1005.11, or the modified timing requirements in 12 CFR 

1005.18(e), as applicable (12 CFR 1005.18(e)(3)(iii)). 

EFTA 34 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary Totals of Fees - 12 CFR 1005.15 and 1005.18 

A financial institution (including an agency) must disclose the amount of any fees assessed 

against the account, whether for EFTs or otherwise, on any periodic statement provided pursuant 

to 12 CFR 1005.9(b) and on any history of account transactions provided or made available by 

the financial institution (12 CFR 1005.15(d)(2) and 1005.18(c)(4)). 

A financial institution (including an agency) must display a summary total of the amount of all 

fees assessed by the financial institution against the consumer’s prepaid account for the prior 

calendar month and for the calendar year to date on any periodic statement provided pursuant to 

12 CFR 1005.9(b) and on any history of account transactions provided or made available by the 

financial institution (12 CFR 1005.15(d)(2) and 1005.18(c)(5)).24 

VII.Gift Cards - 12 CFR 1005.20 

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 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: 

•	 There has been no activity with respect to the certificate or card within the one-year period 

prior to the imposition of the fee; 

•	 Only one such fee is assessed in a given calendar month; and 

•	 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 

24 If the financial institution on April 1, 2019, does not have readily accessible the data necessary to calculate the summary totals 

of the amount of all fees assessed by the financial institution on the consumer’s prepaid account for the prior calendar month and 

for the calendar year pursuant to 12 CFR 1005.18(c)(5), the financial institution may display the summary totals using the data it 

has until the financial institution has accumulated the data necessary to display the summary totals as required by 12 CFR 

1005.18(c)(5). See 12 CFR 1005.18(h)(3)(ii). 

EFTA 35 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

(Comment 20(e)-1). 

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. Nonreloadable 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 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. Requirements for Financial Institutions 

Offering Prepaid Accounts - 12 CFR 1005.18 

Prepaid accounts (as defined in 12 CFR 1005.2(b)(3)(i)) include several types of products: 

payroll card accounts and government benefit accounts that were subject to Regulation E prior to 

the Prepaid Accounts Rule; accounts that are marketed or labeled as “prepaid” that are 

redeemable upon presentation at multiple, unaffiliated merchants for goods or services, or that 

are usable at ATMs; and other accounts (other than checking accounts, share draft accounts, and 

negotiable order of withdrawal accounts) that are issued on a prepaid basis in a specified amount 

or not issued on a prepaid basis but capable of being loaded with funds thereafter, and whose 

primary function is to conduct transactions with multiple, unaffiliated merchants for goods or 

services, or at ATMs, or to conduct person-to-person transfers. For exclusions from the term 

“prepaid account,” see 12 CFR 1005.2(b)(3)(ii). 

Financial institutions must comply with all applicable requirements of the EFTA and Regulation 

E with respect to prepaid accounts, except as modified by 12 CFR 1005.18 (12 CFR 1005.18(a)). 

This section of the manual discusses certain provisions specifically applicable to prepaid 

accounts; other provisions are addressed elsewhere in this manual. 

Scope. 12 CFR 1005.18 applies to prepaid accounts other than government benefit accounts. 

Although government benefit cards are defined as prepaid accounts, slightly different rules apply 

in certain circumstances, which can be found in 12 CFR 1005.15. 

EFTA 36 
Pre-Acquisition Disclosure Requirements - 12 CFR 

1005.18(b) 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of Disclosures. Generally, a financial institution must provide the required short 

and long form disclosures before a consumer acquires a prepaid account. 

However, a financial institution need not provide the long form disclosures prior to acquisition at 

a retail location or orally by telephone, if certain conditions are met. See 12 CFR 

1005.18(b)(1)(ii) and (b)(1)(iii). Further, when a prepaid account is used for disbursing funds to 

a consumer and the financial institution or third party making the disbursement does not offer 

any alternative means for the consumer to receive those funds in lieu of accepting the prepaid 

account, those disclosures may be provided at the time the consumer receives the prepaid 

account (12 CFR 1005.18(b)(1)(i)). 

Content of Short Form Disclosures. 12 CFR 1005.18(b)(2) requires a financial 

institution to disclose the following fees and information on its short form disclosure: 

•	 Periodic fee: The periodic fee charged for holding the prepaid account, assessed on a 

monthly or other periodic basis, using the term “Monthly fee,” “Annual fee,” or a 

substantially similar term. 

•	 Per purchase fee: The fee for making a purchase using the prepaid account, using the term 

“Per purchase” or a substantially similar term. 

•	 ATM withdrawal fees: Two fees for using an ATM to initiate a withdrawal of cash in the 

United States from the prepaid account, both within and outside of the financial 

institution’s network or a network affiliated with the financial institution, using the term 

“ATM withdrawal” or a substantially similar term, and “in-network” or “out-of-network,” 

respectively, or substantially similar terms. 

•	 Cash reload fee: The fee for reloading cash into the prepaid account using the term “Cash 

reload” or a substantially similar term. The fee disclosed must be the total of all charges 

from the financial institution and any third parties for a cash reload. 

•	 ATM balance inquiry fees: Two fees for using an ATM to check the balance of the 

prepaid account in the United States, both within and outside of the financial institution’s 

network or a network affiliated with the financial institution, using the term “ATM balance 

inquiry” or a substantially similar term, and “in-network” or “out-of-network,” 

respectively, or substantially similar terms. 

•	 Customer service fees: Two fees for calling the financial institution about the prepaid 

account, both for calling an interactive voice response system and a live customer service 

agent, using the term “Customer service” or a substantially similar term, and “automated” 

or “live agent,” or substantially similar terms, respectively, and “per call” or a substantially 

similar term. When providing a short form disclosure for multiple service plans pursuant 

to 12 CFR 1005.18(b)(6)(iii)(B)(2), the financial institution must disclose only the fee for 

EFTA 37 
 

 

 

 

 

 

 

 

 

 

calling the live agent customer service about the prepaid account, using the term “Live 

customer service” or a substantially similar term and “per call” or a substantially similar 

term. 

•	 Inactivity fee: The fee for non-use, dormancy, or inactivity of the prepaid account, using 

the term “Inactivity” or a substantially similar term, as well as the conditions that trigger 

the financial institution to impose that fee. 

•	 Additional fee types: A statement disclosing the number of additional fee types (AFTs) 

the financial institution may charge consumers with respect to the prepaid account, a 

statement directing consumers to the disclosure of the AFTs, and, if applicable, disclosure 

of up to two AFTs. A financial institution must use the language provided in the rule or 

substantially similar language in making these statements, and must follow specific 

guidelines in determining which AFTs to disclose, including (with certain exceptions) the 

disclosure of the two fee types that generate the highest revenue from consumers, over a 

specified time period, for the prepaid account program or across prepaid account programs 

that share the same fee schedule. See 12 CFR 1005.18(b)(2)(viii) and (ix). 

NOTE: A financial institution must reassess its AFTs disclosure periodically, and, under 

certain circumstances, when the institution changes its fee schedule. See 12 CFR 

1005.18(b)(2)(ix)(E)(2) and (3) for specific requirements. 

•	 Overdraft credit features: A statement that no overdraft credit feature is offered, or, if 

such a feature may be offered at any point, language about the feature and applicable fees. 

A financial institution must use the language provided in the rule or substantially similar 

language in making this statement. See 12 CFR 1005.18(b)(2)(x). 

•	 Registration and insurance: A statement regarding the prepaid account program’s 

eligibility for FDIC deposit insurance or NCUA share insurance, as appropriate, and 

directing the consumer to register the prepaid account for insurance and other account 

protections, where applicable. A financial institution must use the language provided in the 

rule or substantially similar language in making this statement. See 12 CFR 

1005.18(b)(2)(xi). 

•	 Bureau website: A statement directing the consumer to the Bureau’s website for general 

information about prepaid accounts. A financial institution must use the language provided 

in the rule or substantially similar language in making this statement. See 12 CFR 

1005.18(b)(2)(xii). 

•	 Information on all fees and services: A statement directing the consumer to the location 

of the long form disclosure to find details and conditions for all fees and services. In certain 

circumstances, this statement must include a telephone number and a website URL that the 

consumer may use to directly access the long form disclosure. A financial institution must 

use the language provided in the rule or substantially similar language in making this 

statement. See 12 CFR 1005.18(b)(2)(xiii). 

EFTA 38 
 

 

 

 

Additional content for payroll card accounts. The short form disclosure must contain a 

statement that the consumer does not have to accept the payroll card account, and directing the 

consumer to ask about other ways to receive wages or salary. Alternatively, a financial institution 

or agency may provide a statement that the consumer has several options to receive wages or 

salary, followed by a list of the options available to the consumer, and directing the consumer to 

tell the employer which option the consumer chooses. A financial institution or agency must use 

the language provided in the rule or substantially similar language in making this statement. See 

12 CFR 1005.18(b)(2)(xiv). 

A financial institution or agency may, but is not required to, include a statement in one additional 

line of text in the short form disclosure for information on ways the consumer may access 

government benefit account funds and balance information for free or for a reduced fee. 12 CFR 

1005.15(c)(2)(ii). 

Variable fees, including periodic fees. Additional disclosure requirements apply when a 

disclosed fee can vary; there are two alternatives if the periodic fee can vary. See 12 CFR 

1005.18(b)(3)(i) and (b)(3)(ii). 

Single disclosure for like fees. Where the rule requires disclosure of two fees (12 CFR 

1005.18(b)(2)(iii), (v), (vi), and (ix)), a financial institution may disclose a single fee amount 

when the amount is the same for both fees. See 12 CFR 1005.18(b)(3)(iii). 

Third-party fees. A financial institution may not include any third-party fees in the required 

short form disclosure, except for the cash reload fee, which must be the total of all charges from 

the financial institution and any third parties. See 12 CFR 1005.18(b)(3)(iv) and (v) and 

(b)(2)(iv). 

Prohibition on disclosure of finance charges. A financial institution may not include any 

finance charges imposed in connection with a covered separate credit feature accessible by a 

hybrid prepaid-credit card (i.e., an overdraft credit feature) in its disclosures pursuant to 12 CFR 

1005.18(b)(2)(i) through (xi). See 12 CFR 1005.18(b)(3)(vi). 

Additional information outside the short form. At the time a financial institution provides the 

short form disclosure, it must also disclose the following information outside of the short form 

disclosure: the name of the financial institution; the name of the prepaid account program; the 

purchase price for the prepaid account, if any; and the fee for activating the prepaid account, if 

any. In a setting other than a retail location, this information must be disclosed in close proximity 

to the short form. In a retail location, this information, other than the purchase price, must be 

disclosed on the exterior of the access device’s packaging material. In a retail location, the 

purchase price must be disclosed either on the exterior of or in close proximity to the prepaid 

account access device’s packaging material. See 12 CFR 1005.18(b)(5). 

Content of Long Form Disclosures. 12 CFR 1005.18(b)(4) requires that a financial 

institution disclose the following fees and information on its long form disclosure: 

EFTA 39 
 

 

 

 

•	 Title. A heading stating the name of the prepaid account program and that the long form 

disclosure contains a list of all fees for that particular prepaid account program. 

•	 Fees. All fees that may be imposed in connection with a prepaid account. For each fee, the 

financial institution must disclose the amount of the fee and the conditions, if any, under 

which the fee may be imposed, waived, or reduced. See 12 CFR 1005.18(b)(4)(ii) for specific 

requirements. 

•	 Statement regarding registration and FDIC or NCUA insurance. The statement 

regarding the prepaid account program’s eligibility for deposit or share insurance and 

directing the consumer to register the prepaid account for insurance and other protections that 

is required on the short-form disclosure, together with an explanation of FDIC or NCUA 

insurance coverage and the benefit of such coverage or the consequence of the lack of such 

coverage, as applicable. See 12 CFR 1005.18(b)(2)(xi) and 12 CFR 1005.18(b)(4)(iii). 

•	 Statement regarding overdraft credit features. The statement required on the short-form 

disclosures by 12 CFR 1005.18(b)(2)(x). 

•	 Statement regarding financial institution contact information. See 12 CFR 

1005.18(b)(4)(v). 

•	 Statement regarding Bureau website and telephone number. See 12 CFR 

1005.18(b)(4)(vi). 

•	 Regulation Z disclosures for overdraft credit features. See 12 CFR 1005.18(b)(4)(vii). 

Disclosures for Prepaid Accounts Acquired in Retail Location: A financial institution is not 

required to provide the long form disclosure required by 12 CFR 1005.18(b)(4) before a 

consumer acquires a prepaid account in person at a retail location or orally by telephone, if 

certain conditions are met. See 12 CFR 1005.18(b)(1)(ii) and (iii) for the specific conditions. 

Form of Pre-Acquisition Disclosures. Disclosures generally must be in writing (12 

CFR 1005.18(b)(6)(i)(A)). For exceptions regarding where disclosures may be made 

electronically or orally, see 12 CFR 1005.18(b)(6)(i)(B) and (C). 

Retainable form. Disclosures must generally be made in a form that a consumer may keep, 

except as provided in 12 CFR 1005.18(b)(6)(ii). 

Tabular format. When provided in writing or electronically, fee and certain other information 

required in the short form disclosures and fee information required in long form disclosures 

must be provided in the form of a table. See 12 CFR 1005.18(b)(6)(iii) and Model Forms A10(A) through (F). 

Other requirements for pre-acquisition disclosures. 

EFTA 40 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific formatting requirements. Requirements regarding the grouping and ordering of 

information, prominence and size of the text, and segregation of the disclosures from other 

information. See 12 CFR 1005.18(b)(7). 

Terminology. Fee names and other terms must be used consistently within and across 

disclosures. See 12 CFR 1005.18(b)(8). 

Prepaid accounts acquired in foreign languages. Generally, a financial institution must 

provide the required pre-acquisition disclosures in a foreign language if the financial institution 

uses that same foreign language in connection with the acquisition of a prepaid account in certain 

circumstances. For exceptions, See 12 CFR 1005.18 (b)(9). 

Other Disclosure Requirements - 12 CFR 1005.18(f) 

Initial disclosure of fees and other information. A financial institution must include, as part of 

the initial disclosures given pursuant to 12 CFR 1005.7, all of the information required to be 

disclosed in its pre-acquisition long form disclosure. See 12 CFR 1005.18(f)(1). 

Change-in-terms notice. The change-in-terms notice provisions in 12 CFR 1005.8(a) apply to 

changes in terms and conditions that are required to be disclosed pursuant to 12 CFR 1005.7 or 

12 CFR 1005.18(f)(1) in most circumstances, with some exceptions. See 12 CFR 1005.18(f)(2). 

Disclosures on prepaid account access devices. The name of the financial institution and the 

website URL and a telephone number a consumer can use to contact the financial institution 

about the prepaid account must be disclosed on the prepaid account access device (with specific 

rules when physical access devices are not provided in connection with prepaid accounts). See 

12 CFR 1005.18(f)(3). 

Prepaid Accounts Accessible by Hybrid Prepaid-Credit 

Cards - 12 CFR 1005.18(g) 

The following rules apply to a prepaid account program where consumers may be offered a 

covered separate credit feature accessible by a hybrid prepaid-credit card as defined by 

Regulation Z, 12 CFR 1026.61: 

•	 A financial institution must provide to any prepaid account without a covered separate 

credit feature the same account terms, conditions, and features that it provides on prepaid 

accounts in the same prepaid account program that have such a credit feature (12 CFR 

1005.18(g)(1)). 

•	 A financial institution is not prohibited from imposing a higher fee or charge on the asset 

feature of a prepaid account with a covered separate credit feature accessible by a hybrid 

prepaid-credit card than the amount of a comparable fee or charge that it imposes on any 

prepaid account in the same prepaid account program that does not have such a credit 

feature (12 CFR 1005.18(g)(2)). 

EFTA 41 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IX. Internet Posting of Prepaid Account 

Agreements - 12 CFR 1005.19 

Definitions. 12 CFR 1005.19(a) provides the following supplemental definitions for purposes 

of 12 CFR 1005.19: 

Agreement means the written document or documents evidencing the terms of the legal 

obligation, or the prospective legal obligation, between a prepaid account issuer and a consumer 

for a prepaid account. It also includes “fee information” as defined below. 

Amends An issuer “amends” an agreement if it makes a substantive change (“amendment”) to 

the agreement. A change is substantive if it alters the rights or obligations of the issuer or the 

consumer under the agreement. Any change in the fee information, as defined below, is 

substantive. 

Fee information means the short form disclosure for the prepaid account (see 12 CFR 

1005.18(b)(2)) and the fee information and statements required to be disclosed in the preacquisition long form disclosure for the prepaid account pursuant to 12 CFR 1005.18(b)(4). 

Issuer means the entity to which a consumer is legally obligated, or would be legally obligated, 

under the terms of a prepaid account agreement. 

Offers An issuer “offers” an agreement if the issuer markets, solicits applications for, or 

otherwise makes available a prepaid account that would be subject to that agreement, regardless 

of whether the issuer offers the prepaid account to the general public. 

Offers to the general public means an agreement if the issuer markets, solicits applications for, 

or otherwise makes available to the general public a prepaid account that would be subject to that 

agreement. 

Open account A prepaid account is an “open account” or “open prepaid account” if: (i) there is 

an outstanding balance in the account; (ii) the consumer can load funds to the account even if the 

account does not currently hold a balance; or (iii) the consumer can access credit from a covered 

separate credit feature accessible by a hybrid prepaid-credit card as defined in Regulation Z, 12 

CFR 1026.61, in connection with the account. A prepaid account that has been suspended 

temporarily (for example, due to a report by the consumer of unauthorized use of the card) is 

considered an “open account” or “open prepaid account.” 

Prepaid account means a prepaid account as defined in 12 CFR 1005.2(b)(3). 

Submission of Agreements to the Bureau. An issuer must make submissions of 

prepaid account agreements to the CFPB on a rolling basis, in the form and manner specified by 

the CFPB, no later than 30 days after the issuer offers, amends, or ceases to offer any prepaid 

account agreement. See 12 CFR 1005.19(b)(1) regarding the content of each submission. 

Amended agreements. If a prepaid account agreement previously submitted to the CFPB is 

amended, the issuer must submit the entire amended agreement to the CFPB, in the form and 

EFTA 42 
 

 

 

 

 

 

 

 

manner specified by the CFPB, no later than 30 days after the change becomes effective. 

Additionally, if other previously submitted identifying information about the issuer and its 

agreements changes, the issuer must submit an update no later than 30 days after the change 

becomes effective. However, the issuer can delay submitting changes to the list of names of 

other relevant parties to a particular agreement until the earlier of (i) when it submits an amended 

agreement or changes to other identifying information about the issuer and its submitted 

agreements, or (ii) May 1 of each year. See 12 CFR 1005.19(b)(2)(ii) for more specific 

requirements. 

Withdrawal of agreements no longer offered. If an issuer no longer offers a prepaid account 

agreement that was previously submitted to the CFPB, the issuer must notify the Bureau, in the 

form and manner specified by the CFPB, no later than 30 days after the issuer ceases to offer the 

agreement, that it is withdrawing the agreement (12 CFR 1005.19(b)(3)). 

De minimis exception. An issuer need not make submissions of prepaid account agreements to 

the CFPB if the issuer has fewer than 3,000 open prepaid accounts as of the last day of the 

calendar quarter (12 CFR 1005.19(b)(4)). 

Product testing exception. An issuer need not submit a particular prepaid account agreement if 

the issuer offers the agreement as part of a product test to a limited group of consumers for a 

limited period of time, the agreement is used for fewer than 3,000 open prepaid accounts, and the 

agreement is not offered other than in connection with the product test (12 CFR 1005.19(b)(5)). 

Form and content of agreements submitted to the Bureau. Agreements must contain the 

provisions of the agreement and the fee information currently in effect. Agreements must not 

contain any personally identifiable information relating to any consumer and must be presented 

in a clear and legible font. See 12 CFR 1005.19(b)(6)(i), (ii), and (iii) for more specific 

requirements. 

Posting of Agreements Offered to the General Public. An issuer must post and 

maintain on its publicly available website any prepaid account agreements offered to the general 

public that the issuer is required to submit to the CFPB. Posted agreements must conform to the 

form and content requirements for agreements submitted to the CFPB. Agreements must be 

updated as frequently as the issuer is required to submit new or amended agreements to the 

Bureau. Agreements must be placed in a location that is prominent and readily accessible to the 

public, and must also be accessible without submission of personally identifiable information. 

See 12 CFR 1005.19(c) for more specific requirements. 

Agreements for all open accounts. With respect to any open prepaid account, an issuer 

must either: 

•	 Post and maintain the consumer’s agreement on its website; or 

•	 Promptly provide a copy of the consumer’s agreement to the consumer upon the 

consumer’s request. If the issuer makes an agreement available upon request, the issuer 

must provide the consumer with the ability to request a copy of the agreement by 

EFTA 43 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

telephone. The issuer must send to the consumer a copy of the consumer’s prepaid 

account agreement no later than five business days after the issuer receives the 

consumer’s request (12 CFR 1005.19(d)(1)). 

Except as otherwise provided, agreements for open accounts that are posted on the issuer’s 

website or sent to the consumer upon the consumer’s request must conform to the form and 

content requirements for agreements submitted to the CFPB (12 CFR 1005.19(d)(2)). 

Except as otherwise provided, issuers may provide prepaid account agreements for this purpose 

electronically without regard to the consumer notice and consent requirements of section 101(c) 

of the E-Sign Act. See 12 CFR 1005.19(e). 

X. 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. 

•	 The financial institution may give the consumer oral or written notice within two
 

business days after a preauthorized transfer occurs.
 

•	 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. 

•	 The financial institution may establish a readily available telephone line25 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 (12 CFR 1005.10(a)(1)). 

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 

25 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). 

EFTA 44 
 

 

 

 

 

 

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 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 (however, this exception does not apply to a covered separate credit feature accessible 

by a hybrid prepaid-credit card, as defined in Regulation Z, 12 CFR 1026.61) (12 CFR 

1005.10(e)(1)). The financial institution may offer a reduced APR or other cost-related incentive 

EFTA 45 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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).26 

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 accounts established by government agencies for 

distributing government benefits to consumers electronically. 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. Government 

agencies must comply with pre-acquisition disclosure requirements as applicable to other prepaid 

accounts. They must also provide one of two statements: either a statement that the consumer 

does not have to accept the government benefit account and directing the consumer to ask about 

other ways to receive their payment, or a statement that the consumer has several options to 

receive benefit payments, followed by a list of the available options, and directing the consumer 

to indicate which option the consumer chooses. Government agencies must also comply with 

other disclosure and change-in-terms requirements applicable to prepaid accounts as set forth in 

12 CFR 1005.18(f). For government benefit accounts accessible by hybrid prepaid-credit cards 

(defined by Section 1026.61 of Regulation Z), a government agency must comply with 

prohibitions and requirements related to hybrid-prepaid credit cards. 

A government agency is deemed to be a “financial institution” subject to the regulation if 

directly or indirectly it issues an access device to a consumer for use in initiating an EFT of 

government benefits from an account, other than needs-tested benefits in a program established 

under state or local law or administered by a state or local agency (12 CFR 1005.15(a)(1)). 

26 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). 

EFTA 46 
 

 

 

 

 

 

 

 

 

XI. Relation to Other Laws - 12 CFR 1005.12 

This section describes the relationship between the EFTA and the TILA for purposes of subpart 

A of Regulation E. 

Issuance of Access Devices, and Addition of Certain EFT Services 

The EFTA and Regulation E govern the following (12 CFR 1005.12(a)(1)): 

•	 The addition of the capability to initiate EFTs to accepted credit cards, as defined in 12 

CFR 1026.12, comment 12-2. 

•	 The issuance of access devices (other than an access device for a prepaid account) that 

permits credit extensions (under a preexisting agreement between a consumer and 

financial institution) only when the consumer’s account is overdrawn or to maintain a 

specified minimum balance in the consumer’s account, or under an overdraft service, as 

defined in 12 CFR 1005.17(a). 

•	 The addition of an overdraft service, as defined in 12 CFR 1005.17(a), to an accepted 

access device. 

•	 Generally, a consumer’s liability for an unauthorized EFT and investigation of errors. 

For specifics see 12 CFR 1005.12(a)(1)(iv). 

The TILA and Regulation Z govern all of the following (12 CFR 1005.12(a)(2)): 

•	 The issuance of credit cards as defined in Regulation Z. 

•	 The addition of a credit feature to a debit card or other access device, including an access 

device for a prepaid account that would make the access device a credit card. 

•	 The issuance of dual debit/credit cards, except for access devices (other than prepaid 

account access devices) whose only credit feature is a pre-existing agreement to cover 

account overdrafts or to maintain a minimum account balance, or that are an overdraft 

service. 

Liability and Error Resolution Provisions 

The liability and error resolution provisions in Regulation E (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, except with respect to a prepaid account (12 CFR 1005.12(a)(1)(iv)(A)); 

EFTA 47 
 

 

 

 

 

•	 with respect to a transaction that involves a covered separate credit feature and an asset 

feature on a prepaid account that are both accessible by a hybrid prepaid-credit card, as 

defined in 12 CFR 1026.61, an extension of credit that is incident to an EFT that occurs 

when the hybrid prepaid-credit card accesses both funds in the asset feature and a credit 

extension from the credit feature with respect to a particular transaction (12 CFR 

1005.12(a)(1)(iv)(B)); 

•	 transactions that involve credit extended through a negative balance to the asset feature of 

a prepaid account that meets the conditions set forth in 12 CFR 1026.61(a)(4) (12 CFR 

1005.12(a)(1)(iv)(C)); and 

•	 with respect to transactions involving a prepaid account and a non-covered separate credit 

feature, as defined in 12 CFR 1026.61, Regulation E applies to transactions that access 

the prepaid account, as applicable (12 CFR 1005.12(a)(1)(iv)(D)). 

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 

Regulation E (12 CFR 1005.6 and 1005.11) or Regulation Z will apply depending on the nature 

of the transaction. See Comment 12(a)-5: 

•	 Assume a combined access device-credit card can access a credit feature that is not an 

overdraft credit feature (i.e., when the card is used as a credit card, the card does not first 

access any funds in the asset account but draws only on a separate credit feature subject to 

Regulation Z). If the card is stolen and used as a credit card, for example, when the card is 

used to draw cash advances directly from the credit line, only the liability limits and error 

resolution provisions of Regulation Z will apply. If, however, the card is stolen and is used as 

an access device for example, for debit card purchases or cash withdrawals at an ATM from 

a checking account, only the liability limits and error resolution provisions of 12 CFR 1005.6 

and 1005.11 will apply. 

•	 Assume a combined access device-credit card that can access an overdraft credit feature (i.e., 

the credit feature is accessed only when the consumer uses the card to make purchases or 

other transactions for which there are insufficient or unavailable funds in the asset account). 

If the card is stolen and unauthorized transactions are made, 12 CFR 1005.6 and 1005.11 will 

apply to the unauthorized transactions funded entirely from the asset account. If the use of 

the card results in an extension of credit that is incident to an EFT that is partially funded by 

funds in the consumer’s asset account and partially by credit extended under the overdraft 

credit feature, the error resolution provisions of Regulation Z, 12 CFR 1026.13(d) and (g) 

apply in addition to the Regulation E provisions, but the other liability limitations and error 

resolution provisions of Regulation Z do not. If an unauthorized transaction using the card is 

funded entirely by credit extended under the overdraft credit feature, the transaction is 

governed solely by the liability limitations and error resolution requirements of Regulation Z. 

EFTA 48 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subpart B - Requirements for Remittance Transfers 

Generally, consumers in the United States who send money electronically to consumers or 

business recipients in foreign countries are sending remittance transfers. Under Regulation E 

subpart B, remittance transfer providers generally must give consumers disclosures at certain 

stages of the remittance transfer process, and consumers have certain error resolution, 

cancellation, and refund rights. The requirements of subpart B apply to remittance transfer 

providers (12 CFR 1005.3(a)). 

XII. 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 performing activities as an 

agent on behalf of a remittance transfer provider (Comment 30(f)-1). 

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 

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). 

EFTA 49 
 

 

 

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). 

The commentary provides further guidance on the location of senders with respect to transfers 

from prepaid accounts; transfers from U.S. military installations abroad; when a transfer is for 

personal, family, or household purposes; and regarding transfers requested from non-consumer 

accounts (Comments 30(g)-1 through -3). 

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,” transfers to a designated recipient’s account where funds are to be 

received depends on where the recipient’s account is located. The commentary provides further 

guidance on transfers to prepaid accounts (other than a prepaid account that is a payroll card 

account or government benefit account) and transfers to U.S. military installations abroad 

(Comment 30(c)-2). 

“Remittance transfer provider” or “provider” is any person that provides remittance transfers 

for a consumer in the normal course of business, regardless of whether the consumer holds an 

account with such person (12 CFR 1005.30(f)(1)). 

EFTA 50 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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 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 for receiving an incoming transfer into an account is a non-covered thirdparty 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). 

XIII. 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 pre-payment 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 optional 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 

EFTA 51 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

sufficient for a sender to hear and comprehend them. The commentary provides additional 

guidance on disclosures to a mobile telephone, by fax, and for transactions conducted partially 

by telephone (12 CFR 1005.31(a); Comments 31(a)(1)-1 and -2 and 31(a)(2)-1 through -5, and 

Comment 31(e)-1). In addition, different foreign language requirements apply to transactions 

conducted by telephone, which are described in 12 CFR 1005.31(g)(2). 

Pre-payment 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). 

Disclosures also generally must be made in writing and in retainable form. For purposes of the 

disclosures required by 12 CFR 1005.31 and 1005.36 (e.g., pre-payment and receipt disclosures) 

the rule allows the remittance transfer provided to satisfy the requirement to provide disclosures 

in writing by providing those disclosures via fax, although it is not permissible to fax disclosures 

to a sender when that sender is present in the providers’ branch or office. The rule permits 

disclosures to be provided on any size of paper, as long as the disclosures are clear and 

conspicuous. For example, a disclosure may be provided on a register receipt or on an 8.5” x 11” 

piece of paper. The rule sets out specific form and retainability requirements with respect to 

remittance transfer requests received electronically, as well as remittance transfers conducted 

over the phone, by mobile application, or by text. See 12 CFR 1005.31(a) and Comment 31(a)(2) 

for more details. For example, prepayment disclosures provided via mobile application or text 

message (when permitted by the rule) need not be retainable (12 CFR 1005.31(a)(2) and (a)(5)). 

Additional requirements apply for certain transfers scheduled at least three days before the date 

of transfer that are conducted orally over the 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 1005.31(b)(1)(viii) 

and 1005.33(h)(3) (Comment 31(b)-2). 

Prepayment Disclosures - 12 CFR 1005.31(b)(1) 

EFTA 52 
 

 

 

 

 

A remittance transfer provider must provide the prepayment disclosure when the sender requests 

the remittance transfer, but prior to payment for the transfer. Unless an exception applies, the 

provider must disclose: 

a.	 The amount to be transferred (transfer amount); 

b.	 Front-end fees imposed by the provider and any taxes collected on the remittance 

transfer by the provider (transfer fees and transfer taxes); 

c.	 Total amount of the transaction (the sum of the transfer amount and front-end fees and 

taxes); 

d.	 The exchange rate; 

e.	 Any covered third-party fees (disclosed as “other fees”); 

f.	 The total amount to be received by the designated recipient (total amount of the
 

transaction minus covered third-party fees); and 

g.	 If applicable, 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. 

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 thirdparty 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). 

EFTA 53 
 

 

 

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). 

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 Third-Party 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, noncovered 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 noncovered 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. 

EFTA 54 
 

 

 

 

 

 

 

Additionally, the provider is permitted to disclose an estimate of such fees and taxes, provided 

any 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 pre-payment 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 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 there 

is such a state agency), and the Bureau 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 Bureau must 

be provided whether or not the Bureau is the provider’s primary federal regulator (Comment 

31(b)(2)-2). If a provider is licensed in 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 

EFTA 55 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) 

(Comments 31(b)(2)-5). 

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)-7). 

Combined Disclosure - 12 CFR 1005.31(b)(3) 

As an alternative to providing separate pre-payment 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 onetime 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 

(Comment 31(b)(3)-2)). 

Proof of Payment/Confirmation of Scheduling. The proof of payment or 

confirmation of scheduling 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) 

EFTA 56 
 

 

 

 

 

 

 

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 eightpoint font and 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 pre-payment disclosure, 

EFTA 57 
 

 

 

 

 

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 that asks a 

provider to send a remittance transfer, and provides transaction-specific information to the provider 

in order to send funds to a designated recipient, has requested a remittance transfer. On the other 

hand, a consumer who solely inquires about that day’s rates and fees to send to a particular country 

has not requested the 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 pre-payment 

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 - 12 CFR 1005.31(g) 

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 

EFTA 58 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the remittance transfer provider, it may provide disclosures in a single document with both 

languages or in two separate documents with 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 (Comment 31(g)(1)-4). 

XIV. Estimates - 12 CFR 1005.32 

Disclosures for which estimates may be used. Estimates may be used in certain 

circumstances for certain information required in pre-payment disclosures, receipts and 

combined disclosures. 

EFTA 59 
 

 

 

 

 

 

 

 

 

 

 

 

Temporary Exception for Insured Institutions - 12 CFR 

1005.32(a) 

NOTE: The temporary exception is available for insured institutions until July 21, 2020. 

Estimates may be provided for certain amounts required to be disclosed in the pre-payment 

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 (not 

including a prepaid account, unless the prepaid account is a payroll card account or 

government benefit account). 

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 that is 

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. On 

the other hand, an insured institution can determine the exact covered third-party 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, 2020. 

Permanent Exception for Transfers to Certain Countries ­

12 CFR 1005.32(b)(1) 

Estimates may be provided in pre-payment 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: 

EFTA 60 
 

 

 

 

 

 

 

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 CFPB published a list of countries whereby a remittance transfer 

provider may provide estimates for the exchange rate, the transfer amount, covered third-party 

fees and total amount to the recipient, unless the provider 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 amounts (Comments 

32(b)(1)-5 and 32(b)(1)-6). The list of countries that became effective February 7, 2013 and 

remains current as of June 2018 is Aruba, Brazil, China, Ethiopia, and Libya. 

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 

EFTA 61 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 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 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 

EFTA 62 
 

 

 

 

 

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). 

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 

EFTA 63 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)). 

XV. Procedures for Resolving Errors - 12 CFR 

1005.33) 

Definition of Error - 12 CFR 1005.33(a) 

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

a.	 Generally, an incorrect amount paid by a sender 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 (Comment 33(a)-2). 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 

EFTA 64 
 

 

 

 

 

 

b.	 The failure was caused by extraordinary circumstances outside the remittance transfer 

provider’s control; or 

c.	 The difference results from the application of 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 (12 CFR 1005.33(a)(1)(iii)). 

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: 

1.	 An exchange rate other than the disclosed rate is applied to the remittance transfer
 

(Comment 33(a)-2), or 

2.	 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 (Comment 33(a)­

3(iii)). 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 occurrence 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 (12 CFR 1005.33(a)(1)(iii)(B)). Examples 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 12 CFR 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 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 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 (Comment 33(a)-5). 

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; 

EFTA 65 
 

 

 

 

b.	 Delays related to a necessary investigation or other special action by the remittance 

transfer provider or a third party as required by the 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, (12 

CFR 1005.33(a)(1)(iv)) and: 

i.	 the remittance provider can demonstrate that the sender provided an incorrect 

account number or recipient institution identifier to the provider in connection 

with the remittance transfer; 

ii.	 the provider used reasonably available means prior to or when sending the 

transfer 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.	 the provider 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.	 the provider promptly used reasonable efforts to recover the amount that was to 

be received by the designated recipient (12 CFR 1005.33(h)). 

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 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 

EFTA 66 
 

 

 

 

 

 

 

 

 

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). 

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 recordkeeping 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)). However, if the notice of error is based on documentation, additional 

EFTA 67 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 email 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 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 

EFTA 68 
 

 

 

 

 

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 which the provider relied in making its 

determination (12 CFR 1005.33(d)(1) 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, and any fees and 

taxes paid by the sender in connection with the remittance transfer, 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 

towards a new remittance transfer, rather than be refunded, if the provider has not yet 

processed a refund. 

The provider may deduct from the amount refunded or applied towards a new transfer any 

fees actually deducted by a person other than the provider (except those that will ultimately 

EFTA 69 
 

 

 

 

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 

attempt and inform the sender of the deduction and reason. The provider may not deduct its 

own fee. The agreement to apply the funds towards 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
 

iii.	 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, ten 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 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 

EFTA 70 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Available by Disclosed Date. If the 

remittance transfer provider determines an error related to failure to make funds available by the 

disclosed date occurred, 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 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)). 

EFTA 71 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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 error-resolution 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 TILA 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)). 

EFTA 72 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 remittance 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 account-holding 

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. 

XVI. 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: 

EFTA 73 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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). 

XVII. 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). 

EFTA 74 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 compliance, 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)). 

XVIII. 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 pre-payment 

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 (12 CFR 

1005.36(a)(1)). 

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 provision 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 ten 

business days or delivered by hand or electronically no later than five 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 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 

EFTA 75 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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). 

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) 

EFTA 76 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 five 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 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)). 

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 

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 (Comment 

31(b)(2)-5). 

The following sections are applicable to both 

subpart A and subpart B. 

XIX. 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 Bureau 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 Bureau 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)). 

EFTA 77 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

XX.	 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. 

XXI. 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. 

Model Disclosure Clauses and Forms - 12 CFR 1005, 

Appendix A 

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: 

EFTA 78 
 

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-5 Model Clauses for Government Agencies (12 CFR 1005.15(e)(1) and (2))
 

A-6 Model Clauses for Authorizing One-Time Electronic Fund Transfers Using Information 

from a Check (12 CFR 1005.3(b)(2)) 

A-7 Model Clauses for Financial Institutions Offering Prepaid Accounts 

(12 CFR 1005.18(d) and (e)(3)) 

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) 

A-10(a)	 Model Form for Short Form Disclosures for Government Benefit Accounts (12 CFR 

1005.15(c) and 1005.18(b)(2), (3), (6), and (7)) 

A-10(b)	 Model Form for Short Form Disclosures for Payroll Card Accounts (12 CFR 

1005.18(b)(2), (3), (6), and (7)) 

A-10(c)	 Model Form for Short Form Disclosures for Prepaid Accounts, Example 1 (12 CFR 

1005.18(b)(2), (3), (6), and (7)) 

A-10(d)	 Model Form for Short Form Disclosures for Prepaid Accounts, Example 2 (12 CFR 

1005.18(b)(2), (3), (6), and (7)) 

A-10(e)	 Model Form for Short Form Disclosures for Prepaid Accounts with Multiple Service 

Plans (12 CFR 1005.18(b)(2), (3), (6), and (7)) 

For subpart B: 

A-10(f) Sample Form for Long Form Disclosures for Prepaid Accounts 

(12 CFR 1005.18(b)(4), (6), and (7)) 

A-30(a)	 Model Form for Pre-Payment 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 Pre-Payment 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)) 

EFTA 79 
 

A-30(c)	 Model Form for Pre-Payment 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 Pre-Payment 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 Pre-Payment 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-36	 Model Form for Error Resolution and Cancellation Disclosures (Long) (12 

CFR 1005.31(b)(4)) 

A-37	 Model Form for Error Resolution and Cancellation Disclosures (Short) (12 

CFR 1005.31(b)(2)(iv) and (b)(2)(vi)) 

A-38	 Model Form for Pre-Payment 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)) 

EFTA 80 
 

 

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 

15 U.S.C. 1601 et seq. Truth in Lending Act 

Regulations 

Consumer Financial Protection Bureau Regulations (12 CFR) 

Part 1005 Electronic Fund Transfers (Regulation E) 

EFTA 81 
 

 

 

 

 

 

 

 

 

 

Electronic Fund 

Transfer Act 

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 finanial 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: 

•	 Determine the entity’s compliance with Regulation E. 

•	 Assess the quality of the entity’s compliance risk management systems and its policies and 

procedures for implementing Regulation E. 

•	 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. 

•	 As appropriate, direct corrective action when violations of law are identified or when the 

entity’s policies or internal controls are deficient. 

Examination 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 (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. 

Procedures 82 
 

 

 

 

 

 

 

 

 

 

 

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. 

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

g.	 Significant deficiencies and their causes are included in reports to management and/or to 

the Board of Directors or principal(s). 

h.	 The frequency of review is appropriate. 

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, 

b.	 Process flowcharts, 

c.	 Policies and procedures, 

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 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. 

Section II – Subpart A 

Based on the materials reviewed within Section I, complete Section II, as applicable, to 

determine the financial institution’s compliance with Regulation E. 

Procedures 83 
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 the 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 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). 

Disclosures, Notices, Receipts, Periodic Statements, and Preauthorized 

Transfers 

Procedures 84 
 

 

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 in compliance 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 required 

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

9. 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 CFR 1005.17 

Procedures 85 
 

 

 

 

 

 

 

 

 

10. 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,27 unless the institution: 

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 consumer of 

the right to revoke such consent. 

(12 CFR 1005.17(b)(1)) 

NOTE: An institution does not have to meet the notice requirements described above if it 

does not impose a fee or charge for paying an overdraft transaction for ATM and one-time 

debit card transactions. For example, an institution that 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 may pay such an overdraft regardless of 

notice. However, it is still prohibited from charging fees for paying an ATM or one-time 

debit transaction overdraft (12 CFR 1005, and Comments 1005.17(b)-1(iv) and 17(b)-2). 

11. 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). 

12. Determine that the financial institution does not: 

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 

27 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 any payment of 

overdrafts pursuant to: a line of credit subject to Regulation Z; a service that transfers funds from another account held by a 

consumer; a line of credit or other transaction exempt from Regulation Z pursuant to 12 CFR 1026.3(d); or a covered separate 

credit feature accessible by a hybrid prepaid-credit card as defined in Regulation Z, 12 CFR 1026.61, or credit extended through 

a negative balance on the asset feature of the prepaid account that meets the conditions of 12 CFR 1026.61(a)(4). 

Procedures 86 
 

 

 

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. 

(12 CFR 1005.17(b)(2)) 

13. 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)). 

14. 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: 

a.	 Overdraft service. A brief description of the 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 

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. 

Procedures 87 
 

 

 

 

 

(12 CFR 1005.17(d) and Comments 1005.17(d)-1 through 1005.17(d)-5). 

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 in to, 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 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. 

15. 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)). 

16. 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)). 

17. Determine that the financial institution implements a consumer's revocation of consent as 

soon as reasonably practicable (12 CFR 1005(17)(f)). 

18. 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)). 

19. Determine that the financial institution's overdraft protection program incorporates the 

examiner’s agency guidance as applicable. 

Prepaid Accounts – 12 CFR 1005.18 and 1005.15 

NOTE: Additional Regulation E procedures outside of the “Prepaid Accounts” section may also 

apply to prepaid accounts. 

20. Verify that the institution meets all pre-acquisition prepaid account disclosure requirements, 

including the required timing, content, and formatting for short- and long-form disclosures 

(12 CFR 1005.18(b) and 1005.15(c)). 

21. If the financial institution does not provide periodic statements under 12 CFR 1005.9(b) for 

prepaid accounts, verify that the institution makes available the account balance by 

telephone, an electronic history of account transactions, and a written history of account 

transactions upon request (except as not required per 12 CFR 1005.18(c)(2)) (12 CFR 

1005.18(c)(1) and (2) and 1005.15(d)(1)). 

Procedures 88 
 

If the financial institution provides an electronic history of account transactions and a written 

history of account transactions upon request, verify it includes the information set forth in 12 

CFR 1005.9(b) (12 CFR 1005.18(c)(3); 12 CFR 1005.15(d)(2)). 

22. Verify that any periodic statements provided by the institution under 12 CFR 1005.9(b) and 

any history of account transactions provided or made available by the institution disclose the 

required fee information (12 CFR 1005.18(c)(4)-(5) and 1005.15(d)(2)). 

23. If the financial institution provides information under 12 CFR 1005.18(c)(1) rather than 

periodic statements under 12 CFR 1005.9(b), verify that the 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(d) and 

1005.18(e)(1) and (2) and 1005.15(e)). 

24. Verify that the initial disclosures provided by the institution under 12 CFR 1005.7 include all 

fees and other information required to be disclosed in its pre-acquisition long form disclosure 

as set forth in 12 CFR 1005.18(b)(4) (12 CFR 1005.18(f)(1) and 1005.15(f)). 

25. If the financial institution maintains prepaid accounts, verify that the institution provides 

notice for changes in terms and conditions when required (12 CFR 1005.18(f)(2) and 

1005.15(f)). 

26. Verify that the institution discloses required information on its prepaid account access 

devices, or if the institution does not provide an access device, on the website, mobile 

application, or other entry point a consumer must visit to access the prepaid account 

electronically (12 CFR 1005.18(f)(3) and 1005.15(f)). 

27. Except in the case of higher fees and charges imposed on the asset feature of a prepaid 

account with a covered separate credit feature, as provided in 12 CFR 1005.18(g), if the 

financial institution maintains a prepaid account program where consumers may be offered a 

covered separate credit feature accessible by a hybrid prepaid-credit card as defined by 

Regulation Z, 12 CFR 1026.61, verify that the institution provides to any prepaid account 

without a covered separate credit feature the same account terms, conditions, and features it 

provides on prepaid accounts in the same prepaid account program that have such a credit 

feature (12 CFR 1005.18(g) and 1005.15(g)). 

Internet Posting of Prepaid Account Agreements – 12 CFR 1005.19 

28. For prepaid account issuers that are subject to the requirement, verify that the issuer makes 

submissions of prepaid account agreements to the CFPB on a rolling basis, as applicable, in 

the form and manner specified by the Bureau (12 CFR 1005.19(b)). 

29. Verify that the issuer posts and maintains on its publicly available website any prepaid 

account agreements offered to the general public that the issuer is required to submit to the 

CFPB as frequently as the issuer is required to submit new or amended agreements to the 

Bureau and in conformance to the form and content requirements of 12 CFR 1005.19(b)(6). 

Also verify that agreements are placed in a location that is prominent and readily accessible 

Procedures 89 
 

 

 

 

 

 

 

 

 

 

 

to the public, and are accessible without the submission of personally identifiable
 

information (12 CFR 1005.19(c)).
 

30. Verify that for any open prepaid account, the issuer posts and maintains on its website the 

consumer’s agreement or promptly provides a copy of the consumer’s agreement to the 

consumer upon the consumer’s request, in conformance with the form and content 

requirements of 12 CFR 1005.19(b)(6). If the agreement is posted on its website, verify that 

it is posted in any electronic format that is readily usable by the general public and placed in 

a location that is prominently and readily accessible to the consumer. If the agreement is 

provided upon request from a consumer, ensure the agreement is sent no later than five 

business days after the issuer receives the request (12 CFR 1005.19(d)). 

Gift Card Disclosures – 12 CFR 1005.20 

31. 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); 

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

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 that disclosures are provided 

electronically on the certificate or card provided to the consumer. 

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)). 

32. Determine that the following are stated, as applicable, clearly and conspicuously on the gift 

certificate, store gift card, or general-use prepaid card: 

1. The amount of any dormancy, inactivity, or service fee that may be charged; 

2. How often such fee may be assessed; and 

3. That such fee may be assessed for inactivity. 

(12 CFR 1005.20(d)(2)) 

Procedures 90 
 

 

 

 

 

 

 

 

 

 

 

33. 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); and 

c.	 The conditions under which the fee may be imposed. 

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)) 

34. 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 prominence 

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

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)) 

35. Determine that a loyalty, award, or promotional gift card sold or issued by the examined 

institution sets forth the following disclosures, as applicable: 

•	 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; 

•	 The expiration date for the underlying funds on the front of the card, code, or other 

device; 

Procedures 91 
 

 

 

 

 

 

 

 

•	 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 

•	 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. 

(12 CFR 1005.20(a)(4)(iii)) 

36. 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)). 

37. 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)). 

38. 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: 

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 

c.	 Not more than one dormancy, inactivity, or service fee is imposed in any given calendar 

month. 

(12 CFR 1005.20(d)) 

39. 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: 

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 

Procedures 92 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

remaining balance in some other manner prior to the funds expiration date, unless such 

certificate or card has been lost or stolen. 

(12 CFR 1005.20(e)) 

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.28 

Transaction-Related Examination Procedures 

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

Obtain and review all available information as it 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, if available29; 

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 direct 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 

28 Subpart B provides 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. See Comment 30(f)-2. 

29 For transfers that are sent to a recipient’s account, an account that is located on a U.S. military installation abroad is considered 

to be located in a State. See Comment 30(c)-2.ii. 

Procedures 93 
 

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 

m. Consumer complaint files. 

General Form of Disclosures – 12 CFR 1005.31 

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, online bill pay). Verify that: 

a.	 Disclosures are in the appropriate form, and are clear and conspicuous; 

b.	 Written and electronic disclosures are in a retainable form (except where expressly 

permitted not to be retainable); 

c.	 Pre-payment disclosures match figures disclosed on receipts and match those actually 

applied to the transfer. 

d.	 The provider’s policy for providing oral disclosures is appropriate for the related 

transactions; 

e.	 Copies of scripts used for oral disclosures comply with the regulation; 

f.	 Disclosures comply with the format requirements regarding grouping of like items, 

proximity, prominence and size, and segregation from other information; and 

g.	 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). 

Procedures 94 
Pre-Payment Disclosures – 12 CFR 1005.31(b)(1) 

 

 

 

 

3.	 Based on a review of the provider’s policies and, if appropriate, sampled transactions, 

determine whether it appropriately categorizes third-party fees as covered or non-covered. 

4.	 Based on a review of the provider’s policies on pre-payment disclosures and, if appropriate, 

sampled pre-payment disclosures and related documentation, determine whether the provider 

appropriately calculates and discloses: 

a.	 In the currency in which the remittance transfer is funded: 

i.	 The amount that will be transferred to the designated recipient, using the term, 

“Transfer Amount” or a substantially similar term; 

ii.	 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 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 third-party fees) using the term “Total to Recipient,” or 

a substantially similar term; and 

d.	 If applicable, 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. 

e.	 If the provider includes in the statement under (c)(iii) above, the optional estimated 

disclosure of applicable non-covered third-party fees or taxes, determine if the estimates 

are based on reasonable sources, and are disclosed in the currency in which the transfer is 

to be received. 

NOTE: The exchange rate used to calculate the amounts under (c) is prior to any rounding. 

Procedures 95 
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 pre-payment 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 (CFPB 

or Bureau) 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. 

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. 

Combined Disclosures – 12 CFR 1005.31(b)(3) 

NOTE: Complete this section only if the provider provides combined disclosures as an 

alternative to the pre-payment 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 pre-payment disclosure 

and receipt disclosure as described above; 

b.	 Determine that the provider provides a proof of payment after payment is made for each 

transaction; and 

c.	 Determine that the proof of payment is clear and conspicuous, provided in writing or 

electronically, and provided in a retainable form. 

Accuracy and Timing – 12 CFR 1005.31(e) and (f) 

Procedures 96 
 

 

 

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 pre-payment 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 pre-payment disclosure for that transaction and 

the information on the receipt for that transaction are the same. 

b.	 For amounts that are not estimates, confirm that the disclosed amounts were accurate at 

the time that payment was made. 

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. 

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. 

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 pre-payment 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) 

9.	 Determine the provider’s policy for providing long form error resolution and cancellation 

notices to senders upon request. 

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. 

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., 

Procedures 97 
 

 

 

 

 

 

 

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. 

NOTE: An insured institution acting as an agent on behalf of another in connection with a 

remittance transfer is not a remittance transfer provider. 

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: 

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; 

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. 

e. Determine that related calculations were performed appropriately. 

NOTE: Unless extended, this exception will not apply after July 21, 2020. 

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: 

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

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

determination. 

15. Review the provider’s transaction log/records to identify remittance transactions that were 

sent to countries on the list provided by the BCFP for which estimates may be provided on 

remittance transfer-related disclosures to determine if the provider properly relied on the list 

in making estimates. 

Procedures 98 
 

 

 

 

16. Determine whether the provider gave estimates for transactions to a country that is not on the 

list provided by the BCFP. 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. 

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. 

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). 

Procedures for Resolving Errors – 12 CFR 1005.33 

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

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 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. 

Procedures 99 
 

 

 

 

 

 

 

 

 

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. 

a.	 For errors under 12 CFR 1005.33(a)(1)(iv) 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: 

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.	 Either: 

1.	 Refunds the amount of funds that was not properly transmitted, or the amount 

appropriate to resolve the error to the sender; or 

Procedures 100 
 

 

 

 

 

Procedures for Cancellation and Refund of Remittance Transfers 

– 12 CFR 1005.34 and 12 CFR 1005.36(c) 

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, the fees and 

taxes paid by the sender in connection with the remittance transfer, and only deducts 

those fees actually deducted by a person other than the provider and (where not 

prohibited by law) taxes actually collected for the original unsuccessful transaction, 

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 towards 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 only deducts those fees actually 

deducted by a person other than the provider and (where not prohibited by law) 

taxes actually collected for the original unsuccessful transaction. 

27. Determine that the provider is maintaining 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. 

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. 

Procedures 101 
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; 

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 before the date of transfer 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 before the date of transfer or 

for the first in a series of preauthorized remittance transfers, determine whether the 

provider provides either a pre-payment 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 

Procedures 102 
 

 

 

 

 

 

 

 

 

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 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 ten business days or hand or electronically 

delivered no later than five 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 five 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. 

Procedures 103 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Fund Transfer Act (Regulation E) 

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

Yes	 No NA 

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))
 

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:
 

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

•	 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))
 

•	 Accompanied by the initial disclosures required by 12 CFR
 

1005.7? (12 CFR 1005.5(b)(3))
 

•	 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)
 

Procedures 104 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

Consumer Liability for Unauthorized Electronic Fund 

Transfers (EFTs) – 12 CFR 1005.6 

NOTE: For prepaid accounts that are not payroll card accounts or government benefit accounts, 

a financial institution is not required to comply with the liability limits and error resolution 

requirements in 12 CFR 1005.6 and 1005.11 for any prepaid account for which it has not 

successfully completed its consumer identification and verification process. (12 CFR 

1005.18(e)(3)) 

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?
 

•	 The institution has provided a means to identify the consumer
 

to whom it was issued?
 

•	 The institution has provided the disclosures required by
 

12 CFR 1005.7(b)(l), (2), and (3)?
 

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. I, Comments 1005.6(b)-1 and -2) 

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)) 

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;
 

Plus 

Procedures 105 
 

 

 

 

 

 

 

 

 

 

 

 

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)? 

7. If a consumer notifies the financial institution of an unauthorized 

EFT within 60 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)) 

8. If a consumer does not notify the financial institution of an 

unauthorized EFT within 60 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)) 

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)) 

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) 

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)) 

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)) 

Procedures 106 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)) 

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)) 

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)) 

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)) 

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)) 

17. Do the financial institution’s initial disclosures provide the 

following information, as applicable: 

•	 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)) 

•	 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)) 

•	 The financial institution’s business days? (12 CFR 

1005.7(b)(3)) 

•	 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)) 

•	 Any fees imposed by the financial institution for EFTs or for 

the right to make transfers? (12 CFR 1005.7(b)(5)) 

Procedures 107 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)) 

•	 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)) 

•	 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)) 

•	 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)) 

•	 An error resolution notice that is substantially similar to the 

Model Form A-3 in appendix A? (12 CFR 1005.7(b)(10)) 

•	 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)) 

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)) 

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)) 

Procedures 108 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

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)) 

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: 

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

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

•	 The type of transfer and the type of account to or from which 

funds were transferred? (12 CFR 1005.9(a)(3)) 

•	 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)) 

•	 The terminal location where the transfer is initiated? 

(12 CFR 1005.9(a)(5)) 

•	 The name or other identifying information of any third party 

to or from whom funds are transferred? 

(12 CFR 1005.9(a)(6)) 

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)) 

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)) 

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

•	 Fees? (12 CFR 1005.9(b)(3)) 

Procedures 109 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

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

•	 Address and telephone number for inquiries? 

(12 CFR 1005.9(b)(5)) 

•	 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)) 

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: 

•	 Provide oral or written notice, within two business days, after 

the transfer occurs? (12 CFR 1005.10(a)(1)(i)) 

•	 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)) 

•	 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)) 

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)) 

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)) 

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)) 

Procedures 110 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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? 

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: 

•	 The notice contains the amount and date of transfer? 

•	 The notice is sent at least 10 days before the scheduled date 

of transfer? (12 CFR 1005.10(d)(1)) 

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)) 

NOTE: This exception for overdraft credit does not apply to a 

covered separate credit feature accessible by a hybrid-prepaid 

credit card as defined in Regulation Z, 12 CFR 1026.61. 

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)) 

Procedures 111 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

Procedures for Resolving Errors – 12 CFR 1005.11 

NOTE: For prepaid accounts that are not payroll card accounts or government benefit accounts, 

a financial institution is not required to comply with the liability limits and error resolution 

requirements in 12 CFR 1005.6 and 1005.11 for any prepaid account for which it has not 

successfully completed its consumer identification and verification process. (12 CFR 

1005.18(e)(3)) 

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)(1)) 

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)) 

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)) 

NOTE: The time period is extended in certain circumstances. (12 

CFR 1005.11(c)(3))
 

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)) 

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 

days of receipt of a notice of error; and: 

•	 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 or if the alleged error involves an account that
 

is subject to Regulation T of the Board of Governors of the
 

Federal Reserve System, the financial institution is not 

required to provisionally credit the consumer’s account)?
 

Procedures 112 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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? 

•	 Within one business day after determining that an error 

occurred, does the financial institution correct the error? 

•	 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)) 

NOTE: The time period is extended in certain circumstances. 

(12 CFR 1005.11(c)(3)) 

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) 

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)) 

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)) 

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 

Procedures 113 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

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)) 

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)) 

Requirements for Overdraft Services – 12 CFR 1005.17 

45. Does the financial institution’s Overdraft Protection Program 

incorporate any guidance issued by its federal regulator, as 

applicable? 

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. 

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)): 

•	 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))
 

•	 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))
 

•	 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
 

•	 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))
 

Procedures 114 
 

 

a. 

 

 

 

 

 

 

 

 

 

 

 

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)) 

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 onetime debit card transactions? (12 CFR 1005.17(b)(2)(ii)) 

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? 

b.	 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? 

c.	 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) 

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)) 

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)) 

Procedures 115 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)) 

•	 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? 

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)) 

•	 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)) 

•	 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)) 

•	 Alternative Plans for Covering Overdrafts – As applicable, 

does the institution’s opt-in notice appropriately address the 

alternative methods 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, does the notice state that both 

alternative plans are offered? 

Procedures 116 
 

 

 

 

 

 

 

 

 

 

 

 

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? 

•	 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? 

•	 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? 

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)) 

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)) 

Procedures 117 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)) 

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)) 

Requirements for Financial Institutions Offering Prepaid 

Accounts and Electronic Fund Transfer of Government 

Benefits– 12 CFR 1005.18 and 1005.15 

NOTE: This section is not exhaustive of the requirements for financial institutions offering 

prepaid accounts. Please refer to other sections of the checklist, as applicable. 

57. Does the institution offer prepaid accounts? If no, do not complete 

this section. 

58. Does the financial institution provide the pre-acquisition short and 

long form disclosures before a consumer acquires a prepaid 

account? (12 CFR 1005.18(b)(1)(i) and 1005.15(c)(1)) 

NOTE: If the prepaid account is used for disbursing funds and the
 

financial institution or third party does not offer any alternative
 

means for the consumer to receive those funds in lieu of accepting
 

the prepaid account, these disclosures may be provided at the time 

the consumer receives the prepaid account. (12 CFR
 

1005.18(b)(1)(i))
 

NOTE: When a consumer acquires a prepaid account in a retail
 

location or orally by telephone, a financial institution is not
 

required to provide the long form disclosure prior to acquisition if
 

certain requirements are met. (12 CFR 1005.18(b)(1)(ii) and (iii))
 

59. Does the financial institution provide a short form disclosure for a 

prepaid account that discloses the following fees and information, 

as applicable? (12 CFR 1005.18(b)(2)(i) through (xiv) and 

1005.15(c)(1) and (2)) 

•	 The periodic fee, assessed on a monthly or other periodic
 

basis, using the term “Monthly fee,” “Annual fee,” or a
 

substantially similar term; (12 CFR 1005.18(b)(2)(i))
 

•	 The per-purchase fee, using the term “Per purchase,” or a 

substantially similar term; (12 CFR 1005.18(b)(2)(ii))
 

Procedures 118 
 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

•	 The ATM withdrawal fees, for withdrawals in the United 

States both within and outside of the financial institution’s 

network or an affiliated network, using the terms “ATM 

withdrawal” and “in-network” or “out-of-network,” or 

substantially similar terms; (12 CFR 1005.18(b)(2)(iii)) 

•	 The cash reload fee (total of all charges from the financial 

institution and any third parties), using the term “Cash 

reload” or a substantially similar term; (12 CFR 

1005.18(b)(2)(iv)) 

NOTE: Any third-party fee included in the cash reload fee 

disclosed in the short form must be the highest fee known 

by the financial institution at the time it prints, or 

otherwise prepares, the short form disclosure. (12 CFR 

1005.18(b)(3)(v)) 

•	 The ATM balance inquiry fees, for balance inquiries in the 

United States both within and outside of the financial 

institution’s network or an affiliated network, using the 

terms “ATM balance inquiry” and “in-network” or “outof-network,” or substantially similar terms; (12 CFR 

1005.18(b)(2)(v)) 

•	 Customer service fees, both for calling an interactive voice 

response system and a live customer service agent, using 

the terms (1) “Customer service,” (2) “automated” or “live 

agent,” and (3) “per call,” or substantially similar terms; 

(12 CFR 1005.18(b)(2)(vi)) 

NOTE: If the short form disclosure is for multiple service 

plans, disclose only the fee for live agent customer service 

using the terms “Live customer service” and “per call” or 

substantially similar terms. 

•	 The inactivity fee, using the term “Inactivity” or a 

substantially similar term, and the conditions that trigger 

the financial institution to impose the fee; (12 CFR 

1005.18(b)(2)(vii)) 

Procedures 119 
 

 

 

 

 

 

 

 

 

 

Yes No NA 

•	 If the institution charges other fees beyond those listed on 

the short form as required to be disclosed per 12 CFR 

1005.18(b)(2)(i)-(vii), a statement disclosing the number 

of “additional fee types” the financial institution may 

charge consumers with respect to the prepaid account, 

using the clause “We charge [x] other types of fees” or a 

substantially similar clause; (12 CFR 

1005.18(b)(2)(viii)(A)) 

•	 If any “additional fee types” are on the short form 

pursuant to 12 CFR 1005.18(b)(2)(ix), a statement 

directing consumers to that disclosure, located after but on 

the same line of text as the statement regarding the number 

of additional fee types in 12 CFR 1005.18(b)(2)(viii)(A) 

using the clause “Here are some of them:” or a 

substantially similar clause; (12 CFR 

1005.18(b)(2)(viii)(B)) 

•	 If applicable, disclosure of the two additional fee types 

that generated the highest revenue from consumers for the 

prepaid account program (or across programs that are the 

same fee schedule) during the required time period; (12 

CFR 1005.18(b)(2)(ix)) 

•	 If applicable, a statement that overdraft/credit may be 

offered, the time period after which it may be offered, and 

that fees would apply, using the clause: “You may be 

offered overdraft/credit after [x] days. Fees would apply,” 

or a substantially similar clause; (12 CFR 

1005.18(b)(2)(x)) 

•	 If applicable, a statement that no overdraft credit feature is 

offered, using the clause “No overdraft/credit feature” or a 

substantially similar clause; (12 CFR 1005.18(b)(2)(x)) 

•	 A statement regarding the prepaid account program’s 

eligibility for FDIC deposit insurance or NCUA share 

insurance and directing the consumer to register the 

prepaid account for insurance eligibility and other account 

protections, using substantially similar language to the 

clauses in 12 CFR 1005.18(b)(2)(xi); 

Procedures 120 
 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

•	 A statement directing the consumer to the CFPB’s 

website, using the clause “For general information about 

prepaid accounts, visit cfpb.gov/prepaid” or a substantially 

similar clause; (12 CFR 1005.18(b)(2)(xii)) 

•	 A statement directing the consumer to the location of the 

long form disclosure required by 12 CFR 1005.18(b)(4), 

using the clause “Find details and conditions for all fees 

and services in [location]” or a substantially similar clause. 

(12 CFR 1005.18(b)(2)(xiii)) 

NOTE: Additional requirements apply to prepaid accounts 

offered at a retail location pursuant to 12 CFR 

1005.18(b)(1)(ii) and (b)(2)(xiii). 

60. If the prepaid account is a payroll card account (or a government 

benefit account), does the financial institution include a statement 

in the short form disclosure that the consumer does not have to 

accept the payroll card account (or the government benefit 

account) and directing the consumer to ask about other ways to 

receive wages or salary from the employer (benefit payments 

from the agency), using clauses with substantially similar 

language to those in 12 CFR 1005.18(b)(2)(xiv) and 

1005.15(c)(2)(i)? 

61. If any fees required to be disclosed in the short form disclosure 

can vary, including the periodic fee, does the financial institution 

comply with additional variable fee and variable periodic 

disclosure requirements in 12 CFR 1005.18(b)(3)(i) and (ii)? 

62. Does the financial institution, in its short form disclosure, refrain 

from including the following fees:
 

NOTE: As an alternative to the two-tier fee disclosure, a financial
 

institution may disclose a single fee amount when the amount is
 

the same for both fees.
 

•	 Any third-party fees, other than third-party cash reload 

fees? (12 CFR 1005.18(b)(3)(iv) and (v)) 

•	 Any finance charges as described in 12 CFR 

1026.4(b)(11), imposed in connection with a covered 

separate credit feature accessible by a hybrid prepaidcredit card, as defined in 12 CFR 1026.61? (12 CFR 

1005.18(b)(3)(vi)) 

Procedures 121 
 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

63. Does the financial institution provide a long form disclosure for a 

prepaid account that lists the following fees and information, as 

applicable? (12 CFR 1005.18(b)(4)) 

•	 A heading stating the name of the prepaid account 

program and that the long form disclosure contains a list 

of all fees for that particular prepaid program; (12 CFR 

1005.18(b)(4)(i)) 

•	 All fees that may be imposed in connection with a prepaid 

account, and any conditions under which the fee may be 

imposed, waived, or reduced, as well as any third-party 

fees known to the institutions; (12 CFR 1005.18(b)(4)(ii)) 

•	 The statement regarding registration and FDIC or NCUA 

insurance required by 12 CFR 1005.18(b)(2)(xi), together 

with an explanation of FDIC or NCUA insurance coverage 

and the benefit of such coverage or the consequence of the 

lack of such coverage, as applicable; (12 CFR 

1005.18(b)(4)(iii)) 

•	 The statement regarding overdraft credit features, as 

required by 12 CFR 1005.18(b)(2)(x); (12 CFR 

1005.18(b)(4)(iv)) 

•	 A statement directing the consumer to a telephone number, 

mailing address, and website URL of the person or office 

that a consumer may contact to learn about the terms and 

conditions of the prepaid account, to obtain prepaid 

account balance information, to request a copy of 

transaction history if the financial institution does not 

provide periodic statements, or to notify the financial 

institution when the consumer believes that an 

unauthorized EFT occurred; (12 CFR 1005.18(b)(4)(v)) 

•	 A statement directing the consumer to a website URL of 

the CFPB for general information about prepaid accounts, 

and a statement directing the consumer to a CFPB 

telephone number and website URL to submit a complaint 

about a prepaid account, using a clause substantially 

similar to that found in 12 CFR 1005.18(b)(4)(vi); 

Procedures 122 
 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

• If, at any point, a covered separate credit feature accessible 

by a hybrid prepaid-credit card may be offered in 

connection with the prepaid account, the disclosures 

described in Regulation Z, 12 CFR 1026.60(e)(1). (12 

CFR 1005.18(b)(4)(vii)) 

64. At the time that the financial institution provides the short form 

disclosure, does it disclose the following outside of the short form 

(12 CFR 1005.18(b)(5)): 

• The name of the financial institution? 

• The name of the prepaid account program? 

• The purchase price for the prepaid account, if any? 

• The fee for activating the prepaid account, if any? 

NOTE: This information must be disclosed in close proximity to 

the short form. However, if the prepaid account is acquired in a 

retail location, this information, other than the purchase price, 

must be disclosed on the exterior of the access device’s packaging 

material, and the purchase price must be disclosed either on the 

exterior of or in close proximity to the access device’s packaging 

material. Comment 18(b)(5)-2. 

65. Are all required disclosures provided in writing? (12 CFR 

1005.18(b)(6)(i)(A)) 

Exception: Unless provided in written form prior to acquisition, 

disclosures must be provided in electronic form (and viewable 

across all screen sizes) when a consumer acquires a prepaid 

account through electronic means or orally when a consumer 

acquires a prepaid account orally by telephone. (12 CFR 

1005.18(b)(6)(i)(B) and (C)) 

NOTE: Other requirements apply for electronic disclosures. See 

12 CFR 1005.18(b)(6)(i)(B). 

66. Are all required disclosures made in a form the consumer can 

keep, unless an exception applies as provided in 12 CFR 

1005.18(b)(6)(ii)? 

Procedures 123 
 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

67. When a short form disclosure is provided in writing or 

electronically, is the information required by 12 CFR 

1005.18(b)(2)(i) through (b)(2)(ix) provided in the form of a 

table? (12 CFR 1005.18(b)(6)(iii)) 

NOTE: The short form disclosure must also be substantially 

similar to Model Forms A-10(a) through (d), as applicable (or 

Model Form A-10(e) for multiple service plans that do not 

initially enroll the consumer in a default service plan). See 12 

CFR 1005.18(b)(6)(iii)(B) for further information on multiple 

service plans for both the short form and long form disclosures. 

68. When a long form disclosure is provided in writing or 

electronically, is the information required by 12 CFR 

1005.18(b)(4)(ii) provided in a form of a table? (12 CFR 

1005.18(b)(6)(iii)) See Sample Form A-10(f). 

69. Do the short form and long form disclosures comply with specific 

formatting requirements, such as grouping and ordering of 

information; prominence and size of the text; and segregation of 

the disclosures from other information? (12 CFR 1005.18(b)(7)) 

70. Are fee names and other terms used consistently within and across 

the required disclosures? (12 CFR 1005.18(b)(8)) 

71. When a financial institution uses a foreign language in connection 

with the acquisition of a prepaid account, does it provide the preacquisition disclosures in that same foreign language? (12 CFR 

1005.18(b)(9)) 

NOTE: This requirement applies only when a financial institution 

principally uses a foreign language in connection with the 

acquisition of a prepaid account in certain circumstances. 

72. If the financial institution provides the pre-acquisition disclosures 

in a foreign language pursuant to 12 CFR 1005.18(b)(9), does it 

provide the long form disclosure in English upon request and on 

any part of the website where it discloses pre-acquisition 

disclosures in a foreign language? (12 CFR 1005.18(b)(9)(ii)) 

73. Does the financial institution issuing the prepaid account either: 

• Provide periodic statements as required by 12 CFR 

1005.9(b)?
 

or make available to the consumer:
 

Procedures 124 
 

 

 

 

 

 

 

Yes No NA 

 

 

 

 

 

 

 

•	 The account balance, through a readily available telephone 

line (and, for government benefit accounts, at a terminal), 

(12 CFR 1005.18(c)(1)(i) and 1005.15(d)(1)(i) and 

•	 An electronic history of the consumer’s account 

transactions, such as through a website, that covers at least 

12 months preceding the date the consumer electronically 

accesses the account, (12 CFR 1005.18(c)(1)(ii) and 

1005.15(d)(1)(ii)) and 

•	 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 24 months preceding the 

date the financial institution receives the consumer’s 

request? (12 CFR 1005.18(c)(1)(iii) and (2) and 

1005.15(d)(1)(iii)) 

NOTE: For prepaid accounts that are not payroll card 

accounts or government benefit accounts, the financial 

institution is not required to provide a written history of 

account transactions for any prepaid account for which it 

has not yet completed its consumer identification and 

verification process. 

NOTE: The electronic and written history of account transactions 

must include the information set forth in 12 CFR 1005.9(b). (12 

CFR 1005.18(c)(3) and 1005.15(d)(2)) 

74. Do any periodic statement provided pursuant to 12 CFR 1005.9(b) 

and any history of account transactions provided or made 

available by the financial institution include: 

•	 The amount of any fees assessed against the account, whether 

for EFTs or otherwise? (12 CFR 1005.18(c)(4) and 

1005.15(d)(2)); and 

•	 A summary total of the amount of all fees assessed by the 

financial institution against the consumer’s prepaid account 

for the prior calendar month and for the calendar year to 

date? (12 CFR 1005.18(c)(5) and 1005.15(d)(2)) 

75. If the financial institution follows the periodic statement 

alternative in 12 CFR 1005.15(d)(1) (for government benefit 

accounts) or 12 CFR 1005.18(c)(1) (for prepaid accounts), does 

the institution modify its 12 CFR 1005.7(b) initial disclosures to 

provide: 

Procedures 125 
 

 

 

 

 

 

 

 

 

 

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 transaction history, such as the 

address of a website, and a summary of the consumer's right 

to receive a written account transaction 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 (12 CFR 

1005.18(d)(1)(i) and 1005.15(e)(1)(i)), and 

•	 A notice concerning error resolution that is substantially 

similar to the notice in paragraph (b) of Appendix A-5 (for 

government benefit accounts) or A-7 (for prepaid accounts), 

in place of the notice required by 12 CFR 1005.7(b)(10) or, 

for prepaid account programs for which the financial 

institution does not have a consumer identification and 

verification process, either a description of the error 

resolution process and limitations on consumer’s liability for 

unauthorized transfers or, if none, a statement that there are 

no such protections? (12 CFR 1005.18(d)(1)(ii) and 

1005.15(e)(1)(ii)) 

76. If the financial institution follows the periodic statement 

alternative in 12 CFR 1005.15(d)(1) (for government benefit 

accounts) or 12 CFR 1005.18(c)(1) (for prepaid accounts), does it 

provide an appropriate annual notice concerning error resolution 

that is substantially similar to the notice in paragraph (b) of 

Appendix A-5 (for government benefit accounts) or A-7 (for 

prepaid accounts), in place of the notice required by 12 CFR 

1005.8(b), or, alternatively, a notice on or with each electronic or 

written account transaction history (for government benefits 

account) and on or with each electronic and written account 

transaction history (for prepaid accounts) that are substantially 

similar to the abbreviated notice in paragraph (b) of Appendix A3, modified as necessary to reflect the appropriate error resolution 

provisions? (12 CFR 1005.18(d)(2) and 1005.15(e)(2)) 

77. If the financial institution follows the periodic statement 

alternative in 12 CFR 1005.18(c)(1), does the institution: 

Procedures 126 
 

 

 

 

 

 

 

 

 

 

 

 

 

o	 

o	 

Yes No NA 

•	 Comply with the error resolution requirements of 12 CFR 

1005.11 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 accesses the 

consumer’s electronic account transaction history, 

provided that it reflects the alleged error; or 

60 days after the date the financial institution sends 

a written account transaction history (that is 

requested by the consumer) in which the alleged 

error is first reflected? (12 CFR 1005.18(e)(2) and 

1005.15(e)(4)(i)) 

NOTE: In lieu of following the above, the financial institution 

complies with the requirements for resolving errors in 12 CFR 

1005.11 if it investigates 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. (12 CFR 1005.18(e)(2)(ii) and 

1005.15(e)(4)(ii)) Also, for prepaid accounts that are not payroll 

card accounts or government benefit accounts, a financial 

institution is not required to comply with the liability limits and 

error resolution requirements in 12 CFR 1005.6 and 1005.11 for 

any prepaid account for which it has not successfully completed 

its consumer identification and verification process. (12 CFR 

1005.18(e)(3)(i)) 

78. Does a financial institution, as part of its initial disclosures given 

pursuant to 12 CFR 1005.7, include all of the information 

required to be disclosed in its pre-acquisition long form 

disclosures pursuant to 12 CFR 1005.18(b)(4)? (12 CFR 

1005.18(f)(1) and 1005.15(f)) 

79. Does a financial institution comply with the change-in-terms 

notice requirements in 12 CFR 1005.8(a) for any change in a term 

or condition that is required to be disclosed under 12 CFR 1005.7 

or 1005.18(f)(1)? (12 CFR 1005.18(f)(2) and 1005.15(f)) 

NOTE: Under certain circumstances, the financial institution may 

not be required to provide a change-in-terms notice to reflect 

changes to third-party fee amounts or changes to the fees or other 

terms disclosed in the Regulation Z disclosures required by 12 

CFR 1005.18(b)(4)(vii) for overdraft credit features. 

Procedures 127 
 

 

 

 

 

 

 

 

 

Yes	 No NA 

 

 

 

 

80. Does the financial institution disclose on the prepaid account 

access device the name of the financial institution and the website 

URL and a telephone number a consumer can use to contact the 

financial institution about the prepaid account? (12 CFR 

1005.18(f)(3) and 1005.15(f)) 

81. If a financial institution does not provide a physical access device 

in connection with a prepaid account, does the financial institution 

disclose the name of the financial institution and the website URL 

and a telephone number a consumer can use to contact the 

financial institution about the prepaid account on the website, 

mobile application, or other entry point a consumer must visit to 

access the prepaid account electronically? (12 CFR 1005.18(f)(3) 

and 1005.15(f)) 

82. Does a financial institution provide to any prepaid account 

without a covered separate credit feature the same account terms, 

conditions, and features it provides on prepaid accounts in the 

same prepaid account program that have such a feature? (12 CFR 

1005.18(g)(1)) 

NOTE: A financial institution is not prohibited from imposing a
 

higher fee or charge on the asset feature of a prepaid account with
 

a covered separate credit feature accessible by a hybrid prepaidcredit card than the amount of a comparable fee or charge that it
 

imposes on any prepaid account in the same prepaid account
 

program that does not have such a credit feature. (12 CFR
 

1005.18(g)(2))
 

Internet Posting of Agreements - 12 CFR 1005.19 

83. Does the institution offer prepaid accounts? If no, do not complete 

this section. 

84. Is the prepaid account issuer not required to submit any prepaid 

account agreements to the CFPB because one of the following 

applies: 

•	 The issuer has fewer than 3,000 open prepaid accounts? If 

yes, do not complete this section. (12 CFR 

1005.19(b)(4)(i)) 

Procedures 128 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

•	 The agreement is offered as part of a product test offered 

to only a limited group of consumers for a limited period 

of time; is used for fewer than 3,000 open prepaid 

accounts; and is not offered other than in connection with 

the product test? If yes, do not complete this section for 

that particular product. (12 CFR 1005.19(b)(5)(i)) 

NOTE: If an issuer or agreement that did not previously qualify 

for either exception subsequently qualifies, the issuer must 

continue to make submissions to the CFPB on a rolling basis until 

it notifies the Bureau it is withdrawing the agreement(s). (12 CFR 

1005.19(4)(ii) and (5)(ii)) 

85. Does the prepaid account issuer make submissions of prepaid 

account agreements to the CFPB no later than 30 days after the 

issuer offers, amends, or ceases to offer a prepaid account 

agreement? (12 CFR 1005.19(b)(1)) 

86. Do the issuer’s submissions of prepaid account agreements 

contain: 

•	 Identifying information about the issuer and the agreements 

submitted, including: the issuer’s name, address, and 

identifying number (such as an RSSD ID number or tax 

identification number); the effective date of the prepaid 

account agreement; the name of the program manager, if any; 

and the list of names of other relevant parties, if applicable 

(such as the employer for a payroll card program or the 

agency for a government benefit program)? (12 CFR 

1005.19(b)(1)(i)) 

•	 Any prepaid account agreement offered by the issuer that has 

not been previously submitted to the CFPB? (12 CFR 

1005.19(b)(1)(ii)) 

•	 Any prepaid account agreement previously submitted to the 

CFPB that has been amended? (12 CFR 1005.19(b)(1)(iii)) 

•	 Notification regarding any prepaid account agreement 

previously submitted to the CFPB that the issuer is 

withdrawing? (12 CFR 1005.19(b)(1)(iv)) 

87. If a prepaid account issuer amends a prepaid account agreement 

that was previously submitted to the CFPB, does the issuer submit 

the entire amended agreement to the Bureau no later than 30 days 

after the change becomes effective? (12 CFR 1005.19(b)(2)(i)) 

Procedures 129 
 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

88. If a prepaid account issuer amends other identifying information 

about the issuer and its submitted agreements, does the issuer 

submit the updated information to the CFPB no later than 30 days 

after the change becomes effective? (12 CFR 1005.19(b)(2)(i)) 

NOTE: An issuer may delay submitting a change to the list of 

names of other relevant parties to a particular agreement until the 

earlier of: (1) such time as the issuer is otherwise submitting an 

amended agreement or changes to other identifying information 

about the issuer and its submitted agreements; or (2) May 1 of 

each year for any updates to the list of names of other relevant 

parties for that agreement that occurred between the last 

submission of relevant party information and April 1 of that year. 

89. If a prepaid account issuer withdraws a prepaid account agreement 

that was previously submitted to the CFPB, does the issuer notify 

the Bureau, no later than 30 days after the issuer ceases to offer 

the agreement, that it is withdrawing the agreement? (12 CFR 

1005.19(b)(3)) 

90. Does the issuer submit its prepaid account agreements to the 

CFPB in accordance with the following form and content 

requirements? 

•	 Each agreement contains the provisions of the agreement and 

the fee information currently in effect. (12 CFR 

1005.19(b)(6)(i)(A)) 

•	 Agreements do not include any personally identifiable 

information relating to any consumer, such as name, address, 

telephone number, or account number. (12 CFR 

1005.19(b)(6)(i)(B)) 

•	 Agreements are presented in a clear and legible font. (12 

CFR 1005.19(b)(6)(i)(D)) 

•	 All fee information, as defined in 12 CFR 1005.19(a)(3), is 

set forth either in the prepaid account agreement or in 

addenda to that agreement that attach either or both the short 

form disclosure under 12 CFR 1005.18(b)(2) and the fee 

information and statements required to be disclosed in the 

long form disclosure under 12 CFR 1005.18(b)(4). (12 CFR 

1005.19(b)(6)(ii)) 

Procedures 130 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

•	 Provisions of the agreement and fee information are not 

provided to the CFPB in the form of change-in-terms notices 

or riders, other than the optional fee information addenda. 

Changes in provisions or fee information are integrated into 

the text of the agreement, or the optional fee addendum, as 

appropriate. (12 CFR 1005.19(b)(6)(iii)) 

91. Does the prepaid account issuer post and maintain on its publicly 

available website any prepaid account agreements offered to the 

general public that the issuer is required to submit to the CFPB? 

(12 CFR 1005.19(c)(1)) 

92. Do the posted agreements conform to the form and content 

requirements for agreements submitted to the CFPB as set forth in 

12 CFR 1005.19(b)(6)? (12 CFR 1005.19(c)(2)) 

93. Does the prepaid account issuer post and update the agreements 

on its website as frequently as the issuer is required to submit new 

and amended agreements to the CFPB? (12 CFR 1005.19(c)(3)) 

94. Does the prepaid account issuer post the agreements: (12 CFR 

1005.19(c)(4)) 

•	 In an electronic format that is readily usable by the general 

public; 

•	 In a location that is prominent and readily accessible to the 

public; and 

•	 In a location that is accessible without submission of 

personally identifiable information? 

95. For any open prepaid account, does the prepaid account issuer 

post and maintain the consumer’s agreement on its website or 

promptly provide a copy of the consumer’s agreement to the 

consumer upon the consumer’s request? (12 CFR 1005.19(d)(1)(i) 

and (ii)) 

96. If the issuer makes an agreement available upon request, does the 

issuer: (12 CFR 1005.19(d)(1)(ii)) 

•	 Provide the consumer with the ability to request a copy of the 

agreement by telephone?; and 

•	 Send the consumer a copy of the agreement no later than five 

business days after the issuer receives the consumer’s 

request? 

Procedures 131 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Requirements for Gift Cards and 

Gift Certificates – 12 CFR 1005.20 

Yes No NA 

97. Do the agreements posted on the issuer’s website or sent to the 

consumer upon the consumer’s request pursuant to 12 CFR 

1005.19(d) conform to the form and content requirements for 

agreements submitted to the CFPB as set forth in 12 CFR 

1005.19(b)(6)? (12 CFR 1005.19(d)(2)(i)) 

98. If the issuer posts an agreement on its website pursuant to 12 CFR 

1005.19(d)(1)(i), does the issuer post the agreements: (12 CFR 

1005.19(d)(2)(ii)) 

•	 In an electronic format that is readily usable by the general 

public; and 

•	 In a location that is prominent and readily accessible to the 

consumer? 

99. If agreements posted or otherwise provided to the consumer 

pursuant to 12 CFR 1005.19(d) contain personally identifiable 

information relating to the consumer, such as name, address, 

telephone number, or account number, does the issuer take 

appropriate measures to make the agreement accessible only to 

the consumer or other authorized persons? (12 CFR 

1005.19(d)(2)(iii)) 

100. Do agreements posted or otherwise provided to the consumer 

pursuant to 12 CFR 1005.19(d) set forth the specific provisions 

and fee information applicable to the particular consumer? (12 

CFR 1005.19(d)(2)(iv)) 

101. Does the issuer update agreements posted to its website pursuant 

to 12 CFR 1005.19(d) as frequently as the issuer is required to 

submit amended agreements to the CFPB pursuant to 12 CFR 

1005.19(b)(2)? (12 CFR 1005.19(d)(2)(v)) 

102. Are agreements provided upon consumer request accurate as of 

the date the agreement is sent to the consumer? (12 CFR 

1005.19(d)(2)(v)) 

103. For agreements provided upon consumer request, does the issuer 

provide the agreement in paper form unless the consumer agrees 

to receive the agreement electronically? (12 CFR 

1005.19(d)(2)(vi)) 

Procedures 132 
 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

104. Does the institution offer gift certificates, store gift cards, generaluse prepaid cards, loyalty, award, or promotional gift cards? If no, 

do not complete this section. 

105. 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, such as the 

following: 

•	 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)) 

•	 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)) 

•	 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 useable at automated teller machines? 

(12 CFR 1005.20(a)(3)) 

106. Do loyalty, award, or promotional gift cards as defined by 

(12 CFR 1005.20(a)(4)) contain the following disclosures as 

applicable? 

•	 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)) 

•	 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)) 

•	 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; and 

(12 CFR 1005.20(a)(4)(iii)(C)) 

Procedures 133 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o	 

o	 

o	 

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)) 

107. 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)), determine the following: 

•	 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)) 

•	 As applicable, are the following, clearly and conspicuously 

stated on the gift certificate, store gift card, or general-use 

prepaid card 

The amount of any dormancy, inactivity, or service fee that 

may be charged; (12 CFR 1005.20(d)(2)(i)) 

How often such a fee may be assessed; and 

(12 CFR 1005.20(d)(2)(ii)) 

That such fee may be assessed for inactivity? 

(12 CFR 1005.20(d)(2)(iii)) 

•	 Is the dormancy, inactivity, or service fee imposed limited to 

one in any given calendar month? (12 CFR 1005.20(d)(3)) 

108. If the financial institution sells or issues a gift certificate, store gift 

card, or general-use prepaid card with an expiration date, 

determine the following: 

•	 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)) 

•	 Is 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)) 

Procedures 134 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o	 

o	 

o	 

o	 

o	 

Yes No NA 

109. 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: 

•	 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)) 

•	 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; and (12 CFR 1005.20(e)(3)(ii)) 

•	 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: 

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)) 

The consumer may contact the issuer for a replacement 

card; and (12 CFR 1005.20(e)(3)(iii)(B)) 

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)) 

110. 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: 

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

The amount of the fee (or an explanation of how the fee 

will be determined); and (12 CFR 1005.20(f)(1)(ii)) 

Procedures 135 
 

 

 

 

 

 

 

o	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

The conditions under which the fee may be imposed. 

(12 CFR 1005.20(f)(1)(iii)) 

•	 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))
 

Subpart B – Requirements for Remittance Transfers

Yes	 No NA 

1. Does the provider offer remittance transfers in the normal course
 

of business?
 

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 and properly documented? 

If the provider offers remittance transfers in the normal course of business and, therefore, is
 

covered by the rule, complete the following checklist. 

2. Does the provider have written policies and procedures that
 

govern its remittance transfer operations?
 

3. Do these policies and procedures adequately address the 

requirements of subpart B?
 

4. Are the provider’s personnel who are involved in remittance
 

transfer operations knowledgeable about the requirements of
 

subpart B?
 

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 pre-payment disclosures and receipts
 

or combined disclosures to its remittance transfer customers?
 

(12 CFR 1005.31(b)(1), (2), and (3))
 

NOTE: Specific content of disclosures is addressed below 

6. Are written disclosures: 

• In the appropriate form; (12 CFR 1005.31(c)) 

• Clear and conspicuous; (12 CFR 1005.31(a)(1)) and 

Procedures 136 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

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

7. Are written and electronic disclosures provided in compliance 

with the foreign language requirements of 12 CFR 1005.31(g)? 

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)? 

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)) 

10. Does information in written or electronic disclosures comply 

with the grouping requirements of 12 CFR 1005.31(c)(1)? 

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)) 

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)) 

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)) 

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)) 

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

•	 Do they contain only information directly related to the 

disclosures, and 

•	 Are they segregated from other items that may be 

disclosed? (12 CFR 1005.31(c)(4)) 

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)) 

17. Are disclosures provided in compliance with the timing 

requirements of 12 CFR 1005.31(e)? 

Procedures 137 
 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

18. Do disclosures comply with the accuracy requirements of 12 

CFR 1005.31(f)? 

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)) 

Pre-payment disclosures - 12 CFR 1005.31(b)(1) 

19. Does the provider appropriately distinguish between covered and 

non-covered third-party fees? 

20. Do the provider’s pre-payment 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; 

•	 “Transfer Fees” and “Transfer Taxes”; 

•	 “Other Fees”; 

•	 “Exchange Rate”; 

•	 “Total to Recipient”; and 

•	 If applicable, a disclaimer statement that non-covered thirdparty 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)) 

•	 If the provider includes in the disclaimer statement required 

by 12 CFR 1005.31(b)(1)(viii), an optional estimated 

disclosure of applicable non-covered third-party fees or 

taxes, are the estimates based on reasonable sources of 

information? (12 CFR 1005.32(b)(3)) 

Procedures 138 
 

 

 

 

 

 

 

 

 

 

 

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: 

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

•	 “Date Available”; 

• “Recipient”; 

•	 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).
 

•	 Name, telephone number(s) and, if applicable, the website 

of the provider;
 

•	 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 

CFPB, for questions or complaints about the remittance
 

transfer provider using language set forth in Model Form A37 of Appendix A or substantially similar language; and
 

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 only if the provider provides combined disclosures as an alternative to 

separate pre-payment disclosures and receipts. 

Procedures 139 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

22. Does the combined disclosure contain all the information 

required to be provided on the receipt? 

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? 

NOTE #1: The proof of payment must be clear and conspicuous, 

provided in writing or electronically, and provided in a
 

retainable form.
 

NOTE #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)) 

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) 

NOTE: This exception expires on July 21, 2020. 

Procedures 140 
 

 

 

 

 

 

Permanent exception for transfers to certain countries 

– 12 CFR 1005.32(b)(1) 

 

 

 

 

Permanent exception for transfers scheduled before the date of transfer 

– 12 CFR 1005.32(b)(2) 

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 (not including a prepaid account, unless the 

prepaid account is a payroll card account or government benefit 

account) with the institution? 

26. If so, is the provider only using the temporary exception in 

situations where it cannot 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) 

27. Does the provider appropriately rely on the most recent 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? 

28. If the provider provides estimates for transactions in a country 

that 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) 

NOTE: A provider cannot rely on the Bureau list if it has
 

information that the laws of a country on the list permit exact 

disclosures. 

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)? 

Bases for estimates – 12 CFR 1005.32(c) 

Procedures 141 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

30. 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.
 

31. Does the provider use the approaches listed in the rule to 

estimate: 

• Exchange rate; 

•	 Transfer amount in which funds will be received; 

• Covered third-party fees; and 

•	 The amount of currency that will be received by the 

designated recipient?
 

32. 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? 

Procedures for resolving errors – 12 CFR 1005.33 

33. Does the provider have adequate policies and procedures to 

address the error resolution requirements applicable to 

remittance transfers? (12 CFR 1005.33(g)) 

34. Do the policies and procedures adequately state what does and 

does not constitute an error as defined in 12 CFR 1005.33(a)? 

35. Do the policies and procedures specifically address: 

•	 Timing and content of the sender’s notice of error; (12 CFR
 

1005.33(b)(1))
 

•	 Provider’s request for additional information or
 

clarification; (12 CFR 1005.33(b)(2))
 

•	 Time limits for investigation, reporting results, and
 

correcting an error; (12 CFR 1005.33(c))
 

•	 Sender’s request for documentation that the provider relied 

on to make a decision; and (12 CFR 1005.33(d))
 

•	 The retention of records related to error investigations? (12 

CFR 1005.33(g)(2) and 12 CFR 1005.13))
 

Procedures 142 
 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

36. 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)) 

37. 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)) 

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. 

38. 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) before determining that no 

error occurred? 

39. 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)) 

40. 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 ten business 

days) or before the sender designates that the remedy has 

passed? 

NOTE: A default remedy is not applicable where the sender 

provided incorrect or insufficient information. 

41. 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, inclusive of fees, 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. 

Procedures 143 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes No NA 

42. 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) 

43. 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)? 

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

• 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)) 

Procedures 144 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes	 No NA 

45. 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: 

•	 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))
 

46. 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)? 

47. 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) 

Procedures for Cancellation and Refund of Remittance 

Transfers – 12 CFR 1005.34 

48. 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)) 

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))
 

Procedures 145 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers Scheduled Before the Date of Transfer – 

12 CFR 1005.36 

Yes	 No NA 

49. 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 

50. Has the provider established and maintained policies or 

procedures, including policies, procedures for compliance, or 

other appropriate oversight measures designed to ensure 

compliance by an agent or authorized delegate acting for such 

provider? 

Consider: 

•	 The degree of control the agent exercises over the
 

remittance transfer activities performed on the provider’s
 

behalf;
 

•	 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
 

•	 The adequacy of the provider’s oversight of agents’
 

activities.
 

Procedures 146 
 

 

 

 

 

 

 

Yes No NA 

51. 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 pre-payment 

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)) 

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)) 

52. 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 ten business days or hand 

or electronically delivered no later than five 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) 

53. 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)) 

54. 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)) 

Procedures 147 
 

 

 

 

55. 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 five business days prior to, the date of 

the subsequent preauthorized remittance transfer? (12 CFR 

1005.36(d)) 

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)) 

56. 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 

•	 Be received by the provider at least three business days 

before the scheduled date of the remittance transfer. (12 CFR 

1005.36(c)) 

Yes No NA 

Procedures 148