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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 Federal Reserve Board (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 restrict 

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 (Dodd-Frank Act) transferred 

rulemaking authority under the EFTA from the Board of Governors of the Federal Reserve to the 

Consumer Financial Protection Bureau (CFPB).2 3The 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) (December 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

the Dodd-Frank Act (77 Fed. Reg. 6194) (February 7, 2012), effective on February 7, 2013.4 In 

July 2012, the CFPB amended the February 2012 rule to effect certain technical corrections 

primarily related to formatting of the model forms in the rule. In August 2012, the CFPB again 

 

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 

rulemaking 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.

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The agency responsible for supervising and enforcing compliance with Regulation E will depend on the person subject to the 

EFTA (e.g., for financial institutions, jurisdiction will depend on the size and charter of the institution).

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The amendment designated 12 CFR 1005.1 through 1005.20 as subpart A.
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amended the February 2012 rule to modify the definition of “remittance transfer provider”. The 

August amendment also revised several aspects of the rule regarding remittance transfers that are 

scheduled before the date of transfer, including preauthorized remittance transfers (77 Fed. Reg. 

50244) (August 20, 2012). In January 2013, the rule’s February 21, 2013 effective date was 

delayed pending finalization of a proposal to address three specific issues in the rule. In May 

2013, the Bureau finalized the proposal, which modified the disclosure requirements for certain 

fees and foreign taxes, revised some aspects of the error resolution requirements, and established 

a new effective date of October 28, 2013 (78 Fed. Reg. 30661) (May 22, 2013).

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

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, 1005.16, 1005.17, 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)

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

VII. Gift Cards (12 CFR 1005.20)

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

IX. Relation to Other Laws (12 CFR 1005.12)

Subpart B

Requirements for remittance transfers

X. Remittance Transfer Definitions (12 CFR 1005.30)

XI. Disclosures (12 CFR 1005.31)

XII. Estimates (12 CFR 1005.32)

XIII. Procedures for Resolving Errors (12 CFR 1005.33)

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

XV. Acts of Agents (12 CFR 1005.35)

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

Sections Applicable to both subpart A and subpart 

B
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XVII. Preemption

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

XIX. Miscellaneous (EFTA provisions not reflected in Regulation E)
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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 (Comments2(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.

• Payroll card account, established through an employer (directly or indirectly), to which 

EFTs of the consumer’s wages, salary, or other employee compensation (such as 

commissions), are made on a recurring basis. The payroll card account can be operated or 

managed by the employer, a third-party processor, a depository institution, or any other 

person. All transactions involving the transfer of funds to or from a payroll card account are 

covered by the regulation (12 CFR 1005.2(b)(2) and Comment 2(b)-2). 

An account does not include:

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

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

• Accounts for purchasing U.S. savings bonds (12 CFR 1005.2(b)(3) and Comment 2(b)-3). 

A payroll card 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, point-of-sale (POS) transfers; automated teller machine (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, point-of-sale 

terminals, automated teller machines, and cash-dispensing machines (12 CFR 1005.2(h)).

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))
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• 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 automated teller machines (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.”

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:
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• 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;

• Funds transferred from another account held individually or jointly by the consumer; or

• A line of credit or other transaction from a securities or commodities account held by a 

broker-dealer registered with the Securities and Exchange Commission (SEC) or the 

Commodity Futures Trading Commission (CFTC). (12 CFR 1005.17(a)).

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.”
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Unauthorized electronic fund transfer is an EFT from a consumer’s account initiated by a person 

other than the consumer without 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:

• 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 broker-dealer 

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;
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• 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 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 in regard to 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 transaction5(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 transaction6

(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).

 

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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). 

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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)).
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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, Truth in Lending 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. They must 

give 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 error-resolution 

procedures. Appendix A to Part 1005 provides model clauses that financial institutions may use 

to provide the disclosures.

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 
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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 (See Appendix A-2 and Comment 7(c)-1).
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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 

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)).

• 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).

7 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.8 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 

 

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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).

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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). 
13

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)).

• 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 § 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.
14

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

• 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).

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 
15

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. 

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. 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;9 and

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

information about fees.

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)).

 

9

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

manufacture.
16

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: 

• 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
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 agencies10 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.

11 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.

 

10 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). 

11 74 Fed. Reg. 59033, Nov. 17, 2009; 75 Fed. Reg. 31665, June 4, 2010.
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. As a general rule, 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 (Comment17(b)-9).
19

Contents 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;12

• 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;13 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 alternatives14 (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 

provides a readily-available telephone line that the consumer may call, electronic means - if the 

 

12 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.

13 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).

14 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 (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).
20

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 feature of the opt in 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)(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)(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.

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).
21

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:

• Interest rates paid;

• Fees assessed;

• The type of ATM or debit card provided to the depositor;15

• 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)).

 

15 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.
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.16

• It is a renewal of, or a substitute for, an accepted access device (as defined in 12 CFR

1005.2(a)). See12 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)-1and 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 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).

Payroll Card Access Devices. Consistent with 12 CFR 1005.5(a), a financial institution 

may issue a payroll card 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 account when the consumer chooses to receive salary or 

other compensation through a payroll card account (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 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 Truth in Lending Act and 

 

16 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). 
23

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 Truth in Lending, see 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: 

o A summary of the consumer’s liability for unauthorized EFTs. 

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

may be made. 

o The financial institution’s business days.

• Any access device used to affect 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)).
24

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. 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 

device17

Within two business days after learning 

of loss or theft

Lesser of $50, OR total amount of 

unauthorized transfers.

Loss or theft of access 

device

More than two business days after 

learning of loss or theft up to 60 calendar 

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 

institution.18

Loss or theft of access 

device

More than 60 calendar 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)19

Unauthorized transfer(s) 

not involving loss or theft 

of an access device

Within 60 calendar 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 calendar days after 

transmittal of the periodic statement on 

which the unauthorized transfer first 

appears.

Unlimited liability for unauthorized 

transfers occurring 60 calendar days after 

the periodic statement and before notice 

to the financial institution.

 

17 Includes a personal identification number (PIN) if used without a card in a telephone transaction, for example.

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

two-business-day period.

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

60-day period.
25

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 

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)).

Relation of Error Resolution to Truth in Lending. The liability and error resolution 

provisions in 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 (12 CFR 1005.12(a)(1)(ii)). 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 12 CFR 1005.6 and 1005.11 or 

Regulation Z will apply depending on the nature of the transaction: 

• If the unauthorized use of a combined access device-credit card solely involves an extension 

of credit, other than an extension of credit described under 12 CFR 1005.12(a)(1)(iii), and 

does not involve an EFT, for example, when the card is used to draw cash advances directly 

from a credit line, only the error resolution provisions of Regulation Z will apply. 

• If the unauthorized use of a combined access device-credit card involves only an EFT, for 

example, debit card purchases or cash withdrawals at an ATM from a checking account, only 

the error resolution provisions of 12 CFR 1005.6 and 1005.11 will apply. 

• If a combined access device-credit card is stolen and unauthorized transactions are made by 

using the card as both a debit card and a credit card, 12 CFR 1005.6 and 1005.11 will apply 

to the unauthorized transactions in which the card was used as a debit card, and Regulation Z 

will apply to the unauthorized transactions in which the card was used as a credit card. 

Procedures for Resolving Errors — 12 CFR 1005.11
26

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.

• 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.
27

• Complete its investigation within 10 business days (12 CFR 1005.11(c)(1)). 

• 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. 

The financial institution may take up to 45 calendar 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 calendar days to 

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

oral notice of error, 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)(B)).

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).

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)(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)).
28

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. 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)(2)).

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.

• 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 (Comment s 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; 
29

○ 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.

• 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. 

• 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 
30

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 Payroll Card Accounts 

— 12 CFR 1005.18

This section provides an alternative to providing periodic statements for payroll card accounts if 

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

addition, this section clarifies how financial institutions that do not provide periodic statements for 

payroll card accounts can comply with the subpart A requirements relating to initial disclosures, 

the annual error resolution notice, liability limits, and the 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 payroll card accounts nor (ii) 

issue payroll cards and agree with consumers to provide EFT services in connection with payroll 

card 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 (Comment18(a)-

2).

Alternative to Periodic Statements. A financial institution does not need to furnish 

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

the consumer the following:

• The account balance, through a readily available telephone line.

• An electronic history of account transactions covering at least 60 days preceding the date the 

consumer electronically accesses the account.
31

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

written request and covering at least 60 days preceding the date the financial institution 

receives the consumer’s request (12 CFR 1005.18(b)(1)).

The history of account transactions must include the same type of information required on 

periodic statements under 12 CFR 1005.9(b) (12 CFR 1005.18(b)(2)).

Requirements to Comply with Regulation E. If a financial institution provides an 

alternative to periodic statements under 12 CFR 1005.18(b), it must comply with the following:

• Modify the initial disclosures under 12 CFR 1005.7(b) by disclosing:

o 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 an 

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

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. The disclosure required by 12 CFR 1005.18(c)(1)(i) may be made by providing a 

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

Part 1005.

o A notice concerning error resolution 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 1005.7(b)(10).

• Provide an annual error resolution notice that is substantially similar to the notice contained 

in paragraph (b) to A-7 - Model Clauses for Financial Institutions Offering Payroll Card 

Accounts in Appendix A of Part 1005, in place of the notice required by 12 CFR 1005.8(b). 

Alternatively, a financial institution may include on or with each electronic and written 

history provided in accordance with 12 CFR 1005.18(b)(1), 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 this section.

• Limits on consumer liability.

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

transfer begins on the earlier of: 

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

1005.18(b)(1)(ii), provided that the electronic history made available to the consumer 

reflects the transfer; or

 The date the financial institution sends a written history of the consumer’s account 

transactions requested by the consumer under 12 CFR 1005.18(b)(1)(iii) in which the 

unauthorized transfer is first reflected.

○ A financial institution 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.
32

• Comply with error resolution requirements.

o An error notice is considered timely, and the financial institution must comply with the 

requirements of 12 CFR 1005.11, if the financial institution receives notice from the 

consumer no later than the earlier of:

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

under 12 CFR 1005.18(b)(1)(ii), provided that the electronic history made available 

to the consumer reflects the alleged error; or

 60 days after the date the financial institution sends a written history of the 

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

1005.18(b)(1)(iii) in which the alleged error is first reflected.

o Alternatively, a financial institution 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.

VII. Gift Cards — 12 CFR 1005.20

A gift card is a type of prepaid card that is designed to be purchased by one consumer and given 

to another consumer as a present or expression of appreciation or recognition. When provided in 

the form of a plastic card, a user of a gift card is able to access and spend the value associated 

with the device by swiping the card at a POS terminal, much as a person would use a debit card. 

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 
33

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 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.

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. 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.
34

• The financial institution may establish a readily available telephone line20 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.

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 

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).

 

20 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).
35

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 (12 CFR 1005.10(e)(1)). The financial institution may offer a reduced APR or other 

cost-related incentive 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).21

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 electronic benefit transfer (EBT) programs. 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. 

 

21 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).
36

IX. Relation to Other Laws — 12 CFR 1005.12

This section describes the relationship between the EFTA and the Truth in Lending Act (TILA). 

The section also provides procedures for states to apply for exemptions from the requirements of 

the EFTA or Regulation E for any class of EFTs within the state. 

The EFTA governs the following: 

• The issuance of debit cards and other access devices with EFT capabilities.

• The addition of EFT features to credit cards. 

• The issuance of access devices whose only credit feature is a pre-existing agreement to 

extend credit to cover account overdrafts or to maintain a minimum account balance, or is an 

overdraft service. 

The TILA governs all of the following: 

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

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

service. 

• The issuance of dual debit/credit cards, except for access devices whose only credit feature is 

a pre-existing agreement to cover account overdrafts or to maintain a minimum account 

balance, or is an overdraft service. 
37

Subpart B--Requirements for Remittance Transfers

Subpart B provides new disclosures, error resolution, and cancellation and refund rights to 

consumers who send remittance transfers to be received by other consumers or businesses in a 

foreign country.

X. 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 it performs activities as an 

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

A 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.” 

Pre-Authorized 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)). 

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:
38

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).

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

received depends on where the recipient’s account is located. 

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

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

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

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 its 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 

its 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 
39

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). 

XI. 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 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 

sufficient for a sender to hear and comprehend them (12 CFR 1005.31(a); Comments 31(a)(1)-1 

and 31(a)(2)-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). 

Written and electronic disclosures generally must be made in a retainable form. Pre-payment 

disclosures provided via mobile application or text message (to the extent permitted by the rule)

need not be retainable. In some cases, disclosures may be disclosed orally. For example, prepayment disclosures may be disclosed orally if the transaction is conducted orally and entirely by 

telephone and the remittance transfer provider complies with certain other disclosure 

requirements (12 CFR 1005.31(a)(2) and (a)(3)). 
40

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)

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

the remittance transfer, but prior to payment for the transfer. 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 (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. 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.
41

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).

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 
42

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, non-covered 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. 

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 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 

applicable), and the Consumer Financial Protection Bureau (CFPB) 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 
43

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 CFPB must 

be provided whether or not the CFPB 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 

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)-4).

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)-6).

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 one-time 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.

Proof of payment/confirmation of scheduling. The proof of payment or 

confirmation of scheduling must be clear and conspicuous, provided in writing or electronically, 
44

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)

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 eight-point 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; 
45

b. The sender’s name and contact information; 

c. The location at which th e 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, 

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 prepayment 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
46

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 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).
47

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).

XII. 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. 

Temporary exception for insured institutions -- 12 CFR 

1005.32(a)

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. 

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 

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 
48

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, 2015. 

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: 

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 transfe 

(Comment 32(b)(1)-3).

Safe harbor list. The remittance transfer provider may rely on a list of countries published 

by the CFPB to determine whether estimates may be provided for the exchange rate, the transfer 

amount, s, covered third-party fees and total amount to the recipient. If a country is on the 

CFPB’s list, the provider may give estimates under this section, unless it 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).
49

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 

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 transfer, 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 ThirdParty 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)). 
50

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 

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 
51

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 

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)).

XIII. 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 

disclosureprovided 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). 
52

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. 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 

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. 

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, 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. Howerver, 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 occurence 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 extraordinary circumstances outside the 

remittance transfer provider’s control that could not have been reasonably anticipated 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 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 of errors for failure to 

make funds available by the disclosed date of availability include, late or non-delivery of a 
53

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. 

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; 

b. delays related to the remittance transfer 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, and the 

remittance transfer provider: 

i. can demonstrate that the sender provided an incorrect account number or recipient 

institution identifier to the provider in connection with the remittance transfer;

ii. prior to or when sending the transfer, used reasonably available means 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. 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. promptly used reasonable efforts to recover the amount that was to be received 

by the designated recipient.

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 
54

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 

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 transferexcept 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. 
55

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)). But if the 

notice of error is based on documentation, additional 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 e-mail 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 
56

include notice of any remedies available for correcting any error that the provider determines has 

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 (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, 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.

In such an instance, the provider may deduct from the amount refunded or applied towards a new 

transfer any fees actually imposed by a person other than the provider (except those that will 

ultimately 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 agreement to apply the funds towards a 

new transfer is treated as a new remittance transfer and the provider must provide new 
57

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

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 

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). 
58

Correction of an error if funds were not not available by disclosed date. If 

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

the disclosed date occured, 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)).

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 
59

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 Truth in Lending Act 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)).

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 
60

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 below.

XIV. 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:

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)).
61

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). 

XV. 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).

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 
62

to assure compliance by an agent or authorized delegate acting for such provider (EFTA section 

919(f)(2)).

XVI. 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.

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 provisions 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 

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) 
63

 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)

Disclosure requirement. For any subsequent transfer in a series of preauthorized 

remittance transfers, the remittance transfer provider must disclose:

c. the date of the subsequent transfer using the term “Future Transfer Date” or a 

substantially similar term, 

d. a statement of the sender’s cancellation rights, and 
64

e. 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 5 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 (Comments 

31(b)(2)-4 and -5).

The following sections are applicable to both 

subpart A and subpart B.

XVII. PreemptionThe 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 CFPB 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 CFPB 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)).

XVIII. Administrative Enforcement and Record 

Retention — 12 CFR 1005.13
65

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. 

XIX. 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:

For subpart A:

A-1 Model Clauses for Unsolicited Issuance (12 CFR 1005.5(b)(2))
66

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 Forms for Government Agencies (12 CFR 1005.15(d)(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 Payroll Card Accounts 

(12 CFR 1005.18(c))

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)

For subpart B:

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))

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))
67

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))

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 

Regulations

Consumer Financial Protection Bureau Regulations (12 CFR)

Part 1005 Electronic Fund Transfers (Regulation E)
68

Electronic Fund Transfer Act

Examination Procedures

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 financial 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:

A. Determine the entity’s compliance with Regulation E. 

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

procedures for implementing Regulation E.

C. 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.

D. 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.

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.
69

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, and as applicable, complete Section II to 

determine the financial institution’s compliance with Regulation E..

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;
70

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 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

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 incompliance with its error resolution procedures to 

isolate any apparent deficiencies in the financial institution’s operations to 
71

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 recredits 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)).

Payroll cards and ATMs

9. If the financial institution maintains payroll card accounts and does not provide periodic 

statements under 12 CFR 1005.9(b) for these accounts, verify that the institution makes 

available the account balance by telephone, an electronic history of account transactions, 

and (upon request) a written history of account transactions (12 CFR 1005.18(b)).

10. If the financial institution maintains payroll card accounts, verify that the financial 

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(c)).

11. 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. 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, 22 unless the institution: 12 CFR 

1005.17(b)(1) 

 

22 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 a service that transfers 

funds from another account held by a consumer or a line of credit.
72

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.

NOTE: An institution does not have to meet the notice requirements described above if it 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. However, it is still prohibited from 

charging fees for paying an ATM or one-time debit transaction overdraft (12 CFR 1005, and 

Comment 1005.17(b)-1(iv)) 

13. 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).

14. Determine that the financial institution does not: 12 CFR 1005.17(b)(2)

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 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.

15. 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 onetime debit card transactions (12 CFR 1005.17(b)(3))

16. 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 
73

items in the following list, and does not contain any additional information: (12 CFR 

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

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.

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.

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.

b. 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

c. 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 optin 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. 

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 into, 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.

17. 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)).

18. 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)) 
74

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)).

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

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

20. 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)).

21 Determine that the financial institution's overdraft protection program incorporates your 

agency's guidance as applicable.

Gift Card Disclosures

22. 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)).

23. 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)).
75

•

24. 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: 

i. The type of fee;

ii. The amount of the fee (or an explanation of how the fee will be determined); and

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

iv. 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).

•

25. 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)).

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

institution sets forth the following disclosures, as applicable: (12 CFR 1005.20(a)(4)(iii))

• 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;

• 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

•
76

27. 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). 

28 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) 

29. 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: 12 

CFR 1005.20(d)

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.

30. 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: 12 CFR 1005.20(e) 

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

unless such certificate or card has been lost or stolen.
77

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 procedures23

. 

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;

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 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 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

 

23Subpart B does provide for a 100-transfer “safe harbor.” For an entity to qualify for this “safe 

harbor” it must have provided 100 or few 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.
78

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). From your review, 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. The provider’s policy for providing oral disclosures is appropriate for the related 

transactions; 

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

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

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

f. 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). 

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

4. Based on a review of the provider’s policies on prepayment 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; 
79

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 

iv. 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.

d. 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, 

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

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”) 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
80

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)

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)
81

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.,

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 by the CFPB, this exception will not apply after July 21, 2015. 

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 CFPB for which estimates may be provided on 

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

making estimates. 

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

list provided by the CFPB. Review related documentation to confirm that the recipient 
82

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. 

23. Determine the extent of the provider’s compliance with its policies and procedures on error 

resolution.
83

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 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

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.
84

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, 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 

appropriately deducts those fees and 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.

Procedures for cancellation and refund of remittance transfers - 12 CFR 

1005.34 and 12 CFR 1005.36(c)

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. 

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.
85

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 in advance 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 in advance 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 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. 
86

(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 5 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).

Examiner’s Summary, Recommendations, and Comments
87

Electronic Fund Transfer Act (Regulation E)

Examination Checklist

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)

Consumer Liability for Unauthorized Electronic Fund 

Transfers (EFTs) – 12 CFR 1005.6

3. Does the financial institution impose liability on the consumer 

for unauthorized transfers only if: (12 CFR 1005.6(a))
88

Yes No NA

• 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. 1, 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

• 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 calendar 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))
89

Yes No NA

8. If a consumer does not notify the financial institution of an 

unauthorized EFT within 60 calendar 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))

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))
90

Yes No NA

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))

• 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))
91

Yes No NA

• 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)) 

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))
92

Yes No NA

• 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))

• 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))
93

Yes No NA

• 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))

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:
94

Yes No NA

• 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))

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 for Resolving Errors – 12 CFR 1005.11

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)(2))

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 

calendar days of receipt of a notice of error; and:
95

Yes No NA

• 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, the financial 

institution is not required to provisionally credit the 

consumer’s account)? 

• 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))
96

Yes No NA

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 

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))

45. 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

46. Does the financial institution’s Overdraft Protection Program 

incorporate any guidance issued by its federal regulator, as 

applicable?

47. 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.

48. 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)); 
97

Yes No NA

• 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)) 

49. 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))

50. 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 

one-time debit card transactions? (12 CFR 1005.17(b)(2)(ii)) 

51 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? 

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?

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)
98

Yes No NA

52. 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))

53. 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)) 

• 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? 
99

Yes No NA

• 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? 

• 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))

54. 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)) 
100

Yes No NA

55. 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)) 

56. Does the financial institution implement a consumer’s 

revocation of consent as soon as reasonably practicable? 

(12 CFR 1005.17(f)) 

57. 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)) 

Payroll Card Accounts – 12 CFR 1005.18 

58. If the financial institution offers payroll card accounts, does the 

financial institution either provide periodic statements as 

required by 12 CFR 1005.9(b) or make available to the 

consumer:

• The account balance, through a readily available telephone 

line, and

• An electronic history of the consumer’s account transactions, 

such as through an Internet website, that covers at least 60 

days preceding the date the consumer electronically accesses 

the account, 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 60 days preceding the date the 

financial institution receives the consumer’s request? (12 

CFR 1005.18(b))

NOTE: The history of account transactions must include the 

information set forth in 12 CFR 1005.9(b).

59. Does the financial institution provide initial disclosures that 

include, at a minimum:

• 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 history upon request, including a telephone 

number to call to request a history, and
101

Yes No NA

• A notice concerning error resolution? (12 CFR 

1005.18(c)(1))

60. Does the financial institution provide an annual notice 

concerning error resolution or, alternatively, an abbreviated 

notice with each electronic and written history? (12 CFR 

1005.18(c)(2))

61. Does the financial institution begin the 60-day period for 

reporting any unauthorized transfer under 12 CFR 1005.6(b)(3) 

on the earlier of the date the consumer electronically accesses 

the consumer's account after the electronic history made 

available to the consumer reflects the transfer; or the date the 

financial institution sends a written history of the consumer's 

account transactions requested by the consumer in which the 

unauthorized transfer is first reflected? (12 CFR 1005.18(c)(3))

NOTE: A financial institution may comply with the provision 

above by limiting the consumer's liability for an unauthorized 

transfer as provided under 12 CFR 1005.6(b)(3) for any transfer 

reported by the consumer within 120 days after the transfer was 

credited or debited to the consumer's account.

62. Does the financial institution comply with the error resolution 

requirements 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 electronically accesses the consumer's 

account after the electronic history made available to the 

consumer reflects the alleged error; or 60 days after the date the 

financial institution sends a written history of the consumer's 

account transactions requested by the consumer in which the 

alleged error is first reflected? (12 CFR 1005.18(c)(4))

NOTE: The financial institution may comply with the 

requirements for resolving errors by investigating 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.

Requirements for Gift Cards and 

Gift Certificates – 12 CFR 1005.20

63. Does the institution offer gift certificates, store gift cards, 

general-use prepaid cards, loyalty, award, or promotional gift 

cards? If no, do not complete this section.
102

Yes No NA

64. 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, 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))

65. 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 

(12 CFR 1005.20(a)(4)(iii)(C)); 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 or with the card, code, or other 

device (12 CFR 1005.20(a)(4)(iii)(D))?

66. 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)), please answer the 

following:
103

Yes No NA

• 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 

o The amount of any dormancy, inactivity, or service fee 

that may be charged (12 CFR 1005.20(d)(2)(i));

o How often such a fee may be assessed 

(12 CFR 1005.20(d)(2)(ii)); and

o 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))?

67. If the financial institution sells or issues a gift certificate, store 

gift card, or general-use prepaid card with an expiration date, 

please answer 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))? 

• 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))?

68. 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));
104

Yes No NA

• 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 (12 CFR 1005.20(e)(3)(ii)); and 

• 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:

o 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)); 

o The consumer may contact the issuer for a replacement 

card (12 CFR 1005.20(e)(3)(iii)(B)); and

o No fee or charge is imposed on the cardholder for 

replacing the gift certificate, store gift card, or generaluse 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)). 

69. 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:

o The type of fee (12 CFR 1005.20(f)(1)(i));

o The amount of the fee (or an explanation of how the fee 

will be determined) (12 CFR 1005.20(f)(1)(ii)); and

o 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)).
105

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? 

Complete the rest of the checklist if the provider offers remittance transfers in the normal 

course of business. 

2. Does the provider have written policies and operating 

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 are addressed below]

6. Are written disclosures:

• in the appropriate form (12 CFR 1005.31(c))

• clear and conspicuous (12 CFR 1005.31(a)(1))

• 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)?
106

Yes No NA

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 everything else

(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)?
107

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))?

Receipt - 12 CFR 1005.31(b)(2)
108

Yes No NA

20. 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 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 

Consumer Financial Protection Bureau, for questions or 

complaints about the remittance transfer provider using 

language set forth in Model Form A-37 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 if the provider provides combined disclosures as an alternative to prepayment disclosures and receipts.

21. Does the combined disclosure contain all the information 

required to be provided on the receipt?
109

Yes No NA

22. 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. 

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)

23. 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)

24. 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 with the institution? 
110

Yes No NA

25. If so, can the financial institution not 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)?

Permanent exception for transfers to certain countries - 12 CFR 

1005.32(b)(1)

26. Does the provider appropriately rely on the 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? 

27. If the provider provides estimates for transactions in a country 

which 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 CFPB list if it has information 

that the laws of a country on the list permit exact disclosures.

Permanent exception for transfers scheduled before the date of 

transfer—12 CFR 1005.32(b)(2)

28. 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)?

Permanent exception for optional disclosure of non-covered third-party 

fees and taxes collected by a third party--12 CFR 1005.32(b)(3)

29. 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? (12 CFR 1005.32(b)(3)?

Bases for Estimates - 12 CFR 1005.32(c)
111

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 constitutes 

an error and what does not 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 (12 CFR 1005.33(d)); and

• the retention of records related to error investigations (12 

CFR 1005.33(g)(2) and (12 CFR 1005.13))?
112

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) in 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 the sender to designate 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 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. 
113

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))?

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))?
114

Yes No NA

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)).

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
115

Yes No NA

50. Has the provider established and maintained policies or 

procedures, including policies, procedures for compliance, or 

other appropriate oversight measures designed to assure 

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.

Transfers Scheduled Before the Date of Transfer –

12 CFR 1005.36

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))
116

Yes No NA

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))?
117

Yes No NA

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 5 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)).

Comments