Overview of Key Federal Regulatory Consumer Protections by Payment Method

Main Consumer Protection Statute 

Deposit Insurance Initial Disclosures 

Periodic Statements Change in Terms Notice 

InFe

Debit Card (Linked to Bank Account) EFTA/Reg E1

Yes (covering deposit account at bank) 

Must disclose, e.g., consumer liability, fees, process for error resolution2 Yes3

Must give 21 days notice before increasing fees or consumer liability4 N

Credit Card TILA/Reg Z7

N/A (no deposit account involved) 

Various APR and fee disclosures8 Yes9

Must give 45 days notice before making significant changes to terms of card10

Yby liminin

Prepaid Card 

General-Use Reloadable Prepaid Card (Not Linked to Bank Account) 

Covered by general consumer protection laws (e.g., FTC Act/UDAP) 

In some cases15

No No No notice required N

Payroll Card EFTA/Reg E17

Must disclose, e.g., consumer liability, fees, process for error resolution18 Yes19

Must give 21 days’ notice before increasing fees or consumer liability20 N

Gift Card 

Certain Provisions of EFTA/Reg E23

Various fee and giftcard-specific disclosures24 No No notice required D

re

Mobile Financial Services 

"Mobile financial services" is a blanket term that encompasses both mobile banking and mobile payments, which thedepend on the form of the payment and type of account that forms the basis of the mobile financial service (e.g., mob
Overview of Key Federal Regulatory Consumer Protections by Payment Method

1 12 CFR 1005 (formerly 12 CFR 205). 2 12 CFR 1005.7(b) (formerly 12 CFR 205.7(b)). 3 Must send statement for each monthly cycle in which a transaction has occurred; quarterly if no transactions (12 CFR 1005.9(b) 4 12 CFR 1005.8(a) (formerly 12 CFR 205.8(a)). 5 Consumer must notify bank within 2 business days after learning of the loss or theft of debit card. Otherwise, consumer liability 

transmittal of periodic account statement on which an unauthorized transfer appears, in order to avoid liability for subsequent unareduce liability to zero by contract. 6 Consumer must contact bank within 60 days; bank must report results to consumer within three business days after completing occurred. Consumer must be given written explanation of findings if there was no error (12 CFR 1005.11 (formerly 12 CFR 205.1

7 12 CFR 1026 (formerly 12 CFR 226). 8 Solicitations must disclose, e.g., APR, variable rate, penalty rates, rates that depend on creditworthiness, fees for issuance or av

226.5a(b), 226.6(b))). 

9 Must provide a statement for each billing cycle at the end of which the account has a balance of more than $1 or on which a fina

Statement must include, e.g., previous balance, identification of transactions, credits, amount of any late payments that might be 

10 These terms include, e.g., interest rate, annual fees, cash advance fees (12 CFR 1026.9(c) (formerly 12 CFR 226.9(c))). 11 Fees charged within first year of account opening generally must not exceed 25 percent of the credit limit in effect when the acc

proposed rule that would make this limitation applicable only to fees imposed after account opening, in response to a lawsuit chal

1026.52 (formerly 12 CFR 226.52); limitations on increasing annual percentage rates, fees, and charges (12 CFR 1055 (formerly 

CFR 1026.59 (formerly 12 CFR 226.59)); penalty fees must represent reasonable proportion of costs for incident (12 CFR 1026.5

12 12 CFR 1026.12(b) (formerly 12 CFR 226.12(b)). Card network operating rules may provide certain protections, although any s13 Consumer must contact card company within 60 days; no interest on disputed amount if there is an error; must be given explan

226.13)). 14 12 CFR 1026.51(b) (formerly 12 CFR 226.51(b)). 15 May or may not carry deposit insurance (where card is offered by nonbank party and funds are placed in pooled account at FD

deposit insurance if requirements for FDIC pass-through insurance are met). 16 Card network operating rules may provide certain protections, although any such protections are subject to change by the relev

17 12 CFR 1005.18 (formerly 12 CFR 205.18). 18 12 CFR 1005.18(c)(1) (formerly 12 CFR 205.18(c)(1)). 19 Must provide either (1) periodic statements or (2) account balance by telephone, electronic transaction history, and written histo20 12 CFR 1005.18(a) (formerly 12 CFR 205.18(a)). 21 12 CFR 1005.6(b), 1005.18(c)(3) (formerly 12 CFR 205.6(b), 205.18(c)(3)). 22 12 CFR 1005.11, 1005.18(c)(2) (formerly 12 CFR 205.11, 205.18(c)(2)). 23 12 CFR 1005.20 (formerly 12 CFR 205.20). 24 Must disclose terms of dormancy fees (12 CFR 1005.20(d)(2) (formerly 12 CFR 205.20(d)(2))); expiration date or lack thereof (

conditions of any other fee (12 CFR 1005.20(f)(1) (formerly 12 CFR 205.20(f)(1))). 25 12 CFR 1005.20(d) (formerly 12 CFR 205.20(d)). 26 12 CFR 1005.20(e) (formerly 12 CFR 205.20(e)).