While convenient, electronic banking can carry risks. Kite_rin/Shutterstock
The electronic banking system has brought significant changes in how money is handled. You can transfer money on your phone or the bank’s website. It’s like having a bank in your pocket. What can be more convenient?
But hackers and identity thieves are creative, so, unfortunately, things can go wrong. You could be the victim of banking fraud or errors. However, you have some protection through a federal rule called Regulation E.
Electronic Fund Transfer Act Protects Your Money
The Electronic Fund Transfer Act (EFTA) of 1978, implemented through Regulation E, is a federal regulation that protects consumers when problems happen with electronic fund transfers (EFTs). Transactions covered under Regulation E include:
- ATM transfers
- direct deposit transactions
- automated clearing house transfers
- debit card transactions
- telephone transfers
According to the Federal Trade Commission (FTC), Regulation E requires financial institutions to adopt certain practices respecting such matters as transaction accounting and error resolution.
