As discussed in Electronic Fund Transfers Coverage: Transactions Question 1, Regulation E applies to any EFT that authorizes a financial institution to debit or credit a consumer's account.3(a). A “pass-through” payment is initiated through a financial institution that does not hold a consumer’s account, for example, a non-bank P2P provider. Generally, a “pass-through” payment transfers funds from the consumer’s account held by an external financial institution to another person’s account held by an external financial institution. See Electronic Fund Transfers Error Resolution: Unauthorized EFTs Question 1 for more information on the definition of an unauthorized EFT. In these cases, the credit-push P2P transfer would be considered an unauthorized EFT. A credit-push P2P payment is considered a transfer initiated through an electronic terminal, telephone, or computer for the purpose of ordering, instructing, or authorizing a financial institution to debit a consumer's account, and accordingly is an EFT.Ī credit-push P2P transfer is considered an EFT even if the payment was initiated by a third party that fraudulently obtained access to consumer’s account, such as by using login credentials stolen in a data breach or obtained through fraudulent inducement. The term EFT means any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account.3(b)(1). Accordingly, Regulation E applies to any person-to-person (P2P) or mobile payment transactions that meet the definition of EFT, including debit card, ACH, prepaid account, and other electronic transfers to or from a consumer account.3(b)(1)(v) Comment 3(b)(1)-1.ii. The term “electronic fund transfer” or “EFT” means any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account.3(b)(1). It includes a prepaid account, as defined by Regulation E.2(b)(3). The term account means a demand deposit (checking), savings, or other consumer asset account (other than an occasional or incidental credit balance in a credit plan) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes.2(b)(1). Nacha charges a fee for a copy of its rules.The Electronic Fund Transfer Act (EFTA) and Regulation E apply to an electronic fund transfer that authorizes a financial institution to debit or credit a consumer's account.3(a). Nachaįinancial institutions that participate in ACH follow operating rules developed by Nacha, formerly known as NACHA – the Electronic Payments Association (Nacha), to transfer funds electronically. (with its appendices and schedules for time and fees) governs how Federal Reserve Banks, banks sending money, and banks receiving money clear and settle commercial ACH credits and debits.Īppendix D governs ACH for federal agencies. They cover ACH credit entries, debit entries, and data that agencies send or receive through ACH.

These regulations define the rights and liabilities of everyone involved with ACH. Resources ACH Regulations (31 CFR Part 210) With ACH, funds are electronically deposited in financial institutions, and payments are made online. The Automated Clearing House (ACH) is the primary system that agencies use for electronic funds transfer (EFT). Please enable JavaScript to use all features. Some features of this site will not work with JavaScript disabled.

Ach transaction deposit