What types of electronic funds transfers are covered by the Electronic Fund Transfer Act?

The Electronic Fund Transfer Act (EFTA), enacted in 1978, is a federal law which protects consumers who use electronic forms of payment. In North Carolina, EFTA applies to any electronic fund transfer, regardless of whether it is initiated by the consumer or by an employer, government agency, or financial institution. Under EFTA, electronic fund transfers are covered in four main categories: 1. Automated Teller Machine (ATM) transactions: This includes cash withdrawals, deposits, balance inquiries, and transfers between accounts. 2. Direct deposits and preauthorized transfers: These are recurring payments such as payroll deposits, pensions benefits, Social Security payments, and loan payments. 3. Point-of-sale (POS) transactions: These are purchases of goods or services made using an automatic debit or credit card reader. 4. Electronic check conversion: This allows a business to convert a paper check into an electronic transaction. Under EFTA, consumers have the right to dispute improper electronic fund transfers. This is usually done by filing a dispute with the financial institution that holds the account. Credit card dispute resolution law in North Carolina requires financial institutions to investigate and resolve disputes in accordance with the federal law.

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What types of electronic funds transfers are covered by the Electronic Fund Transfer Act?

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