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

The Electronic Fund Transfer Act (EFTA) is a law that regulates and defines the legal rights and responsibilities of both consumers and financial institutions when it comes to electronic fund transfers (EFTs). The EFTA is administered and enforced by the Federal Trade Commission. Under the EFTA, all EFTs are covered, including direct deposits, automatic withdrawals (like automated bill payments), ATM withdrawals, debit card purchases, and one-time transfers. It also covers the use of pre-paid cards, credit cards, and those backed by foreign banks. The EFTA covers both intra-bank transfers (transfers from one account in the same bank to another) and inter-bank transfers (transfers from one bank to another). It does not, however, cover wire transfers. The EFTA safeguards consumers’ rights to EFTs, including specific disclosure requirements and limits on consumer liability for unauthorized transfers. The EFTA also establishes the rights of consumers to dispute EFTs that are incorrect or unauthorized, as well as other unfair or deceptive practices. This is why credit card dispute resolution laws exist in Washington and throughout the United States. In short, the EFTA covers most types of electronic funds transfers, including direct deposits, automatic withdrawals, ATM withdrawals, debit card purchases, one-time transfers, pre-paid cards, and credit cards. It also protects consumers’ rights to dispute EFTs that are incorrect or unauthorized.

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

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