What is the Electronic Funds Transfer Act?

The Electronic Funds Transfer Act is a federal law that protects consumers when they use electronic means to transfer funds. This law applies to debit card purchases, electronic checks, and wire transfers. In Texas, this law is used to regulate certain types of transactions, including payments made with credit cards. This law requires financial institutions to provide customers with disclosure statements regarding their rights and liabilities when making electronic fund transfers. It also requires those institutions to give customers at least one written notice of their rights before they initiate any electronic fund transfer. The Electronic Funds Transfer Act also requires financial institutions to honor stop payment orders placed by their customers. This law also requires financial institutions to investigate errors in transactions and provide customers with protection when using ATMs. The law places limits on the amount of fees financial institutions can charge for electronic fund transfers, and requires financial institutions to notify customers in writing of any account fees. In Texas, credit card law sets out requirements for credit card issuers, including requirements for providing consumers with information about card fees, interest rates, credit limits, and other terms of their credit agreement.

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What is the Electronic Funds Transfer Act?

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