Deposit Account Regulations - 3 - Regulation E: Electronic Funds Transfer

Question 1

Regulation E defines an “electronic funds transfer” as any transfer of funds initiated through certain mediums for the purpose of ordering, instructing, or authorizing a credit union to debit or credit a share draft/checking, share/savings, or other member asset account. What are the four methods for transferring funds provided in this definition?

Answer 1

Any transfer of funds initiated through 1) an electronic terminal, 2) telephone, 3) computer, or 4) magnetic tape. (Page 3-2)

Question 2

In order for a member to be held liable for the use of an access device it must be an “accepted access device.” How does Reg E define an “accepted access device”?

Answer 2

An access device becomes an accepted access device when the member to whom the device was issued:
1) requests and receives, or signs, uses, or authorizes another to use the device in the manner intended
2) requests validation of an unsolicited access device
3) or receives an access device that is a renewal or substitution for an accepted access device. (Page 3-3)