Accredited ACH Professional (AAP) Practice Exam

Regulation E, also known as the Electronic Fund Transfer Act (EFTA), specifically addresses electronic fund transfers (EFTs). This regulation establishes the rights and responsibilities of consumers who engage in electronic payments, such as those made through debit cards, ATM transactions, and other forms of electronic payments. It aims to provide protection for consumers by requiring financial institutions to disclose terms and conditions associated with electronic transfers, outline liability limits for unauthorized transfers, and ensure error resolution processes.

The focus of Regulation E on electronic fund transfers differentiates it from other regulations that pertain to areas like privacy rights or specific financial instruments like checks and credit cards. By concentrating on the processes and protections related to electronic transfers, Reg E plays a critical role in creating consumer confidence in the safety and reliability of using these payment methods.