Regulation E protects consumers who use electronic fund transfers. As a FinTech, you are responsible for assisting customers who report errors impacting their account balances or unauthorized transactions. Regulation E covers electronic fund transfers including point of sale purchases, ATM withdrawals, ACH transfers, and overdrafts. It requires disclosures of fees and limits, as well as procedures for error correction, liability, preauthorized transfers, and receipts. Transactions not covered include paper checks, wire transfers, and intra-bank automated transfers between a consumer's accounts at the same bank.

1. Regulation E
Training Material for FinTech Employees

2. What is Regulation E?
Regulation E protects consumers
when they use electronic fund transfers.
Issued initially by the Federal Reserve in 1978 as an implementation
of the Electronic Funds Transfers Act.
Latest revision issued in April 2019 by the Bureau of Consumer Financial Protection.
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3. How Does it Concern You?
As a FinTech, you are the “front-end” for financial services sold to customers, which are also the
customers of your partner bank. Your interacting with customers results in responsibilities regarding
their protection against unauthorized transactions and errors.
You need to know:
• Your obligations to assist customers reporting errors impacting their account balances.
• Scope of requirements and risks of non-compliance.
• Contents and timing requirements for Reg. E disclosures
• Specific content requirements of periodic statements or electronic/online transaction histories.
• What constitutes an error, common types of errors, and what is an effective notice of error.
• How to document evidencing compliance with Reg. E and supporting rationale for decisioning of claims.
NOTE: this material is not a substitute for professional legal advice
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4. What Does Regulation E Cover?
Electronic fund transfers include:
 Point of sale purchases
 ACHs including Direct Deposits
 ATM withdrawals
 Overdrafts
 Remittances
 Telephone transfers
 Gift cards
Regulation covers:
 Disclosure of fees and limits
 Error correction
 Liability
 Preauthorized transfers
 Receipts
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For overdrafts, Regulation E prohibits banks and credit unions from charging overdraft fees on ATM
and one-time debit card transactions absent affirmative, opt-in consent from the customer.
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5. Not Covered by Regulation E
 Business Accounts in general
 The following on Consumer Accounts:
‐ Paper checks;
‐ Wire transfers;
‐ Intra-bank automated transfers, e.g. scheduled contributions to savings
account from checking account inside the same bank;
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6. In The Critical Path Between Consumer and Bank
Customers FinTech + Bank*
• Make purchases
• Withdraw cash
• Receive statements
• Investigate to
confirm errors /
unauthorized Tx
• Resolve as needed
and provides refund
applicable
* Unless FinTech is a state-licensed lender and
does not use a partner bank
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Lost or
Stolen Card
Erroneous
Transaction
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Signal loss or theft or card
and/or unauthorized/
erroneous transactions
Coordinate
resolution

7. For the complete training…
Contact us at info@finstrides.com
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