Count Toward the Transaction limit on MMDAs?

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Question:

I understand that internet transfers on money market accounts count as being limited under Regulation D. However, what about the Merchant Settlement or card service debit transactions that are also applied against a money market account? Are these also considered and counted towards the limit?

Answer:

Yes. The charges to the merchant's MMDA for card services or merchant settlement are subject to the six/month limitation.

[Editors Note:As of 7/2/09, the separate limit of three per month for checks, POS debit card transactions, etc., has been eliminated, and those transactions are now only subject to the 6/month limit that applies to other restricted transfers and withdrawals.]

First published on BankersOnline.com 6/20/05