Reg E and Internet Banking

Here's the definition of "Electronic Fund Transfer" in 205.3(b): The term electronic fund transfer means any transfer of funds that is initiated through an electronic terminal, telephone, COMPUTER, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account. (emphasis added)Based on that definition, definitely internet banking transfers and billpayer activities, if conducted to or from a consumer's account, are covered under Reg E, although there is one out for a specific type of bill-payer service described in the Official Staff Commentary to section 205-3. Review Comment 3(b)(1)-1.vi. for details.

First published on BankersOnline.com 2/21/11