Answer:
The commentary to 205.3(a) indicates:
3. Foreign applicability. Regulation E applies to all persons (including branches and other offices of foreign banks located in the United States) that offer EFT services to residents of any state, including resident aliens. It covers any account located in the United States through which EFTs are offered to a resident of a state. This is the case whether or not a particular transfer takes place in the United States and whether or not the financial institution is chartered in the United States or a foreign country. The regulation does not apply to a foreign branch of a U.S. bank unless the EFT services are offered in connection with an account in a state as defined in Section 205.2(l).
Since a non-resident alien is not a resident of any State, the protections of Regulation E does not apply to non-resident aliens. However, the protection offered by the card issuer (i.e., VISA) may apply, although last I checked you could not issue standard US VISA cards to non-resident aliens. It would have to be an international VISA card and require a separate contract with VISA.
First published on BankersOnline.com 7/23/07
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