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Regulation E Compliance

Since 1978, when Congress passed the Electronic Fund Transfers Act (EFTA)—better known as Regulation E (Reg E)—financial institutions have been responsible for properly investigating consumer claims of electronic fund transfer (EFT) errors. Those investigations must follow very specific error resolution procedures.

At the time Reg E was enacted, paper-based payments far outnumbered electronic fund transfer (EFT) payments. Today, the exact opposite is true. The rise in EFTs has been accompanied by a parallel rise in EFT error claims, making Reg E compliance that much more difficult for financial institutions to meet.

How to Be Compliant with EFT Regulations

Complying with Reg E EFT regulations requires financial institutions and their employees to recognize the following milestones and proceed accordingly with each claim:

  • When the official notice of a claim has occurred so that it can be investigated and resolved within the Reg E specified time period
  • When to issue provisional credit to the customer during an investigation
  • When to debit the customer’s account if the investigation shows that no error occurred
  • When and how the customer should be notified throughout the investigation

Minimize your losses and streamline the EFT transaction process for your employees. Contact CSI today for more information about WatchDOG® Reg E and how it can simplify Reg E compliance for your institution.