Alternative procedure for debiting of credited funds. (iv) Stricter limitations on the frequency or dollar amount of transfers. Under both examples, gift cards provided pursuant to these loyalty, award, or promotional programs need not state the disclosures in 205.20(a)(4)(iii) to qualify for the exclusion in 205.20(b)(3) for loyalty, award, or promotional gift cards because the period of eligibility for each program began prior to August 22, 2010. (See also 205.6(a) and the related commentary.). Regulation II implements the provisions related to interchange fee caps and routing requirements. (2) Timely notice not given. The description should also disclose the institution's policies regarding the payment of overdrafts for other transactions, including checks, ACH transactions, and automatic bill payments, provided that this content is not more prominent than the description of the consumer's right to opt into payment of overdrafts for ATM and one-time debit card transactions. The reversal of a direct deposit made in error is not an unauthorized EFT when it involves: i. Reloadable. For example, Regulation D (12 CFR Part 204) restricts the number of payments to third parties that may be made from a money market deposit account; an institution that does not execute fund transfers in excess of those limits must disclose the restriction as a limitation on the frequency of EFTs. Advance authorization. 1. The institution need not refund fees that would have been imposed whether or not the error occurred. (d) Services offered jointly. A financial institution may pay overdrafts for ATM and one-time debit card transactions even if a consumer has not affirmatively consented or opted in to the institution's overdraft service. (b) Error resolution notice on periodic statements ( 205.8(b)). For example, a payee may provide the consumer with two copies of a preauthorization form, and ask the consumer to sign and return one and to retain the second copy. Same facts as in i., except that the issuer or program manager sets up a single promotional display at the retailer on which a variety of prepaid cards are sold, including store gift cards and general-purpose reloadable cards. The person that obtains the authorization shall provide a copy to the consumer. The imposition of a fee on January 15 of year two is not activity for purposes of 205.20(d). You may obtain information about the amount of benefits you have remaining by calling [telephone number]. If the institution makes such a change permanent and disclosure would not jeopardize the security of the account or system, the institution shall notify the consumer in writing on or with the next regularly scheduled periodic statement or within 30 days of making the change permanent. The term marketed or labeled as a gift card or gift certificate means directly or indirectly offering, advertising or otherwise suggesting the potential use of a card, code or other device, as a gift for another person. v. A transfer via ACH where a consumer has provided a check to enable the merchant or other payee to capture the routing, account, and serial numbers to initiate the transfer, whether the check is blank, partially completed, or fully completed and signed; whether the check is presented at POS or is mailed to a merchant or other payee or lockbox and later converted to an EFT; or whether the check is retained by the consumer, the merchant or other payee, or the payee's financial institution. A telephone number the consumer may call to ascertain whether preauthorized transfers to the consumer's account have occurred, if the financial institution uses the telephone-notice option under, (c) Exceptions to the periodic statement requirement for certain accounts . A financial institution may permit, but may not require, consumers to pick up their periodic statements at the financial institution. Placement of the amount of the transfer in the debit or the credit column is sufficient if other information on the statement, such as a terminal location or third-party name, enables the consumer to identify the type of transfer. No specific form or wording is required for a change-in-terms notice. 3. Under 205.20(a)(6), a service fee includes a periodic fee for holding or use of a gift certificate, store gift card, or general-use prepaid card. The notice applies to all checks provided in payment for the billing cycle or invoice until the provision of notice on or with the next invoice or statement. In certain circumstances, such as for technical or processing reasons, we may process your payment as a check transaction. (v) Transfers resulting from debit card transactions, whether or not initiated through an electronic terminal. Here's how: Call us at [insert telephone number], or write us at [insert address], in time for us to receive your request 3 business days or more before the payment is scheduled to be made. A consumer's liability for an unauthorized electronic fund transfer or a series of related unauthorized transfers shall be determined as follows: (1) Timely notice given. Because the prepaid card is simply the means for providing the insurance proceeds to the consumer and the availability of the card is not advertised to the general public, the exclusion in 205.20(b)(4) applies. Institutions may tailor Model Form A9 to the methods offered to consumers for affirmatively consenting to the service. 2. No requirement to pay overdrafts on checks, ACH transactions, or other types of transactions. A periodic fee includes any fee that may be imposed on a gift certificate, store gift card, or general-use prepaid card from time to time for holding or using the certificate or card. The eCFR is displayed with paragraphs split and indented to follow If you work for a Federal agency, use this drafting ACH agreements. 205.7 (b) if the change would result in: (i) Increased fees for the consumer; (ii) Increased liability for the consumer; Error resolution. If you have questions for the Agency that issued the current document please contact the agency directly. The financial institution has no further error resolution responsibilities if the consumer voluntarily withdraws the notice alleging an error. A financial institution may provide notice regarding the institution's overdraft service prior to or at account-opening. The prepaid card may only be used for entry to the park. (2) Effective date for loyalty, award, or promotional gift cards. 1. 2. Written plan or agreement. 1/1.1 This part applies to any electronic fund transfer that authorizes a financial institution to debit or credit a consumer's account. 1. The dollar amount of any fees or charges assessed by the financial institution for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service, including any daily or other overdraft fees. Assuming that Saturday is a business day and Sunday is not, the two-business-day period begins on Saturday and expires at 11:59 p.m. on Monday, not at the end of the financial institution's business day on Monday. v. A merchant provides store credit to a consumer following a merchandise return by issuing a prepaid card that clearly indicates that the card contains funds for store credit. Section 205.16Disclosures at Automated Teller Machines. The notice must be placed on a conspicuous location of the coupon book that a consumer can retainfor example, on the first page, or inside the front cover. (See, however, 205.20(a)(4)(iii), requiring certain disclosures for loyalty, award, or promotional gift cards.). If you bring your passbook to us, we will record any electronic deposits that were made to your account since the last time you brought in your passbook. Paragraph 9(c)(1)Preauthorized Transfers to Accounts. Disclosures made under this section must be clear and conspicuous. 235) 3. You may ask for copies of the documents that we used in our investigation. (iii) A request for duplicate copies of documentation. (iv) A consumer's liability for an unauthorized electronic fund transfer and the investigation of errors involving an extension of credit that occurs under an agreement between the consumer and a financial institution to extend credit when the consumer's account is overdrawn or to maintain a specified minimum balance in the consumer's account, or under an overdraft service, as defined in 205.17(a). An account that is accessed by preauthorized transfers to the account described in paragraph (c)(1) of this section and by intra-institutional transfers described in paragraph (c)(2) of this section, but by no other type of electronic fund transfers, qualifies for the exceptions provided by paragraph (c)(1) of this section . (1) Timing; contents. [Reg. (2) Annual error resolution notice. A periodic statement sent within two business days of the scheduled transfer, showing the transfer, can serve as notice of receipt. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to: (3) Limitations on frequency of transfers. (e) Imposition of fee. (iv) If funds were provisionally credited and the service provider determines no error occurred, it may reverse the credit. 2. (e) Prohibition on sale of gift certificates or cards with expiration dates. See also comment 17(b)7. Choosing an item from 5. The authorization process should evidence the consumer's identity and assent to the authorization. (b) Content of disclosures. 2. Early disclosures. 11(d) Procedures if Financial Institution Determines No Error or Different Error Occurred. Substantially similar. Section 205.17(b)(3) does not prohibit institutions from offering deposit account products with limited features, provided that a consumer is not required to open such an account because the consumer did not opt in. 1. Error different from that alleged. At the end of the day, the consumer has an account balance of negative $70. Section 1005.8(a) of Reg E requires advanced notice for changes in account terms if the change would result in increased fees, increased liability for members, fewer types of electronic fund transfers; or stricter limitations on transfers. 2. The Board accounts for the paperwork burden associated with the CFPB's Regulation E . If the institution chooses the second option, the code or terminal number identifying the terminal where the transfer is initiated may be given as part of a transaction code. 3501 et seq. Paragraph 14(b)(1)Disclosures and Documentation. For purposes of this paragraph (b)(2), the term reloadable includes a temporary non-reloadable card issued solely in connection with a reloadable card, code, or other device; (3) A loyalty, award, or promotional gift card; (6) Redeemable solely for admission to events or venues at a particular location or group of affiliated locations, or to obtain goods or services in conjunction with admission to such events or venues, at the event or venue or at specific locations affiliated with and in geographic proximity to the event or venue. 1. (b) Exclusions. If, on the other hand, the consumer keys in the identity of the payee, the receipt must identify the payee by name or by using a code that is explained elsewhere on the receipt. 3. The term overdraft service does not include any payment of overdrafts pursuant to. Examples. If a consumer's access device is also a credit card and the device is used to make unauthorized withdrawals from a checking account, but also is used to obtain unauthorized cash advances directly from a line of credit that is separate from the checking account, both Regulation E and Regulation Z apply. For rules governing payroll card accounts, see 205.18. For example, if the disclosure is the same type size and is located immediately next to or directly above or below the certificate or card expiration date, without any intervening text or graphical displays, the disclosures would be deemed to be equally prominent and in close proximity. (ii) Error resolution. At the end of that day, the consumer has an account balance of negative $10. The maximum number of overdraft fees or charges that may be assessed per day, or, if applicable, that there is no limit. The agency shall verify the identity of the consumer receiving the device by reasonable means before the device is activated. (1) Notice by financial institution. The request for an access device may be written or oral (for example, in response to a telephone solicitation by a card issuer). Accumulation of fees. Name of owner or operator of terminal. will also bring you to search results. formatting. 2. The requirements in this paragraph (b)(2)(iii) shall remain in effect until December 31, 2009. Requirements of an authorization. When the initial disclosures omit details about limitations because secrecy is essential to the security of the account or system, a subsequent increase in those limitations need not be disclosed if secrecy is still essential. It may, however, impose any normal transaction or item fee that is unrelated to an overdraft resulting from the debiting. 3. 1. When a notice of error is based on documentation or clarification that the consumer requested under paragraph (a)(1)(vii) of this section, the consumer's notice of error is timely if received by the financial institution no later than 60 days after the institution sends the information requested. The financial institution may use any reasonable means necessary to provide the telephone number to consumers with passbook accounts that can only be accessed by preauthorized credits and that do not receive periodic statements. Paragraph 11(d)(2)Debiting Provisional Credit. Examples of marketed or labeled as a gift card or gift certificate include. Applicability. 4. The service provider shall notify the account-holding institution of the period during which the account-holding institution must honor debits to the account in accordance with 205.11(d)(2)(ii). 4. Verification of identity. ii. Marketed to the general public. The agency shall provide an annual notice concerning error resolution that is substantially similar to the notice contained in paragraph A5 in appendix A, in place of the notice required by 205.8(b). 1. In determining whether the gift card falls within the exclusion in 205.20(b)(4), the merchant must consider whether the card is of a type that is advertised or made available to consumers generally or can be obtained elsewhere. iv. Telephone line availability. For example, the purchase and activation of a certificate or card, the use of the certificate or card to purchase a good or service, or the reloading of funds onto a store gift card or general-use prepaid card constitutes activity. (d) Notice of transfers varying in amount . A summary of the consumer's right to stop payment of a preauthorized electronic fund transfer and the procedure for placing a stop-payment order, as provided in 205.10(c). Paragraph 11(c)(3)Extension of Time Periods. Paragraph 20(b)(5)Issued in Paper Form Only. Or, the institution may print a bar code or use other tracking information. If the amount of the fee may vary due to the amount of the transaction or due to other factors, the posted notice may explain how the fee will be determined, but the notice provided to the consumer must state the dollar amount of the fee if the amount can be calculated at the time the notice is provided or mailed to the consumer. If the certificate or card and underlying funds expire at the same time, only one expiration date need be disclosed on the certificate or card. (1) Preauthorized transfers to accounts. View the most recent official publication: These links go to the official, published CFR, which is updated annually. (3) Wire or other similar transfers. 2. Whether the exclusion applies generally does not depend on the type of entity that makes the promotional message. Charges for error resolution. A financial institution need not identify third parties whose names appear on checks, drafts, or similar paper instruments deposited to the consumer's account at an electronic terminal. The exclusion in 205.20(b)(5) applies because the code is issued in paper form only. Except in unusual circumstances, such interpretations will not be issued separately but will be incorporated in an official commentary to this part, which will be amended periodically. Section 205.17(b) does not apply to ATM and one-time debit card transactions made with a debit card issued by or through a third party unless the debit card is issued on behalf of the account-holding institution. 3. By contrast, 205.14 can apply to an institution that issues a code for initiating telephone transfers to be carried out through the ACH from a consumer's account at another institution. Marketed or labeled as a gift card or gift certificate. disclosure requirements of Regulation E. 5. ), Section 205.8Change-in-Terms Notice; Error Resolution Notice. (i) Account information. If the card can also be purchased through retail channels, the exclusion in 205.20(b)(4) does not apply, even if the consumer obtained the card from the business as an incentive or reward. For example, assume a movie theatre chain and a restaurant chain jointly agree to issue cards that share the same Flix and Food logo that can be redeemed solely towards the purchase of movie tickets or concessions at any of the participating movie theatres, or towards the purchase of food or beverages at any of the participating restaurants. The financial institution need not require a new authorization before changing from paper-based to electronic debiting when the existing authorization does not specify that debiting is to occur electronically or specifies that the debiting will occur by paper means. 1. In addition to following the procedures specified in paragraph (c) of this section, the financial institution shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the consumer: (1) Written explanation. 2. The institution may provide either: i. (1) Types of transfers or inquiries covered. E, 61 FR 19669, May 2, 1996, as amended at 74 FR 59052, Nov. 17, 2009; 75 FR 16614, Apr. Section 205.20 only applies to cards, codes, or other devices that are sold or issued to a consumer primarily for personal, family, or household purposes. For example, if a state law permits a maximum fee of $30 or 10% of the underlying transaction, whichever is greater, the person collecting the fee may explain how the fee is determined, rather than state a specific dollar amount for the fee. 20(e) Prohibition on Sale of Gift Certificates or Cards With Expiration Dates, 1. Regulation E protects consumers when they use electronic fund and remittance transfers. In contrast, a card, code, or other device generally would not be issued to consumers primarily for personal, family, or household purposes, and therefore would fall outside the scope of 205.20, if the purchaser of the card, code, or device is contractually prohibited from reselling or redistributing the card, code, or device to consumers primarily for personal, family, or household purposes, and reasonable policies and procedures are maintained to avoid such sale or distribution for such purposes.