Electronic Funds Transfer Act: Your Rights and Responsibilities

What is EFTA?
EFTA establishes your rights, liabilities, and responsibilities when using electronic fund transfer services. EFTA is designed to protect individuals using electronic fund transfers, such as ATM, debit card, telephone, and computer transactions. This law also requires financial institutions to limit your liability if your ATM card is stolen or lost.

Your Rights Under EFTA
Under EFTA, banks must provide:

• Clear and understandable written disclosures about the accounts and services provided when the consumer opens the account.
• Access to the electronic funds transfer accounts, usually through the use of an ATM or debit card, which is only to be activated through the consumer’s request or authorization.
• Notice if the conditions of the account change, such as increased fees, increased liability for the consumer, or stricter limits on the frequency or amount of transfers.
• Receipts for transactions at ATM machines, including information such as the date of the transaction, the type and amount of the transaction, and the ATM location.
• A monthly account statement to include transaction information, account number, and fees charged, account balances, and an address and phone number for inquires.

Your Responsibilities Under EFTA
EFTA was created to protect your rights, but you also have some responsibilities:

• If your ATM or debit card is lost or stolen you need to notify the bank within two days of learning it.
• If you lose your ATM card and notify the bank in two days after discovering it is gone, then you only have to pay $50 or less of the amount of any transfers made on your card you did not okay. If you fail to notify the bank within two days, you may be responsible for paying up to, but not more than, $500.
• If you discover an error or unauthorized transfer on your statement, you have 60 days from when the statement was sent to you to tell the bank the problem and get them to resolve it.