HOUSTON METROPOLITAN FEDERAL CREDIT UNION
ELECTRONIC FUND TRANSFER ACT POLICY
Purpose
Regulation E implements the Electronic Fund Transfer (EFT) Act, which contains official staff commentary that
interprets the regulation and provides guidance in applying the regulation to specific transactions. The
Electronic Fund Transfer Act establishes rights, liabilities and responsibilities of the parties with regard to
transfers of funds involving electronic access to accounts through the use of automatic teller machines, point of
sale terminals, automated clearinghouses, telephone bill-payment plans, remote banking programs and
preauthorized transfers to and from accounts. The regulation requires credit unions to make certain disclosures
for electronic funds transfers relating to limitations on the transfers, fees charged for making a transfer, the error
resolution process, and the potential liabilities of the member as well as those of the credit union.
Policy Statement
It is the policy of the Houston Metropolitan Federal Credit Union to comply with the requirements of
Regulation E. All required disclosures will be clear and readily understandable, in writing, and in the form the
member may keep. The credit union may deliver EFTA disclosures via electronic communication, as long as
the member agrees to receive the disclosures electronically.
Initial Disclosure Requirements
The terms and conditions of Electronic Fund Transfers for a member’s account shall be disclosed before the
EFT service has been initiated. The disclosure shall be substantially in the form provided by the Federal
Reserve Board’s Regulation E. The credit union’s initial disclosures shall, at a minimum, include:
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A summary of the member's liability under Reg. E, or under any applicable state law or agreement.
Telephone number/address of contact for reporting unauthorized EFTs.
The credit union's business days.
The types and limitations on EFTs the member may make.
Any fees imposed by the credit union for EFTs or for the right to make transfers.
A summary of the member's right to receipts and periodic statements, and notices regarding
preauthorized transfers.
A summary of the member's right to stop payment.
Summary of the credit union's liability to the member for failure to make or stop certain transfers.
ATM surcharge notice
The circumstances under which the credit union may provide information concerning the member's
account to third parties and an error resolution notice.
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Receipts at Electronic Terminals
The credit union shall make receipts available at the time the consumer initiates an EFT at an electronic
terminal. The receipt shall include:
• the amount of the EFT;
• the date the consumer initiated the transfer;
• the type of transfer and type of account to or from which funds were transferred (unless only one type of
account may be accessed);
• a number or code identifying the consumer's account or the access device (e.g., ATM card) used to
initiate the transfer;
• the location of the terminal; and
• any third party to or from whom the funds were transferred.
As of August 6, 2007, EFTs of $15 or less no longer requires receipts.
Periodic Statements
Houston Metropolitan Federal Credit Union shall send a periodic statement for each monthly cycle in which an
EFT has occurred, and at least quarterly if no transfer has occurred.
The periodic statement shall include transaction information for each EFT occurring during the cycle, including:
• Amount of the transfer,
• Date the transfer was credited to or debited from the member's account,
• Type of transfer and type of account to or from which funds were transferred,
• Terminal location for EFTs initiated at electronic terminals (except deposits of
• checks/drafts), and
• Name of any third party to or from who funds were transferred;
• Member's account number;
• Any fees assessed against the account;
• Account balance for the beginning and close of the statement period;
• Address and telephone number for account inquiries; and
• Telephone number for members to call regarding preauthorized transfers
Fee Disclosure at ATMs
Any automated teller machines (ATM) machines owned and/or operated by Houston Metropolitan Federal
Credit Union that impose fees on on-members, shall provide notice that a fee is being imposed and disclose the
amount of the fee.
The credit union may post the notice in a prominent and conspicuous location on the ATM; however, the credit
union shall always display the notice on the ATM screen or provide it on paper before the consumer is
committed to paying a fee.
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Overdraft Fees
It is the policy of Houston Metropolitan Federal Credit Union to comply with the final rule to amend Regulation
E, which provides members with certain protections relating to the assessment of overdraft fees. The fees apply
to Automated Teller Machine (ATM) transactions and one-time debit card overdrafts.
Preauthorized Transfer Notice
Preauthorized EFTs are authorized in advance to recur at substantially regular intervals. Such EFTs may only be
authorized by a writing which is signed or "similarly authenticated" by the member. In order to stop payment,
the member must notify the credit union orally or in writing at least three business days before the scheduled
date of the transfer. The credit union shall provide notice the transfer occurred or the transfer did not occur to
the member as prescribed by the Regulation.
Change in Terms Notice
Houston Metropolitan Federal Credit Union will mail or deliver a written notice at least 21 days before the
effective date of any change in a term or condition required to be disclosed by Regulation E if the change results
in:
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increased fees for the member;
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increased liability for the member;
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a decrease in the available types of electronic fund transfers; or
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stricter limitations on the frequency or dollar amount of transfers.
Remittance Transfer Rules
Section 1073 of the Dodd-Frank Act amended the Electronic Fund Transfer Act to require “remittance transfer
providers” (credit unions) to provide disclosures to “senders” (members) that plan to initiate international funds
transfers pursuant to rules issued by the Consumer Financial Protection Bureau (CFPB).
A “remittance transfer” is defined broadly to include all electronic transfers of funds to designated recipients
located in foreign countries that are initiated by a consumer in the United States utilizing a “remittance transfer
provider”.
A “remittance transfer provider” is any entity providing remittance transfers in the “normal course of business.”
The Final Rules provide a new safe harbor under the definition of the term “remittance transfer provider” to aid
in determining when the credit union is excluded from coverage of the Final Rules because it does not provide
remittance transfers in the “normal course of business.” Under the Final Rules, a company that does not exceed
100 remittance transfers in the previous calendar year, and provides 100 or fewer remittance transfers in the
current calendar year, is not considered a remittance transfer provider and is exempt from compliance. For a
company that exceeds the 100-transfer threshold, the Final Rules permits a reasonable time period, not to
exceed six months, to begin compliance. Houston Metropolitan Federal Credit Union anticipates it will meet
the definition of a “remittance transfer provider” annually.
Houston Metropolitan Federal Credit Union shall comply with the Electronic fund Transfer Act by providing:
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1) Senders (the member) a written pre-payment disclosure pertaining to the sender’s remittance transfer
(prior to a customer’s payment for the remittance transfer) with disclosures regarding the applicable
current exchange rate, fees and taxes collected by the provider, fees charged by the provider’s agents
abroad and remittance intermediaries, and the amount of money expected to be delivered abroad (with
certain exceptions, as noted below in #2). Final Rules permit such disclosures to be provided orally, by
mobile application, return text message, and written disclosures must be made in English and in each
foreign language principally used by the remittance transfer provider, or any of its agents, to advertise,
solicit or market at that office.
2) Senders (the member) a written receipt that includes both the information on the pre-payment disclosure
and additional specified information such as including proof of payment, date when money will arrive
at the foreign destination, and the method by which a customer can report a transfer problem, and a
disclaimer that foreign fees and taxes may apply. The credit union may choose to provide combined
disclosures as an alternative to the post-transaction receipt, the Final Rules permit remittance transfer
providers to give senders a single written disclosure prior to payment containing all of the information
required on the receipt, so long as the provider also furnishes proof of payment such as a stamp on the
earlier document.
3) Members to have at least 30 minutes (and more time in certain circumstances) to cancel an initiated
transfer. After cancellation, the credit union shall refund, at no additional cost to the sender, the total
amount of funds provided by the sender in connection with the remittance transfer. These refunds shall
include any fees and, to the extent not prohibited by law, taxes imposed in connection with the
remittance transfers. Additionally, these refunds shall be provided within three business days of
receiving a sender’s request to cancel the remittance transfer.
4) Error resolution procedures and standards in place when funds are deposited into the wrong account
because the sender (member) provided an incorrect account number or routing number and certain other
conditions are satisfied, the provider (credit union) shall to attempt to recover the funds but shall not
bear the cost of funds that cannot be recovered.
The credit union shall provide separate disclosure requirements for remittance transfers before the transfer date,
including preauthorized remittance transfers. When a sender (member) schedules a one-time transfer or the first
in a series of preauthorized remittance transfers five or more business days before the transfer date, the Final
Rules permit remittance transfer providers (credit union) to estimate certain information in the pre-payment
disclosure and the receipt provided when payment is made. The Final Rules also require providers (credit union)
that estimate disclosure information to give the sender (member) an additional receipt with accurate figures no
later than one business day after the date of the transfer.
Houston Metropolitan Federal Credit Union shall use the CFPB model forms for use in connection with
remittance transfers in accordance with the Regulation E Final Rules and official interpretation.
Error Resolution Notice
In addition, Houston Metropolitan Federal Credit Union shall deliver to the account holder at least once each
calendar year, an abbreviated notice on or with each periodic statement.
All errors will be resolved and necessary adjustments made to the member’s account within the allotted time
frames stated in the regulation.
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Record Retention Policy
Houston Metropolitan Federal Credit Union will retain all documentation relating to EFTs for at least two
years. The credit union will also retain, until final disposition, records relating to any action filed under the
Electronic Fund Transfer Act.
Regulatory Enforcement
Regulation E compliance is enforced by the National Credit Union Administration for federally chartered credit
unions and the Federal Trade Commission for state chartered credit unions.
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