Electronic Fund Transfers - Proposed Revision of Official Staff Commentary
July 3, 2000
Circular No. 11257

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has published proposed revisions to the Regulation E (Electronic Fund Transfers) Official Staff Commentary, which applies and interprets the requirements of the regulation.

Comments are due by August 31, 2000.

The proposed revisions provide guidance on electronic check conversion transactions that occur, for example, when a check is scanned at point of sale for information to initiate an electronic debit from a consumer's account. Additional guidance is provided on electronic authorizations permitting recurring debits from a consumer's account, as well as other issues. The commentary is intended to help financial institutions comply with Regulation E when they offer electronic fund transfer services to consumers.

The text of the Board's proposal (pdf - 186kb), as published in the Federal Register of June 29 is available. Comments should be submitted to the Board, as specified in the notice, by August 31, 2000.