Electronic Funds Transfer Act (Regulation E)

Regulation E is a consumer protection law for accounts established primarily for personal, family, or household purposes. Regulation E gives consumers a way to notify their financial institution that an EFT has been made on their account without their permission.

Non-consumer accounts, such as corporations, partnerships, trusts, etc. are excluded from coverage. A non-consumer (business account) customer using internet banking and/or bill pay is not protected under Regulation E. As such, special consideration should be made by the business customer to ensure adequate internal security controls are in place that commensurate with the risk level that the customer is willing to accept.

As a non-consumer customer you should perform periodic assessments to evaluate the security and risk controls you have in place. The risk assessment should be used to determine the risk level associated with any internet activities you perform and any controls you have in place to mitigate these risks.

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