What does the Electronic Funds Transfer Act cover?
The Electronic Fund Transfer Act (EFTA) is a federal law that protects consumers when they transfer funds electronically, including through the use of debit cards, automated teller machines (ATMs), and automatic withdrawals from a bank account.
What is UCC4A?
Uniform Commercial Code Article 4A (UCC4A) means the portion of the Uniform Commercial Code which deals with certain funds transfers, including ACH credit transactions not subject to the Electronic Fund Transfer Act of Regulation E.
What does UCC Article 4A cover?
– ARTICLE 4A – FUNDS TRANSFER (1989) (iii) the instruction is transmitted by the sender directly to the receiving bank or to an agent, funds-transfer system, or communication system for transmittal to the receiving bank. (2) “Beneficiary” means the person to be paid by the beneficiary’s bank.
What is a UCC 4A disclosure?
UCC ARTICLE 4A DISCLOSURE PROVISIONAL PAYMENT DISCLOSURE: “Credit given by us to you with respect to an automated clearing house credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank.
What is the purpose of electronic funds transfer?
Electronic funds transfer (EFT) is a transfer of funds is initiated through an electronic terminal, telephone, computer (including on-line banking) or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account.
What are the four most common types of electronic fund transfers?
Here are the most common types of EFT:
- Electronic Checks. In this payment, a digital check is generated upon the payer’s authorization.
- Direct Deposit. With direct deposit, funds are automatically deposited into an account with little to no paperwork.
- Phone Payments.
- ATM Transactions.
- Card Transactions.
- Internet Transactions.
What is Article 4 of the UCC?
Article 4 of the UCC deals with the liability of a bank for action or non-action with respect to an item handled by it for purposes of presentment, payment, or collection. The law of the place where the bank is located usually has more applicability in matters of bank deposits. Article 5 governs letters of credit.
What is the difference between wire transfer and electronic transfer?
Wire transfers are done through a network of banks or transfer providers from one account to another. An electronic fund transfer (EFT), on the other hand, moves money from one bank account to another bank account and is an umbrella term that covers any form of transferring funds electronically.