The Electronic Fund Transfer Act (EFTA) provides consumers with basic rights when they use electronic payment services, such as ATM and point-of-sale transactions. These rights include the right to stop payment on a preauthorized electronic fund transfer from a consumer's account, to receive certain disclosures about electronic fund transfers, and to be notified in time for a scheduled electronic fund transfer.The EFTA protects consumers who use electronic fund transfer services, including those that involve the use of a debit card, ATM, or automatic withdrawal from a bank account. The Act was passed by Congress in 1978 and became effective August 1, 1979. Its purpose is to ensure that consumers who gain access to banking services through electronic means are provided with the same protection as those who have access to financial institutions solely through more traditional means.The EFTA ensures that consumers are given clear and accurate information about the costs associated with electronic fund transfers, including ATM withdrawals, debit card transactions, and electronic check conversions. The law also requires that financial institutions provide consumers with a periodic statement listing the electronic fund transfers initiated by them during the statement period.
