Credit Card Glossary: Terms and Definitions
Electronic Fund Transfer Act
The Electronic Fund Transfer Act is 1978 federal legislation that establishes the liabilities and rights of consumers whose funds are electronically transferred. Consumer protections include a mandate that all transaction fees for ATMs be displayed prominently on the machine and a prohibition on fees not properly disclosed. Consumer liability for unauthorized transfers due to card or PIN number theft or card loss is capped at $50 if the customer notifies his bank within two business days. If the notification occurs within 60 calendar days of transmittal of the statement showing the first unauthorized transfer, the customer’s maximum liability is $500.