The electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions initiated through electronic-based systems. The terms includes, but is not limited to:
Any fraudulent or unauthorized EFT is protected. Further information on Regulation E and how it applies to your account at First National Bank is available here. If you believe an unauthorized EFT has been made on your account, contact us IMMEDIATELY. If you notify us within two (2) business days after you learn of the unauthorized transaction, the most you can lose is $50. Failure to notify First National Bank within two (2) business days may result in additional losses.
Unlimited loss to a consumer account can occur if:
The term EFT does not include:
The term “electronic funds transfer” (EFT) generally refers to a transaction initiated through and electronic terminal, telephone, computer, or magnetic tape that instructs a financial institution either to credit or debit a consumer’s asset account.
The Electronic Funds Transfer Act was implemented by the Boards of Governors of the Federal Reserve Board’s Regulation E, issued by and subsequently transferred to the Bureau of Consumer Financial Protection (CFPB), establish the basic rights, liabilities and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services. Together, they are designed to protect consumers making electronic fund transfers. For more information, please click here.
As a result, it is critical that business/commercial customers implement sound security practices within their places of business to reduce the risk of fraud and unauthorized transactions from occurring. Good practices can keep business/commercial customer’s information secure. You can help to protect your company by implementing the following:
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NON-INTEREST-BEARING TRANSACTION ACCOUNTS: By operation of federal law, beginning January 1, 2013 funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information, visit www.fdic.gov.