Regulation E

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DEFINITION of 'Regulation E'

A regulation set forth by the Federal Reserve. Regulation E outlines the rules and procedures for electronic funds transfers (EFTs) and outlines guidelines for those who sell and issue electronic debit cards. Rules pertaining to consumer liability for unauthorized card usage fall under this regulation as well.

INVESTOPEDIA EXPLAINS 'Regulation E'

Regulation E establishes certain types of protection for consumers that employ electronic transfer systems. It also requires financial institutions to publish the terms and conditions of their EFT services at least once a year. Finally, this regulation institutes a procedure for resolving errors related to EFT usage.

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