Which regulation governs electronic funds transfers?

The regulation that governs electronic funds transfers is Regulation E. This regulation, established under the Electronic Fund Transfer Act (EFTA), sets the framework for the protection of consumers engaging in electronic transfers of money. It outlines the requirements for disclosures before transactions occur, the rights and responsibilities of consumers and financial institutions, and establishes procedures for resolving errors related to electronic transfers.

Regulation E specifically addresses various methods of electronic funds transfer including ATM transactions, debit card transactions, and electronic check payments. It mandates that consumers receive clear information about the terms and conditions of electronic transactions and gives them certain rights, such as the ability to dispute unauthorized transactions and limits liability if they report the loss or theft of their access devices in a timely manner.

This regulation is crucial for ensuring consumer protection in the increasingly digital and electronic financial landscape, making it the appropriate answer in this context.