What is the Electronic Funds Transfers Act (EFTA)

The purpose of EFTA is to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic funds transfers.

Electronic funds transfers are transfers of funds through an electronic terminal, by phone, computer, or magnetic tape – essentially any transfer of funds other than by a check or other paper instrument.  For example, it can be ordering bill-pay through a bank, making a payment through a debit card, providing a creditor your bank account information to allow a transfer, or even using an ATM machine.

The statute can be found at 15 U.S.C. §1693, and its primary objective is to provide individual rights to consumers. EFTA contains provisions regarding the necessary authorizations for permitting an electronic funds transfer, the setting of terms and conditions of making transfers, and the means by which errors,  such as unauthorized transfers, are resolved.

Even Crypto currencies are covered by EFTA!