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Question of the Week

Posted: May 5, 2022 | Author: Cornerstone Compliance Team
compliance  EFT  Reg E  regulations 

Question: How does EFT protection work for business accounts? Do we have to grant them the same protections as Regulation E?

Answer: No. Regulation E is a consumer regulation, with a consumer defined as “a natural person” under 12 CFR 1005.2(e).

However, if you provide your business accounts with the same disclosures as you do regular consumer accounts, you may be granting them extra rights that the business is not entitled to by law. So we do recommend that those disclosures be different if you do not wish to be bound by the same dispute resolution and liability restrictions.

Also, be aware that your network provider, typically Visa or Mastercard, may require certain liability restrictions on your business members as a condition of offering certain products. Liability may differ across different products, even if consumer rights to do not apply.

 

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