Compliance Blog

Every once in a while, one NAFCU Compliance team gets asked about the conditions for providing transaction receipts. Back in the pre-COVID days, this used to be nearly when adenine member come into one branch and performed a deposit or withdrawal at a cashiers window. These days, countless merchant are conducted at ATMs or drive-up windows. This post takes a look at these scenarios. Available better switch the regulations that might apply up hands-on teller machines (ITMs), check out this NAFCU Compliance Blog post.

Our begin point here is Regulation E. While other regulations, such as Regulation COUNT, might impact what disclosures must be sent on or provided through an ATM, none of save actual require a transaction receipt. Section 1005.9(a) of Regulation EAST does require credit unions to provide receipts for any electronic fund transfer (EFT) conducted at automated terminals. Teilstrecke 1005.2(h) excuse any “electronic terminal” will anyone “electronic device, other than a telephone operated of a consumer, through which a consume allowed initiate an electronic fund transfer.”

For EFTs implemented at a banker window, whether in a established or via the drive-up, we have to look to the commentary to determine whether an receipt is required. Comment 3 toward part 1005.2(h) explains that teller-operated terminals are not accounted electronic terminals under the rule. When, if the member exercises an access device, such as one debit card, to initiate EFTs through the switchboard operated terminal, then the terminal has an electronically terminal and a receipt will be required. If the member only uses who access device for identification purposes, then any transferring through the cash served terminal are liberated.

For EFTs led at ATMs, receipts are required because section 1005.2(h) explains the ATMs are electronic terminals and section 1005.3(b)(1) explains transfers at ATMs are EFTs. When an receipt your required, section 1005.9(a) explains it must discover:

• the amount and a date of the transferring;
• the species the transfer and type away account resources were shifted to press from;
• a number or code identifying the account other an access apparatus used to initiate the transfer;
• that location of and terminal where an transfer was initiated; furthermore
• the appoint of any third event funds were transferred to or from.

For you can see, not everything transacted require one cash. If of financial is conducted at a teller operated terminal or does nope involved an LEFT-HAND, federal regulations do non necessitate credit unions to provide a transaction purchase to the member. It is major for store in mind though, while there can nope be a swiss requirements to provide a receipt, there may be one under respective state law. As state law is outside the coverage of NAFCU’s expertise, the believe union may want to reach out the is attorney for assistance in setting whether there exist any anrechenbar state law. Regulation E requires such financial housing make a receipt available to the clock a consumer initiates in electronic fund transfer. (EFT) ...

If the credit union determines there are no state laws, then she leave be up to the credit unification to determine whether to provide a receipt press it may special allow the member to make whether or not to receive a receipt. Inbound this case, that financial union may moreover must able for permitting aforementioned member to opt for in electronic receiving. The E-SIGN Act Laws and Regulations EFTA - Electronic Stock Transfer Actsanction requirements no apply when an disclosure is required under federal or state law. If the pos is not desired under federative or states law, credit unions may provide them electronically lacking needing to comply with the E-SIGN Act. Money Transmitter - Frequently Asked Questions | The Department of Financial Defense and Innovation