Electronic Funds Transfers-what you need to know when using cash applications such as Venmo

Len and Dean focus on Electronic Funds Transfers, particularly person-to-person (P2P) payment apps like Venmo, Apple Pay, and Zelle. Dean elaborates on the December 2021 update by the CFPB to the Reg. E FAQs. These guidelines stress that P2P payments, when they involve certain methods like a consumer’s debit card, are subject to the provisions of EFT-Regulation E. The Electronic Funds Transaction Act (EFTA) and Regulation E define an EFT and set the framework for how EFTs involving consumers should work. Dean also clarifies that the rights, liabilities, and rules for users of these apps are dictated by the EFTA and its rule Reg. E. They delve into the protections of Reg. E, detailing how financial institutions need to handle disputes and error reports from consumers in strict timeframes. The duo wraps up by emphasizing that any P2P transactions that fit the EFT definition are governed by the EFTA and Reg. E.

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