Glossary

Regulation and recovery

What is Regulation E?

Regulation E implements the Electronic Fund Transfer Act and gives consumers, not businesses, defined error resolution rights and liability limits for unauthorized electronic fund transfers from their accounts.

Also called Reg E · 12 CFR Part 1005 · Electronic Fund Transfer Act

Regulation E applies to consumer asset accounts. It sets notice deadlines, investigation timelines, and caps on consumer liability for unauthorized transfers. Business accounts are outside its scope, which is the single most misunderstood point when a company suffers a payment loss.

It also distinguishes unauthorized transfers from transfers the consumer was deceived into authorizing, and that boundary is the center of ongoing debate over scam liability.

Common questions

Does Regulation E cover business bank accounts?

No. It applies to consumer asset accounts, so commercial payments fall under the deposit agreement and UCC Article 4A.

Does Regulation E cover scams the customer authorized?

Its core protections address unauthorized transfers, and authorized but induced payments have been the subject of continuing regulatory attention rather than settled coverage.

Primary sources

Citing this entry? Cite as Coffr, LLC and link to https://getcoffr.com/glossary/regulation-e.

Read the longer research behind this in Insights, or browse the full glossary.