Reg E training/Reg U DEP1059 EFTs &
Account Opening/Disclosures
Questions with complete solution
2025/2026
Identify the types of transactions covered by the rule; Reg E - correct answer ✔1. Covers preauthorized
EFTs to or from a consumer's account
2. Governs the request and issuance of an access device
3. Governs consumers' liability for unauthorized EFTs
4. Includes requirements for payroll card accounts
5. Provides requirements for remittance transfers
6. Provides for documentation of EFTs
7. Requires disclosure of certain terms and conditions of EFT services
8. Requires consumer consent or an opt-in before charging a fee for overdraft services
9. Sets forth procedures for resolving EFT errors
10. Specifies requirements for gift cards and gift certificates
List the 3 Basic criteria a transaction must meet to be covered by Reg E. - correct answer ✔1. Must be
initiated ELECTRONICALLY (examples; a point of sales (POS) terminal, telephone, computer or magnetic
tape);
2. Must Involve an INSTRUCTION to debit or credit an account; and
3. Must involve a CONSUMER account for personal, family or household purposes. NOTE: Business
accounts are NOT covered by this Reg.
Note:
Business accounts are not covered by this Regulation.
What is an EFT? - correct answer ✔* Automated teller machine (ATM) transactions;
, * Debit card transactions;
* Direct deposits or withdrawals (such as automated clearing house [ACH] credits or debits);
* Electronic check conversions (wherein a consumer provides a paper check to a merchant, who then
converts the check into an EFT);
* POS transactions; AND
* Telephone transfers (using only a telephone keypad, and not involving a financial institution
representative).
What is NOT an EFT? - correct answer ✔The following types of transactions are excluded:
*Automated transfers between accounts held by one consumer at the same financial institution (for
example, an automated monthly transfer from a checking account to a savings account, such as with a
savings plan)
* Checks
* The guarantee or authorization of checks
* EFTs to pay for the purchase of securities or commodities
* Nonrecurring telephone transfers that involve the assistance of a financial institution employee
* Wire transfers (Note: International wire transfers are subject to the requirements for remittance
transfers)
When must an institution disclose their terms and conditions? - correct answer ✔1. When a customer
contracts for an EFT service;
2. Before the First EFT is made;
3. AND/OR When there are changes in the terms of an existing account.
IMPORTANT: You must also provide disclosures if you add an EFT service to an existing consumer
account, and the terms and conditions of the new service differ from the original disclosures.
***You can give the disclosures in print or electronically, but the disclosures must be clear and readily
understandable, in writing, and in a form the consumer can keep. For joint accounts, it is only necessary
to provide one set of disclosures.
Account Opening/Disclosures
Questions with complete solution
2025/2026
Identify the types of transactions covered by the rule; Reg E - correct answer ✔1. Covers preauthorized
EFTs to or from a consumer's account
2. Governs the request and issuance of an access device
3. Governs consumers' liability for unauthorized EFTs
4. Includes requirements for payroll card accounts
5. Provides requirements for remittance transfers
6. Provides for documentation of EFTs
7. Requires disclosure of certain terms and conditions of EFT services
8. Requires consumer consent or an opt-in before charging a fee for overdraft services
9. Sets forth procedures for resolving EFT errors
10. Specifies requirements for gift cards and gift certificates
List the 3 Basic criteria a transaction must meet to be covered by Reg E. - correct answer ✔1. Must be
initiated ELECTRONICALLY (examples; a point of sales (POS) terminal, telephone, computer or magnetic
tape);
2. Must Involve an INSTRUCTION to debit or credit an account; and
3. Must involve a CONSUMER account for personal, family or household purposes. NOTE: Business
accounts are NOT covered by this Reg.
Note:
Business accounts are not covered by this Regulation.
What is an EFT? - correct answer ✔* Automated teller machine (ATM) transactions;
, * Debit card transactions;
* Direct deposits or withdrawals (such as automated clearing house [ACH] credits or debits);
* Electronic check conversions (wherein a consumer provides a paper check to a merchant, who then
converts the check into an EFT);
* POS transactions; AND
* Telephone transfers (using only a telephone keypad, and not involving a financial institution
representative).
What is NOT an EFT? - correct answer ✔The following types of transactions are excluded:
*Automated transfers between accounts held by one consumer at the same financial institution (for
example, an automated monthly transfer from a checking account to a savings account, such as with a
savings plan)
* Checks
* The guarantee or authorization of checks
* EFTs to pay for the purchase of securities or commodities
* Nonrecurring telephone transfers that involve the assistance of a financial institution employee
* Wire transfers (Note: International wire transfers are subject to the requirements for remittance
transfers)
When must an institution disclose their terms and conditions? - correct answer ✔1. When a customer
contracts for an EFT service;
2. Before the First EFT is made;
3. AND/OR When there are changes in the terms of an existing account.
IMPORTANT: You must also provide disclosures if you add an EFT service to an existing consumer
account, and the terms and conditions of the new service differ from the original disclosures.
***You can give the disclosures in print or electronically, but the disclosures must be clear and readily
understandable, in writing, and in a form the consumer can keep. For joint accounts, it is only necessary
to provide one set of disclosures.
