Remittance transfers under the Electronic Fund Transfer Act (Regulation E) are electronic fund transfers (EFTs) that are sent by a consumer in the United States to someone in a foreign country. The term “remittance transfer” is defined by Regulation E as an EFT sent by a consumer to a recipient that is initiated by the consumer, is ordered in the United States, and is funded by a bank account, a credit card, or a debit card.
Regulation E, which is implemented by the Consumer Financial Protection Bureau (CFPB), is a federal regulation that applies to EFTs and provides consumer protections for these types of transactions. Regulation E applies to remittance transfers because these types of EFTs can be particularly risky for consumers, as they often involve sending money to people in other countries, where it may be more difficult to resolve disputes or get refunds if something goes wrong.
Under Regulation E, consumers who send remittance transfers have certain rights, including the right to:
- Receive certain disclosures about the transfer before it is completed, including the exchange rate, fees, and estimated delivery date.
- Cancel a transfer within 30 minutes of making it, as long as the transfer has not been completed.
- Request a refund if the transfer is not completed on time or if the recipient does not receive the full amount of the transfer.
- File a complaint with the CFPB if they have a problem with a remittance transfer.
Regulation E also requires financial institutions and other companies that offer remittance transfer services to comply with certain requirements, including maintaining accurate records of transfers, disclosing transfer fees and exchange rates to consumers, and providing refunds or correcting errors in a timely manner when necessary.
This page was last updated on January 3, 2023.