Electronic banking law governs the various operations of
electronic banking.
law applies to the following areas of
electronic banking.
The
electronic banking law applies to
electronic transactions involving drafts, debit cards, checks, points of sale, automated clearing house issues, interbank compensation rules, inter day exposure limits and the technology guiding the above
electronic processes.
Electronic banking is also known as
electronic fund transfer. Electronic fund transaction is the process by which ones money is transferred from one account to another account without using checks and cash.
The
electronic banking law which looks after the authenticity of the
electronic transactions is important as the
electronic fund transactions performed by individuals need to be protected against forgery and misuse.
The
electronic fund transfer act is the governing legislative act. The
federal Reserve board's regulation looks provides the guiding lines as to matters relating to
electronic fund transactions liability.
The regulation laid forward by the
Federal Reserve board are as follows:
A valid
electronic transfer can be posted to a client only on request.
Cards which are not sought may be issued only if one is unable to use the
electronic card until the validity date.
The financial institution providing the card should inform the customer of the customer's rights and duties under the
electronic banking law in the
Disclosure Statement.
The
electronic banking law also so desires that the customers should be made aware regarding the methods to rectify the monthly statements in the event of any error.
The user of the electronic card is to be provided with a written receipt while making transactions involving either deposits or withdrawals from the automated teller machines.
The electronic banking law also demands that the customer should be provided with a receipt which must provide details of the transactions date, transactions amount and the transactions type.
The electronic banking law also states that the monthly or the periodic statements should provide confirmation of the electronic transfers, electronic transaction type, nature of transfers, the account type from where the money is either withdrawn or deposited into.
The periodic statements should also give information about the address, phone number required in the event when the client is required to be contacted.
The electronic banking law also governs certain other factors like the event when the card is lost or misplaced. The electronic banking law governs and sets a time limit within which a card holder is required to inform the card issuing bank.
The cost of replacing an electronic card varies from one financial institution to another.