FRE_20191104_omb

Supporting Statement for the
Recordkeeping and Disclosure Requirements Associated with the Bureau’s Regulation E
(FR E; OMB No. 7100-0200)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the Recordkeeping and Disclosure Requirements Associated with the Bureau of
Consumer Financial Protection’s (Bureau) Regulation E (Electronic Fund Transfers) (FR E;
OMB No. 7100-0200).1 Since 2011, the Bureau has been responsible for issuing most of the
Electronic Funds Transfer Act (EFTA)2 regulations that apply to financial institutions and other
entities (except for certain motor vehicle dealers), other than the EFTA provisions governing
debit card interchange fees and routing of debit card transactions.3 However, the Board continues
to be responsible under the Paperwork Reduction Act (PRA) for implementing the information
collections mandated by the Bureau’s Regulation E for institutions that are supervised by the
Board.4 The PRA classifies as a “collection of information” the reporting, recordkeeping, or
disclosure requirements of a regulation, such as the recordkeeping and disclosure requirements
of Regulation E.5
Consistent with the Bureau’s final rule amending its Regulation E, effective April 1,
2019, the Board revised the FR E to account for new requirements related to prepaid accounts.
The Bureau’s final rule requires pre-acquisition disclosures for prepaid accounts and modifies
general Regulation E requirements governing disclosures, limited liability and error resolution,
and periodic statements as applied to prepaid accounts. In addition, the rule adds requirements
regarding the posting of prepaid account agreements. The Board accounts for the paperwork
burden associated with the Bureau’s Regulation E only for Board-supervised institutions.7 For
those institutions, the current estimated total annual burden for the FR E is 210,925 hours, and
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1

There is no formal reporting form for this collection of information (the FR E designation is for internal purposes
only.
2
15 U.S.C. § 1693 et seq. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
transferred rulemaking authority for most provisions of the EFTA to the Bureau except for certain motor vehicle
dealers that are excluded from the Bureau’s authority, which remain subject to the Board’s Regulation E. See section
1029 of the Dodd-Frank Act, Pub. L. 111-203, 124 Stat. 1376 (2010), 12 U.S.C. §§ 5512, 5519, 5581. The Bureau’s
Regulation E is published at 12 CFR 1005 and the Board’s Regulation E is published at 12 CFR 205.
3
Section 920 of the EFTA regulates debit card interchange fees and routing of debit card transactions and is
implemented by the Federal Reserve’s Regulation II, 12 CFR 235.
4
For purposes of the Bureau’s Regulation E, Board-supervised institution include state member banks (SMBs),
SMB subsidiaries, subsidiaries of bank holding companies, U.S. branches and agencies of foreign banks (other than
federal branches, federal agencies, and insured state branches of foreign banks), commercial lending companies
owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve
Act (12 U.S.C. §§ 601-605a; 611-631). The Bureau supervises, among other institutions, insured depository
institutions with over $10 billion in assets and their affiliates (including affiliates that are themselves depository
institutions regardless of asset size and subsidiaries of such affiliates).
5
44 U.S.C. § 3501 et seq.
6
83 FR 6364 (February 13, 2018).
7
Other federal agencies account for the paperwork burden that Regulation E imposes on the institutions for which
they have supervisory authority.

would increase to 214,569 hours. The revisions would result in an increase of 3,644 hours.
Background and Justification
The EFTA requires consumers be provided meaningful disclosures about the basic
terms, costs, and rights relating to electronic fund transfer (EFT) services involving a
consumer’s account. The disclosures required by the EFTA are triggered by specific events. The
disclosures inform consumers, for example, about the terms of the EFT service, activity on the
account, potential liability for unauthorized transfers, and the process for resolving errors.
On July 21, 2011, rulemaking authority for the EFTA, except section 920, was
transferred from the Board to the Bureau under the Dodd-Frank Act for entities other than
certain motor vehicle dealers.8 In December 2011, the Bureau published an interim final rule
establishing its own Regulation E implementing the EFTA at 12 CFR 1005, which substantially
duplicated the Board’s Regulation E.9 The Bureau adopted a final rule in April 2016.10
In November 2016, the Bureau adopted a final rule amending Regulation E to include
comprehensive consumer protections for prepaid accounts.11 The Bureau subsequently issued
technical amendments to this rule and extended the effective date of the rule until April 1,
2019.12
The Bureau’s Regulation E applies to all financial institutions. In addition, certain
provisions in Regulation E apply to entities that are not financial institutions, including: service
providers or automated teller machine (ATM) operators; merchants and other payees that
engage in electronic check conversion (ECK) transactions, the electronic collection of returned
item fees, or preauthorized transfers; issuers and sellers of gift cards and gift certificates; and
remittance transfer providers. To ease burden and cost of complying with the disclosure
requirements of Regulation E (particularly for small entities), model disclosure clauses and
forms are appended to Regulation E. Evidence of compliance with Regulation E must be
retained for no less than two years from the date the required disclosure or action. As described
above, the Board accounts for the paperwork burden associated with the Bureau’s Regulation E
only for Board-supervised institutions.
Description of Information Collection
The recordkeeping and disclosure requirements associated with Regulation E are
described below. No other federal law mandates these disclosures, although some states may
have similar requirements.

8

See supra note 2.
See 76 FR 81020 (December 27, 2011).
10
See 81 FR 25323 (April 28, 2016).
11
See 81 FR 83934 (November 22, 2016).
12
See 81 FR 83 FR 6364 (February 13, 2018).
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Initial Disclosures (Sections 1005.7(b) and 1005.18(c)(1))
Institutions that offer EFT services must provide written disclosures to a consumer who
contracts for those services. The purpose of these disclosures is to provide consumers with
information about the terms of the EFT services offered at the time of the initial agreement,
and subsequently, in the event of changes in certain required disclosure terms. Initial
disclosures must include (as applicable): information about the consumer’s liability for
unauthorized transfers; the telephone number and address of the person to be notified when the
consumer believes an unauthorized EFT has been or may be made; the financial institution’s
business days; the types of transfers available and any limitations on the frequency and dollar
amount of transfers; any fees imposed by the financial institution for EFTs or the right to make
EFTs; a summary of the consumer’s right to documentation of transfers and to stop payment
of preauthorized transfers; information about the financial institution’s liability to the
consumer for failure to make or stop certain transfers; the circumstances under which the
financial institution may provide information concerning the consumer’s account to third
parties; and information on resolving errors on the account. The initial disclosures must be
provided when a consumer contracts for EFT services or before the first EFT involving the
account is made.
For financial institutions that offer payroll card accounts and make such accounts’
balance and transaction information readily available to the consumer, the initial disclosures
must contain: a telephone number that the consumer may call to obtain the account balance; the
means by which the consumer can obtain an electronic account history, such as the address of
an Internet website; and a summary of the consumer’s right to receive a written account history
upon request (in place of the summary of the right to receive a periodic statement required by
section 1005.7(b)(6)), including a telephone number to call to request a history. In addition, the
disclosures must include an error resolution notice substantially similar to the notice contained
in section A–7(b) in appendix A of Regulation E.
Change-In-Terms (Section 1005.8(a))
A change-in-terms notice is required if the change would result in increased liability
for the consumer, increased fees, fewer types of available EFTs, or stricter limitations on the
frequency or dollar amounts of transfers. A change-in-terms notice must be mailed or
delivered to the consumer at least 21 days before the effective date of the change in term or
condition.
Periodic Statements (Sections 1005.9(b) and 1005.18(b))
Institutions are required to send a periodic statement for each monthly cycle in which an
EFT has occurred and at least quarterly if no transfer has occurred. The disclosures must
include: transaction information for EFTs occurring during the statement period; the account
number; the amount of any fees assessed during the statement period for EFTs, the right to
make transfers, or account maintenance; the balance in the account at the beginning and close of
the statement period; the address and telephone number for error inquiries; and a telephone
number for verification of preauthorized transfers to the consumer’s account if the institution

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uses that option. Modified requirements apply to passbook and certain other types of accounts.
Also, as an alternative to providing periodic statements for payroll card accounts, a financial
institution may make account transaction information available to the consumer by telephone,
electronically, and in writing upon the consumer’s request.
Because the periodic statements required under Regulation E are typically included with
monthly checking and savings account statements provided under the Truth in Savings Act
(Regulation DD), the burden associated with this requirement for Board-supervised entities is
accounted for in the Disclosure Requirements Associated with the Bureau’s Regulation DD
(Truth in Savings) (FR DD; OMB No. 7100-0271), and is therefore not accounted for in the
Regulation E burden estimate. The burden associated with this requirement for financial
institutions that are not subject to Regulation DD is addressed in the Estimate of Respondent
Burden section of this proposal.
Error Resolution Notice and Procedures for Resolving Errors (Sections
1005.8(b) and 1005.11)
Financial institutions must notify consumers about their rights and responsibilities in
connection with errors involving EFTs by providing either a complete statement of error
resolution rights each year or a shorter error resolution rights summary on or with each
periodic statement. Error resolution rights summaries are typically included with monthly
checking and savings account statements provided under Regulation DD, therefore the
Regulation E burden associated with this requirement for entities subject to the Board’s
supervisory authority is accounted for in the estimate of the paperwork burden under
Regulation DD.
When a consumer provides notice of an error for purposes of Regulation E, the
institution must investigate and determine whether an error occurred.13 Generally, if the
institution is unable to complete its investigation of the error within 10 business days, it may
take up to 45 calendar days provided it provisionally credits the disputed amount to the
consumer’s account within the 10 business days, notifies the consumer, orally or in writing, of
the provisional crediting, and gives the consumer full use of the funds during the
investigation.14 The institution must correct the error, if any, report the results to the consumer,
and notify the consumer whether the provisional credit has been made final. A correction notice
may be included in the periodic statement if it is clearly identified, and the statement is mailed
or delivered within the applicable time limit. For payroll card accounts where the financial
institution provides alternative disclosures to regular periodic statements, the timing
requirements for the error resolution procedures are modified.15

13

A consumer’s potential liability for an unauthorized transfer depends on when the consumer notifies the financial
institution of the loss or theft of an access device or of the unauthorized transfer. See 12 CFR 1005.6. These
benchmarks are modified for financial institutions providing alternative disclosures to periodic statements for
payroll card accounts. See 12 CFR 1005.18(c).
14
The institution need not provisionally credit the consumer’s account and take up to 45 days to investigate the error
if the institution requests but does not receive written confirmation within 10 business days of an oral notice of error.
15
12 CFR 1005.18(c).

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Disclosures Related to ECK Transactions and Collecting Returned Item Fees
Electronically (Sections 1005.3(b)(2) and (3))
A merchant or other payee who initiates an ECK transaction must provide a notice that
the transaction will or may be processed as an EFT. For point-of-sale transfers, the notice must
be posted in a prominent and conspicuous location, and a copy of the notice must be provided to
the consumer at the time of the transaction. A person initiating an EFT to collect a fee for the
return of an EFT or a check that is unpaid must provide notice to the consumer stating that the
person may electronically collect the fee and must disclose the dollar amount of the fee. If the fee
may vary due to the amount of the transaction or due to other factors, then an explanation of how
the fee will be determined must be provided instead of the dollar amount. For returned item fees
that may be collected electronically in connection with a point-of-sale transaction, the notice
must be posted in a prominent and conspicuous location. A copy of the notice must be provided
to the consumer at the time of the transaction or mailed to the consumer’s address as soon as
reasonably practicable after the person initiates the EFT to collect the fee. The Board previously
estimated one-time burden for implementing the disclosures and believes that, on a continuing
basis, there would be no additional increase in burden.
Electronic Terminal Receipts (Section 1005.9(a))
An institution offering an EFT service must provide a receipt each time a consumer
initiates an EFT of more than $15 at an electronic terminal (for example, an ATM). Terminal
receipts can provide documentation and proof of the transfer in the event of a later dispute. The
terminal receipt, which must be provided at the time of the transfer, must include the amount,
date, and type of transfer, as well as other information identifying the transaction. Because
these disclosures are machine-generated and do not involve an employee of the institution, for
purposes of the PRA, burden associated with this requirement is negligible.
Preauthorized Transfers (Section 1005.10)
A preauthorized transfer is an EFT authorized in advance to recur at substantially
regular intervals. Preauthorized transfers from a consumer’s account may only be authorized
by a writing signed or similarly authenticated by the consumer.
For preauthorized transfers to the consumer’s account, the institution must provide oral
or written notice of the transfer (positive notice) or that the transfer did not occur (negative
notice). In lieu of providing positive or negative notice, the institution may, and typically does,
provide a readily available telephone number that the consumer can call to verify receipt of the
deposit. If positive notice is provided to the consumer by the payor, as in most cases, the
financial institution need not provide notice. Therefore, the burden of this requirement is
negligible.
For preauthorized transfers from the consumer’s account, if a payment will vary in
amount from the previous transfer under the same authorization or from the preauthorized
amount, either the institution or the payee must provide written notice to the consumer of the
amount and date of the transfer. Alternatively, the institution or the payee may give the

5

consumer the option of receiving notice only when a transfer falls outside a specified range or
only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
Because in the vast majority of instances the payee, rather than the bank, satisfies this
obligation, the burden on banks is negligible.
Disclosures at ATMs (Section 1005.16(c))
An ATM operator that imposes a fee on a consumer for initiating an EFT or balance
inquiry must provide screen or paper notice that an ATM fee will be imposed and the amount
of the fee before the consumer is committed to paying the fee. Because these disclosures are
machine-generated and involvement by an employee of the institution is minimal, for purposes
of the PRA, burden associated with this requirement is negligible.
Overdraft Services Opt-In Requirement (Section 1005.17(b))
In general, a financial institution shall not assess an overdraft fee for paying ATM and
one-time debit card transactions that overdraw a consumer’s account, unless the consumer
affirmatively consents, or opts in, to the institution’s payment of overdrafts for these
transactions, pursuant to an opt-in notice that is substantially similar to Model Form A-9. The
Board took one-time burden when this section was implemented and staff believe that, on a
continuing basis, there is no additional ongoing burden as the disclosure was sufficiently
accounted for once incorporated into the current initial account disclosure section 1005.7(b).
Exclusions From Gift Card and Gift Certificate Coverage (Section 1005.20(b)(2))
Section 1005.20(b)(2) implements exclusions from coverage under the gift card
requirements in section 1005.20, including an exclusion for cards, codes, or other devices
that are reloadable and not marketed or labeled as a gift card or gift certificate. As noted in
comment 4.i. to section 1005.20(b)(2), institutions will qualify for this exclusion so long as
they establish and maintain policies and procedures reasonably designed to avoid the
marketing of a prepaid card not otherwise subject to the rule, such as a general-purpose
reloadable card, as a gift card or gift certificate.
Prohibition on Sale of Gift Certificates or Gift Cards with Expiration Dates
(Section 1005.20(e)(1))
Institutions involved in issuing and selling gift certificates or cards with an expiration
date are required to adopt policies and procedures to provide consumers with a reasonable
opportunity to purchase a certificate or card with at least five years remaining until the
certificate or card expiration date.
Disclosures Related to Loyalty, Award, or Promotional Cards (Section
1005.20(a)(4)(iii))
In order to qualify for an exclusion from coverage under the gift card requirements in
section 1005.20, section 1005.20(a)(4)(iii)(A) requires a loyalty, award, or promotional gift card

6

to state on the card, code, or other device itself that it is issued for loyalty, award, or
promotional purposes. This statement must be on the front of the card, code, or other device to
enable consumers to easily identify the type of card and avoid potential consumer confusion
arising from the fact that a loyalty, award, or promotional gift card may otherwise look identical
to a gift card that a consumer may purchase directly from a merchant. In addition, the expiration
date for the underlying funds must be stated on the front of a loyalty, award, or promotional gift
card because such cards typically have shorter expiration dates than other certificates or cards
subject to the rule. See section 1005.20(a)(4)(iii)(B). Where the card and funds have the same
expiration date, a single disclosure regarding the expiration date satisfies the requirement in
section 1005.20(a)(4)(iii)(B). The Board previously estimated one-time burden for
implementing the disclosures and staff believe that, on a continuing basis, there would be no
additional increase in burden.
Disclosures Related to Gift Certificate or Gift Card Fees and Expiration
(Sections 1005.20(d)(2), 1005.20(e)(3), and 1005.20(f)(1))
Certain disclosures must be stated on the certificate or card, as applicable. If there is a
dormancy, inactivity, or service fee, section 1005.20(d)(2) requires: (1) the amount of any
dormancy, inactivity, or service fee that may be charged; (2) how often such fee may be
assessed; and (3) that such fee may be assessed for inactivity. In addition, if there is an
expiration date for the certificate or card, section 1005.20(e)(3) requires: (1) the terms of
expiration of the underlying funds or, if the underlying funds do not expire, that fact; (2) a tollfree telephone number and, if one is maintained, a website that a consumer may use to obtain a
replacement certificate or card after the certificate or card expires, if the underlying funds may
be available; and (3) a statement that the certificate or card expires, but the underlying funds
either do not expire or expire later than the certificate or card, and that the consumer may
contact the issuer for a replacement card.
For each type of fee that may be imposed in connection with the certificate or card (other
than a dormancy, inactivity, or service fee subject to the disclosure requirements under section
1005.20(d)(2)), section 1005.20(f)(1) requires the following information be provided on or with
the certificate or card: (1) the type of fee; (2) the amount of the fee (or an explanation of how the
fee will be determined); and (3) the conditions under which the fee may be imposed. Finally,
section 1005.20(f)(2) requires that a toll-free telephone number and, if one is maintained, a
website, that a consumer may use to obtain information about fees must be disclosed on the
certificate or card. This toll-free telephone number and website may be the same as the one
required to be disclosed under section 1005.20(e)(3) for a consumer to use to obtain a
replacement certificate or card. Board staff previously estimated one-time burden that took into
account the burden for implementing these disclosures and staff believe that, on a continuing
basis, there would be no additional increase in burden.
Disclosures for Remittance Transfers (Section 1005.31)
A remittance transfer provider must provide written prepayment disclosures to a
consumer sender who requests a remittance transfer to a designated recipient abroad. The
purpose of these disclosures is to provide consumers, when they request a transfer and before

7

they make a payment, with information about taxes and fees they will incur and the total
amount the designated recipient will receive. Prepayment disclosures must include: the transfer
amount, fees imposed and taxes collected by the provider, the exchange rate, covered thirdparty fees, the total amount that will be received by the designated recipient, and a statement
that non-covered third-party fees or taxes collected by a person other than the provider may
apply to the remittance transfer.
A remittance transfer provider must also provide a written receipt to a sender when
payment is made. In addition to the information required in the prepayment disclosure, a
receipt must also include the date in the foreign country when funds will be available to the
designated recipient, the name and, if provided, the telephone number/address of the designated
recipient, information on resolving errors and the right to cancel the transaction, contact
information for the remittance transfer provider, a statement that the sender can contact the
State agency that licenses or charters the remittance transfer provider and the Bureau, and the
transfer date if the transfer has been scheduled in advance.
In lieu of a separate prepayment disclosure and receipt, a remittance transfer provider
may provide a combined disclosure when a sender requests a remittance transfer, prior to
making payment. If a remittance transfer provider chooses to provide a combined disclosure,
the provider must provide the consumer with proof of payment when payment is made.
Upon a sender’s request, a remittance transfer provider must promptly provide a
long form error resolution and cancellation notice that provides more detail on the sender’s
error resolution and cancellation rights.
Certain fee, tax, and exchange rate disclosures in the prepayment and receipt or the
combined disclosure may be estimated in certain circumstances pursuant to section
1005.32.
Procedures for Resolving Errors for Remittance Transfers (Section 1005.33)
When a consumer sender provides notice of an error within 180 days after the date the
funds are available to the designated recipient, the remittance transfer provider must investigate
and determine whether an error occurred within 90 days of receiving the notice of error. The
provider shall report the result to the sender, including notice of any remedies available for
correcting any error that the provider has determined has occurred, within three business days
after completing its investigation. If the remittance transfer provider has determined that no
error or a different error has occurred, the provider must provide a written explanation of the
provider’s finding and note the sender’s right to request the documents on which the provider
relied on in making its determination. Upon a sender’s request, the provider shall promptly
provide copies of the documents on which the provider relied in making its error determination.
The remittance transfer provider’s policies and procedures shall address the retention of
documentation related to error investigations, and providers are subject to the record retention
requirements under section 1005.13.

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Remittance Transfers Scheduled Before the Date of Transfer (Section 1005.36)
Remittance transfers are often sent through an agent of the remittance transfer provider.
For a one-time remittance transfer scheduled five or more business days before the date of
transfer or for the first in a series of preauthorized remittance transfers, a remittance transfer
provider must provide the prepayment disclosure and receipt required in sections 1005.31(b)(1)
and (2) or the combined disclosure described in section 1005.31(b)(3) as well as an additional
receipt if any of the previously provided disclosures contain estimates as permitted under section
1005.32, which must be mailed or delivered no later than one business day after the date of the
transfer. If the transfer involves the transfer of funds from the sender’s account held by the
provider, the additional receipt can be provided on or with the next periodic statement for that
account, or within 30 days after the date of the transfer if a periodic statement is not provided.
For subsequent transfers in a series of preauthorized remittance transfers, if any of the
information on the most recent receipt provided to the consumer is no longer accurate (other
than the dates or because the disclosure contained estimates, as permitted under section
1005.32), the provider must mail or deliver an updated receipt within a reasonable time prior to
the scheduled date of the next transfer. Unless that updated receipt did not contain any estimates
pursuant to section 1005.32, the provider must mail or deliver to the sender a post-transfer
receipt no later than one business day after the date of the transfer. If the transfer involves the
transfer of funds from the sender’s account held by the provider, the post-transfer receipt can be
provided on or with the next periodic statement for that account, or within 30 days after the date
of the transfer if a periodic statement is not provided.
In addition, for subsequent transfers in a series of preauthorized remittance transfers, a
provider must disclose to the sender the date the provider will make the subsequent transfer, a
statement about the cancellation rights, and contact information for the remittance transfer
provider. If the future date or dates of transfer are described as occurring in regular periodic
intervals (e.g., the 15th of every month), the provider must disclose any future date or dates of
transfer that do not conform to the described interval. These disclosures must be received by the
sender not more than 12 months and no less than five business days prior to the date of any
subsequent transfer to which it pertains and may be provided in a separate disclosure or as part
of one of the other required disclosures. For any subsequent preauthorized remittance transfer
that is four or fewer business days after the date when payment is made, these disclosures must
be provided on or with the receipt.
Electronic Communication
A consumer may agree to receive from a financial institution in electronic form any
disclosure that Regulation E requires be provided in writing, subject to the consent and other
requirements of the Electronic Signatures in Global and National Commerce Act (E-Sign
Act), so long as the disclosure complies with the regulation in all other respects. Any
reference to a mandatory written disclosure does not exclude the possibility that the consumer
may agree to receive the disclosure in electronic form.

9

Respondent Panel
The FR E panel comprises the following types of institutions, except those that are
supervised by the Bureau: state member banks (SMBs), their subsidiaries, subsidiaries of bank
holding companies, U.S. branches and agencies of foreign banks (other than federal branches,
federal agencies, and insured state branches of foreign banks), commercial lending companies
owned or controlled by foreign banks, and organizations operating under section 25 or 25A of
the Federal Reserve Act (12 U.S.C. §§ 601-604a; 611-631). The Bureau supervises, among other
institutions, insured depository institutions with over $10 billion in assets and their affiliates
(including affiliates that are themselves depository institutions regardless of asset size and
subsidiaries of such affiliates).
Revisions to the FR E
Beginning April 1, 2019, entities subject to the Bureau’s Regulation E were required to
comply with the following recordkeeping and disclosure requirements related to prepaid
accounts in accordance with the Bureau’s new final rule. The Board made the following
revisions to the FR E, effective immediately.
Pre-Acquisition Disclosures (Section 1005.18(b))
Before a consumer acquires a prepaid account, a financial institution is required to
provide a consumer with a short form disclosure and a long form disclosure. The short form
disclosure is required to include: certain fee information – including any periodic fee, per
purchase fee, ATM withdrawal fee, cash reload fee, ATM balance inquiry fee, customer service
fee, and inactivity fee (collectively, “static fees”); the number of fee types in addition to the
static fees; two additional fee types that generated the highest revenue from consumers during
the previous 24 months; statements regarding linked overdraft credit features, registration, and
Federal Deposit Insurance Corporation (FDIC)/National Credit Union Association (NCUA)
insurance; a reference to the Bureau’s website containing information on prepaid accounts; and
information on where the consumer can find the long form disclosure. For payroll card
accounts, the short form disclosure is required to include a statement regarding options to
receive wages or salary from the employer. For government benefit accounts, the short form
disclosure is required to include a statement regarding options to receive government benefits.
Furthermore, the Bureau requires a financial institution to disclose, in conjunction with the short
form disclosure, its name, the name of the prepaid account program, any purchase price for the
prepaid account, and any fee for activating the prepaid account.
The long form disclosure is required to include: a title, including the name of the prepaid
account program; information about all fees and the conditions under which they may be
imposed; a statement regarding registration and FDIC/NCUA insurance; a statement regarding
linked overdraft credit features; a statement containing the financial institution’s contact
information; a reference to the Bureau’s website containing information on prepaid accounts;
and a reference to the Bureau’s website and telephone number to submit complaints.
Generally, these disclosures are required to be provided before a consumer acquires a
prepaid account, though there are certain exceptions. For prepaid accounts sold at retail

10

locations, however, a financial institution may provide the long form disclosure after acquisition
if the short form disclosure contains information enabling the consumer to access the long form
disclosure by telephone or on a website and other requirements are met. A similar
accommodation is made for prepaid accounts acquired orally by telephone.
The pre-acquisition disclosures are required to follow specific formatting rules, and, for
the short form disclosures, be substantially similar to model forms. If the financial institution
uses a foreign language in connection with a consumer’s acquisition of a prepaid account, a
financial institution is generally be required to provide the pre-acquisition disclosures in that
foreign language.
Periodic Statement Alternative (Section 1005.18(c))
Financial institutions are required to provide periodic statements for prepaid accounts
either by providing a periodic statement that complies with section 1005.9(b) or, as an
alternative, by making transaction information available to the consumer by telephone,
electronically, and in writing upon the consumer’s request pursuant to section 1005.18(c).
Initial Disclosures (Sections 1005.18(d)(1)(i) and 1005.18(f)(1))
Financial institutions are required to include in the initial disclosure required by section
1005.7 all the information required to be disclosed in the pre-acquisition long form disclosure.
If a financial institution chooses to provide the alternative disclosures instead of a regular
periodic statement, it must modify some of the disclosures included in the initial disclosures.
The Bureau determined and the Board agrees that financial institutions already engage in
these activities as usual and customary activities, as defined under 5 CFR 1320.3(b)(2).
Therefore, under 5 CFR 1320.3(b)(2), there is no additional burden for these provisions.
Error Resolution Notice and Procedures for Resolving Errors (Sections
1005.18(d)(1)(ii), 1005.18(d)(2), and 1005.18(e))
Prepaid accounts are required to comply with the limited liability error resolution
requirements applicable to other accounts subject to Regulation E. For prepaid accounts where
the financial institution provides alternative disclosures to regular periodic statements, the
timing requirements for the error resolution procedures are modified. For prepaid accounts that
are not payroll card accounts or government benefit accounts, a financial institution is generally
not be required to comply with the liability limits for unauthorized transactions and error
resolution requirements for any prepaid account for which it has not successfully completed its
consumer identification and verification process.
A notice concerning error resolution, provided with the initial disclosures and
substantially similar to the Bureau’s model form for prepaid accounts, is required to be provided
in place of the notice required by section 1005.7(b)(10). Alternatively, for prepaid account
programs for which the financial institution does not have a consumer identification and
verification process, the financial institution is required to describe its error resolution process
and limitations on consumers’ liability for unauthorized transfers or, if none, state that there are

11

no such protections.
An annual error resolution notice substantially similar to the model form for prepaid
accounts is required to be provided in place of the notice required by section 1005.8(b).
Alternatively, a financial institution may include on or with each electronic and written account
transaction history, a notice substantially similar to the abbreviated notice for periodic
statements contained in the model forms, modified as necessary to reflect the error resolution
procedures the financial institution is required to follow.
The Bureau determined and the Board agrees that financial institutions already engage in
these activities as usual and customary activities, as defined under 5 CFR 1320.3(b)(2).
Therefore, under 5 CFR 1320.3(b)(2), there is no additional burden for these provisions.
Change-In-Terms Notice (Section 1005.18(f)(2))
The change-in-terms notice provisions in section 1005.8(a) apply to any change in a
term or condition that is required to be disclosed under 1005.7 or 1005.18(f)(1) for a prepaid
account.
The Board believes that financial institutions already engage in these activities as usual
and customary activities, as defined under 5 CFR 1320.3(b)(2). Therefore, under 5 CFR
1320.3(b)(2), there is no additional burden for these provisions.
Disclosures on Device or Entry Point (Section 1005.18(f)(3))
Financial institutions are required to disclose on the prepaid account access device the
name of the financial institution and the website and telephone number a consumer can use to
contact the financial institution about the prepaid account. If a financial institution does not
provide a physical access device in connection with a prepaid account, the disclosure is required
to appear on the website, mobile application, or other entry point a consumer must visit to
access the prepaid account electronically.
The Bureau determined and the Board agrees that financial institutions already engage in
these activities as usual and customary activities, as defined under 5 CFR 1320.3(b)(2).
Therefore, under 5 CFR 1320.3(b)(2), there is no additional burden for these provisions.
Internet Posting and Submission of Prepaid Account Agreements (Section 1005.19)
Prepaid account issuers are generally be required to submit to the Bureau new and
amended prepaid account agreements and notification of withdrawn agreements no later than 30
days after the issuer offers, amends, or ceases to offer the agreement. The rule provides a de
minimis exception and a limited product testing exception to this requirement. If an issuer is
required to submit a prepaid account agreement to the Bureau and the prepaid account
agreement is offered to the general public, the issuer is also required to post the account
agreement in a prominent and readily accessible location on its website. If a prepaid account
agreement is not posted on the issuer’s website, the issuer must provide a consumer with a copy
of the consumer’s prepaid account agreement no later than five business days after the issuer

12

receives the consumer’s request for the agreement. The consumer must be able to request the
agreement by phone.
Time Schedule for Information Collection
Disclosure requirements associated with Regulation E are triggered by specific events, and
disclosures must be provided to consumers within the time periods established by the law and
regulation. Disclosures pertaining to a particular transaction or consumer account are not
publicly available.
Legal Status
Section 904 of the EFTA (15 U.S.C. § 1693b) authorizes the Bureau to issue regulations
to carry out the purposes of the EFTA, which establishes the basic rights, liabilities, and
responsibilities of consumers who use EFT and remittance transfer services and of financial
institutions or other persons that offer these services. The Bureau’s Regulation E (15 CFR 1005)
implements the EFTA. An institution’s recordkeeping and disclosure obligations under
Regulation E are mandatory.
Because the Board does not collect any information pursuant to the Bureau’s
Regulation E, no issue of confidentiality normally arises. In the event the Board were to obtain
information regarding consumer EFT transactions during the course of an examination, such
information would be kept confidential pursuant to section (b)(8) of the Freedom of Information
Act (5 U.S.C. § 522 (b)(8)).
Consultation Outside the Agency
The Board consulted with the Bureau regarding the estimated burden of the FR E.
Public Comments
On April 30, 2019, the Board published an initial notice in the Federal Register
(84 FR 18286) requesting public comment for 60 days on the extension, with revision, of the
FR E. The comment period for this notice expired on July 1, 2019. The Board did not receive
any comments. The Board adopted the extension, with revision, as originally proposed. On
September 10, 2019, the Board published a final notice in the Federal Register (84 FR 47505).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR E is 210,925
hours, and would increase to 214,569 hours with the adopted revisions. The revisions result in a
net increase in burden of 3,644 hours. There is no reporting requirement associated with
Regulation E. Moreover, no burden for receipts or disclosures related to preauthorized transfers is
shown below because that burden is believed to be negligible. Receipts provided at electronic
terminals are handled entirely by machine. For preauthorized transfers to a consumer’s account,
banks ordinarily provide a readily available telephone number that the consumer can call to verify

13

receipt of the deposit. Finally, for preauthorized transfers from a consumer’s account, the payee,
rather than the bank, ordinarily discloses amounts to be transferred to the consumer. These
recordkeeping and disclosure requirements represent 1.9 percent of the Board’s total paperwork
burden.

FR E
Current
Recordkeeping
Section 1005.20(b)(2)
Gift card exclusion policies and
procedures
Section 1005.20(e)(1)
Gift card policy and procedures
Section 1005.33(g)
Transmitter error resolution
standards and recordkeeping
requirements
Section 1005.36
Remittance transfers scheduled
before date of transfer
Disclosure
Sections 1005.7(b) and
1005.18(c)(1)
Initial disclosures
Section 1005.8(a)
Change-in-terms
Section 1005.9(b)
Periodic statements
Sections 1005.8(b) and 1005.11
Error resolution
Section 1005.31
Remittance transfer disclosures
Section 1005.33(c)(1)
Time limits and extent of
investigation
Current Total

Estimated
number of
respondents16

Estimated
Estimated
Annual
average hours annual burden
frequency
per response
hours

970

1

8

7,760

970

1

8

7,760

970

1

8

7,760

970

1

8

7,760

970

250

0.03

7,275

970

340

0.02

6,596

71

12

7

5,964

970

30

0.5

14,550

970

12

8

93,120

970

12

4.5

16

52,380
210,925

Of these respondents, the number of small entities, as defined by the Small Business Administration (i.e., entities
with less than $600 million in total assets), https://www.sba.gov/document/support--table-size-standards, for each
category is as follows: 631 entities for Gift card exclusion policies and procedures, Gift card policy and procedures,
Transmitter error resolution standards and recordkeeping requirements, Remittance transfers scheduled before date
of transfer, Initial disclosures, Change-in-terms, Error resolution, Remittance transfer disclosures, and Time limits
and extent of investigation; 65 entities for Periodic statement; and 1 entity for Pre-acquisition disclosures (short
form disclosure) one time, Pre-acquisition disclosures (long form disclosure) one time, Periodic statement
alternative one time, Internet posting and submission of prepaid account agreements one time, Pre-acquisition
disclosures (short form disclosure), and Internet posting and submission of prepaid account agreements.

14

Proposed
Recordkeeping
Section 1005.20(b)(2)
Gift card exclusion policies and
procedures
Section 1005.20(e)(1)
Gift card policy and procedures
Section 1005.33(g)
Transmitter error resolution
standards and recordkeeping
requirements
Section 1005.36
Remittance transfers scheduled
before date of transfer
Disclosure
Sections 1005.7(b) and
1005.18(c)(1)
Initial disclosures
Section 1005.8(a)
Change-in-terms
Section 1005.9(b)
Periodic statements
Sections 1005.8(b) and 1005.11
Error resolution
Section 1005.31
Remittance transfer disclosures
Section 1005.33(c)(1)
Time limits and extent of
investigation
Sections 1005.18(b)(2) and
1005.15(c)
Pre-acquisition disclosures
(short form disclosure)
one time
Sections 1005.18(b)(4) and
1005.15(c)
Pre-acquisition disclosures (long
form disclosure)
one time
Sections 1005.18(c)(5) and
1005.15(d)
Periodic statement alternative
one time
Section1005.19(b)

970

1

8

7,760

970

1

8

7,760

970

1

8

7,760

970

1

8

7,760

970

250

0.03

7,275

970

340

0.02

6,596

71

12

7

5,964

970

30

0.5

14,550

970

12

8

93,120

970

12

4.5

52,380

5

9.57

40

1,914

5

9.57

8

383

5
6

9.57
1

24
1

1,148
6

15

Internet posting and submission
of prepaid account agreements
one time
Section 1005.18(b)(2)(ix)
Pre-acquisition disclosures
(short form disclosure)
Section 1005.19(b)
Internet posting and submission
of prepaid account agreements
Proposed Total

5

9.57

4

6

5

0.08

191

2
214,569
3,644

Change

The current estimated total annual cost to the public for this information collection is
$12,149,280 and would decrease to $12,359,174 with the adopted revisions.17
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The cost to the Federal Reserve System is negligible.

17

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $19, 45% Financial Managers at
$71, 15% Lawyers at $69, and 10% Chief Executives at $96). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2018, published March 29, 2019, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

16