How long does Reg E allow to resolve POS errors or electronic fund transfers (EFTs) not initiated within a state compared to pre-authorized EFT errors?

How long does Reg E allow to resolve POS errors or electronic fund transfers (EFTs) not initiated within a state compared to pre-authorized EFT errors?

• A. As long as required by the financial institution
• B. Twice as long
• C. Only one business day
• D. Equal to pre-authorized EFT errors

Answer: (B)

The correct answer is that the time frame to resolve Point of Sale (POS) errors or electronic fund transfers (EFTs) not initiated within a state is indeed longer compared to pre-authorized EFT errors. Under Regulation E, financial institutions have specific timelines for customers to report errors. For POS and non-pre-authorized EFT errors, consumers are typically given 60 days from the date of the statement to report an error. However, for pre-authorized EFT errors, the resolution time is shorter. Since POS errors provide a broader window, the comparison illustrates that resolving issues with POS transactions generally takes twice as long as resolving pre-authorized EFT errors. This distinction helps consumers understand their rights and the responsibilities of financial institutions in resolving transaction errors effectively.

The correct answer is that the time frame to resolve Point of Sale (POS) errors or electronic fund transfers (EFTs) not initiated within a state is indeed longer compared to pre-authorized EFT errors. Under Regulation E, financial institutions have specific timelines for customers to report errors.

For POS and non-pre-authorized EFT errors, consumers are typically given 60 days from the date of the statement to report an error. However, for pre-authorized EFT errors, the resolution time is shorter. Since POS errors provide a broader window, the comparison illustrates that resolving issues with POS transactions generally takes twice as long as resolving pre-authorized EFT errors. This distinction helps consumers understand their rights and the responsibilities of financial institutions in resolving transaction errors effectively.