Which entity governs the specific rules for electronic fund transfers for consumers?

Which entity governs the specific rules for electronic fund transfers for consumers?

• A. NACHA
• B. FDIC
• C. SEC
• D. CFPB

Answer: (A)

The entity that governs the specific rules for electronic fund transfers for consumers is NACHA, which stands for the National Automated Clearing House Association. NACHA is responsible for developing and overseeing the operating rules for the ACH (Automated Clearing House) network, which facilitates electronic fund transfers. These rules ensure that transactions are processed efficiently and securely, providing clear guidance on issues such as transaction types, processing timelines, and error resolution procedures. While other organizations like the FDIC (Federal Deposit Insurance Corporation), SEC (Securities and Exchange Commission), and CFPB (Consumer Financial Protection Bureau) have regulatory roles within the financial system, they do not specifically govern the rules for electronic fund transfers. The FDIC primarily oversees banking institutions and insures deposits, the SEC regulates securities markets, and the CFPB focuses on consumer financial protection and ensuring that consumers receive fair treatment in financial services. Therefore, NACHA's role as the governing body for ACH transactions makes it the correct answer in this context.

The entity that governs the specific rules for electronic fund transfers for consumers is NACHA, which stands for the National Automated Clearing House Association. NACHA is responsible for developing and overseeing the operating rules for the ACH (Automated Clearing House) network, which facilitates electronic fund transfers. These rules ensure that transactions are processed efficiently and securely, providing clear guidance on issues such as transaction types, processing timelines, and error resolution procedures.

While other organizations like the FDIC (Federal Deposit Insurance Corporation), SEC (Securities and Exchange Commission), and CFPB (Consumer Financial Protection Bureau) have regulatory roles within the financial system, they do not specifically govern the rules for electronic fund transfers. The FDIC primarily oversees banking institutions and insures deposits, the SEC regulates securities markets, and the CFPB focuses on consumer financial protection and ensuring that consumers receive fair treatment in financial services. Therefore, NACHA's role as the governing body for ACH transactions makes it the correct answer in this context.