Electronic Funds Transfer Act

(Measure passed House, amended, roll call #690 (314-2))

Electronic Fund Transfer Act - Requires the issuers of debit instruments designed to make payments and effect transfers through electronic terminals to do the following: (1) disclose a customer's rights and obligations when an account is opened and when there is a change of terms; (2) make available to the customer a written receipt of every transaction at electronic funds transfer terminals; and (3) furnish a monthly statement to each customer identifying all transactions.

Provides a procedure for the correction of account errors.

Excuses a customer of liability for unauthorized use of his debit instrument unless the debit instrument issuer can establish customer fraud or negligence.

Sets forth liability for system malfunction.

Prohibits sellers from imposing a surcharge on any individual who elects an alternate means of payment. Allows a seller to offer a discount to induce individuals to use the electronic fund transfer system.

Provides civil liability for willful violation of this Act and criminal liability for fraudulent use of debit instruments.

Makes bank regulatory agencies and the Federal Trade Commission responsible for administrative enforcement of the terms of this Act.