Exclusions from Protection

The term EFT does not include:

• Checks – Any transfer of funds originated by check, draft, or similar paper instrument or any payment made by check, draft, or similar paper instrument at an electronic terminal
• Check Guarantee or Authorization – Any transfer of funds that guarantees payment or authorizes acceptance of a check, draft or similar paper instrument but does not directly result in a debit or credit to a consumer’s account
• Wire or other similar transfers – Any transfer of funds through a wire transfer system that is used primarily for transfers between financial institutions or between businesses
• Securities and Commodities Transfers – Any transfer of funds for the primary purpose of the purchase or sale of a security or commodity, if the security or commodity is:
  • Regulated by the Securities and Exchange Commission or the Commodity Futures Trading
  • Purchased or sold through a broker-dealer regulated by the Securities and Exchange Commission or through a futures commission merchant regulated by the Commodity Futures Trading Commission
  • Held in Book-entry form by a Federal Reserve Bank or federal agency
• Automatic transfers by account-holding institution – Any transfer of funds under an agreement between a consumer and a financial institution which provides that the institution will initiate individual transfers without a specific request from the consumer:
  • Between a consumer’s accounts within the financial institution
  • From a consumer’s account to an account of a member of the consumer’s family held in the same financial institution
  • Between a consumer’s account and an account of the financial institution, except that these transfers remain subject to § 205.10(e) regarding compulsory use and sections 915 and 916 of the act regarding civil and criminal liability. (Refer to “Coverage in Detail ” section below.)
• Telephone-initiated transfers – Any transfer of funds that:
  • Is initiated by a telephone communication between a consumer and financial institution making the transfer; and
  • Does not take place under a telephone bill payment or other written plan in which periodic or recurring transfers are contemplated.