---
kind: "section"
citation: "12 C.F.R. § 205.14"
title: "12"
number: "205.14"
heading: "Electronic fund transfer service provider not holding consumer's account."
url: "https://uscodex.org/cfr/12/205.14"
---

# §205.14. Electronic fund transfer service provider not holding consumer's account.

- (a) **Provider of electronic fund transfer service.** A person that provides an electronic fund transfer service to a consumer but that does not hold the consumer's account is subject to all requirements of this part if the person:
  - (1) Issues a debit card (or other access device) that the consumer can use to access the consumer's account held by a financial institution; and
  - (2) **Has no agreement with the account-holding institution regarding such access.**
- (b) **Compliance by service provider.** In addition to the requirements generally applicable under this part, the service provider shall comply with the following special rules:
  - (1) **Disclosures and documentation.** The service provider shall give the disclosures and documentation required by §§ [205.7](/cfr/12/205.7.md), [205.8](/cfr/12/205.8.md), and [205.9](/cfr/12/205.9.md) that are within the purview of its relationship with the consumer. The service provider need not furnish the periodic statement required by [§ 205.9(b)](/cfr/12/205.9.md?p=b) if the following conditions are met:
    - (i) The debit card (or other access device) issued to the consumer bears the service provider's name and an address or telephone number for making inquiries or giving notice of error;
    - (ii) The consumer receives a notice concerning use of the debit card that is substantially similar to the notice contained in appendix A of this part;
    - (iii) The consumer receives, on or with the receipts required by [§ 205.9(a)](/cfr/12/205.9.md?p=a), the address and telephone number to be used for an inquiry, to give notice of an error, or to report the loss or theft of the debit card;
    - (iv) The service provider transmits to the account-holding institution the information specified in [§ 205.9(b)(1)](/cfr/12/205.9.md?p=b-1), in the format prescribed by the automated clearinghouse system used to clear the fund transfers;
    - (v) The service provider extends the time period for notice of loss or theft of a debit card, set forth in [§ 205.6(b)](/cfr/12/205.6.md?p=b) (1) and (2), from two business days to four business days after the consumer learns of the loss or theft; and extends the time periods for reporting unauthorized transfers or errors, set forth in §§ [205.6(b)(3)](/cfr/12/205.6.md?p=b-3) and [205.11(b)(1)(i)](/cfr/12/205.11.md?p=b-1-i), from 60 days to 90 days following the transmittal of a periodic statement by the account-holding institution.
  - (2) **Error resolution.**
    - (i) The service provider shall extend by a reasonable time the period in which notice of an error must be received, specified in [§ 205.11(b)(1)(i)](/cfr/12/205.11.md?p=b-1-i), if a delay resulted from an initial attempt by the consumer to notify the account-holding institution.
    - (ii) The service provider shall disclose to the consumer the date on which it initiates a transfer to effect a provisional credit in accordance with [§ 205.11(c)(2)(ii)](/cfr/12/205.11.md?p=c-2-ii).
    - (iii) If the service provider determines an error occurred, it shall transfer funds to or from the consumer's account, in the appropriate amount and within the applicable time period, in accordance with [§ 205.11(c)(2)(i)](/cfr/12/205.11.md?p=c-2-i).
    - (iv) If funds were provisionally credited and the service provider determines no error occurred, it may reverse the credit. The service provider shall notify the account-holding institution of the period during which the account-holding institution must honor debits to the account in accordance with [§ 205.11(d)(2)(ii)](/cfr/12/205.11.md?p=d-2-ii). If an overdraft results, the service provider shall promptly reimburse the account-holding institution in the amount of the overdraft.
- (c) **Compliance by account-holding institution.** The account-holding institution need not comply with the requirements of the act and this part with respect to electronic fund transfers initiated through the service provider except as follows:
  - (1) **Documentation.** The account-holding institution shall provide a periodic statement that describes each electronic fund transfer initiated by the consumer with the access device issued by the service provider. The account-holding institution has no liability for the failure to comply with this requirement if the service provider did not provide the necessary information; and
  - (2) **Error resolution.** Upon request, the account-holding institution shall provide information or copies of documents needed by the service provider to investigate errors or to furnish copies of documents to the consumer. The account-holding institution shall also honor debits to the account in accordance with [§ 205.11(d)(2)(ii)](/cfr/12/205.11.md?p=d-2-ii).

## Notes

### Authority

Authority: 15 U.S.C. 1693b.

### Source

Source: Reg. E, 61 FR 19669, May 2, 1996, unless otherwise noted.