Compliance Alliance Q&A
Question of the Week: June 13, 2024
Q: Under Regulation E § 1005.6(b)(1) and§ 1005.6(b)(2), a consumer’s liability is limited in relation to the learning of the loss or theft of an ”access device.” What exactly is an access device?
A: An access device is not just limited to a debit card itself, but also includes personal identification numbers (PINs), telephone transfer and telephone bill payment codes, and other means that may be used by a consumer to initiate an electronic fund transfer (EFT) to or from a consumer account. The term does not include magnetic tape or other devices used internally by a financial institution to initiate electronic transfers, nor does it include a check or draft used to capture the Magnetic Ink Character Recognition (MICR) encoding to initiate a one-time automated clearinghouse (ACH) debit. Comment 2(a)-1
A: An access device is not just limited to a debit card itself, but also includes personal identification numbers (PINs), telephone transfer and telephone bill payment codes, and other means that may be used by a consumer to initiate an electronic fund transfer (EFT) to or from a consumer account. The term does not include magnetic tape or other devices used internally by a financial institution to initiate electronic transfers, nor does it include a check or draft used to capture the Magnetic Ink Character Recognition (MICR) encoding to initiate a one-time automated clearinghouse (ACH) debit. Comment 2(a)-1
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