Helping our customers understand the intricacies and potential penalties that could result from not having Regulation E compliance is what we do best. Here are some questions that have become very common and we wanted to give simple answers for.
What does Regulation E mean for me and my business?
Increased attention on Regulation E from auditing entities and the legal services industry will require businesses to take measures to ensure compliance with legislation surrounding recurring transactions.
What does Regulation E say about payments?
Regulation E delineates and mandates the proper authorization or approval required for businesses to credit a customer asset account. More simply, Regulation E outlines how businesses must receive permission to collect certain types of payment. In order to carry out an ACH, EFT, or Debit Card transaction a business must receive a “writing signed or similarly authenticated” authorization from the consumer. Businesses may receive one written authorization to carry out a schedule of multiple payments (i.e. recurring or installment payments) as long as the authorizing consumer is presented with the all the dates and amounts for each transaction.
Does Regulation E affect payments I take over the phone?
Regulation E does not affect payments taken by phone. However, information received for payments over the phone cannot be used for future payments. This includes audio recordings of verbal authorization for future payments. According to Regulation E, audio recordings are not considered to be “electronic records” and therefore can only be used for a transaction taking place at the time of the verbal authorization.
For more detailed information on Regulation E and using electronic signatures please see: