CFPB EFT FAQ Coverage Transactions 2 – Can person-to-person or “P2P” payments be EFTs under Regulation E?

Compliance > Regulation E - EFTA
Q:  Can person-to-person or “P2P” payments be EFTs under Regulation E?
 
A:   Yes.
 
Person-to-person or “P2P” payments allow a consumer to send money to another person without needing to write a check, swipe a physical card, or exchange cash. Depending on the payment provider, a P2P payment can be initiated from a consumer’s online bank account portal, prepaid account portal, or mobile application.
 
Any P2P payment that meets the definition of EFT is covered by EFTA and Regulation E. See Electronic Fund Transfers Coverage: Transactions Question 1 for more information about the definition of an EFT. See Electronic Fund Transfers Coverage: Financial Institutions Question 2 for more information about EFTA and Regulation E’s coverage of P2P payment providers.
 
 
This Q&A was contained in the CFPB’s Electronic Fund Transfers FAQs that were updated in December 2021 (which may be updated from time to time).  This may be found on the CFPB’s website here:  https://www.consumerfinance.gov/compliance/compliance-resources/deposit-accounts-resources/electronic-fund-transfers/electronic-fund-transfers-faqs/
 

Add Feedback