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Federal Reserve Bank of Dallas
2200 N. PEARL ST.
DALLAS, TX 75201-2272

January 13, 2006

Notice 06-02

TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

Interim Final Rule and Final Rule Regarding
Regulation E (Electronic Fund Transfers)

The Board of Governors has amended Regulation E, which implements the Electronic
Fund Transfer Act, and the official staff commentary to the regulation. The commentary interprets the requirements of Regulation E to facilitate compliance primarily by financial institutions
that offer electronic fund transfer services to consumers.
The interim final rule provides that payroll card accounts established directly or indirectly
by an employer on behalf of a consumer to which electronic fund transfers of the consumer’s
salary, wages, or other employee compensation are made on a recurring basis are accounts
covered by Regulation E. The interim final rule becomes effective July 1, 2007.
The Board must receive comments by March 13, 2006. Please address comments to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and
Constitution Avenue, N.W., Washington, DC 20551. Also, you may mail comments electronically to All comments should refer to Docket No.
The public can also view and submit comments on proposals by the Board and other
federal agencies from the web site.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

-2Also, the Board has issued revisions to address the regulation’s coverage of electronic
check conversion services. Under the final rule, merchants and other payees that initiate electronic check conversion transactions must obtain a consumer’s authorization for each transaction.
In addition, commentary revisions address preauthorized transfers, error resolution, and other
The final rule becomes effective February 9, 2006. The mandatory compliance date is
January 1, 2007.
For more information, please contact Diane van Gelder, Banking Supervision Department,
(214) 922-6282.
A copy of the Board’s notice as it appears on pages 1473–83, Vol. 71, No. 6 of the Federal
Register dated January 10, 2006, and a copy of the Board’s notice as it appears on pages 1638–
64, Vol. 71, No. 6 of the Federal Register dated January 10, 2006, can be found on our web site
Previous Federal Reserve Bank notices are available on our web site at
banking/notices/index.html or by contacting the Public Affairs Department at (214) 922-5254.

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102