What does the Electronic Funds Transfer Act primarily establish?

The Electronic Funds Transfer Act (EFTA) primarily establishes rights and responsibilities concerning electronic money transfers. This legislation was enacted to protect consumers during transactions involving electronic funds transfer systems, such as direct deposits, ATM transactions, and online bill payments.

The EFTA provides a framework that ensures consumers have access to information about the terms and conditions of their electronic transfers, including potential fees and dispute resolution processes. It outlines the requirement for financial institutions to disclose accurate details about transfers and establishes consumer liability protection in instances of unauthorized transactions.

This legislation aims to foster consumer confidence in electronic transactions by ensuring they have clear guidelines and protections when using these increasingly prevalent forms of payment. The other options do not accurately reflect the focus of the EFTA, emphasizing the clarity and importance of consumer rights and responsibilities related to electronic transfers as its primary purpose.