Report to Congress on the Application of the Electronic Fund Transfer Act to211 Electronic Stored-Value Products. Submitted to the Congress Pursuant to Section 211 2601 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996

摘要

Section 2601 of the Economic Growth and Regulatory Paperwork Reduction Act of211u001e1996 directs the Board of Governors of the Federal Reserve System (the Board) to 211u001econduct a study that evaluates whether provisions of the Electronic Fund Transfer 211u001eAct could be applied to electronic stored-value products without adversely 211u001eaffecting the cost, development, and operation of such products. The Board is to 211u001econsider whether alternatives to regulation under the Electronic Fund Transfer 211u001eAct, including the option of allowing market forces to shape the development and 211u001eoperation of electronic stored-value products, could more efficiently achieve the 211u001eobjectives embodied in that act. The Board, for some time, has been closely 211u001efollowing a number of evolving issues concerning electronic stored-value 211u001eproducts, including issues relating to consumer protection. The Board has a long-211u001estanding interest in these issues as a result of its responsibilities for both 211u001econsumer protection in financial transactions and fostering the integrity and 211u001eefficiency of the payment system. The Congress directive raises important issues 211u001ein both of these arenas. This study analyzes and evaluates some regulatory and 211u001enonregulatory options for addressing certain risks faced by consumers in 211u001econnection with the use of electronic stored-value products. The study examines 211u001ethe costs and benefits of various regulatory alternatives, but it does not 211u001eendorse or recommend any specific course of action.