Unauthorized transaction (Reg E).
In plain English
An unauthorized transaction is an electronic transfer from your account that you did not permit, such as a charge after a debit-card number is stolen. Federal Regulation E, which carries out the Electronic Fund Transfer Act, gives you the right to dispute these and caps how much you can be on the hook for, with the limit depending largely on how quickly you report, reporting a lost card or unauthorized transfer promptly keeps your liability low. The bank must investigate within set timeframes. Knowing these rights matters because acting fast is what preserves the strongest protection.
01Why it matters
Your protection against unauthorized electronic transfers depends heavily on reporting quickly, so knowing Regulation E exists and that speed limits your liability turns a scary charge into a defined process with real rights.
02The math, step by step
You spot debit-card charges you never made and report them to your bank right away. Under Regulation E, prompt reporting caps your liability and starts a required investigation, so acting quickly is what protects you. Waiting can raise how much you are responsible for, which is why speed matters.
03What this is NOT
It is not a payment you authorized. Regulation E covers transfers you did not permit, like fraud on a stolen card. A transfer you were tricked into approving yourself may fall outside it, which is why P2P scams are so hard to reverse.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.