Is Automated Clearing House (ACH) debit capability an allowable ETA feature?
No. Financial institutions are not allowed to offer ACH debit capability as an additional ETA feature. However, if an ETA holder authorizes an ACH debit to his/her account without the financial institution’s knowledge, the financial institution is not required to reject the ACH debit. In the event that a financial institution becomes aware of an ACH debit from an ETA, the Financial Agency Agreement does not require the financial institution to close the ETA; however, the financial institution is encouraged to explain to the ETA holder that ACH debits are not an allowable feature of the ETA. If the financial institution decides to close the ETA on the grounds of misuse, customary closing procedures should be followed. May the ETA include recurring bill payments? No. The ETA may include only those features listed in the ETA Notice. As indicated in the ETA Notice, the account does not include a bill payment feature. When deposits are allowed through the banks ATM, may the bank issue holds
