Electronic Fund Transfer Act (EFTA): Federal law that provides a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund transfer (EFT) systems
Regulation E: Implements the EFTA and provides specific guidelines for electronic fund transfers, including direct deposit services
NACHA Rules: Operating rules for the ACH Network that govern direct deposit transactions and ensure secure, reliable electronic payment services
Bank Secrecy Act (BSA): Requires financial institutions to assist government agencies in detecting and preventing money laundering, including verification of account holders
USA PATRIOT Act: Requirements for customer identification and verification procedures when opening bank accounts
Gramm-Leach-Bliley Act (GLBA): Federal law requiring financial institutions to explain their information-sharing practices and protect sensitive data
Fair Labor Standards Act (FLSA): Federal law that includes provisions related to wage payment methods, including electronic payments and direct deposits
State Labor Laws: Various state-specific requirements regarding permissible methods of wage payment and direct deposit authorizations
Americans with Disabilities Act (ADA): Requirements for making forms and financial services accessible to individuals with disabilities
IRS Record Retention Requirements: Federal guidelines for maintaining financial records and direct deposit authorizations
Data Security Standards: Requirements for protecting sensitive financial information during collection, storage, and transmission of direct deposit data
FDIC Regulations: Federal banking regulations ensuring safety and soundness of banking practices, including direct deposit services
