Game On: How The CFPB's EFTA And Regulation E Changes Could Shape Video Game And Online Marketplace Transactions

The Electronic Fund Transfer Act (EFTA) and Regulation E apply to an electronic fund transfer (EFT) that authorizes a "financial institution" to debit or credit a consumer's account. While a "financial institution" traditionally refers to a bank, credit union, or savings association, it is well established that "financial institutions" can also include non-bank entities that directly or indirectly hold an account belonging to a consumer, or that issue an access device and agree with a consumer to provide EFT services. Prepaid accounts and "other consumer asset accounts" into which funds can be deposited by or on behalf of the consumer and which have features of deposit or savings accounts, also meet Regulation E's definition of "account." Some video game accounts used to purchase virtual items from multiple game developers or players may fall under the definition of "other consumer asset accounts."