TL;DR – Quick Summary: The federal remittance transfer rules, enacted under Section 1073 of the Dodd-Frank Act and implemented through Subpart B of Regulation E (12 CFR Part 1005), require any U.S.-regulated provider banks, credit unions, money services businesses, and fintech apps to give consumers pre-transaction disclosures of all fees, exchange rates, taxes, and the exact amount the recipient will receive. Consumers also have a 30-minute cancellation right, mandatory error resolution procedures, and remedies including refunds or free resends when transfers go wrong. Understanding these rules is essential for anyone sending money internationally from the United States.
Background: Why Federal Remittance Transfer Rules Were Created
Before the Dodd-Frank Wall Street Reform and Consumer Protection Act became law in 2010, international money transfers sent by consumers in the United States were largely exempt from meaningful federal consumer protection oversight. Providers were not required to disclose fees or exchange rates in advance. Recipients often received less than the sender expected. Errors were resolved if at all through voluntary industry practices rather than enforceable legal rights. For the tens of millions of immigrants and international workers remitting money to families abroad, this created a landscape of opacity, confusion, and recurrent financial harm.
Section 1073 of the Dodd-Frank Act fundamentally changed this. It amended the Electronic Fund Transfer Act (EFTA) to create a comprehensive system of federal consumer protections specifically for international money transfers. The Consumer Financial Protection Bureau (CFPB) was authorized to implement these protections through rulemaking, which it exercised by adding Subpart B to Regulation E (codified at 12 CFR §§1005.30–1005.36). The remittance transfer rule under Regulation E took effect in February 2013 and has been amended several times since to address operational challenges and improve consumer disclosures.
Who Is Covered by the Federal Remittance Transfer Rules?
The federal remittance transfer rules apply broadly to any person or entity that provides remittance transfers defined as the electronic transfer of funds by a sender in the United States to a designated recipient in a foreign country in the normal course of business. This coverage encompasses banks, credit unions, money services businesses (MSBs), prepaid card companies, mobile payment providers, and fintech applications that process international transfers for retail consumers.
The rules explicitly apply to all transfer types meeting the definition, including wire transfers, ACH transfers, and transfers through digital wallets and remittance apps. To qualify as a remittance transfer under the rule, the transfer must exceed $15 (small-dollar amounts below this threshold are excluded) and must be initiated by a sender physically located in the United States and directed to a recipient in a foreign country.
A critical component of coverage is the "normal course of business" standard. An entity is subject to the rules as a remittance transfer provider only if it provides remittance transfers in its normal course of business meaning it does so with sufficient frequency to constitute a regular part of its operations. The CFPB has established a safe harbor: entities that provide 500 or fewer remittance transfers per calendar year are presumed not to be providing transfers in the normal course of business. This threshold was raised from 100 to 500 in the 2020 amendments to address compliance burdens on smaller providers such as community banks and credit unions.
Required Pre-Transfer Disclosures
One of the most consequential requirements of the federal remittance transfer rules is the mandatory pre-transfer disclosure framework. Before a consumer authorizes a remittance transfer, the provider must furnish a written disclosure available in English, and in any other language primarily used by the provider to market or solicit the consumer containing all of the following information.
The transfer amount in U.S. dollars must be stated clearly. All fees charged by the provider, itemized separately, must be disclosed this includes both the transfer fee and any currency conversion fee the provider applies. All taxes collected by the provider in connection with the transfer must be disclosed. The exchange rate to be used for the transfer must be specified, expressed as a direct conversion rate. The amount that will be received by the designated recipient, stated in the currency of the recipient's country, must be disclosed. If third-party fees such as fees charged by the recipient's bank or a correspondent financial institution may be deducted from the amount received, a statement to that effect must be included. The estimated date of delivery must be disclosed, specifying when the recipient can expect to receive the funds.
A receipt, or combined disclosure, repeating this information must be provided when the consumer pays for the transfer. This receipt must also include the name, telephone number, and address of the provider; the date of payment; a statement of the consumer's error resolution and cancellation rights; and information identifying relevant regulatory authorities the consumer may contact for unresolved issues including the CFPB at its toll-free number.
Your Right to Cancel an International Transfer
Federal law gives consumers a 30-minute cancellation window after payment is made for a remittance transfer. Within this 30-minute period, a consumer may cancel the transfer and receive a full refund of the principal amount and all fees provided the transfer has not yet been picked up or deposited by the recipient. This cancellation right is mandatory and cannot be waived by contract or terms of service.
The 30-minute window represents an important consumer protection in a market where incorrect recipient information, changed circumstances, or simple user error can result in costly misdirected transfers. Providers must have procedures in place to honor cancellation requests within this timeframe. The refund must be made to the consumer within three business days of the cancellation request being made.
It is important to note that the cancellation right applies to the post-payment period. Consumers can still request cancellation after 30 minutes have elapsed, but they are no longer guaranteed a full refund in those circumstances under the automatic right. After 30 minutes, refund and cancellation are at the provider's discretion, unless the transfer has not yet been transmitted in which case providers generally must cancel and refund upon request.
Error Resolution Rights and Procedures
Federal law establishes a structured error resolution process for remittance transfers that gives consumers meaningful recourse when transfers fail, are delayed, or are credited incorrectly. To initiate an error resolution claim, a consumer must report the error within 180 days of the disclosed transfer date. The report can be made orally or in writing to the provider.
Once a consumer reports an error, the provider has 90 days to investigate and resolve the claim. However, if the transfer was not yet available by the disclosed delivery date, the provider must either investigate and correct the error within 10 business days of receiving the error notice, or provisionally credit the consumer's account within 10 business days while the investigation continues. The provider must report the results of its investigation within three business days of completing it.
The provider may request that the consumer submit a written confirmation of the error within 10 business days of the oral notice. If the consumer does not provide written confirmation in that timeframe, the provider is not obligated to provisionally credit the account during the investigation period, though all other protections remain in force.
What Counts as an Error Under Federal Law?
The federal remittance transfer rules define errors broadly to cover the full range of transfer failures consumers commonly encounter. An error exists when: the provider fails to make the funds available by the disclosed delivery date; the funds are made available to the wrong person due to an error by the provider; an incorrect amount is delivered to the recipient because the provider charged an incorrect fee or applied an incorrect exchange rate; the consumer requested cancellation but the funds were still transferred; the consumer was charged a fee in excess of what was disclosed; or any other computational error by the provider occurred in connection with the transfer.
Notably, the error definition does not cover transfers that fail because the sender provided incorrect recipient information such as a wrong account number or incorrect recipient name. Under these circumstances, the provider is not automatically liable for an error, though it must still make reasonable attempts to recover the funds. If recovery is not possible, the provider may be entitled to retain the transfer amount, and the consumer may have recourse only against the recipient or their financial institution.
Remedies: What You Can Demand When Things Go Wrong
When a provider determines that an error occurred, the consumer is entitled to one of three remedies at the provider's option: a full refund of the principal amount plus all fees charged; a resend of the transfer at no additional charge to the consumer; or delivery of the correct amount at no additional charge if the recipient received an incorrect amount. The provider selects the remedy but must communicate the selection to the consumer. If the consumer disagrees with the selected remedy, the provider's response is still final under the rule's framework, though the consumer retains the right to escalate through regulatory channels.
For transfers that are not available on the disclosed delivery date, the consumer may request a refund rather than a resend. The provider must honor this request if the transfer has not yet been received by the recipient. This gives consumers meaningful control over whether to pursue delivery correction or simply recover their funds and use an alternative provider.
The Normal Course of Business Safe Harbor
The normal course of business safe harbor is one of the most practically significant provisions in the remittance transfer rule's regulatory architecture. Under this provision, a provider that offers 500 or fewer remittance transfers per calendar year is presumed not to be providing transfers in the normal course of business and is therefore not subject to the rule's full compliance requirements. This threshold was increased from 100 to 500 transfers per year in the 2020 amendments, reflecting CFPB findings that smaller providers particularly community banks and credit unions faced disproportionate compliance costs relative to their transfer volumes.
Providers that exceed the 500-transfer safe harbor threshold but claim they do not provide transfers in the normal course of business must affirmatively demonstrate this through the facts and circumstances of their operations. The CFPB has provided guidance indicating that relevant factors include the regularity of transfers, whether transfer services are publicly marketed, and whether the entity structures itself to offer transfers systematically to consumers.
Recent Updates to the Remittance Transfer Rule
The federal remittance transfer framework continues to evolve. In September 2024, the CFPB proposed a narrowly tailored amendment to disclosure requirements that would add clarifying information to pre-transfer disclosures directing consumers to the appropriate state licensing agency when filing complaints about their provider in addition to the existing CFPB contact information. This amendment is targeted for finalization in late 2025 or early 2026, with providers expected to have 60 days following Federal Register publication to implement the required changes to their disclosure forms.
Additionally, in May 2025, the CFPB withdrew several guidance documents, including Bulletin 2012-08 on remittance transfer rule implementation, as part of a broader guidance rationalization effort. This withdrawal does not affect the underlying regulatory requirements in Subpart B of Regulation E, which remain in full force. Consumers and compliance professionals should monitor CFPB rulemaking announcements for further developments as the regulatory framework continues to be refined.
Frequently Asked Questions
What rights do I have if my international money transfer was sent to the wrong person?
If the transfer went to the wrong person due to a provider error such as applying the wrong recipient information on the provider's end you are entitled to a refund, a resend, or delivery of the correct amount at no additional charge. If the error resulted from incorrect information you provided, such as a wrong account number, the provider's liability is more limited, though it must attempt fund recovery. Always report errors within 180 days of the disclosed transfer date to preserve your federal rights.
Can I cancel an international money transfer after I've paid?
Yes. Federal law gives you an unconditional 30-minute cancellation right after payment, provided the transfer has not yet been picked up or deposited by the recipient. Within this window, the provider must cancel and refund the full amount including all fees within three business days. After 30 minutes, cancellation is at the provider's discretion unless the funds have not yet been transmitted.
What must be disclosed to me before I send an international money transfer?
Federal law requires the provider to disclose, before you pay: the transfer amount in U.S. dollars, all fees and taxes, the exchange rate, the exact amount the recipient will receive in the destination currency, any third-party fees that may be deducted from the received amount, and the estimated delivery date. These disclosures must be provided in writing and in any language the provider uses to market to you.
Who enforces the federal remittance transfer rules?
The CFPB is the primary federal regulator responsible for implementing and supervising compliance with the remittance transfer rule across most providers. For banks and credit unions with $10 billion or less in total assets, enforcement is shared with their primary federal prudential regulator (e.g., the OCC for national banks, the FDIC for state non-member banks, or the NCUA for credit unions). Consumers can file complaints with the CFPB at consumerfinance.gov or by calling 855-411-CFPB.
Do these rules apply to all money transfer apps and digital providers?
Yes, provided the provider meets the normal course of business threshold. Fintech apps, digital wallets, and mobile payment platforms that process international consumer remittances above 500 transfers per year are subject to the full requirements of Subpart B of Regulation E. This includes required pre-transfer disclosures, cancellation rights, and error resolution procedures. Providers operating below the 500-transfer safe harbor are presumed exempt but remain subject to other applicable federal and state consumer protection laws.
