Number: RS20601
Title: ELECTRONIC TRANSFER ACCOUNTS
Authors: Pauline Smale, Government and Finance Division 
Abstract: The Debt Collection Improvement Act of 1996 (P.L. 104-134) required all federal payments (other the IRS refunds) to be made by electronic funds transfer after January 1, 1999. A challenge involved the problem of providing electronic financial services to the estimated 10 million individual recipients who do not have accounts with depository financial institutions. The Treasury responded by designing the ETA (electronic transfer account). The ETA is a low- cost account offered by federally insured financial institutions that have entered into an agreement with the Department of the Treasury. This report provides an overview of this account option for individuals receiving federal payments.
Pages: 4
Date: Updated January 5, 2001