Regularly Authorized Transfers

A

The correct answer is A, a preauthorized EFT.

Electronic Fund Transfers (EFTs) refer to the transfer of funds initiated through electronic means, such as computers or electronic terminals. EFTs can include a variety of different types of transactions, such as automated teller machine (ATM) withdrawals, point-of-sale (POS) transactions, and electronic check conversions.

A preauthorized EFT is a type of EFT that is authorized in advance and occurs at substantially regular intervals. This type of EFT allows funds to be automatically transferred from one account to another without requiring any further action on the part of the consumer. Common examples of preauthorized EFTs include direct deposit of payroll or Social Security benefits, automatic payments for utility bills, and regularly scheduled transfers between bank accounts.

In contrast, a postauthorized EFT occurs after the consumer has initiated a transaction, such as a one-time online bill payment or a check that is converted to an electronic transaction. Standard format EFTs refer to transactions that are processed in accordance with industry-wide standards, while customized EFTs refer to transactions that have been tailored to meet the specific needs of a particular organization or consumer.

It's important to note that payments that require the consumer to take specific actions to initiate them, such as by entering instructions on a touch-tone telephone or on the Internet, are not preauthorized EFTs, as they do not occur at substantially regular intervals. Instead, these types of payments are referred to as one-time EFTs or electronic checks.