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Returning an Unauthorized E-Check
by John Burnett, BOL Guru
Guru Bios
Question: What are our bank's options in terms of returning an electronic check that posted 15 days ago to a customer’s account which the customer did not authorize?
Answer: If you are asking about an ACH check conversion entry (ARC, POP, RCK), NACHA rules provide adjusting entries that can be used to return as unauthorized any of these entries, provided the depositor completes and signs a written statement under penalty of perjury (WSUPP), and you conform to the timing rules in the NACHA rules.
If you are asking about a check that was electronically presented (not an ACH), you must follow the rules of the clearinghouse in which you participate from which you obtained the item. It is possible that you have no ability to return the item.
First published on BankersOnline.com 4/17/06
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