• Customer was provided provision credit by the bank
• 5 weeks later the company involved also provided the customer with a credit
• 6 months later the company discovers they provided this credit twice
• 7 months have passed and the company has contacted the bank to debit the customer’s account for the processing error
• Now bank also wants the original provisional credit back since the company accepted responsibility for the error.

I know there are a lot of timing issues here but my question is:
If a customer is credited after we provided provisional credit can we request the funds be returned? Can we debit their account with proper notice?

You can debit their account for the merchant credit as the credit you gave the customer was final and made the customer whole. They are not entitled to also receive the merchant credit - that is now the bank's money. If the customer has any complaints just explain to them that you are entitled to the money and if they keep it, you will sue them for unjust enrichment. Regarding the fact that the merchant credited their account twice - you can ask the customer, but if they do not agree to return the second credit, then this is something between them and the merchant that I would not step into the middle of......

Thank you so much!