I am currently investigating a large scale forgery case where a home health nurse took advantage of a patient over the course of a couple of years. Anyway, a large amount of the checks that were passed were at merchant locations that run the check through electronically and then hand the voided check back to the customer. Is there a way to obtain a copy of the check image in these type transactions? Thanks in advance!

I don't believe that such transactions fall under either check law or UCC; from start to finish they are ACH transactions. The only requirement of which I'm aware is that the Originator (merchant) must retain the original or a copy of the Receiver's authorization for two years from the settlement date. Hopefully a guru will chime in with more clarification (or correction).

It certainly sounds as though these were ACH check conversions of one type or another (BOC or POP). If so, the capturing merchant is responsible for maintaining the original checks or legible copies for two years as evidence of the authorization, and warrants that the authorizations are valid. You have certain extended return capabilities if you can obtain a Written Statement of Unauthorized Debit (WSUD), but they only go back 60 days. For any entry you aren't able to return, you can pursue a warranty claim. The warranty should be valid for the period of time allowed for breach of contract claims under the laws of the state where the merchant is located.

They are definitely ACH conversions. Since the nurse was bonded, the insurance company is requesting proof of the forged items prior to them finalizing the claim. My main concern is whether or not merchants retain an image when they scan the check and hand it back to the customer (or fraudster in this case). It sounds like from the answers above that their should be images on file with the individual merchants. We won't be submitting these as forged items back to the merchants, just needing proof of image.

For POP entries, the Originator must void the source document (check) and give it back to the Receiver, but they are still required to obtain authorization and retain it for two years. Under NACHA rules, you can write to the Originating bank (ODFI) and request copies of the authorizations, and they must provide you a copy within 10 banking days.

You can find information about POP entries starting on page OG202 of the 2014 NACHA Rule book. Your payment Association should be able to answer additional questions about it, including warranty claims. Ours (WesPay) has an excellant Hotline.