We receive many unsigned WSUDs from our branches. We can't return an ACH item as unauthorized unless we have the customers signature. We also do not provide provisional credit unless we have the customers signature. Many times by the time we do receive the WSUD with the customers signature, it's too late to do the return! Can we hold the customer liable in these cases?

Your ability to recover funds via the NACHA network for ACH or the VISA/MasterCard network for debit card transactions is separate from your obligation to investigate a claim of an electronic funds transfer error. The commentary to 1005.11(c) makes this very clear.

"Written confirmation of oral notice. A financial institution must begin its investigation promptly upon receipt of an oral notice. It may not delay until it has received a written confirmation."

If you cannot return an ACH due to a missing signature on a WSUD, your other investigation options are to send a request for a copy of the written authorization to the ODFI to see if your customer may have authorized the transaction or to try and contact the merchant yourself. You cannot deny a claim solely on the basis of a consumer's failure to provide written confirmation.

I just discovered that my ACH personnel are returning same day ACH entries as unauthorized without obtaining a WSUD or any type of investigation. For instance, an ACH entry memo posted today is being returned as unauthorized because the customer called and said that she did not authorized the transaction. They are returning the entry with no investigation being performed. It is not even listed on our error resolution log. I don't think this is correct. Please advise.

In these circumstances, you'd be better off accepting a stop payment on the ACH entry. Just know that you have to complete the return in time for the ODFI to have access to it by opening of business on the second banking day after the settlement date of the item.