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#2260716 - 10/05/21 06:59 PM Business Accounts and REG E
52OPS Offline
100 Club
Joined: Apr 2008
Posts: 199
I know Business Accounts are not covered under REG E, but:

1. what do most financial institutions do when a Business Account has an unauthorized ATM withdrawal, POS Purchase or an unauthorized ACH debit hit their account and they dispute it.

2. In the case of an ACH dispute on a Business account does the business eat the loss and the FI just tries to process the disputed transaction as an unauthorized ACH but does not issue a provisional credit? When and if the funds are returned by the other FI the bank would then credit the business acoount?

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#2262446 - 11/12/21 06:36 PM Re: Business Accounts and REG E 52OPS
reknab Offline
100 Club
Joined: Oct 2008
Posts: 247
not where I want to be
we handle business disputes for unauthorized transactions pretty much the same as consumer disputes as they are covered under mc zero liability.

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#2262448 - 11/12/21 06:50 PM Re: Business Accounts and REG E 52OPS
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 77,285
Galveston, TX
That is really placing a lot of unnecessary risk on the bank rather than the business. Zero liability only applies to a small universe of potential unauthorized claims from a business customer.
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