Hi All,
A customer made a preauthorized payment to their cell phone provider on "day 1". On day 10 the customer called the bank and claimed the cell phone provider had not posted the credit to their account. Nothing about the payment was incorrect at our end, and it was not returned by the cell phone provider.

Since the customer did authorize the payment, would this claim fall under Reg E? What is the general rule when an electronic transfer sent or authorized by the customer is not credited at the other end by the service provider? Or would this this be considered an EFT in the wrong amount, despite the correct amount being sent (since the amount the recipient posted was $0)?

Some Bank Guy

It is not unauthorized. So Regulation E would not apply. How was the transfer specifically made?

And it doesn't actually fit any of the other criteria in the definition of "error" unless you consider it a request for documentation or additional information. If that's the case, you can provide the information included in the transfer record. The customer can then compare that with the information on their account with the cellular service provider and use it in following up with their provider.