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#649084 - 12/07/06 11:17 PM Reg E Applicability?
taknleavofmysenses Offline
100 Club
Joined: Nov 2005
Posts: 183
A check our customer writes to a merchant is returned twice and as the next option, the merchant sends through an "ACH" debit. The customer now contacts us and states they never authorized the debit. Would this ACH debit transaction fall under Reg E error resolution rules? I don't believe it would.

Thank you.

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eBanking / Technology
#649853 - 12/08/06 10:42 PM Re: Reg E Applicability? [Re: taknleavofmysenses]
noctrl02 Offline
100 Club
Joined: Jun 2006
Posts: 147
Chicago, IL
I am assuming that your check has gone through as RCK. According to the NACHA, the customer has 60 days to dispute, however it is not Regulation E. Authorization can not be revoked, however, stop payments can be issued.

The Quick Reference Guide is available here: Enter the complete URL for the link you wish to add.


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#650057 - 12/11/06 01:54 PM Re: Reg E Applicability? [Re: noctrl02]
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 38,782
Cape Cod
The Quick Reference Guide to which Chris has linked was last updated in 2002. It includes outdated information. For example, POP and ARC (and soon, BOC) transactions can be used for business checks up to $25,000 if they don't have an auxiliary on-us field. Also, the ARC and POP entries cannot exceed $25,000.

The adjusting return entry code for stops on a missed paper check stop that affects and ARC is R38, not R08. And the retention period on checks converted to ARC entries is now extended beyound 14 days (as long as the paper check can be retained securely).
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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