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#977342 - 06/18/08 05:00 PM WSUPP
52OPS Offline
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Joined: Apr 2008
Posts: 199

John:

I just read this article and have a question.

I thought ACH error resolution fell under REG E>


I agree that there is no need to investigate and just return the ACH based on the WSUPP, ........BUT

Wouldn't the FI want to provide provisional credit because the ACH could still be denied by the ODFI. If denied, I would think the FI would want to reverse the credit provided to the customer based on the denail and not take a loss.

If the FI issued final credit we could not do that.

What's the thought process I'm missing?



WSUPP Processing & Provisional Credit
by John Burnett, BOL Guru
Guru Bio

Question: When processing a WSUPP, do you have ten days to do research before you provide provisional credit or do you give provisional credit right away?

Answer: If you are returning an ACH entry based on the WSUPP, why would you wait? There's really not a need to investigate. Return the ACH entry and credit your customer -- finally, not provisionally -- notify your customer, close the Reg. E claim and move on to the next one.

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Operations Compliance
#977423 - 06/18/08 05:43 PM Re: WSUPP 52OPS
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Originators are not permitted to re-initiate returned entries of the type we're describing. See section 2.14 of the NACHA Operating Rules.
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BankersOnline.com
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