Answer by Randy Carey: If the customer has authorized the payment, there are no limitations as to what the payment could be used for.
Answer by John Burnett: One the other hand, if the bank happens to detect a name/account number mismatch in an ACH record (daughter's name and mom's account number) the bank could return the debit for that reason. A few banks have system filters that check such things; most, in my experience, don't. In cases in which one department of the bank doesn't necessarily know what another department has agreed to, someone could have some explaining to do if an ACH debit is returned. Do you recall "Murphy's Law"?
First published on BankersOnline.com 11/21/11