What is the bank's responsibility regarding debit card credits received after a checking account is closed? Is a cashier's check for the credit sent to the former customer? Is there a time limit or a dollar amount limit? What if the account has been closed for some time and we no longer have a good address?

I am interested in reading up on this, I just don't know where to go. Thanks in advance!

If you are able to get the money to the former customer, then do so. If you cannot, then you would escheat the funds to your state in accordance with the timeframes and law of your state.

Is this required somewhere? Visa rules, state rules? Where should I read up on the subject. I'll likely have to defend what you have stated above.

Thanks in advance!

There's nothing to read in Visa rules. There is no mechanism in Visa rules for returning a credit to the merchant so you are stuck with the funds. You should contact legal counsel to provide information on state escheatment laws which apply to any customer funds that you are holding regardless of how they came to be in your possession.

Why wouldn't the funds be returned with an "Account Closed" code?

M Cockrell, this are not coming in via ACH, they are debit card credits. V/MC don't have the same mechanisms for returning items using chargebacks that NACHA does.

I went to Visa's website and see effective 4.17.21 there is a new response code - 46 "The account is closed" to be used for accounts closed by the issuer or the cardholder for any reason. This must be what M Cockrell is referring to.

That could be. However, those response codes are used when declining an authorization attempt. A merchant does not perform an authorization when processing a credit, they just send the money and there is no chargeback code for sending back a credit.

Thanks for the clarification.