Counterfeit Checks - Reporting & Return Rules

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Question:

If a customer had someone make counterfeit checks with his account number on them and then that unauthorized person used these checks to purchase items from a store that processed the check electronically, what are the time frames for customer reporting and the bank returning the item as well as required paperwork? It appears we are crossing from checks to Reg E and I am not sure what applies where.

Answer:

The items will be considered electronic and your return claims would be subject to NACHA rules. You'd need a WSUD from the customer (which could cover more than one item) and a separate return entry for each. The customer, if a consumer, is protected by Reg E.

First published on BankersOnline.com 3/15/10