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Reg for Protection Against Item Presented Twice

Answered by: 
John Burnett

Question: 
We have been charged for an item presented twice (payroll check). The first presentment was apparently a mobile banking deposit made directly to the payee's account at another institution. The second presentment was when a check-cashing business (who is a customer of ours) deposited the original check. Both items were presented to the payor bank on the same day, but the physical item was 150 sequence numbers behind the mobile banking item, making it the second presentment. We feel it is wrong for us to charge our customer for the payee's unscrupulous act (getting the money twice). We are also assuming there should be something in the mobile banking agreement that the payee has with his institution where he is essentially agreeing to secure the physical item against presentment. Can we petition the bank where the mobile deposit was made to recompense us for paid twice charge, as their customer should have secured the item? Would we have to get the the payor bank to do this for us or can we go directly to them? Are there any protections for this under regulations?
Answer: 

Your feeling that it's wrong to charge your depositor for the bad guy's unscrupulousness is misplaced. This is business, and your depositor got scammed. You can't charge the issuer of the check twice because there's only one authorization to pay it. If you can do it in time, charge the item back to the check cashing outfit. If you can't do that, you certainly can go back to the bank that accepted the remote deposit and ask for a refund, but there's nothing legal behind such a request, and a rejection would be an appropriate response by that other bank.

Let me hasten to add that, if the two items are presented the same day, you have a choice on which to return as a duplicate presentment, but that choice requires you make the return by your midnight deadline. In that case, it would be acceptable to charge it back to either your check-cashing depositor or to the bank that took the item via remote capture.

First published on BankersOnline.com 3/18/13

First published on 03/18/2013

Filed under: 
Compliance
Filed under compliance as: 
IT

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