Answer:
The business has every right to require a reimbursement from its depository bank based on the lack of an authorization. The bank may have its own policy or a contractual provision that covers how quickly the business must report an unauthorized EFT, but it is patently unreasonable, in my opinion, to hold the business to a 24-hour standard. After all, when would the business first learn of the transaction? Both the business and its bank have warranty protection from the Originating Depository Financial Institution (ODFI). They can pursue the ODFI for reimbursement, but it must be outside the ACH returns framework.
First published on BankersOnline.com 12/03/07
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