Automated clearing house transactions are governed by network operating rules by contract, alongside statutory frameworks for consumer and commercial transfers.
Authorisation. Debits require the receiver’s authorisation in the form the rules prescribe, retained for a stated period. Missing authorisations are the most common basis for unauthorised return claims and for originator liability.
Return windows. Short for most returns — two banking days for many administrative returns — and considerably longer for consumer unauthorised claims supported by a written statement. Commercial receivers have far less time than consumers, which surprises business customers.
Originator warranties. The originating institution warrants authorisation and accuracy, and bears the loss on breach. Origination agreements pass that risk to the originator with indemnities and exposure limits.
Reversals are permitted only for narrow reasons — duplicate or erroneous entries — within tight deadlines, and are not a general recall mechanism.
Wire transfers are governed by the funds transfer article: generally final on acceptance, with recovery depending on the beneficiary’s bank cooperation and on mistake or restitution theories. Recovery after funds have moved is a matter of speed and cooperation, not of legal right.
Business email compromise losses turn on the payment order’s authenticity, the security procedure agreed, and whether the customer complied with it.