How long does a financial institution have to return an unauthorized ACH entry?

A financial institution has 60 calendar days to return an unauthorized ACH entry under the NACHA Operating Rules. This timeframe applies specifically to consumer transactions where the consumer asserts that a transaction was unauthorized. If the financial institution receives notification from the consumer within this period, it is obligated to return the entry, ensuring consumer protection against unauthorized debits.

This 60-day window is essential for upholding consumer rights and providing them with the opportunity to dispute unauthorized transactions that may impact their financial security. It encourages prompt reporting of discrepancies, allowing both the consumer and the financial institution to resolve issues swiftly. In terms of compliance, this timeframe also helps institutions manage their risk and adhere to regulatory standards concerning consumer protection.