How many banking days are allowed to contest or correct a dishonored return?

The correct answer is that 5 banking days are allowed to contest or correct a dishonored return. Within the framework of the ACH network, the rules and guidelines specify that if a bank or financial institution receives a dishonored return, they have a period of up to 5 banking days to contest it. This timeframe is established to ensure that parties have a reasonable opportunity to address potential errors or discrepancies that may have led to the return, which is essential for maintaining the integrity of the ACH system.

During these 5 days, the originating party can gather necessary documentation or evidence to support their claim and communicate with their financial institution to rectify the issue. This period is critical for dispute resolution, allowing sufficient time without delaying the transaction process excessively. Other potential choices, while they reflect varying timeframes, do not align with the regulations that govern the ACH transactions and returns.