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In the US anyone with your bank account number can debit your account irreversibly? In Europe (with SEPA Core) we have 8 weeks to reject any debit even if the
by antaviana 7y ago
In the US anyone with your bank account number can debit your account irreversibly?
In Europe (with SEPA Core) we have 8 weeks to reject any debit even if the entity issuing the debit has a signed mandate to debit the account.
- dahdum 7y agoAny other bank can debit your checking account, but they become responsible for refunding in the case fraud/error. Since no access card (atm card, pin, etc) was used, customers have $0 liability for the same 60 days as you do. This is partly why banks are strict with merchant processing, holding back variable reserves to cover refunds/fraud based on your history and business type.
- patio11 7y agoKnowledge of a bank account number is sufficient to attempt to debit it. Whether it will appear to succeed or not depends on the bank and a variety of factors. Regardless of whether it initially successes, it is (very) reversible. There’s a lot of technical nuance here which I’d ordinarily geek out on but don’t quite have the time to today.
- fooey 7y agoNACHA just uses FTP for their file transfers too
- ska 7y agoThere are (broadly) similar guarantees in the US. So they will get the money back, at least eventually. The problem is the effect it has when the account has sometimes been debited 2x. If this has made, say your rent or car payment bounce, you have an big hassle at minimum.
- londons_explore 7y agoIn the UK, direct debit (the equivalent to ACH) allows a consumer to request an instant refund of any payment they believe to be in error. The bank must refund first, and ask questions later. As you might imagine, some people use that to steal money...