What is the allowable return period for an unauthorized CCD or CTX to a corporate account?

What is the allowable return period for an unauthorized CCD or CTX to a corporate account?

• A. 2 Banking Days
• B. 5 Banking Days
• C. 30 Banking Days
• D. 60 Calendar Days

Answer: (A)

The allowable return period for an unauthorized CCD (Cash Concentration or Disbursement) or CTX (Corporate Trade Exchange) transaction to a corporate account is indeed 60 calendar days. This means that a corporate account holder has the right to return an unauthorized transaction to the Originating Depository Financial Institution (ODFI) within this time frame. This 60-day window is established to provide corporate account holders with a reasonable timeframe to review their accounts and identify any unauthorized transactions. The longer return period compared to consumer accounts reflects the differences in liability and the nature of transactions for corporate clients. In the case of CCD and CTX transactions, the rules allow for this extended return period to ensure that corporations can adequately monitor their transactions and take necessary actions against unauthorized debits, which are more complex and involve different considerations than consumer ACH transactions.

The allowable return period for an unauthorized CCD (Cash Concentration or Disbursement) or CTX (Corporate Trade Exchange) transaction to a corporate account is indeed 60 calendar days. This means that a corporate account holder has the right to return an unauthorized transaction to the Originating Depository Financial Institution (ODFI) within this time frame.

This 60-day window is established to provide corporate account holders with a reasonable timeframe to review their accounts and identify any unauthorized transactions. The longer return period compared to consumer accounts reflects the differences in liability and the nature of transactions for corporate clients.

In the case of CCD and CTX transactions, the rules allow for this extended return period to ensure that corporations can adequately monitor their transactions and take necessary actions against unauthorized debits, which are more complex and involve different considerations than consumer ACH transactions.