Consumer Banking and Payments Law: 5.3.5 Authorization to Electronically Re-Present Insufficient Funds Checks and Returned ACHs
NACHA rules address authorization requirements when a merchant electronically re-presents a check with insufficient funds (called a re-presented check entry, or RCK).611 The merchant need not first obtain the consumer’s authorization in writing or through an electronic record. All that is required is that notice be provided to the consumer prior to the debit entry. This notice must clearly and conspicuously state the terms of the business’s check return policy.612