Consumer Banking and Payments Law: 5.13.5 Bank Warranties Relating to Duplicate Presentments, Defenses to Payment, and the Consumer’s Insolvency
Because a merchant might simultaneously re-present a check electronically and in paper form, NACHA rules require that the merchant’s bank warrants that, subsequent to the origination of the RCK entry, the check to which the RCK entry relates or a copy of that check will not be presented to the consumer’s bank until the related RCK entry has been returned by the consumer’s bank. These rules, however, only impose limits on ACH re-presentment. The merchant can re-present the check via non-ACH methods free of those limits.