Planning for UCC Article 4A: eBanking, SWIFT and ACH Fraud Risk Management and Contractual Mitigation

Gain a better understanding of up-to-date electronic payment rules and developments, learning from recent cases how electronic payment fraud is occurring and what the courts are saying about who is responsible, and identifying safeguards against electronic payment liability.

General benefits include familiarization with up-to-date electronic payment rules and developments, learning from recent cases how electronic payment fraud is occurring and what the courts are saying about who is responsible, and identifying safeguards against electronic payment liability. For example, many bank-customer agreements deal with protections of banks against liability for check fraud in several ways: requirement of prompt notice after receipt of statements; requiring written notice; making statements available electronically; shortened statute of limitations and repose. Recent court decisions have expanded these protections to electronic payments where the protective provisions in the bank agreement cover not only checks, but all types of 'items' and debits, including wire transfers and ACH payments from the account. They also have required written notice, not just oral notice of the fraud. For paper check cashers like retailers and currency exchanges, duplicate presentment is a serious issue where the customer has previously deposited his or her check electronically by RDC and then seeks a second payment for the same check by cashing it with a store or check cashing business. The new rules and two recent cases deal with the issue in ways that you will want to know, to protect the party that cashes a paper check from a defense of the drawee bank that returns it unpaid for previous payment from its RDC and image check collection.