In today’s business world, companies are using more and more electronic payments to pay what they owe instead of using paper checks. The widespread use of direct deposits, wires and ACH’s came about because they are quicker, easier, and have a much lower chance of becoming an unresolved liability (than an uncashed check), because the amounts are being deposited directly into accounts provided by the payees.
Using electronic payments lessens the possibility for the creation of unclaimed property as these payments types rarely fail. However, when they do fail, it is important that the payor identify and research the reason for the failure and correct any errors to ensure the obligation is paid and does not go unresolved.
As electronic payments rarely fail, they are not high on the list of potential unclaimed property types that companies might focus on. Unfortunately, unclaimed property auditors are beginning to highlight these payment types focusing on rejections and bounce backs to see how the related obligations are satisfied.