Two Years After Studco: The Evolving Rights and Obligations of RDFIs

In 2023 an Originator sued an RDFI and won. This case was widely debated in the industry and appealed to the United States Court of Appeals for the Fourth Circuit.  In March of 2025, the Court of Appeals reversed the trial court’s decision. This session will review the original lawsuit, the appeal and the potential changes to our industry arising from this issues raised in this lawsuit. This session will review the legal, regulatory, operational and budgetary landscape pertaining to the rights and obligations of RDFIs and Beneficiary Banks since the Studco decision, and an upcoming rule change requiring the use of systems to detect transactions initiated under “False Pretenses.”