What are Bank Errors?
Bank errors are transactions that have been incorrectly recorded by a bank in a customer’s account. These errors are usually found during the monthly bank reconciliation process conducted by customers, who notify the bank to correct the indicated items. There are usually few bank errors, which are concentrated in the areas of incorrect check and deposit amounts.
It is also possible that a bank will debit an account for services that were not actually provided to the customer. For example, a bank might incorrectly apply a wire transfer fee to the wrong customer account, so that an account holder that did not initiate the wire transfer is charged for it.
