When a deposit has been made by electronic transfer, and the account holder has withdrawn and spent it, then the transaction is reversed, who is responsible for the insufficient funds that now occur because the depositing bank has now reversed the deposit?
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The customer who received the deposit and spent it will be liable to his bank for the fees. If the error was not his, he may get a letter from the other party as to what happened and the depositor's bank may refund the fees, but they are not obligated to do this. In many cases a bank also charges a fee for doing the reversal.
The bottom line is that there is an agreement between the customer who received the deposit and his bank. The bank can't charge any one else. If the customer had an agreement with whomever he received the deposit, he may pass along that fee within state law requirements. Merchants often post signs to this for NSF checks, as an example.
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The customer who received the deposit and spent it will be liable to his bank for the 