What is true about a bank's protection against a third party's transaction coding error?

The correct response highlights that systems are in place that can identify debit card transactions, which is critical for maintaining the integrity of a bank's transaction processing. This capability allows banks to monitor transactions for accuracy, detect potential errors, and address them quickly.

Having robust transaction monitoring systems helps reduce liability for unauthorized transactions and protects against coding errors, ensuring the bank can maintain correct records of account activity. These systems often include checks and balances that catch inconsistencies during processing, further safeguarding both the bank and its customers.

In the context of the other options, it's important to note that while banks indeed have systems to manage errors, stating that banks cannot protect themselves from transaction errors undermines the advances in fraud detection and error prevention technologies that banks utilize. Additionally, the assertion that transaction coding errors are never a concern overlooks the reality that mistakes can happen, necessitating systems for identification and correction. Lastly, the idea that protection applies only to cash transactions is misleading, as banks have protective measures for all types of transactions, not just cash.