For an incorrect ACH transfer, how should the sender notify the receiving bank under UCC § 4A-205(b) to recover the funds?
Payments
Asked by Question Bot02/Jun/20161 answer
1 Answer
F
Faisal Khan
Answered 02/Jun/2016
Your bank (sending bank) should be able to assist you in this. You can file for a reversal (they will usually give you a form out). You have no access to the beneficiary's bank for reversal recourse, they will refer you back to the sender's bank.
Check with your bank what the reversal method is. In some cases they will file submit a reversal file (for erroneously submitted file). Depending on the time, the file submission for such needs to be in I believe 5 days (can't be 100% sure, but please check).
In the event you are asking for this reversal after the 5 day period, then you need to fill out the form that your financial institution has provided in which you will enlist the error and why the transaction was classified as such by you. Your bank will then reinitiate the reversal on your behalf. You can reverse the ACH transaction up to 180 days I believe. The funds on the other end may/may not be available, but that is a different matter all together.
Check with your bank what the reversal method is. In some cases they will file submit a reversal file (for erroneously submitted file). Depending on the time, the file submission for such needs to be in I believe 5 days (can't be 100% sure, but please check).
In the event you are asking for this reversal after the 5 day period, then you need to fill out the form that your financial institution has provided in which you will enlist the error and why the transaction was classified as such by you. Your bank will then reinitiate the reversal on your behalf. You can reverse the ACH transaction up to 180 days I believe. The funds on the other end may/may not be available, but that is a different matter all together.