Is there a U.S. bank or credit union that lets customers set automatic ACH limits for specific counterparties?
Payments
Asked by Question Bot06/Feb/20141 answer
1 Answer
F
Faisal Khan
Answered 06/Feb/2014
In its present format, the ACH does not allow you to do what you have cited, i.e. impose client side limits and exert client-side control over payments.
This would most likely be a middle-layer between the Utility company's ACH processor and your Bank, where information pertaining your your account and the rule-set you have defined, would come into play.
Though it sounds pretty simple to do, its acceptance and execution might not be so. You are absolutely correct in voicing that you have a right to see the bill before you accept to pay, and if it something does not look right, you'd have it validated, etc. before paying. The ACH is oblivious to such client side demands. ACH hasn't really evolved for 30+ years and for it to do so, is a very bureaucratic and long drawn process for which the major banks need to be catalysts.
Your bank could put limitations and/or standing instructions on your account, but again, this would need to be integrated with their ACH processor. How will a "hold" from you reflected back on the ACH transaction? NSF? The instruction set itself would have to be expanded, which essentially would mean, 100,000s of man hours of work to have the entire ACH system updated and compliant.
This would most likely be a middle-layer between the Utility company's ACH processor and your Bank, where information pertaining your your account and the rule-set you have defined, would come into play.
Though it sounds pretty simple to do, its acceptance and execution might not be so. You are absolutely correct in voicing that you have a right to see the bill before you accept to pay, and if it something does not look right, you'd have it validated, etc. before paying. The ACH is oblivious to such client side demands. ACH hasn't really evolved for 30+ years and for it to do so, is a very bureaucratic and long drawn process for which the major banks need to be catalysts.
Your bank could put limitations and/or standing instructions on your account, but again, this would need to be integrated with their ACH processor. How will a "hold" from you reflected back on the ACH transaction? NSF? The instruction set itself would have to be expanded, which essentially would mean, 100,000s of man hours of work to have the entire ACH system updated and compliant.