What steps are required to reverse or dispute an ACH transaction?
Payments
Asked by Question Bot06/Jan/20121 answer
1 Answer
F
Faisal Khan
Answered 06/Jan/2012
With the financial institution we use to reverse the transaction, we have to file a ACH reversal request that needs to be done within 3 days from the date of ACH transaction.
If the reversal is put in after 3 days of ACH transaction, the transaction request to the receiving party is forwarded, but there is no guarantee the funds may be there for reversal.
The number of days within which you can have the transactions reversed, depends. For some it is 3 days, for some 5 days. The maximum I have seen is 7 days.
If the Reversal is done before the settlement date, then this almost guarantees your funds would be provided back to you. Reversal after the settlement date, as I cited, does not guarantee that fund would be available for reversal.
In either case as per NACHA rules, we have to notify the receiving party (RDFI - Receiving Depository Financial Institution) of the same.
Regarding repudiation as far as ACH transactions are concerned, I don't think there is a way to file for that (I could be mistaken, but insofar as I know, unless you can do a reversal before the settlement time).
If the reversal is put in after 3 days of ACH transaction, the transaction request to the receiving party is forwarded, but there is no guarantee the funds may be there for reversal.
The number of days within which you can have the transactions reversed, depends. For some it is 3 days, for some 5 days. The maximum I have seen is 7 days.
If the Reversal is done before the settlement date, then this almost guarantees your funds would be provided back to you. Reversal after the settlement date, as I cited, does not guarantee that fund would be available for reversal.
In either case as per NACHA rules, we have to notify the receiving party (RDFI - Receiving Depository Financial Institution) of the same.
Regarding repudiation as far as ACH transactions are concerned, I don't think there is a way to file for that (I could be mistaken, but insofar as I know, unless you can do a reversal before the settlement time).