When an erroneous file has been identified, it is important to understand how to reverse or stop an ACH payment. The National Automated Clearing House Association (NACHA) have strict ACH reversal rules, but they can be reversed under certain circumstances.
Reversal Reasons Allowed
- Is an exact duplicate of an Entry previously initiated by the Originator or ODFI
- Orders payment in a dollar amount different than was intended by the Originator
- Orders payment to or from a Receiver different than the Receiver intended to be credited or
debited by the Originator.
- Orders payment of a debit Entry on a date earlier than the Receiver was intended to be debited
by the Originator or payment of a credit Entry on a date later than the Receiver was intended to
be credited by the Originator.
- Is a credit PPD Entry satisfying each of the following criteria:
- The credit PPD Entry is for funds related to a Receiver’s employment;
- The value of the credit PPD Entry is fully included in the amount of a Check delivered to the same Receiver at or prior to the Receiver’s separation from employment; and
- The credit PPD Entry was Transmitted by the Originator prior to the delivery of the Check to the Receiver.
Submitting a Reversal
To ensure sufficient processing, ACH reversals should be initiated as soon as possible and must be transmitted or made available to the RDFI to the ACH Operator by the 5th business banking day after settlement. Due to the complexity of NACHA rules, we are more than happy to submit an ACH reversal on your behalf. If you need to submit an ACH reversal, please reach out to Client Services to request an ACH reversal form.
ACH Reversals cannot be guaranteed and are subject to terms of the ACH Origination service and NACHA rules.