How does ACH Reversal work?

How does ACH Reversal work?

ACH Reversal is a process facilitated by the Originating Depository Financial Institution (ODFI) in specific situations. Here are the scenarios in which an ACH Reversal can be initiated:

1. Incorrect Amount: In the event of an incorrect dollar amount being credited or debited from another payment account, the ODFI can file for an ACH Reversal with the Receiving Depository Financial Institution (RDFI).   This allows for the transaction to be reversed and the correct amount to be processed.

2. Duplicate Transaction: If a duplicate transaction of the same dollar amount is credited or debited from another payment account, the ODFI can file for an ACH Reversal with the RDFI. This ensures that the duplicate transaction is reversed, preventing any unintended financial impacts.

3. Incorrect Account: When the ODFI mistakenly sends a payment to the wrong account, an ACH Reversal can be initiated. The ODFI will file for the reversal with the RDFI, enabling the payment to be redirected to the correct account.

The ACH Reversal process is designed to rectify errors and ensure that the appropriate funds are properly credited or debited. It provides a mechanism for correcting mistakes and maintaining the integrity of ACH transactions.

If you have any further questions or require additional information regarding ACH Reversals, please feel free to contact the customer support. 

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