Your bank, or the bank of your customers, can reverse an ACH within 5-days of it being sent. The National Automated Clearing House Association (NACHA) provides the following guidance to banks on ACH reversals:
- The wrong amount was sent: a user may request a reversal if they contend they sent the wrong amount, e.g. $1,000 versus $100. This is the most common reason for a reversal.
- The transfer was sent more than once: a user can request a cancellation of an ACH if they content they sent it more than once, e.g. two $1,000 transfers versus one transfer. Hydrogen can instituted logic in an attempt to stop this, but it's still a possibility.
- There was an incorrect account number: this can happen if there is an incorrect account number of the sender or recipient. Note, this is unlikely to happen with Hydrogen's platform, because we verify account numbers using an IAV.
Although these are the three approved NACHA reasons for reversals, there are other ways that customers can typically reverse an ACH.
- Stop payment request: many banks will allow a customer to call them and request a "stop payment" on an ACH, like they would with a check. They sometimes charge a fee to do this.
- Fraud report: many banks will also allow a customer to report an ACH as fraudulent. Even though Hydrogen makes users authenticate themselves before initiating an ACH, this is a decision that is up to the bank.
Please note, your company is responsible for ACH reversals.