This is why it is vitally important to have enough money in your reserve account to cover any ACH reversals. Please see an example below:
- John Smith sends a $1,000 ACH to their debit card account on January 1st.
- The $1,000 clears at Metabank on January 3rd.
- John Smith uses $1,000 to buy a new TV at Best Buy.
- John Smith submits a fraud report to their bank on January 4th, within the 5-day window to reverse an ACH.
- John Smith's balance is $0 when the bank attempts to make the reversal. Hydrogen will pull $1,000 from your reserve account to cover the loss.
- You will be responsible for recovering the $1,000 from John Smith that was borrowed to get the new TV at Best Buy.
If Hydrogen sees a large volume of ACH reversals, and/or you are unable to maintain enough money in your reserve account to reimburse ACH reversals, your access to the platform will be permanently revoked.