This is why it is vitally important to have enough money in your reserve account to cover any ACH reversals. We will start all customers out with $1,000 in their reserve account and then monitor it over time.
Please see an example below of an ACH reversal:
- John Smith sends a $500 ACH to their debit card account on January 1st.
- The $500 clears at Metabank on January 3rd.
- John Smith uses $500 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 $500 from your reserve account to cover the loss.
- You will be responsible for recovering the $500 from John Smith that was borrowed to get the new TV at Best Buy. If they do not return the money to you, we recommend you follow up with their local police station. This is fraud.
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.