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#1227380 - 08/05/09 12:40 PM Originating ACH Debits
Nick Grant Offline
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Joined: Sep 2005
Posts: 108
Our bank is beginning on line account opening and we are uncomfortable with originating ACH debits. What type of controls can we consider to mitigatage loss potential?

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eBanking / Technology
#1228122 - 08/06/09 02:12 PM Re: Originating ACH Debits Nick Grant
pacar Offline
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Joined: Jul 2007
Posts: 320
Can you clarify what an ACH Debit has to do with opening an account online? I'm not sure I see the connection here...

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#1228357 - 08/06/09 04:57 PM Re: Originating ACH Debits pacar
YoungAndEager Offline
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Posts: 135
Indiana
I believe he is saying the initial deposit will be made by their bank originating an ACH and debiting the customer's account at a different bank.
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#1228435 - 08/06/09 05:35 PM Re: Originating ACH Debits YoungAndEager
Nick Grant Offline
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Joined: Sep 2005
Posts: 108
That is correct

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#1228443 - 08/06/09 05:42 PM Re: Originating ACH Debits Nick Grant
rlcarey Online
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rlcarey
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Galveston, TX
Most banks will verify that the applicant has access to the accounts being debited. No transactions are allowed until that is verified. Typically, the bank deposits a small amount (<$1.00) into the target account and requires the applicant to verify the amount deposited before activiting the account for ACH access. If you are not doing something similar, you are at risk for returns for unauthorized debits and your applicant is going to be long gone.
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