ACH Sent to Wrong Account
Answer by John Burnett, BOL Guru Guru Bio
Question: We are an ODFI and sent an ACH to an incorrect account, however, the account number was valid. I would like to know what the obligations of the bank that received the ACH are. The account to which the money was applied has withdrawn the funds. The receiving bank is saying they can't/don’t have to do anything.
Answer: The receiving bank (the RDFI) is correct. NACHA rules, specifically 4.1.4, permit an RDFI to rely on the account number in an entry for posting it, even if the name in the entry does not match the name on the RDFI's account record.
If you had notified the RDFI before the funds had been withdrawn, you might have an argument, and the RDFI could have agreed to return the funds to you.
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