Under what rule or regulation may an originator of ACH reverse the direct deposit? How much time do they have to accomplish this? Thanks!

NACHA rules (Section 2.4 of NACHA Operating Rules) include provisions for reversing erroneous or duplicated entries under limited circumstances. The rules call for delivery of the reversal entries file within 5 banking days of the settlement date for the entries to be reversed.

There are also provisions for reclamation of certain benefit payments in OR 2.6 (these usually apply when the Receiver of the entry is deceased and the payment was therefore incorrectly sent).

Finally, there are the Federal Government's rules on reclamations, which deal with ACH payments from the U.S. Treasury.

Thank you so much for your help!