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ACH Reversals

Question: 
One of our customers had an account takeover. We called the RDFIs and sent reversals, but we got them all back unpaid. What happened?
Answer: 

Reversals commonly fail in cases of fraud. Sometimes RDFIs place a hold on the funds, and when your reversal attempts to post, it automatically rejects (because there is a hold on the account). The other problem is that reversals take too long and some institutions don’t want to run the risk of Reg CC violations so they release the funds before the reversal gets there. Regardless of the reason, reversals just aren’t that effective in recovering fraud losses. There is a much better, faster option that few banks know about.
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Learn more about Rayleen Pirnie’s webinar
ACH Basics: Part 3

First published on 04/23/2017

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