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Deposit with an Invalid Account Number

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Can an institution accept a deposit by matching a name or social security number if the account number is invalid?

Assuming that the question is about an ACH credit (sometimes called a “direct deposit”), the Receiving Depository Financial Institution (RDFI) can post a transaction based on the account number in the ACH transaction record. If that account number is not valid, the RDFI must post it manually, post it manually and send a Notification of Correction entry (NOC) to the Orignator, or timely return it. Posting the credit manually based on a name or social security number in the transaction record may be a reasonable choice, particularly if the account number is found to be a transposition or off by one digit. If that's not the case, and the institution cannot reach the Receiver to obtain the correct account number, returning the entry may be the only reasonable option.

First published on 5/2/11

First published on 05/02/2011

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