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Mismatched ACH Entries w/ Multiple Accounts

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Question: 
In regards to ACH credit entries, is it okay to place a client's credit into a holding account if the original account was closed but the client also has other active and open accounts?
Answer: 

If and only if your bank has confirmed that the ACH entry belongs to the customer with the other accounts. In other words, check to ensure that the John Smith in the entry is the same John Smith who has other accounts with the bank. Don't leave the funds in the suspense account any longer than necessary; post them to the Receiver's accounts as soon as you've checked on account ownership.

Of course, you also need to correct subsequent entries that may be sent. Confirm with your customer the account that should receive the entries, then attack the problem on two fronts: Ask the customer to arrange for the account number to be corrected, suggesting that it's not always possible to catch entries with bad account numbers before they are returned to the Originator; and submit an NOC entry back, too.

First published on BankersOnline.com 1/21/13.

First published on 01/21/2013

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