Use ACH Credit/Incoming Wire if Memo Posted?

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Question:

Can a customer use an ACH credit or incoming wire that has been memo posted to his account? By memo post, I mean it shows as a pending transaction.

Answer:

From an operational perspective, the answer depends on the capabilities of your processing system. From a legal perspective, NACHA rules require that you make most such payments available to your depositor once you have received settlement for the transaction and the data necessary to post it. That typically means the funds must be available at the opening of business on the Settlement Date of the credit entry.

Wire transfers for credit to a beneficiary's account are typically made available for withdrawal once the covering funds have been unprovisionally received by the beneficiary's bank and the bank has the payment instructions and advised the beneficiary of the receipt of the funds.

First published on BankersOnline.com 4/1/13