Recent trends in the world of finance have seen an increased usage of ACH payments. These types of payments are on the rise because of their simplicity and ease of use, by both consumers and businesses. They're also cheaper than wire transfers and relatively quick, processing within 2 to 3 business days. But what happens if an ACH payment must be reversed? These four tips can help make your life a little easier.
1. When initiating an ACH payment or requesting a reversal, be sure to have the ABA number (also called the bank routing number) on hand in addition to the account number. The routing number helps identify your bank to other institutions.
2. If you're paying bills via ACH payment, you will usually be able to cancel the payment within a 24 hour window. If the ACH was initiated via online banking, you'll be able to sign into your bank account and reschedule the payment for a later date, avoiding the need for a reversal.
3. If it's been longer than a day, speak directly to your bank about the requirements needed to reverse the ACH payment. You'll usually have a form to fill out in order to get the ball rolling. It's helpful to have the bank account number and bank routing number on hand when requesting the reversal. Your bank may charge a nominal fee for this service, so check the fee schedule first. Time wise, you may have to wait anywhere from a few days to over a week for the funds to be back in your bank account.
4. If you receive a direct-deposit payment each month and need the payment to go into another account, contact the company that initiates the deposit as soon as possible. Give them your new banking account details, including the bank routing number, and ask them to delete your old account information. A bank switch of this type can take anywhere from 2 weeks to a month to fully complete, so be sure not to close any accounts until the process is completed.