Transfers with name/number mismatches

Answered by:

Question:

If we receive an ACH credit to a business account at our bank and we are not aware that the account number in the transaction record isn’t owned by the named receiver, will we be liable if we credit the funds to the account number identified in the order?

Answer:

Generally no. UCC4A and Nacha rules both allow your bank to rely on the account number in the ACH transaction. But that isn’t the case when the RDFI or beneficiary’s bank is aware of the name/account number mismatch.

-----------------------------

Learn more about Rayleen Pirnie’s webinar Merging ACH and UCC4A