We’re rewarding the question askers & reputations are being recalculated! Read more.

Hot answers tagged

22

I got to work on overdraft class action suits with many of the largest banks in the US. Every bank we analyzed data for batch processed transactions at the end of the night, and posted credits first, then debits from high to low, with some having sub-categories for debits, ie ACH/POS/ATM/Checks where Checks often get processed first among the debits. Your ...


7

Even if your bank posts credits first, if they post debits by largest first, think about what that can do to you. Let's say your rent payment at the end of the day overdrafts your account by $100. And let's say that on the same day you made six small $5 - $10 purchases. Instead of one overdraft (which you might have calculated and accepted as the cost of ...


6

Before pay day there is close to $0 in my checking account, as most of it is transferred to savings Right, so you could maintain a days buffer since you're clearly debt free, as indicated by your decision to put it into savings ... but wait: Usually in the run up to payday, I take a look at my three credit card accounts and decide how much of each credit ...


6

As Nathan has correctly noted, ACH processes transactions in daily batches. The reason for that is accounting - the money doesn't actually change hands for each transaction. All the transactions are aggregated and calculated in the batch process, and the money only changes hands for the difference. Consider this: 25 clients from bank A send each $50 to ...


6

OK, I just called BoA; apparently the payment was a refund from an office space company called Regus, where I had an office in my company's name before. It seems this was refund of my security deposit. I feel much better now since this seems to be a legitimate transaction. Thanks for your responses


6

Note that the following answer covers all types of ACH and the full gamut of clearing not just the US ACH. remember that ACHs exist for commodities, shares, bonds, derivatives etc. as well as plain cash. An ACH does things that banks don't and banks don't do what ACH does; communicate. ACH nets and clears assets between financial institutions without being ...


5

I had a similar situation a while ago, and here's what I learned: What are our options here to ensure that this company can't retry to take our money again via ACH? Close existing account and create a new one that has different account number? Yes. As a temporary solution keep ~$0 balance in the account so that their request for $840 can't be ...


5

ACH - the Automated Clearinghouse - is essentially an electronic network that was originally designed to provide a fully digital alternative to the process of clearing paper checks. As such, the overall process flow is very similar to how checks are processed. Essentially, the process relies on a network of clearinghouses that act as transmitters between ...


4

Call Wells Fargo or go to a branch. Tell them what you're trying to accomplish, not the vehicle you think you should use to get there. Don't tell them you want to ACH DEBIT from YOUR ACCOUNT of YOUR MONEY. Tell them you apparently need a paperless transaction sent to this and that account at this and that bank. See if they offer a solution.


4

The transaction is denied by B. If bank B has a transfer limit set, you bet that there is a nice reason for that. Either risk of fraud, liability, client preferences, profiling, credit scoring, etc, etc. For a bank, the cost of denying something [1] is way lower than the potential damages and liabilities of allowing something to go through. Regarding ...


4

My bank recently began to implement a service known as Zelle. If the sender of the money has a bank on the Zelle client list, it can be used to transfer funds at no cost to other parties, based on an email address or telephone number. I've recently performed a transfer of a substantial amount to a friend and had no charges or fees added. The web site says ...


3

You'd have to check the terms of your account, but every checking account I've ever had reconciles at the end of each day, meaning so long as your deposit comes in the same day to cover the shortfall you won't get charged an overdraft. I suppose it's possible for banks to detect intra-day overdrafts but given the variety of ways money can move in or out ...


3

Unfortunately there is no universal answer to this question. Each mortgage servicing company will handle it differently according to their own policies. The best way to handle this problem is to talk to your mortgage servicing company and specify that you want all of your over-payments to be applied to principle (assuming that is indeed what you want). Most ...


3

I usually schedule my automatic payments a week before the due date so if something goes wrong, there's a week to recover. By the same logic, I would prefer that the deposit be in the account for at least a week before it gets spent. I'm less worried that the bank will post debits before credits on the same day and more worried that a credit won't post ...


3

The direct debit is an authority to withdraw money from your account. Depending on how it was set up it may limit how much may be withdrawn, how often and for how long. I haven't seen a direct debit agreement that limits the total that may be withdrawn, but they may exist. A reputable creditor will stop taking your money when they're supposed to, which ...


3

Yes, kinda. Talk to local banks about a business account, and tell them you want to enable certain employees to make deposits but not withdrawals. They don't need to know you're all the same person. For instance I have a PayPal account for business. These allow you to create "sub accounts" for your employees with a variety of access privileges. Of ...


3

It depends on the bank and network. Banks are to provide outgoing data at the certain time for the processing by the central clearing house (the Federal Reserve system, for ACH), which then distributes incoming data back to the banks. All this has to be done between the closing of the business day and the opening of the next one. If the transaction hasn't ...


3

Yes, many banks offer such a service. Often such payments can be made through their "bill pay" interface. You log in to your account on the bank's website, enter the recipient's routing and account numbers, and off you go. You could ask your bank whether they offer this. If not, you could change banks to one that does.


3

This would be exactly the sort of product that a thief would want, if they had got ahold of some account numbers and wanted to steal the money from those accounts, in a way that would let them spend it as conveniently as possible. That should explain why I think it's unlikely that any such product exists.


3

DO report scams to authorities. Both your bank and the police... let them contact the other bank. DO NOT try to take vigilante action such as starting a new transaction to take money from the other account (cancelling or reversing the transfer is ok, if your bank gives you the opportunity) Be aware that there is a high probability that the account ...


3

If you filed your forms by the deadline, and provided them an instrument for paying what was due; then you are fine. In the days when you sent in these forms by mail, the only requirement was that it had to be postmarked by the due date. The tax agency could take days or weeks to cash that check. It was completely out of your control. The same is true ...


3

You can get the file format specifications and most of the documentation related to ACH by googling, if you're actually interested in the fine details. The standards are probably a little looser than most people would assume, in order to allow flexibility. This basically forces financial institutions to make decisions based on their own risk tolerance or ...


2

The financial services industry, and specifically retail banking, has not always been on the bleeding edge of technological innovation. It usually isn't, and that can be a good thing insofar as avoiding disasters, but your general sentiment is shared by many people. Google "payment startups". Despite all this, the current system works well. Software had ...


2

Automated Clearing House transactions are used in the US for direct deposit of pay checks and direct debit of many payments for accounts such as mortgages, credit cards, car loans, insurance premiums, etc. The reason they take one or more business days to clear is that the transactions are accumulated by each processor in the network during the day and ...


2

Each bank is different, so your question needs to be more specific. For instance, I believe Paypal and Chase settles at 7pm EST on business days. Bank of America at 5PM.


2

Assuming that the $500 is a monthly limit, yes I would say that is a low number. Even if it were a daily limit, I would still say it is low. Most financial institutions have a daily and monthly ACH limit to help control fraud and reduce money movement in and out of the institution. Often the limits will be increased after you have been in the financial ...


2

ACH as offered in US is a very broad and versatile network used for a range of business case. There is no other network as versatile. In Europe UK has BACS as equivalent about 50-70% of what US-ACH offers. Most European countries also have ACH [Collectively Called ACH, have 90% of the layouts that are identical, called by different names domestically, ...


2

it's so much easier to stop payments then have to go asking for your money after a bank has taken it. I have had monthly homeowners payments taken after I sold a property. Took a lot of effort to get my money back. Wish I had taken a few minutes to stop the payments earlier.


2

You appear to want to perform a group of bank transfers every pay period. Check with your employer. As the years have gone on the ability to handle more exotic direct deposits has grown. My current employer allow me to name three "banks" to split the paycheck. Those banks can be bank, credit unions, or brokerages. The split can be by amount, or by ...


Only top voted, non community-wiki answers of a minimum length are eligible