Essential Tips for Successful ACH Transfers

Thank you for choosing First Federal Savings Bank. Similar to bounced checks, there are fees and risks involved in ACH returns. Below, we’ve outlined common mistakes you should try to avoid during your ACH transfers.

1. Sending a Prenote without waiting three banking days. Pre-notes are optional. If sent, the pre-note must precede the first live entry by at least three banking days.
2. Not resolving a returned item before sending another payment. If a payment is returned, find out the reason using the return code. Work with the receiver or their bank to fix the issue before sending another payment.
3. Not acting on a Notification of Change promptly. If you receive a Notification of Change, make the required changes within six banking days or before initiating another payment to the receiver, whichever is later.
4. Submitting a Reversal after the deadline or for non-approved reasons. Reversals must be submitted within five banking days after the settlement date of the mistaken payment. Approved reasons for a reversal include duplicate entry, incorrect receiver, incorrect amount, certain PPD credits related to employment termination, or payment on an unintended date.

If you have questions about the ACH Rules or your capabilities in Bizlink, please contact our Treasury Sales Department at (812) 492-8124 or eBanking Department at (812) 492-8123