What happens if you ACH to an account that is closed?

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Jags4186
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What happens if you ACH to an account that is closed?

Post by Jags4186 » Tue Nov 14, 2017 7:41 am

So long story short, I sent $1500 from institution A to institution B. Instituation B closed the receiving account the same day the transfer was initiated. It is 7 days later and institution A transfer page shows the money was “delivered”. I received a cashiers check from Institution B for the remaining balance in the account, which did not include the $1500.

How would you proceed?

Grt2bOutdoors
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Re: What happens if you ACH to an account that is closed?

Post by Grt2bOutdoors » Tue Nov 14, 2017 8:23 am

Ask Institution A to inquire with Institution B where the funds are. Have Institution A provide you with the transmittal number showing the funds were sent to Institution B. Use that information to have Institution B investigate your claim of the monies.
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BolderBoy
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Re: What happens if you ACH to an account that is closed?

Post by BolderBoy » Tue Nov 14, 2017 9:52 am

Jags4186 wrote:
Tue Nov 14, 2017 7:41 am
So long story short, I sent $1500 from institution A to institution B. Instituation B closed the receiving account the same day the transfer was initiated. It is 7 days later and institution A transfer page shows the money was “delivered”. I received a cashiers check from Institution B for the remaining balance in the account, which did not include the $1500.

How would you proceed?
This is very common when dealing with the death of a person. The ACH transfer simply does not go through and the funds remain with (or are bounced back to) the sending entity.

In your case, call institution A and ask how to proceed, again.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

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dm200
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Re: What happens if you ACH to an account that is closed?

Post by dm200 » Tue Nov 14, 2017 9:56 am

Jags4186 wrote:
Tue Nov 14, 2017 7:41 am
So long story short, I sent $1500 from institution A to institution B. Instituation B closed the receiving account the same day the transfer was initiated. It is 7 days later and institution A transfer page shows the money was “delivered”. I received a cashiers check from Institution B for the remaining balance in the account, which did not include the $1500.
How would you proceed?
There are several possibiliies. One is that the money is sitting in some kind of "suspense" account at Institution B awaiting reconciliation or return to Institution A. I might contact Institution B and see if they still have it. Sometimes, in such situations, Institution B would just mail the check for the amount - and they migh wait a few days to make sure the ACH is not pulled back.

Jags4186
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Re: What happens if you ACH to an account that is closed?

Post by Jags4186 » Tue Nov 14, 2017 4:03 pm

Should have waited 1 more day to asked about this! Received an e-mail from Institution A today saying the transaction was rejected and the $1500 is back in the original account.

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dm200
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Re: What happens if you ACH to an account that is closed?

Post by dm200 » Tue Nov 14, 2017 4:08 pm

Jags4186 wrote:
Tue Nov 14, 2017 4:03 pm
Should have waited 1 more day to asked about this! Received an e-mail from Institution A today saying the transaction was rejected and the $1500 is back in the original account.
While such postings to existing accounts are very automated, when there are rejections - I suspect there is a manual process to review these. That may account for the apparent delay of a few days.

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