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3. ACH transfers

ACH returns and exception handling

When an ACH return is received, the associated payment is automatically reversed by our financial institution partners. Moov automatically processes ACH returns and uses an account’s moov-wallet to represent the effects of the funds reversal. Moov treats returns differently depending on the timing and the payment use case.

Receiving an ACH return will update the overall transfer status to:

• failed: transfer returned/failed during clearing period or before funds movement
• reversed: transfer returned/failed after clearing period or marked completed

Scenarios

The following sections describe various return and exception handling scenarios.

Debit return received during clearing period

This is an example where the source achDetails status is originated .

• If the source payment method type = ach-debit-fund:
  • The transfer status will update to failed, with no effect to moov-wallet balances
• If the source payment method type = ach-debit-collect:
  • The transfer status will update to failed, with no effect to moov-wallet balances

Debit return received after clearing period

This is an example where the source achDetails status is completed.

• If the source payment method type = ach-debit-fund:
  • The transfer status will update to reversed
  • The transfer amount will be deducted from the sourcemoov-wallet balance
• If the source payment method type = ach-debit-collect:
  • The transfer status will update to reversed
  • The transfer amount will be deducted from the destination moov-wallet balance

Credit returned or failed

This is an example where the source achDetails status is completed and the destination’s achDetails status is completed.

• If the source payment method type = ach-debit-fund:
  • The transfer status will update to reversed
  • The transfer amount will be credited to the source moov-wallet balance
• If source payment method type = ach-debit-collect:
  • The transfer status will update to reversed
  • The transfer amount credited to the destination moov-wallet balance