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As Federal Checks Disappear, Banks Face Surge in ACH Payments and Rising Fraud Risks

Finextra

These institutions will be required to expedite the return of certain fraudulent or unauthorized ACH credits and may be held liable for refunds to originating banks (ODFIs). Phishing and social engineering scams targeting consumers will also become more prevalent, further complicating the landscape.

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ACH Reversals vs. ACH Returns: What’s the Difference?

EBizCharge

When this happens, the Receiving Depository Financial Institution (RDFI) automatically initiates a return of the funds to the Originating Depository Financial Institution (ODFI). An ACH return must go through a series of steps to return the funds to the ODFI once it meets the criteria for a return. How do ACH returns work?

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