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Is that really the case? If I have made an ACH payment to a company they then have a unilateral right to withdraw funds from my account? A valid authorization i
by smarri 7y ago
Is that really the case? If I have made an ACH payment to a company they then have a unilateral right to withdraw funds from my account? A valid authorization is required for this to happen. [Edit] Plus there is recourse via disputing an unauthorized transaction, the process is well established.
- vxNsr 7y agoACH is a two-way street. when you give your routing and accounting number to your employer for direct deposit they can pull money out of your account. There have been multiple public instances of this happening due to bugs or bad software. The most recent case involved an HR startup whose founder embezzled his company's funds and thus the banks pulled back the money from the client's employee accounts. My employer's bank recently mistakenly did the DD 3 times and pulled back two of them. ACH doesn't come with two-factor auth or any sort of real safeguards, I would be very careful who I give access to.
- smarri 7y agoInteresting I wasn't aware of these cases. Thanks