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aprtments.com had to do the paperwork to establish ability to initiate ACH (most likely, they hired some third-party to make the actual ACH for them). That's wh
by smsm42 4y ago
aprtments.com had to do the paperwork to establish ability to initiate ACH (most likely, they hired some third-party to make the actual ACH for them). That's where it gets checked. If the provider screws up, and passes bad ACH, they'd likely to lose substantial money, and maybe the whole business if they get cut off. So the provider will likely verify what apartments.com is a legit business with legit people behind it, and will eagerly cooperate with law enforcement if anything shady happens. In turn, aparments.com probably has some protocol to verify the numbers you put in actually yours. Because if they screw up on this, they are left holding the bag for the stolen money and likely lose access to ACH themselves, which would hurt their business.
- mousetree 4y ago> they are left holding the bag for the stolen money and likely lose access to ACH themselves, which would hurt their business. This is the key part. If they're originating the ACH (i.e. pulling funds from your account) and a return is issued then apartments.com are liable for sending those funds back.
- adrr 4y agoApartments partners with a bank. Bank creates files every night following the standards and rules of NACHA. They submit those files which are processed. ACH is bank to bank. You can’t access the network if you aren’t a bank. End of the day it is moving at the fed level since every bank has an account with the fed. Banks enforce the rule because they are on the hook on claw backs.