Reversals

Reversals may only be made for the following reasons:

• Incorrect dollar amount
• Incorrect account number
• Duplicate transaction
• Wrong Date error - if a debit was earlier or credit was later than intended

When initiating a reversal, the reversing entry must be for the full amount, must be reinitiated within five (5) banking days following the original settlement date, and must be sent within 24 hours of discovering the error.

The Receiving Bank is under no obligation to post the reversing debit if it overdraws the payee’s account, or if the payee’s account is closed.

A payee must be notified if a reversing entry debits their account.  However, a payee does not need to authorize the reversing debit.