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USING ACH REVERSAL

TREASURY MANAGEMENT

PINACLE®

ACH Reversal Tip Card

The ACH module has ACH Reversal capability built into the ACH Batches page. If your Operator ID is entitled to view and create batches, your Operator ID has the ability to create reversals. With this feature you can create one or more reversal entries or ACH reversal batches from batches with a status of Processed.

When you initiate a reversal entry, it is a new ACH entry that is originated and is the opposite of the original entry. If the original entry was an ACH credit, a reversal debit entry is initiated. If the original entry was an ACH debit, a reversal credit entry is initiated. Likewise, when initiating a reversal of an entire ACH batch previously processed, the reversal batch is a new batch containing the opposite type of entries.

Reversal entries and reversal batches, when created by the ACH reversal feature, will always contain the required batch entry description of REVERSAL in the batch header.

This Tip Card will assist you with:

> Important ACH Information

> Reversing an ACH Batch

> Reversing One or More ACH Transactions

WHEN SHOULD YOU CONSIDER CREATING A REVERSAL?

The ACH Rules allow ACH originators to initiate a separate new entry to correct an erroneous transaction previously initiated to a receiver’s account.

An erroneous entry can be any of the following: > A duplicate of an entry previously initiated.

> An entry for a receiver different than the receiver intended to be credited or debited.

> An entry not intended to be credited or debited to the designated receiver.

> When the originating company intended the original entry to be for a different dollar amount.

Reversals are also permitted when a PPD (pre-authorized payment and deposit) credit entry satisfies each of the following criteria:

> The PPD credit entry is for funds related to a receiver’s employment;

> The value of the PPD credit entry is fully included in the amount of a check delivered to the same receiver at or prior to the receiver’s separation from employment; and

> The PPD credit entry was transmitted by the originating company prior to the delivery of the check to the receiver.

©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC and PINACLE are registered marks of The PNC Financial Services Group, Inc (“PNC”).

IMPORTANT ACH INFORMATION - BE COMPLIANT WITH THE ACH RULES

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Also, the ACH Rule book states that you must make a reasonable attempt to notify the receiver of the reversal entry or the receivers in a reversed batch as well as the reason for the reversal no later than the settlement date of the reversal(s).

The ACH module allows you to reverse erroneous or duplicate entries/batches when the processed batches were effective dated within the previous 5 banking days. The ACH Rules will not allow you to reverse entries/batches if more than 5 banking days have gone by since the original settlement date.

If the effective date of your original processed entry or batch is beyond the 5 banking days, your authorized ACH Company contact may contact PNC about requesting an ACH recall. Not all receiving banks honor ACH recalls and there is no guarantee that funds will be returned. For recall assistance, call:

> ACH Product Client Services at 1-877-824-5001 Select Option #1 then Option #3

BEFORE REVERSING, IF ‘PROCESSED’ TODAY, CALL ACH OPERATIONS TO DELETE

Most ACH originating companies prefer that the original entry not be sent out in to the ACH network if it was erroneous. If your erroneous ACH entry or ACH batch was put in a ‘Processed’ status today or you have future dated the entries more than 3 days in the future, those entries may be eligible to be deleted by calling PNC. In other words, if you or your operator have authorized the batch or batches in the ACH module, the PNC ACH processing system may still have the original entry and/or batch. If PNC has not released them yet into the ACH network, you may be able to have those entries deleted by PNC ACH Operations.

To request an ACH deletion of an entry or batch, your authorized ACH maintenance contact may call:

> PNC ACH Operations at 1-877-824-5001 Select Option #1 then Option #2

An ACH deletion or an ACH change of an amount is also referenced as “ACH Maintenance”.

A REVERSAL DOES NOT GUARANTEE THAT FUNDS ARE RETURNED

There is no reconciliation or matching by the receiving financial institution of the original entry and the subsequent reversal entry. Keep in mind a reversal entry is not final and can be returned by the receiving financial institution.

REVERSALS AND YOUR COMPANY’S ACH PROCESSING LIMITS

ACH reversal entries or ACH reversal batches released to the PNC ACH processing platform go through ACH risk checking. The PNC ACH risk checking uses the ACH limits established at the time of your implementation and those are reviewed from time to time by your Sales Associate or Treasury Management Officer. If you originate ACH credits, have an ACH credit limit, and have the need to originate ACH debit reversals on a frequent basis, you will want to ask your Sales Associate or Treasury Management Officer to establish a nominal ACH debit limit for that purpose. If you are setup for prefunding or Credit Express for ACH credit origination and utilize the PNC ACH module to originate an ACH debit reversal entry or batch reversal containing ACH debits, a request will be sent internally to your Sales Associate or Treasury Management Officer for approval.

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REVERSING AN ACH BATCH

If you need to reverse an ACH batch, you must access the Batch List page and create the reversal using the Reverse Batch button. If the original ACH entries in the batch were credits, then PINACLE will create debits (or if the batch entries are debits, credits will be created) and the Company Entry Description field will display REVERSAL. The total credit and total debit dollar amounts will be recalculated. The reversal batch will appear with a status of Pending Authorization. The reversal batch must then be authorized for processing.

Some batch types, such as Tax Payments and ACH Bulk Load, cannot be reversed using the Reverse Batch feature. Click on Help on the ACH Batch page for a list of batch types that cannot be reversed.

1 Log in to PINACLE. See the Logging in to PINACLE Tip Card for assistance.

2 From the Tabbed Modules Bar, click on ACH. The ACH Home page displays.

3 From the Navigation Bar, click on Batches. The Batches page displays with a list of batches.

Use the View advanced search options link to enter search criteria and limit the items that display in the list. See the ACH Batch Management Tip Card for additional information.

4 Click on the Batch ID link of the batch you want to reverse and the View Batch Details page displays for that batch.

You can only reverse batches with the status of Processed within the 5 day limit.

Reverse Batch

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5 Click on Reverse Batch and the Create Reversal Batch page displays.

If the Reverse button does not appear in the ACH module then you have not been assigned the reversal function.

6 Type the Effective Date in the format MM/DD/YYYY.

7 Click on Submit and a message displays requesting confirmation of the reversal.

If you try to reverse a batch beyond the 5 banking days, then a warning message displays indicating the reversal is not able to be completed.

8 Click on Submit. You are returned to the Batch Details page with a message at the top indicating the batch was reversed.

9 Continue using the features of PINACLE by selecting another module or utility.

or

Log out. See the Logging in to PINACLE Tip Card for assistance.

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If you need to reverse one or more individual ACH transactions, the steps are generally the same as for reversing an entire batch, but instead of reversing the entire batch, you will select the specific transactions.

1 Log in to PINACLE. See the Logging in to PINACLE Tip Card for assistance.

2 From the Tabbed Modules Bar, click on ACH. The ACH Home page displays.

3 From the Navigation Bar, click on Batches. The Batches page displays with a list of batches.

4 Click on the Batch ID link of the batch that contains the transactions you want to reverse and the View Batch Details page displays for that batch.

You can only reverse transactions in batches with the status of Processed.

REVERSING ONE OR MORE ACH TRANSACTIONS

Reverse Batch Transactions

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5 Click on Reverse Batch Transactions and the Create Reversal Batch page displays.

6 Type the Effective Date in the format MM/DD/YYYY.

7 Click to select the checkbox(es) next to the transaction(s) to be reversed.

8 Click on Submit and a message displays requesting confirmation of the reversal.

If you try to reverse transactions beyond the 5 banking days, a warning message displays indicating the reversal is not able to be completed.

9 Click on Submit. You are returned to the Batch Details page with a message at the top indicating the selected transactions were reversed.

Checkboxes for each Transaction

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TREASURY MANAGEMENT

For further assistance, click on Contact Us on the PINACLE Utility Bar.

10 Continue using the features of PINACLE by selecting another module or utility.

or

Log out. See the Logging in to PINACLE Tip Card for assistance.

©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC and PINACLE are registered marks of The PNC Financial Services Group, Inc (“PNC”).