What is the timeframe for response to a Notice of Reclamation?

The timeframe for response to a Notice of Reclamation is 60 days. This is significant because in the context of ACH transactions, a Notice of Reclamation is a notification sent to request the return of funds due to various reasons such as fraudulent transactions or adjustments to a payment. The 60-day timeframe stipulates that the receiving financial institution or organization must respond to the notice within this period to allow for proper handling of the reclamation while aligning with the regulatory requirements. This ensures both parties have a clear and enforced time limit for addressing the issues surrounding the reclamation, facilitating efficient resolutions and compliance with standards established by the National Automated Clearing House Association (NACHA).

Understanding this timeline is crucial for financial institutions participating in the ACH network as it directly impacts cash flow and operational procedures surrounding transaction reversals or disputes.