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How exactly does ACH withdrawal from pooled USD account work?


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Oct 16, 2020
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I was wondering how an ACH withdrawal works, specifically a withdrawal from an EMI that uses a pooled account to receive/send USD.

Specifically: if I make an ACH withdrawal from this EMI to my bank, what information will the latter receive?

Since the sender’s account is not personally in my name but is indeed a pooled account, will my withdrawal be considered a third-party deposit? Or can the EMI “declare” that the withdrawal was made under my name?
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Reactions: mraleph
It might be processed as an OBO (On Behalf Of) or FBO (For Benefit Of) payment, in which case your personal details may appear in some field in the transaction, such as in the Recipient Message field. So the receiver would get an incoming ACH where the sender is the EMI and the message field says "OBO /Your Name/"
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Reactions: jafo and Forester
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Reactions: ilke
A few years ago the big banks didn't care if the receivers name on the ACH transfer didn't match the account name, not sure if this is still the same today. Maybe it could trigger a review if you received many transfer to different name, but I received transfers sent to a company name in my personal account for many years with no questions asked. The sender name obviously doesn't matter on a regular bank account, as anyone can send you money, however some non bank accounts might have no 3rd party transfer requirements.

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