What is an 'On-Us' ACH Transaction?

Question

Why is there no Trace ID or Fed Report available for this ACH transaction?

Answer

Generally, most ACH transactions are batched out and processed through the Federal Reserve, producing a Trace ID and Fed Reports. However, ‘On-Us’ ACH entries are scenarios where both the account being debited (sender’s account) and the account being credited (beneficiary’s account) are identified as being with the same partner bank that is working with Synapse.

Because both the beneficiary account and originating account share the same bank that partners with Synapse, a direct exchange occurs between the two accounts. In this scenario, the on-us ACH transaction is not delivered to the Federal Reserve. As a result, 'On-Us' ACH transactions will not generate a Production Trace Number or Fed Reports.

Any LOI (Letter of Indemnity) request made for this type of transaction will be keyed in by our partner bank as an ACH Reversal.