How exactly does ACH withdrawal from pooled USD account work?

[RobertNozick]

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?

 

[Martin Everson]

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

RobertNozick said:
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?
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Yes.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Sols]

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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This is the probably the answer to your question.

 

[daniels27]

Depending on the EMI, it may just show the name of the EMI. For example those based on Currency Cloud will just show up as "Currency Cloud"

Chase recently asked me if I work for Currency Cloud... hahaha.

 

[Forester]

daniels27 said:
Depending on the EMI, it may just show the name of the EMI.
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Yes, exactly.

daniels27 said:
For example those based on Currency Cloud will just show up as "Currency Cloud"
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Or e.g. those using CFSB show not CFSB but just the name of the EMI (as per my experience).

daniels27 said:
Chase recently asked me if I work for Currency Cloud... hahaha.
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?? I somehow don't get this (but it's OT, apparently)...

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[Xshore]

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.