If you’ve transferred large sums of money to a vendor or supplier, you’ve likely felt that anxiety of wondering where that money is and when it will land.
While sending electronic payments is safe and secure, there’s still the uncertainty of watching the money leave the account and hoping it ends up in the right place and on time.
But this doesn’t need to weigh you down. There are options available to you to find, track, and monitor ACH payments. Whether you’re trying to figure out where a payment came from, where it’s going, or why it got rerouted, an ACH trace number can help you find the answer.
Understanding ACH transactions
ACH transactions (or ACH payments) are a secure way of sending money using the Automated Clearing House (ACH) network. This network connects bank accounts for both businesses and individuals across the United States, processing transactions in batches and “clearing house” at set times during business days.
ACH transactions come in two forms: ACH credits and ACH debits.
ACH credits are initiated by the sender, “pushing” the funds from the origin account to the destination. ACH debits are initiated by the receiver, “pulling” funds from the origin account.
All of these requests are submitted to the ACH network, where they’re batched and processed, typically in two to three business days.
Because ACH transactions have a processing window, it’s important to know how to track them to ensure the payment is on the way to its destination.
What is an ACH trace number?
An ACH trace number is a unique 15-digit identifier that is given to every ACH transaction. This number is similar to a tracking number for a package: it’s an identifier that helps you track where the ACH transfer is in the process.
If a payment is delayed, returned, or disputed, the trace number is the best way to find the transaction and investigate what happened.
Trace numbers are assigned by the Originating Depository Financial Institution (ODFI). This is the bank or financial institution that initiates the ACH transaction.
Once assigned, the trace number is the same throughout the entire process. No matter what happens or where the ACH transaction is in the process, you can use the trace number to get a status update.
Components of an ACH trace number
ACH trace numbers are 15 digits long, broken up into two parts.
The first eight digits are the ABA routing transit number of the ODFI. This tells you which financial institution initiated the transaction.
The last seven digits are the sequence number. The sequence number is a unique sequence assigned by the originating bank, distinguishing the transaction from all others coming from that same institution.
Together, you get a 15-digit trace number that is unique to that specific ACH transaction, separating it from all other transactions in the ACH network.
How to track an ACH transfer
The process of tracking an ACH transfer with an ACH trace number is straightforward, though it requires some coordination with different parties.
- Contact your financial institution: Get in contact with your bank’s customer service with your trace number.
- Provide your transaction information: Give the 15-digit trace number as well as any supporting information you have, like the transaction date, amount, and the destination of the transfer.
- Get a status update: With the trace number, the bank should be able to find the transaction in the ACH network and provide a status update.
- Request any additional details: If the transaction was delayed, rejected, or rerouted, there will be a reason code that the bank can decipher. With this information, they can provide you with suggestions on what to do next.
- Choose your next steps: For delayed or rejected payment options, the bank should provide you with processing times and give an estimate of when the transaction will be completed. If the transfer is urgent, you may need to explore alternative payment options.
- Follow up if needed: If your bank can’t locate the transaction at the moment, they can escalate the inquiry to the ODFI or the ACH operator. This is a rare occurrence, mostly resulting from delayed or returned payments.
While there aren’t any self-service options, your bank will be able to help you find where your ACH transfer is and help you understand when it should clear.
Where to find an ACH trace number?
ACH trace numbers can be found in a few different places, depending on whether you’re the sender or the receiver of the payment.
- Bank statements: Most banks show the ACH trace numbers in the transaction details of your bank statements or online transaction history. It may be called the “trace number,” “transaction ID,” or “reference number.”
- ACH payment notifications: Some banks or payment platforms send emails or notifications for ACH activity, including the trace number to identify the transaction.
- Payment platforms: Business payment platforms that offer ACH transfers typically provide the ACH trace number in the transaction details or payment history.
- Remittance or payment confirmations: Some businesses include the trace number in their payment confirmations or remittance documentation.
If you can’t locate a trace number, your bank or financial institution may be able to help you locate it based on the payment date, amount, and the account involved.
Why would you need to track an ACH transaction?
Most ACH payments go through seamlessly. But there are some situations where you may need an ACH trace number to find out where a payment is.
- A payment hasn’t arrived: If a payment hasn’t arrived or hasn’t been pulled from the account, a trace number helps you determine whether the funds are in transit or if something has gone wrong in the process.
- A payment was returned: ACH returns could happen due to insufficient funds, closed accounts, or incorrect transfer details. Using the trace number, your financial institution can help you find out what happened and help you resolve the problem.
- An unfamiliar charge or deposit is in your account: If there’s an ACH debit or credit in your account that you don’t recognize, the ACH trace number helps you determine where it came from and whether it was authorized.
- You’re resolving a payment dispute: If there’s a billing dispute with a vendor or customer, the trace number verifies that the payment was processed and why it may not have arrived yet.
- Auditing and reconciliation: Trace numbers are valuable for bookkeeping and finance teams to match transactions in your accounting systems to specific ACH entries in the bank account.
How to find out where an ACH payment came from
If an unexpected ACH transfer has entered your account, you have a few options to find out where it came from.
Start by checking the transaction details in your online banking portal. The ACH entry typically includes a company name or ID field (often called an “originator name”) that identifies the business or entity that initiated the payment. This may give you the answer you need without any additional digging.
If that name is unfamiliar, take the trace number to your bank. The bank can use the first eight digits of the trace number to identify the originating financial institution. On your behalf, the bank can reach out to the originating financial institution for more details.
You can also request a copy of the original ACH transaction record from the ODFI through your bank.
If you believe an ACH payment was unauthorized, you can dispute it, but you need to act fast. The sooner you dispute an unauthorized ACH payment, the more likely it is that it can be recovered. If you’re going to dispute an unauthorized ACH payment, the ACH trace number helps your bank investigate and potentially reverse the charge.
Tracking ACH payments made easy
Staying on top of ACH payments shouldn’t be a hassle. With BILL, you get affordable, transparent, and easy-to-manage ACH payments that can be fully automated as part of your payables and receivables processes.
Simplify your ACH payment workflow by reducing it to selecting a vendor and initiating a payment for the chosen amount. BILL handles the rest, safely and securely sending funds to your vendors.
If you’re in a pinch and need a payment to land fast, BILL offers same-business-day ACH payments. That means no stress about processing times or constant monitoring of payment completion.
