BofA ACH Transfer Fee: How to Avoid and Dispute

Bank of America charges a fee for ACH transfers, which can range from $3 to $30 per transaction, depending on the type of account and transfer.

You can avoid this fee by using the Bank of America mobile banking app to transfer funds, which is free.

Bank of America doesn't charge for inbound ACH transfers. This is a relief for those receiving funds from others.

The bank does charge for outgoing ACH transfers, however. You'll pay $3 for standard-time delivery, which takes three business days.

If you need your money faster, you can opt for next-day delivery, which costs $10.

Here's a quick rundown of the fees for outgoing ACH transfers:

An ACH transfer is a way to pay or collect funds electronically through a global payment system.

This system is reliable, fast, and accurate in posting payments to accounts.

ACH transfers can be used for direct deposits, business payments, tax payments, and other recurring or nonrecurring payments.

Bank of America offers same-day posting for eligible transactions, which can be a huge time-saver.

Bank of America does not charge for inbound ACH transfers. However, they do charge a fee for outgoing transfers, which varies depending on the delivery time.

For standard-time delivery, Bank of America charges $3 per transfer. If you need next-day delivery, the fee jumps to $10 per transfer. This fee applies to outgoing transfers only, and you can make up to three transfers per calendar month.

Here's a breakdown of the fees for outgoing transfers from Bank of America:

It's worth noting that Bank of America's fees are competitive with other banks, such as BB&T and TD Bank, which also charge $3 for standard-time delivery. However, Bank of America's next-day delivery fee is higher than some of its competitors.

If you're charged an ACH transfer fee by Bank of America, you can dispute it if you didn't authorize the debit or if you authorized it but under different terms. You have 60 days to dispute the fee.

To dispute the fee, you'll need to obtain the details of the ACH debit from your bank statement, including the draft date, charge amount, merchant information, and transaction ID. You can then download an Unauthorized ACH Return Form from Bank of America's website and complete it.

Include any necessary documentation, such as a confirmation of a bill or receipt, to prove the amount is different from what was transferred. Send the form via email or fax, and allow 30 days for the bank to investigate and report its findings.

Bank of America charges $3-$10 for an ACH transaction, even though it's free to initiate transfers from other banks to pull the money from your Bank of America account. This is currently being contested in a class-action lawsuit.

Disputing an ACH transfer fee with Bank of America can be a straightforward process if you follow the right steps. You can dispute the fee if you didn't authorize the debit, authorized it but under different terms, or originally authorized it but attempted to revoke it due to other issues.

To dispute an ACH transfer fee, you'll need to obtain the details of the ACH debit from your bank statement. This includes the draft date, the charge amount, merchant information, and transaction ID.

If you're disputing the fee, you'll need to complete and submit an Unauthorized ACH Return Form. You can download this form from Bank of America's website and submit it via email at [email protected] or FAX it to Bank of America ACH Services at 877-867-6823 by 7:00 p.m. Eastern.

You'll need to include any necessary documentation, such as a confirmation of a bill or receipt, to prove the amount is different from what was transferred. Allow 30 days for the bank to investigate and report its findings.

Here's a summary of the steps to dispute an ACH transfer fee with Bank of America:

Remember, you have 60 days to dispute the fee, so act quickly if you feel you were wrongly charged.

Bank of America charges $3-$10 for ACH transactions, but you can avoid these fees by taking a few simple steps.

If you have recurring bills, set up automatic monthly payments in your account to avoid ACH transfer fees. This way, you can ensure that your bills are paid on time without incurring extra charges.

For non-recurring payments, consider using other payment methods, such as sending money through other services or paying by check. This can help you avoid ACH transfer fees altogether.

Bank of America allows up to 20 ACH transactions per month without charging any fees. To avoid going over this limit, keep track of your transactions and plan your payments accordingly.

Here are some specific steps to help you avoid ACH transfer fees:

A class action lawsuit is a type of lawsuit where a group of people come together to sue a company or organization for a shared issue. In the case of Bank of America's ACH transfer fee, a class action lawsuit was filed in March 2021.

The lawsuit claimed that Bank of America charged improper fees for certain ACH transfers, specifically for push transfers from consumer checking or savings accounts to external accounts. The plaintiffs alleged that the bank exploited its informational advantage to trick consumers into paying these fees.

The Nacha ACH network is a major backbone of the US financial system, processing 93% of salary payments and 99% of Social Security payments in the United States. In 2022, there were 30 billion payments made on the network with a value of $77 trillion.

Bank of America denied any wrongdoing but agreed to settle the lawsuit to avoid further litigation. As part of the settlement, the bank agreed to make a cash payment of $8 million to class members and stop charging the fees on push transfers via the Nacha network to an external account for five years.

Here are some key facts about the settlement:

It's worth noting that Bank of America has faced other lawsuits and fines in the past, including a $150 million fine and a further $100 million redress for charging a $35 non-sufficient fund fee when it returned an unpaid ACH transaction or cheque payment.