RDFIs that are participants in the IRS Refund Return Opt-In Program may utilize the opt-in program rules to return potentially erroneous or questionable payments for up to 60 calendar days using Return Reason Code R17. An RDFI would use R17 to return an entry that does not have a valid account number and the RDFI believes the entry was initiated under questionable circumstances. Because R17 continues to be used for its original purpose (File Record Edit Criteria) and for various opt-in programs, it cannot not be viewed as a complete replacement for R03 or R04 and, therefore, cannot be included within the administrative return rate calculations. Learn how Direct Deposit and Direct Payments certainly impact your life. 2021-01-22 14:00:00 2021-01-22 14:30:00 America/Detroit The Many Faces of R17: From Tax Returns to Questionable Entries ACH Return Code R17 continues to expand use beyond just the File Record Edit description. ACH REFERENCE GUIDE ACH RETURN CODE REASONS R01 = INSUFFICIENT FUNDS R02 = ACCOUNT CLOSED ... R17 = FILE RECORD EDIT CRITERIA/ENTRY WITH INVALID ACCOUNT NUMBER INITIATED UNDER ... C06= Incorrect DFI Account Number and Incorrect Transaction Code TRANSACTION CODES … Here are a few of the potential codes the NACHA has provided: Return Reason Code R03: No Account/Unable to Locate Account; Return Reason Code R17: File Record Edit Criteria/Entry with Invalid Account Number Initiated Under Questionable Circumstances. RDFIs returning entries as R17 “QUESTIONABLE” must transmit the return under the standard 2-day return timeframe. For detailed information on the opt-in programs, see, https://www.nacha.org/content/additional-ach-programs-and-information. Join industry leaders in shaping and influencing U.S. payments. Use of R17 “QUESTIONABLE” is voluntary on the part of the RDFI, and usage is expected to be infrequent. ACH RETURN REASON CODES NACHA Return Reason Codes (For additional information on return reason codes, please see the NACHA Rules.) … Beginning next April, institutions can start using R10 and R11 to return … Yes, R17 will still be used for this reason. This Rule modifies the following areas of the Nacha Operating Rules. If you are a eCheckSystem.com merchant and require more information on an ACH return please contact our support desk. Learn how and when to use the codes … ACH Return Code R77 – Non-Acceptance of R62 Dishonored Return. These programs involve the return of questionable ACH credits that were posted to accounts, whereas the primary “use case” of this rule (R17 “QUESTIONABLE”) would be to return ACH debits that are unable to be posted. n"�q8�([[�M&� �cp����gGjt����l;�����Kǫxi3����f���W�(���)��0�. The R17 return code has been used recently in several opt-in programs. R17: File Record Edit Criteria (Specify) Some fields that are not edited by the ACH Operator are edited by the RDFI. Effective June 21, 2019, NACHA expanded the use of Return Reason Code R17 – File Record Edit Criteria by allowing RDFIs to indicate within a return that the original transaction was questionable or part of anomalous activity. Please note that RDFIs will continue to still use R17 … R20: NON-TRANSACTION ACCOUNT ACH entry is destined for a non-transaction account … R17 – Questionable (Effective: June 21, 2019) An RDFI would use R17 to return an entry that does not have a valid account number and the RDFI believes the entry was initiated under questionable circumstances. New ACH Return Reason Codes R11 & R17: Proper Use, Impact & Deadlines Thursday, September 26, 2019 3:00 pm – 4:30 pm Eastern There are new return reason codes in the ACH Network. RDFI Return … Appendix Three, Subpart 3.2.2 Glossary of Data Elements (Addenda Information) to address proper formatting within the Addenda Information field when using R17 to return a questionable transaction. ACH Return Code R17 – File Record Edit Criteria. The most common ACH return codes … ACH Return Code R17 … ACH Return Code R10 – Customer advises unauthorized, improper, ineligible, or part of an incomplete transaction. R39 Improper Source Document / Source Document Presented for Payment RDFI determines that … These steps may help mitigate their risk of originating potentially fraudulent entries: No. They may also choose to manually process R17 returns. RDFIs may but are not required to use return reason code R17 to indicate that the RDFI believes the entry was initiated under questionable circumstances. An RDFI would use R17 to return an entry that does not have a valid account number and the RDFI believes the entry was initiated under questionable circumstances. … ... ACH Return and NOC Codes Code Title Description: Entry Type Time Frame: C01 Incorrect DFI Account Number Correct DFI … ACH Return Code R15 – Beneficiary or Account Holder (Other than a Representative Payee) Deceased. Existing NACHA-coordinated opt-in programs with federal and state tax agencies for RDFIs to return tax refund ACH credits using R17 will continue and will not be impacted. h�bbd``b`:$�C�`�qe��9��jID �D� �|�����H���"�?��� kA Existing NACHA-coordinated opt-in programs with federal and state tax agencies for RDFIs to return tax refund ACH credits using R17 will continue and will not be impacted. Return Codes with Definitions (2020).xlsx Code Description Definition Standard Return Codes R17 File Record Edit Criteria / Entry with Invalid Account Number Initiated Under Questionable … ... ACH Return Code R17 – File Record Edit Criteria. Existing NACHA-coordinated opt-in programs with federal and state tax agencies for RDFIs to return tax refund ACH credits using R17 will continue and will not be impacted. h��V[o�8�+~l�b|I;����a��Tv;�!�*��R��{N�� eJ��* ... R17… For this new rule, under what conditions would an RDFI want to use an R17 to return an entry? R17: FILE RECORD EDIT CRITERIA fields not edited by the ACH Operator are edited by the RDFI; field(s) causing processing error must be identified in the addenda record of return. Financial institutions may need to implement the capability to use the Addenda Information field if it is not an existing capability. There are nearly 70 unique return codes, which help the originator of the transaction determine why an item has been returned. endstream endobj 68 0 obj <> endobj 69 0 obj <> endobj 70 0 obj <>stream endstream endobj startxref Is R17 still available for use with these programs? … This change to the Nacha Operating Rules will enhance quality and improve risk management within the ACH Network by allowing RDFIs to indicate within a return that the original transaction was questionable or part of anomalous activity. ... R17: File record edit criteria Fields rejected by RDFI processing (identified in return … No, the RDFI may continue to use R03 (No Account/Unable to Locate Account) or R04 (Invalid Account Number Structure) to return those entries. ... OFAC has instructed the RDFI or gateway to return the entry. An R17 in conjunction with this description will enable these returns to be differentiated from returns for routine field input errors. NACHA Return Status Codes. Although not expressly required by the Rules, there are a number of steps that ODFIs should consider regarding receipt of R17 “QUESTIONABLE” returns. The ACH Network has new and expanded return reason codes for you to use! ODFIs are encouraged to monitor R17 “QUESTIONABLE” returns and act, where appropriate, to limit its risk of originating potentially fraudulent entries. Is an RDFI required to use R17 to return an entry with an invalid account number that it believes may be questionable? How will the ODFI know the RDFI believed the entry was questionable? RDFIs electing to use R17 for this purpose will use the description “QUESTIONABLE” in the Addenda Information field of the return. An R17 in conjunction with this description enables these returns to be differentiated from returns for routine account number errors. ACH Return Codes (R01 – R33) Below are ACH return codes, reasons, and details. Questions › Category: ACH Return Codes › What is ACH Return Code R17 0 Vote Up Vote Down Bankim Chandra Staff asked 5 hours ago Are you using the right ones? h�b```f``����� cB�@ی����o��`�b�chi�`�_����q;7w{P��k:��� 0�tMg��@E H�ut� Establish the ability to monitor and track R17 “QUESTIONABLE” returns received by Originators. Will returns for R17 “QUESTIONABLE” be included in the calculation for the Administrative Return Rate? ACH debit not permitted for use with the CIE standard entry class code (except for reversals). Members and accredited professionals participate in Nacha Communities and Forums. … 67 0 obj <> endobj Potential Impacts R17: File Record Edit Criteria (Specify) Some fields that are not edited by the ACH Operator are edited by the RDFI. ACH Return Codes. Each ODFI should set these monitoring/tracking parameters at a level that is relevant to its particular circumstances. See NACHA, Return for Questionable Transaction; RDFIs returning entries as R17 “QUESTIONABLE” must transmit the return under the standard 2-day return … Contact Originators when the number of R17 “QUESTIONABLE” returns crosses above a threshold that the ODFI has designated in its monitoring and tracking parameters. These programs involve the return of questionable ACH credits that were posted to accounts, whereas the primary “use case” of this rule (R17 “QUESTIONABLE”) would be to return ACH debits that are unable to be posted. ACH Return Code R18 – Improper Effective Entry Date Can R17 be used to return a single questionable transaction, or must it be used for larger numbers of entries? Financial institutions may need to implement the capability to use the Addenda Information field if it is not an existing capability. Subscribe to SPEAK! Financial institutions can now use R17 to return ACH transactions containing an invalid account number. Description: Fields can’t be processed by RDFI. Now it’s used for possible tax return … R17 File Record Edit Criteria Field(s) cannot be processed by RDFI. Appendix Four, Part 4.2 (Table of Return Reason Codes) to include using R17 for Entry with Invalid Account Number Initiated under Questionable Circumstances. The opt-in programs provide RDFIs with additional timeframes and protection from liability when returning ACH credits as questionable; the opt-in rules for those programs will remain intact. 0 Common ACH Return Codes. R18 - Improper … Beginning next April, institutions can start using R10 and R11 to return … An RDFI may use R17 to return any questionable entry – regardless of whether just one or many – that contains an invalid account number. Ensuring safety so new opportunities and applications can thrive. Making billions of transactions safe and secure every year. R17 - File Record Edit Criteria - Fields not edited by the ACH Operator are edited by the RDFI; field (s) causing processing error must be identified in the addenda record of return. Are there any requirements for the ODFI receiving an R17 “QUESTIONABLE” return? The opt-in programs provide RDFIs with additional timeframes and protection from liability when returning ACH credits as questionable; the opt-in rules for those programs will remain intact. Nacha's new comprehensive payments education platform for professionals of all levels seeking knowledge. The ACH Network has new and expanded return reason codes for you to use! The remaining space in that field may be used for additional information related to the return. >>���THь�@� �т��� �'��$*�Ĝ �hE8C�5�>�La ��T�H�����4ˣM<7�)����n�~y�7��- The most common reasons are insufficient funds, closed accounts, or invalid account information. Returned ACH payments will always come with an ACH return code indicating why a customer’s payment was rejected. See NACHA, Return … If the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in the addenda record information field of the return. Educate Originators on the Network’s use of the R17 “QUESTIONABLE” return, including why RDFIs may believe that certain transactions were questionable. They may also choose to manually process R17 returns. 93 0 obj <>stream If you decide to use this code… Code Title Description Initiated By Return ... R17 File Record Edit Criteria Field(s) cannot be processed by RDFI. Status values starting with the letter R are NACHA … h��, � �\`�F0�3��s�)�~tm`PM�����&�W' ��]@���IJ�g�0 ��5� Financial institutions can now use R17 to return ACH transactions containing an invalid account number. Can an RDFI still use R17 for “File Record Edit Criteria”? If the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in the addenda record information field of the return. Afinis Interoperability Standards Membership, ACH Resources for Nonprofits and Small Business. %%EOF Each return code is specific to certain entry types and has specific time frames for return (more on that later). ACH (Automated Clearing House) return code reference chart SOLVED … This Rule modifies the following areas of the. These programs involve the return of questionable ACH credits that were posted to accounts, whereas the primary “use case” of this rule (R17 “QUESTIONABLE”) would be to return ACH … RDFIs electing to use R17 for this purpose will use the description “QUESTIONABLE” in the Addenda Information field of the return. 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