ACH Incoming Returns and Corrections Flashcards
Where are Returns and Corrections received?
Returns and Corrections are received via ACH Tracker and reviewed daily
What are the sources of ACH returns?
Returns can be received from the FED, an in house posting system, or generated by an operator in ACH Tracker through a Derived Return/NOC or Free form Return/NOC.
How does ACH Tracker categorize incoming returns?
Incoming Returns are categorized as:
1. Matched Returns - An exact match is found in the warehouse.
2. Exception Return - No exact match is found in the warehouse.
What report lists returns that match an entry in the warehouse?
The Return Automation Report (ACDDAENT-01/RTA) lists returns for which an exact match is found in the warehouse.
What report lists returns that do not match an entry in the warehouse?
The Return Automation Exception Report (ACDDAENT-01/RTX) Lists returns for which no exact match is found in the warehouse.
What happens to resolved returns in ACH Tracker?
If ACH Tracker can locate the original item, it will auto-resolve the return back to the originator’s account. These returns appear on the Return Automation Report (ACCDDAENT-01/RTA)
How do Accounts Payable ACH Originations resolve?
They resolve to a General Ledger (GL)
Do automatic external ACH transfers resolve automatically?
No, they do not resolve automatically. Loss Prevention must review the Return Settlement Summary Report (ACDDAENT-01/RTS) and notify the originating Line of Business (LOB)
What defines an exception return?
An exception return occurs when:
1. A return entry is not matched to an original live entry in the warehouse.
2. The return contains different information than the live warehouse entry.
What report lists exception returns?
The Return Automation Exception Report (ACDDAENT-01/RTX) lists exception returns for Loss Prevention to review.
What does Loss Prevention do with exception returns?
Loss Prevention investigates exception returns to determine where to post the return entry.
What is the deadline for an ODFI to provide NOC information to an Originator?
Within two banking days of the settlement of the NOC or corrected NOC.
What key details must an ODFI provide to the Originator when forwarding an NOC?
- Company Name
- Company Entry Description
- Effective Entry Date
- DFI Account Number
- Individual/Receiving Company Name
- Individual ID Number
- Change Code
- Original Entry Trace Number
- Original RDFI Identification
- Corrected Data
By when must an Originator implement the changes specified in an NOC.
Within 6 banking days of receiving the NOC or before initiating another Entry to Receiver’s account, whichever is later.
What must an Originator do if an NOC is received in response to a Prenotification Entry?
The Originator must make the changes before originating a subsequent Entry to the Receiver’s account, if the NOC is received by the ODFI by the second Banking Day following the Settlement Date of the Prenotification.
When can an ODFI reinitiate a returned ACH entry for the Originator?
If the return was due to:
- R01 (Insufficient Funds)
- R09 (Uncollected Funds)
What is the ODFI’s responsibility for forwarding return entries to the Originator?
All NOCs and Return Entries must be sent to the Originator within two banking Days of the Settlement Date of the NOC or Return.
How often are ACH Return Rates monitored for compliance with NACHA thresholds?
On a monthly basis
What is the role of Loss Prevention in monitoring Returns?
Logs all returns and monitors large or unusual items
- ensures return time timeliness per NACHA timeframes.
- Compares Settlement Date of Return to Effective Date of Original Entry.
What should be done if there are unusual or late returns?
Notify a Loss Prevention Supervisor. If the return is untimely, refer to the Dishonoring a Return process.
What is a Dishonored Return?
A return that is deemed invalid by the receiving institution and sent back to the originating institution
What happens when a dishonored return is a received?
The institution can either:
- Accept the return as valid
- Contest it as a contested Dishonored Return
Where can you find specific rules and timeframes for dishonoring or contested returns?
NACHA Operating Rules Online
www.nachaoperatingrulesonline.org
What must be done if a return is suspected to be fraudulent?
Fill out a UAR and notify management immediately
