The payment was not returned within the NACHA-mandated timeframeĪn ACH return code is a 3-digit alphanumeric indicator attached to a returned ACH transaction.

A credit was unintentionally sent to the receiver during the return process.

The payment failed due to a duplicate entry.The transaction was misrouted and therefore incorrectly processed.The payment failed due to incorrect information details.

Legitimate reasons to consider an ACH dispute include: Submitting one initiates the process of reversing an ACH debit that the user claims was unauthorized. The WSUD is supplied by the financial institution where the charge took place. This is a form which bank customers fill out if they find incorrect or invalid debits on their accounts. Valid Reasons for an ACH ReturnĪ consumer will usually need to submit a Written Statement of Unauthorized Debit (WSUD) to initiate an ACH return. But, while bounced checks are generally caused by insufficient funds, that’s only one of multiple reasons why an ACH return may happen. You can think of a return as the electronic version of a bounced check. The RDFI is the financial institution who receives the credit or debit on behalf of the payee (“the Receiver”).Īn ACH return is a message, typically sent by an RDFI, that informs an ODFI that the ACH Network either couldn’t collect funds, or couldn’t deposit funds, into the receiver’s account. “ODFI” stands for “Originating Depository Financial Institution,” while “RDFI” means “Receiving Depository Financial Institution.” The ODFI is the party who initiates the process on behalf of the payer (“The Originator”). To understand ACH returns and ACH return codes, you need to know these two important acronyms: ODFI and RDFI. This is a way of informing the institution that the amount in question either could not be collected from, or deposited into, the appropriate account. If a transaction fails to process, one of the banks involved in the process may receive an ACH return. However, not all of these transactions will ultimately be completed. The National Automated Clearinghouse Association (NACHA) oversees the ACH network, and reports that some 30 billion payments were processed through the network in 2022. What are Merchant Category Codes (or MCC Codes)?ĪCH transfers are a digital method of moving money between banks, credit unions, and other financial institutions, primarily within the US and its territories.The Future of Generative AI Finance & GenAI Banking.Banking Outlook: Trends That Will Dominate Finance in 2024.My Bank Account is Under Investigation? What’s Going On?!.Should a Return Item Chargeback be Cause for Concern?.7 Common Reasons Why Issuer Declines Happen.

Reverse ach transaction