NACHA Update: Return for Questionable Transaction Rule

6/24/2019

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 for returns that involve required field errors.

Under the Return for Questionable Transaction Rule, RDFIs may (but are not required) use Return Reason Code R17 – File Record Edit Criteria to indicate that the RDFI believes the entry containing invalid account information was initiated under questionable circumstances.  This use of R17 is optional at the discretion of the RDFI.  RDFIs that elect to use R17 for this purpose are required to use the description “QUESTIONABLE” in the Addenda Information field of the return.  This description in an R17 return will differentiate returns that appear to be suspicious to the RDFI from those due to routine account number issues.

RDFIs 

RDFIs that choose to use R17 to flag questionable/suspicious entries may experience an increase in manual processing of those returns.  RDFIs must ensure the software system will include the descriptive information of “QUESTIONABLE” within the Addenda Information field of the return.

ODFIs

ODFIs may see an increase in R17 returns.  ODFIs and their Originators should be aware of the new messaging conveyed via the R17 Return Reason Code and may wish to review such returns more closely. 

Visit NACHA’s website to learn more. 

Questions?

Staying in compliance can be challenging, so if you have any questions or need assistance preparing for these new NACHA RulesIf you have any questions or need assistance, email paymentadvisors@saltmarshcpa.com or a member of our Financial Institutions Team so we can help. 

About the Bank Advisors

The Bank Advisors at Saltmarsh have provided audit, tax and consulting services to a wide range of financial institutions since our founding in 1944, making it the firm’s largest specialty practice and industry of focus. Our Financial Institution Advisory Group has the talent, expertise and insight to help you and your institution thrive. Our team members are also industry leaders who have the knowledge and experience to provide you with unparalleled service and guidance.


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