NACHA Rules Changes


March 2006 NACHA Rule Change

Effective March 17, 2006, NACHA is introducing rule changes to clarify a number of Return Reason Codes and their descriptions. These clarifications are intended to resolve some operational efficiency and return issues that exist today. While no new return reason codes are being introduced, you may notice your Return Item reports will now include the description "Invalid ACH Routing Number," associated with Return Reason Code R13. It is important for financial institutions and ACH originators to be aware of any NACHA Rule changes or clarifications, and to ensure that the appropriate return reason descriptions are being used in their operating systems, where applicable.

The following reason codes are being updated:

For Operational Efficiency

Return Reason Code R16 (Account Frozen) - to clarify it may be used for the return of both debit and credit entries

ACH Operator Return Reason Code R27 (Trace Number Error) - to ensure the original trace number is included in the addenda record of Notification of Change entries

ACH Operator Return Reason Code R36 (Return of Improper Credit Entry) - to confirm that Destroyed Check Entries (XCK) are included in the list of transactions that will be returned by the ACH Operator if those entries bear a credit transaction code.

For Returns

Return Reason Code R51 (Item is Ineligible, Notice Not Provided, Signature Not Genuine, Item Altered, or Amount of Entry Not Accurately Obtained from Item) - to clarify that the RDFI must obtain a written statement under penalty of perjury, prior to returning a Re-presented Check Entry (RCK) using this code

Dishonored Return Reason Code R70 (Permissible Return) - to expand the use of this code to allow an ODFI to dishonor an entry returned by the RDFI, using Return Reason Code R06 (Returned per ODFI's Request), if the ODFI did not request the return

ACH Operator Return Reason Code R13 (Invalid ACH Routing Number) - to make clear that an ACH Operator would use this code to return entries containing a routing number that is not valid for ACH entries.

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