Menu 9.40 - Process ACH Returns

Payments are returned to The Collector System for many reasons including incorrect account data and insufficient funds. These reasons display on ACH returns as of one of two code types: R return codes and C return codes:

Code	Name	Description
R	Return	The payment did not process and needs to be changed to NSF.
C	Notice of Change	The payment did not process, but needs more information such as the account number and routing number. This prevents future payments from returning with errors.

ACH returns can appear in The Collector System up to seven to ten days after the payment is processed. When an account is returned, it is flagged as an ACH return and includes the error code from UltimatePayments. For this reason, you may want to consider posting ACH payments manually to eliminate adjustments.

When an account receives an ACH return it is added back into the WIP where the payment originated and a system-generated note is added with the reason the payment failed.

If a payment receives an R code, and it has already posted, you need to reverse the posting or apply an NSF transaction code. Your agency determines which method to use. For a complete list of R codes, see UltimatePayments R return codes. To apply an adjustment, see Reversals and cancellations.

If a payment receives a C code, the payment will process, however you need to update the account information so it does not continue to receive errors. For a complete list of C codes, see UltimatePayments C return codes.

Run the ACH Returns report on a daily basis to import all ACH return transactions, such as NSF charges. Running this report does not auto post any transactions; instead, it is a way to see all the returns for a date range. For instructions on how to run the ACH Returns report, see Running the ACH Returns report.

Returns can happen up to seven to ten days after a payment is processed.

Only two UltimatePayments transaction types qualify for resubmission: R01 (insufficient funds) and R09 (uncollected funds).

If your agency chooses to use this feature, contact your Finvi Support representative to enable it.

Do not post resubmitted transactions, since these transactions have not reached a final failed state. Your agency should not include resubmitted transactions on the ACH Returns report, since this could cause the posting clerk to accidentally post it as a return.