ACH Universal > Advanced Topics > Returns
Overview
A return is an electronic payment that cannot be honored by the Receiver's financial institution. The transaction is sent back to the Originator's financial institution with a 3 digit code corresponding to the reason for the return. For example, R01 is the return code for insufficient funds and R02 is the code for account closed. These are issues outside the hands of the Originator and the return informs them that the transaction could not be handled, allowing them to resubmit or investigate further.
Receiving a return from your bank
Returned transactions are sent from the RDFI to your bank, the ODFI. The method your bank uses to communicate the returned transaction is their decision. Contact your bank to learn how they will notify you of returns. The optimal method is for them to submit the returns to you electronically as an ACH return file. This eases your retransmission of the transactions because the file can be electronically parsed. However, your bank may notify you by paper mail, email, or via telephone.
Regardless of your bank's notification method, you will most likely want to retransmit the original transaction. If the original transaction was an RCK and it was returned for insufficient funds, you must enter it manually. For other codes, you should use the original SEC code in the retransmission.
Note: ACH allows for one retransmission.
Retransmitting
If the bank supplies you with an ACH return file, import the file into ACH Universal, then select the records that need to be retransmitted. See Importing an ACH Return File
If the bank does not provide you with a file containing the returned transactions, you will have to perform an extra step in the process. You can either:
a) Create a file containing the returned transactions and import and transmit it
b) Enter each transaction manually (see Entering Transactions Manually) and then transmit the records.
If, after retransmission the transaction is returned a second time, you must contact the
receiving party. Do not continue to retransmit.
An ACH Return file is a very specific type of ACH file. Contained in this file are all the records that could not be processed by the other party's bank. For example, if you are attempting to collect funds and the balance in the account is insufficient, the transaction will be returned. Also, any transactions against a closed account are returned. ACH Universal, by design, will not allow a retransmission of an account closed return.
From the main menu, select Import, then ACH Files, then Return Files.
Click the 
button and select the ACH return file. Click Next.
You will see a screen similar to Figure 1 (below).
 Figure 1 |
In this screen you will see all the entries from the return file (in this case there are five of them), as well as how ACH Universal will map each field. Click Next.
You will now be at the mapping screen (Figure 2 below). If needed, you can manually edit the field mappings for all entries from the return file. Note: In most cases it is best to leave the default mappings in place.
 Figure 2 |
Click Next two more times, then click Finish.
At this point the returns file has been imported into ACH Universal. Next, you must review these records and manually select them for retransmission.
From the main menu, select Reports, then Reports. Alternatively, click the Reports button on the Main Screen. Load the ACH Return Files - All Records report by selecting it from the dropdown box in the upper left. You will see a screen similar to Figure 3 below (based on your data).
 Figure 3 - ACH Return Files report |
In the Return_Description column, you will see the reason for the return. In this case, two of the records were returned because the account was closed and the remaining three were returned due to insufficient funds. An account being closed prevents any transactions against it so those two cannot be retransmitted.
To retransmit the transactions returned for insufficient funds, click each record to select it (hold Control to select multiple records).
Then, click the Resend button at the bottom of the screen. Click OK at the confirmation dialog box.
From the main menu, select Transmit, then Transmit to Bank. You will see a screen similar to Figure 4 (below).
 Figure 4 |
This shows a summary of all records that will be transmitted. The returns are listed under Transfers & Manuals. To transmit, click the Transmit Now link.
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