Direct Debit User`s Guide

Direct Debit User`s Guide
Direct Debit
User ’s Guide
May 2004
Version 1.0
This manual and accompanying electronic media are proprietary products of Optimal Payments
Corp. They are to be used only by licensed users of the product.
© 1999–2004 Optimal Payments Corp. All rights reserved.
The information within this document is subject to change without notice. The software described
in this document is provided under a license agreement, and may be used or copied only in accordance with this agreement. No part of this manual may be reproduced or transferred in any form or
by any means without the express written consent of Optimal Payments Corp.
All names, trademarks, and registered trademarks are the property of their respective owners.
Optimal Payments Corp. makes no warranty, either express or implied, with respect to this product, its merchantability or fitness for a particular purpose, other than as expressly provided in the
license agreement of this product. For further information, please contact Optimal Payments Corp.
Contact Information
Optimal Payments Corporation
1800 West Loop South, #770
Houston, TX 77027
[email protected]
Customer Service
1-866-826-7982
Technical Support
1-800-233-0406, extension 1
Contents
1 Processing Direct Debits
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1-1
Logging in. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1-1
2 Transaction Processing
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2-1
Verifying a customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2-1
Charging a customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2-3
Refunding a customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction processing parameters . . . . . . . . . . . . . . . . . . . . . .
2-4
2-5
Reviewing transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Viewing transaction details . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2-8
2-11
3 Batch Processing
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3-1
Batch processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If a batch upload fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3-2
3-3
File format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3-3
Reviewing transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3-4
4 Reports
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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III
01/05/04
Running reports by transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Running a report on All Transactions. . . . . . . . . . . . . . . . . . . . .
Viewing transaction details . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-2
4-3
4-5
Running reports by deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Running a report on All Deposits . . . . . . . . . . . . . . . . . . . . . . .
Viewing deposit details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposit transaction details . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-6
4-6
4-8
4-10
Performing a Void or Hold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-10
Transaction statuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-11
5 Access Control
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-1
Changing a PIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-1
Adding a PIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-2
Modifying a PIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-4
Disabling a PIN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-5
A Codes
ACH return codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A-1
Dishonors & Dishonored Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dishonoring return entries . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contesting dishonored return entries . . . . . . . . . . . . . . . . . . . .
A-2
A-3
A-3
ACH transaction problem codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A-4
Province/state codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A-4
B Returned Items
IV
Settlement Activities by Presentment & Return Number . . . . . . . . . . .
B-1
System actions by return code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Re-presentable items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sent To Research items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposed items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B-2
B-2
B-3
B-4
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Chargebacks, Authorization Problems, Legal Remedies. . . . . . . . . . . .
Un-Authorized (R07) and Authorization Revoked (R10) . . . . . .
Chargebacks/returns due to not being authorized . . . . . . . . . . .
Returned Item Recourse available to the Merchant . . . . . . . . . .
NACHA Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Returns for Revocation of Authorization (R07) . . . . . . . . . .
Returns for Unauthorized Consumer Debits (R10):. . . . . . .
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B-5
B-5
B-6
B-6
B-6
B-7
V
01/05/04
VI
CHAPTER 1
Processing Direct Debits
Overview
Direct debits offer a fast, safe, and easy way for consumers to pay for
goods and services. It is an alternative payment method that you can
offer in addition to credit cards. Accepting direct debits also helps you
avoid losing sales to buyer’s remorse. You do not have to make any additional investment in terminals or additional space, and require only
minimal training. Optimal Payments’ direct debit processing application
also supports merchants 24/7, guaranteeing a smooth integration and
timely assistance.
Optimal Payments’ direct debit processing offers the following functionality:
•
Transaction processing allows you to perform such tasks as manually charging a customer’s bank account. See Chapter 2: Transaction
Processing for more information.
•
Batch processing allows you to submit batch files of charges and/or
refunds to process all at once. See Chapter 3: Batch Processing for
more information.
•
Reports allow you to view activity in your account, for example to
see all transactions made in your account over a specified date
range. See Chapter 4: Reports for more information.
•
Access control allows you to perform such tasks as changing PINs
or modifying access rights associated with a PIN. See Chapter 5:
Access Control for more information.
Logging in
1.
Open an Internet browser and navigate to the following –
http://login.virtualdebit.com. The login page opens.
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P ro c e s s i ng D i re c t D e b i ts
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2.
Enter your Merchant ID and PIN in the appropriate fields.
3.
Click Submit. The Main Menu page opens.
4.
Click on the link for the task you want to perform – transaction
processing, batch processing, reports, or access control.
CHAPTER 2
Transaction Processing
Overview
On the Main Menu page, click Transaction Processing. The Transaction
Processing page opens.
You can perform the following tasks from the Transaction Processing
page:
•
Verify Customer – allows you to confirm that a customer’s bank
account is in good standing, but without actually transferring any
money out of that account.
•
Charge Customer – allows you to transfer money from the customer’s bank account and into your own merchant account.
•
Refund Customer – allows you to transfer money from your merchant account back to a customer’s bank account, if a credit or
refund is required.
•
Review Transactions – allows you to view details about transaction
processing within your account.
Verifying a customer
1.
Open the Transaction Processing page.
2.
Click Verify Customer. The Verify Customer page opens.
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This tells you that
this is the Verify
Customer page.
2-2
3.
Complete the fields. See Transaction processing parameters on page 2-5
for a description of each field.
4.
Click Submit. The following page opens for a successful customer
verification:
01/05/04
Charging a customer
Charging a customer
1.
On the Transaction Processing page, click Charge Customer. The
Charge Customer page opens.
2.
Complete the fields. See Transaction processing parameters on page 2-5
for a description of each field.
3.
Read the following script found at the bottom of the Charge Customer page, which clarifies to the customer that their bank account
will be debited.
This tells you that
this is the Charge
Customer page.
You must read this
script before you
can click Submit
and charge your
customer.
“Once the transaction has been authorized, your bank account will be debited electronically through the regular banking system. Should the draft or
EFT be returned unpaid, a return item fee may also be debited from your
account or electronically drafted. Do you authorize this transaction?”
You must read this script to your customer before you click Submit.
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Tra n s a c t i o n P r o c e s s i n g
4.
01/05/04
When the customer gives their permission, Click Submit. The following page opens for a successful customer charge:
Refunding a customer
1.
On the Transaction Processing page, click Refund Customer. The
Refund Customer page opens.
2.
Complete the fields. See Transaction processing parameters on page 2-5
for a description of each field.
3.
Click Submit. The following page opens for a successful customer
refund:
This tells you that
this is the Refund
Customer page.
2-4
01/05/04
Tra n s a c ti o n p r o c e s s i n g p a r a m e t e r s
Transaction processing parameters
This table provides a description of the fields required for verifying,
charging, and refunding a customer:
Field
Description
Customer Information
First Name
Enter your customer’s first name.
First Name or
Business Name
Enter your customer’s first name or the name
of their business.
MI
Enter your customer’s middle initial.
Last Name
Enter your customer’s last name.
Address
Enter your customer’s street name and number.
City
Enter your customer’s city.
State
Enter your customer’s state/province.
Zip
Enter your customer’s zip/postal code.
Phone Number
Enter your customer’s phone number.
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Field
Description
Customer Identification
Type of ID
Select an ID type from the drop-down menu.
Possible values are:
• Drivers License
• Government ID
• Military ID
• Generic ID
Number
Enter the ID number for the ID type you
selected.
Country
Select the country from the drop-down menu
for which the ID is valid.
State
Enter the state/province for which the ID is
valid.
See Province/state codes on page A-4 for
proper formatting and abbreviations.
Transaction Information
Pay to the Order Of
This is the name of the payee for the transaction, and is automatically entered.
NOTE: For Verify Customer, no money is
actually transferred between accounts.
Amount
Enter the amount of money you want to
charge or refund.
NOTE: For Verify Customer, no money is
actually transferred between accounts.
Reference #
2-6
Enter a reference number to enable you to
track the transaction.
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Tra n s a c ti o n p r o c e s s i n g p a r a m e t e r s
Field
Check Number
Description
Enter a check number for this transfer.
For Verify Customer and Charge Customer
transactions, your customer provides the
check number.
For Refund Customer transactions, you provide the check number.
Type of Check
Select the check type from the drop-down
menu. Possible values are:
• Personal
• Business
Payment Type
Select the payment type from the drop-down
menu. Possible values are:
For charging a customer
• WEB (Personal Check Only) – Used to submit debit entries pursuant to an authorization that is obtained through the Internet.
• PPD (Personal Check Only) – (Prearranged
Payment and Deposit Entry) used to submit
prearranged credit and debit transactions,
such as payroll deposits and periodic bill
payments.
• TEL (Personal Check Only) – (TelephoneInitiated Entry) used to submit transactions
pursuant to a verbal authorization obtained
from the consumer via telephone.
• CCD (Business Check Only) – (Cash Concentration or Disbursement) used to submit
credit and debit transactions distributing or
consolidating funds between two corporate
entities (“business-to-business”).
For refunding a customer
• PPD (Individual Only)
• CCD (Business Only)
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Field
01/05/04
Description
Recurring?
Select this check box if this will be a recurring
charge to your customer’s bank account.
Order Date and Time
Enter the date and time of the order if you are
doing the transaction by telephone.
Format = YYYYMMDDHHMMSS
Type of Customer
Select the customer type from the dropdown menu. Possible values are:
• Personal
• Business
Bank Name
Enter the name of your customer’s bank.
Bank Number
Enter the 9-digit transit number of your customer’s bank.
Account
Enter your customer’s account number at the
bank.
Merchant
This is your merchant name. This field is completed automatically for you.
Refund Number
Enter a refund number to enable you to track
the transaction.
Transaction Counter
If you wish to submit multiple transactions for
the same dollar amount on the same bank
account, you must increment this value by 1
each time. This helps to prevent accidental
duplicate transactions.
Reviewing transactions
Optimal Payments’ direct debit transaction review capability allows you
to review all the transactions in your account (verifying, charging, and
refunding) and to drill down to view details about each transaction.
2-8
01/05/04
Reviewing transactions
1.
On the Transaction Processing page, click Review Transactions. The
Review Transactions page opens.
2.
Complete the following parameters:
Parameter
View From
Description
Enter the start date of the range for which you want to
view transactions.
Format = MM/DD/YYYY
To
Enter the end date of the range for which you want to
view transactions.
Format = MM/DD/YYYY
Include – You can select one or more of the Include options.
Batch Transactions
Select this check box to view batch transactions. See
Chapter 3: Batch Processing for more information on
batch transactions.
Single Transactions
Select this check box to view individual transactions,
e.g., those done in Charging a customer on page 2-3.
Other Transactions
Select this check box to view other transactions.
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Parameter
Description
Format – You can select only one of the Format options.
Summary List
Select this radio button to see a summary list of
transactions.
Detailed List
Select this radio button to see a detailed list of
transactions.
Comma-separated
Select this radio button to display the list of transactions in .csv format, which you can then copy and
paste into a spreadsheet program.
Show – You can select only one of the Show options.
All transactions
Select this radio button to display all transactions processed during the date range selected.
Exceptions only
Select this radio button to display only Declined and
Cancelled transactions.
The maximum allowable date range is 31 days.
3.
Click Submit. The Transaction Summary page opens.
Each transaction
in your search is
listed here individually.
Each ID in the ID
column is a link
to further detail
about that transaction.
Transactions are
summarized here
by type and by
status.
2-10
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Vi e w in g t r a n s a c t i o n d e t a i l s
The Transaction Summary page provides you with the following:
•
A list of individual transactions, with information such as date and
time of the transaction, the amount, and whether the line item is a
single transaction or a batch.
•
A summary of all the transactions. This summary is broken down by
total transactions and total dollar value in two ways:
By request type:
•
Charge Customer
•
Refund Customer
•
Verify Customer
By transaction status:
•
Approved
•
Declined
•
Pending
•
Cancelled
Viewing transaction details
You can view further detail about any transaction listed in the Transaction Summary page. Just click on a link in the ID column for the transaction you want to view. The Transaction Detail page opens.
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The Transaction Detail page provides you with much more technical
detail about each transaction.
2-12
CHAPTER 3
Batch Processing
Overview
Optimal Payments’ direct debit processing includes a batch processing
feature. With batch processing, you can submit a file containing a list of
charges and/or refunds to be processed simultaneously, as opposed to
processing them individually.
On the Main Menu page, click Batch Processing. The Batch Processing
page opens.
You can perform the following tasks from the Batch Processing page:
•
Process Batch – allows you to submit a CSV (comma separated variable) file containing a batch of transactions to be processed.
•
Review Transactions – allows you to view details about transaction
processing within your account.
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Batch processing
To process a batch file:
1.
On the Batch Processing page, select Process Batch. The Process
Batch page opens.
Click here to allow
processing of a
duplicate file
Click the Reset button to clear
the File To Upload field.
2.
Enter the complete path and name of the CSV file you want to
upload, or click Browse to browse to the file. Once you’ve selected
the file, its path will be displayed in the File To Upload field.
3.
Select the Allow Duplicate Batches? check box if you want to be able
to submit duplicate batches. A file is considered to be a duplicate if
in the last 24 hours another file was processed for which all of the
following are true:
•
It was submitted by the same merchant
•
It contains the same number of records and bytes
•
It uses the same file name
If this box is unchecked and a duplicate file is received, the submission will be rejected with an Upload Failed message.
4.
3-2
Click Submit. This sends a copy of the file through the Internet from
your computer to the Optimal Payments servers. The following confirmation page opens:
01/05/04
If a batch upload fails
If a batch upload fails
Optimal Payments’ direct debit processing parses files you upload for
the presence of all mandatory fields and for correct formatting of all
fields. If there are any errors detected, then the file will not be processed,
and the following page opens, indicating the type and location of error.
The reason for the upload failure is given here (in this example, no phone number was provided).
If possible, the fields in error and the record(s) in which they were
detected will be indicated in the response. You can correct the file and
resubmit it.
File format
For information on formatting your batch file and the records in that
file, see support.optimalpayments.com/directdebit.asp.
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If you omit a value (e.g., when it is optional) you must still enter a
blank for that value, offset with commas. For example, if you wanted
to omit the address 2 field, which is between address 1 and City, you
would enter address 1,,City. If a record has an incorrect number of
fields, including blanks, the transaction file will not be processed.
Reviewing transactions
The Review Transaction link allows you to view details about transaction
processing within your account. For information on transaction review,
see Reviewing transactions on page 2-8.
3-4
CHAPTER 4
Reports
Overview
The reporting tool allows you to run a report on transactions that have
taken place within your account. The resulting report displays such
information as transaction totals, dollar amounts, and transaction statuses, both for transactions grouped by day and for individual transactions.
On the Main Menu page, click Reports. The Reports page opens.
The All Transactions radio button
The All Deposits radio button
You can run several reports from the Reports page. For example, you can
run reports:
•
By date range
•
By transaction status
•
By parameters such as dollar amount or reference number
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•
By transaction type
•
By processing stage
•
By deposits
Running reports by transaction
You can run a report using the following transaction categories:
Category
Description
All Transactions
Allows you to view all transactions within a specified date
range. This report will reflect the current status of each transaction. (These are available in the Transaction Review screen.
See Reviewing transactions on page 2-8.)
To Be Processed
Allows you to view all transactions within a specified date
range that have passed and been accepted by the online validations, but not yet sent for clearing to the Federal Reserve’s
ACH. The current status of a check will be displayed in Check
Record’s Status Field as Process, Hold, or Void.
The To Be Processed transaction report also allows access to
the merchant functions of Void and Hold. See Performing a
Void or Hold on page 4-10 for more information.
Voided/Held
4-2
Allows you to view all transactions with the status of Void or
Hold. See Transaction statuses on page 4-11 for more information on these statuses.
01/05/04
Ru n n i n g a r e p o r t o n A l l Tra n s a c t i o n s
Category
Description
Unable to Initiate
Processing
Allows you to view all checks within a specified date range
that were submitted, and which passed the initial validation
process and were sent on for processing. However, these
checks were determined to be unacceptable for submission
to the Federal Reserve’s Clearing House (ACH). There are various reasons why this status would be applied to a transaction. When this report is displayed, the merchant can review
the specific reason by clicking on the date in the Initiated column of the specific transaction. Included in resulting detail
will be the various reason(s) why this item could not be presented to the ACH system. See ACH return codes on page A-1
and ACH transaction problem codes on page A-4 for more
information.
Returned - Failed
Allows you to view all checks within a specified date range
that cannot be processed due to processing failure, or that
were voided by the merchant (includes all 3rd Presentment
Returns). These items are always charged back if they have
been paid on. See Appendix B: Returned Items for payment
and chargeback information.
This chapter does not document every possible report you can run. Instead,
it focuses on two that you are most likely to use and benefit from – a report
on All Transactions and a report on All Deposits. For any other report, follow the same procedure, while choosing the appropriate parameters.
Running a report on All Transactions
One of the most useful reports you can run is the report that shows you
all the transactions processed through your merchant account over the
date range you specify.
To run a report on All Transactions:
1.
Open the Reports page.
2.
Select the date range for the report you want to run. The format is
MM-DD-YYYY.
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3.
In the Search Criteria of the Reports page, select the radio button for
All Transactions.
4.
Select Both Charges and Refunds from the Included drop-down
menu.
5.
Click Submit. The Transaction Summary page opens.
The date in the Initiated column is a link to
the Transaction Detail
page for that transaction.
The Transaction Summary page contains the following fields:
Field
4-4
Description
Status
This is the status of the transactions in that row of the Status
column. For more information on status descriptions, see
Transaction statuses on page 4-11.
Total
This is the total dollar value of the transactions in that row of
the Status column.
Number
This is the total number of transactions in that row of the
Status column.
Initiated
This is the date and time that the transaction request was
made.
Amount
This is the dollar amount of the transaction.
Reference Check
This is the reference number entered in the Reference # field
of the transaction. For more information, see Transaction
processing parameters on page 2-5.
Customer
This is the name of the customer entered for the transaction.
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Vi e w in g t r a n s a c t i o n d e t a i l s
Field
Description
Current Status
This is the status of the individual transaction. For more information on status descriptions, see Transaction statuses on
page 4-11.
Viewing transaction details
The Transaction Summary page gives you an overview of all the transactions generated in the report you ran. But you can also drill down to
details on a single transaction.
To view transaction details:
1.
Run a report.
2.
On the resulting Transaction Summary page, click a date link in the
Initiated column. The Transaction Detail page opens for that transaction.
These fields
were completed
when the transaction was first
processed.
For a description of all the fields – except for the History field – see Transaction processing parameters on page 2-5.
The History field provides you with two important types of data:
•
The date of the stage in the transaction’s life cycle
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•
The status at that point in the transaction’s life cycle
The date of the stage in the transaction’s life cycle is displayed here.
The status of the transaction at
that point is displayed here.
Any error code is displayed here.
Take, for example, the second row in the sample above:
•
The time of this stage was 19:10 PST, August 15, 2002
•
The transaction had a status of Processing at that time.
For a complete description of statuses, see Transaction statuses on page
4-11.
If a check is returned for any reason, the code identifying that reason will
be posted in the History section of the Transaction Detail page. For a
description of these codes, see Appendix A: Codes
Running reports by deposit
This report displays all settlements to and from your merchant account
for checks, refunds, etcetera.
Running a report on All Deposits
One of the most useful reports you can run is the report that shows you
all the deposits made to your merchant account over the date range you
specify. This report option shows new checks being paid to the you, fees
charged, and also checks and fees returned and charged back to the you.
To run a report on All Deposits:
4-6
1.
Open the Reports page.
2.
Select the date range for the report you want to run. The format is
MM-DD-YYYY.
01/05/04
Ru n n i n g a r e p o r t o n A l l D e p o s i ts
3.
In the Search Criteria of the Reports page, select the radio button for
All Deposits.
4.
Click Submit. The Deposit Summary page opens.
Totals for the
date range are
here.
Daily totals are
here.
The dates in the
Date column
are links to the
Deposit Detail
page.
The Deposit Summary page contains the following fields:
Field
Description
Date
This is the date the transaction was initiated. This is also a
link to the Deposit Detail page.
Activity
This is the type of transaction. Some common values are:
• Checks
• Credits
• Discount Fees
• Transaction Fees
• Miscellaneous
# of Items
This is the number of each transaction type, totaled for the
date range and totaled for each day within that range.
Amount
This is the total dollar value of each type of transaction, given
for both the date range and for each day within that range.
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Field
Description
Net Activity
This is the net value (credits minus debits) of activity in your
account, given for both the date range and for each day
within that range.
Actual Net Settlement
This is the net value of credits (settled checks) into your merchant account, given for both the date range and for each
day within that range.
Negative numbers are in parentheses ( ).
Viewing deposit details
The Deposit Summary page gives you an overview of all the settlements
to and from your merchant account, over the date range you specified.
But you can also drill down to deposit details for a single day.
To view deposit details:
1.
Run a report.
2.
On the resulting Deposit Summary page, click a date link in the Date
column. The Deposit Detail page opens for that day.
This is a link to
the Transaction
Detail page.
The Deposit Detail page is subdivided to help you locate transactions
more easily. It has:
•
4-8
A Checks section for all settlements to your merchant account
01/05/04
Vi e w i n g d ep o s i t d e t a i l s
•
A Checks Returned section for all checks that could not be processed
•
A Credits Returned section for all credits that could not be processed
The Deposit Detail page contains the following fields:
Field
Description
Date
This is the date you clicked on in the Deposit Summary page
to get to this Deposit Detail page.
Activity
See Activity on page 4-7 for description.
# of Items
See # of Items on page 4-7 for description.
Amount
See Amount on page 4-7 for description.
Net Activity
This is the net value (credits minus debits) of activity in your
account, given for both the date range and for each day
within that range.
Actual Net Settlement
See Actual Net Settlement on page 4-8 for description.
Date Initiated
See Date on page 4-7 for description.
Checkwriter
This is the name entered in the First Name, MI, and Last
Name fields for the transaction. See Transaction processing
parameters on page 2-5 for more information.
Merchant Ref #
This is the information entered in the Reference # field for
the transaction. See Transaction processing parameters on
page 2-5 for more information.
Face/Gross Amount
This is the value entered in the Amount field for the transaction. See Transaction processing parameters on page 2-5 for
more information.
Discount Fee
This is the discount fee charged on the transaction by
Optimal Payments.
Trans Fee
This is the transaction fee charged on the transaction by
Optimal Payments.
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Deposit transaction details
You can also view the transaction details for any item on the Deposit
Detail page. Just click on the date link in the Date Initiated column. The
Transaction Detail page opens.
For more information on the Transaction Detail page, see Viewing transaction details on page 4-5.
Performing a Void or Hold
On occasion, you may be required to change the status of a check to Void
or Hold.
•
Hold – the check will be held for up to seven calendar days. After 7
p.m. PT on the seventh day, the check will be permanently voided.
•
Void – stops the check from being submitted to the ACH system. You
have until 7 p.m PT of the same business day to change the status
back to Process or Hold.
You cannot change the status of a transaction to Void or Hold after 7
p.m. PT of current/next business day, because items have been sent
already.
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Tra n s a c t i o n s t a tu se s
To perform a Void or Hold:
1.
Open the Reports page.
2.
Select the date range for the report you want to run. The format is
MM-DD-YYYY.
3.
In the Search Criteria of the Reports page, select the radio button for
To Be Processed.
4.
Click Submit. The Transaction Summary page opens, displaying any
items that have the status of To Be Processed.
5.
Select one of three options for each transaction:
•
Process – (default setting) the check will be sent at
7 p.m. PT for processing.
•
Hold
•
Void
On weekends and holidays, you can undo the Void until midnight of the
following business day.
6.
Click Save Changes. The new statuses are now in effect.
Any items that have been Held will stay in “To Be Processed”, “Held By
Merchant” for seven days and can be accessed under To Be Processed up
until that time.
Transaction statuses
This section describes the statuses used in the history portion of the
Transaction Detail page.
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Status
4-12
Description
To Be Processed
The transaction was received to begin the submission process. This transaction will begin processing for payment at 7
p.m. PT. However, if the transaction was done on a weekend
or holiday, the transaction will begin processing for payment
at 7 p.m. PT of the following business day. During the time
period that the transaction is at this status, it may still be
Voided or Held.
Processing
The transaction has been sent for processing. Once the status
has changed to “Processing”, no Voids or Holds may be performed on these items.
Unable to Process
The transaction could not be processed. When this report is
displayed, the merchant can view the transaction details by
clicking on the date in the Initiated column of a specific transaction. Included in the resulting detail will be the various reason(s) why this item could not be presented to the Federal
Reserve’s Clearing House (ACH) (see ACH return codes on
page A-1 and ACH transaction problem codes on page A-4
for more information). The transaction and the associated discount fees are credited back to the merchant’s account (in
one net total).
Voided By Merchant
The check was voided by the merchant but the check has not
as yet been submitted. Consequently, the check could still be
Processed or Held if desired (until 7 p.m. PT of the same business day; however, should the transaction have been done
on a weekend or holiday, until 7 p.m. PT of the following
business day).
Voided By Merchant
– Final
This check has been voided by the merchant and has passed
the 7 p.m PT recall deadline. It is permanently Voided.
Voided After 7 Day
Hold
A Held check has passed the 7 calendar day deadline for submission by the merchant. It is permanently Voided.
Hold Placed By
Merchant
The check has been Held by the merchant. The merchant has
seven calendar days to request that this check be Submitted
or Voided.
01/05/04
Tra n s a c t i o n s t a tu se s
Status
Description
1st Presentment
The check is at its first submission for clearing via the Federal
Reserve’s ACH. The proceeds of the transaction are deposited to the merchant’s account. If this status message is currently older than 5 business days, it may be assumed that this
item will not be returned by the Receiving Depository Financial Institution (RDFI); however, until a full 60 days has
passed, it cannot be said with full certainty that the presentment was successful, due to the possibility that an item may
come back for “Not Authorized” or “Authorization Revoked”
for up to 60 days.
1st Presentment
Returned
1st Presentment of a transaction has been returned by the
customer’s bank. The returned check is reflected on the
online reporting system, along with a reason code and explanation for the return (see ACH return codes on page A-1 and
ACH transaction problem codes on page A-4). If a 1st Presentment Returned item is due to R01 (Insufficient Funds) or R09
(Uncollected Funds), then the item will not be charged back
to the merchant, but will be re-presented as a 2nd Presentment. If item is returned again, then it will be charged back to
the merchant’s bank account. If the return is due to any other
return code, it will be charged back to the merchant, except
for items that are “Sent to Research”. For more information
on merchant payment and chargeback, see Appendix B:
Returned Items.
2nd Presentment
Second submission for clearing via the Federal Reserve’s
ACH. If this status message is currently older than 5 business
days, then this item has not been sent back to us from the
ACH, and this presentment was successful. The merchant will
have been paid at the time of the 1st Presentment, and the
2nd Presentment Returned was floated (not charged back).
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Status
4-14
Description
2nd Presentment
Returned
2nd Presentment of a transaction has been returned by the
customer’s bank. A reason code and explanation for the
return are posted for the merchant to view on the reporting
system (see ACH return codes on page A-1 and ACH transaction problem codes on page A-4). The transaction is charged
back and associated discount fee credited to the merchant’s
account (in one net transaction of all activity).
3rd Presentment
Third submission for clearing via the Federal Reserve’s ACH.
After 5 business days have passed since the 3rd Presentment
(with no Return), the merchant will be paid for this item, less
the discount fee.
3rd Presentment
Returned
Third Return by Customer’s bank, no further processing via
the ACH. A reason code and its description are posted on the
online reporting system for the merchant to view (see ACH
return codes on page A-1 and ACH transaction problem
codes on page A-4).
Check Forwarded to
Collections
Collections will now attempt collection on the item.
Check Returned to
Merchant for Collections
The check has failed all presentments and is returned to the
merchant. The merchant will handle the responsibility of collections. No additional notification is provided to the merchant, other than in the online reporting.
Cannot Process
Further
There will not be any further processing. This status will
always accompany the previous two statuses, “Check Forwarded Collections” and “Check Returned to Merchant for
Collections.” The transaction is charged back and associated
discount fee credited to the merchant’s account (in one net
transaction of all activity).
01/05/04
Tra n s a c t i o n s t a tu se s
Status
Description
Sent To Research
These are returned items that did not go through on their last
Presentment due to some routing or data problem. Research
will attempt to correct the problem in preparation for possible re-presentment. If research is able to correct the problem,
the item will be re-presented with the same status it had on
its last Presentment (see Re-presentable items on page B-2 for
more information). If research is unable to correct the problem, the item will be disposed and the next status will be
Cannot Process Further (see Disposed items on page B-4 for
more information).
Sent For Funds
Validation
This status means that the check has been presented and
returned two times. For items over $50.00, collections
attempts to verify that there are available funds in the customer’s bank before trying the 3rd and final presentment. For
items under $50.00, this is done by timing the re-presentment to a specific time of month when funds are typically
replenished by paychecks and other types of monthly and bimonthly deposits (items will hit on the 1st & 16th).
Third Presentment
after “Sent for Funds
Validation”
• The transaction is re-submitted for the 3rd and final time
(3rd Presentment) for clearing via the Federal Reserve’s
ACH.
• After a 5 business day waiting period has passed, the proceeds of that transaction (less discount fee) are again
deposited into the merchant’s account.
New Route #
This bank has changed its routing number, and the new number has been inserted in place of the old number.
New Account #
This bank has changed this account number, and the new
number has been inserted in place of the old number.
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CHAPTER 5
Access Control
Overview
On the Main Menu page, click Access Control. The Access Control page
opens.
You can perform the following tasks from the Access Control page:
•
Change PIN – allows you to change your own PIN if you have
administrative privileges, or if someone with administrative privileges has given you this capability.
•
Add PIN – allows you to create a new user.
•
Modify PIN – allows you to modify the tasks permissible for an
existing user.
Changing a PIN
This is how you change your own PIN. To change the PIN of another user,
see Modifying a PIN on page 5-4.
To change a PIN:
1.
Open the Access Control page.
2.
Click Change PIN. The Change PIN page opens.
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3.
Enter your current PIN in the Current PIN field.
4.
Enter your new PIN in the New PIN field and in the Confirm New
PIN field.
5.
Click Submit. A confirmation page opens to notify you that the PIN
has been changed.
Adding a PIN
To add a PIN:
1.
Open the Access Control page.
2.
Click Manage PINs. The Manage PINs page opens.
The Add New
PIN button
3.
5-2
Click Add New PIN. The Add New PIN page opens.
01/05/04
Adding a PIN
Select the check
boxes for the tasks
you want to allow
the new user to
perform.
4.
Complete the following fields:
Field
Description
PIN
Enter the PIN for the new user.
Description
Enter a description, for example of the user
to whom the PIN is assigned.
Disable PIN
Check this box to enable or disable the PIN
you have created. By default, this box is not
checked, leaving the new PIN enabled.
Batch Processing
Check the boxes for the batch processing
functions you want this user to have.
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Field
Description
Main Menu
Check this box to give this user access to the
Main Menu.
Access Control
Check the boxes for the access control
functions you want this user to have.
Reports
Check the boxes for the reporting functions
you want this user to have.
Transaction Processing
Check the boxes for the transaction processing functions you want this user to
have.
Modifying a PIN
To modify a PIN:
1.
Open the Access Control page.
2.
Click Manage PINs. The Manage PINs page opens.
3.
Click the PIN you want to modify in the PIN column. The Modify
Existing PIN page opens.
This is a link to
the PIN modification page.
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01/05/04
Disabling a PIN
4.
Modify the fields as necessary. See Adding a PIN on page 5-2 for
details on the check boxes.
5.
Click Update
Disabling a PIN
To disable a PIN:
1.
Open the Access Control page.
2.
Click Manage PINs. The Manage PINs page opens.
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3.
Click the PIN you want to disable in the PIN column. The Modify
Existing PIN page opens.
4.
Select the Disable PIN check box.
5.
Click Update.
APPENDIX A
Codes
ACH return codes
These are the codes used by the ACH system for identifying the various
reasons a check or payment is returned. These codes are generated by
customers’ banks (RDFI) to return items.
Code
Description
Code
Description
R01
Insufficient Funds
R21
Invalid Company Identification
R02
Account Closed
R22
Invalid Individual ID
Number
R03
No Account/Unable to
Locate Account
R23
Credit Entry Refused by
Receiver
R04
Invalid Account Number
R24
Duplicate Entry
R06
Returned per ODFI’s
Request
R25
Addenda Error
R07
Authorization Revoked by
Customer *
R26
Mandatory Field Error
R08
Payment Stopped or Stop
Payment
R27
Trace Number Error
R09
Uncollected Funds
R28
Routing Number Check
Digit Error
R10
Customer Advises Not
Authorized *
R29
Corporate Customer
Advises Not Authorized
R11
Check Truncation Entry
Return
R30
RDFI Not Participant in CK
Truncation Program
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Code
Description
Code
Description
R12
Branch Sold to Another
DFI
R31
Permissionable Return
Entry
R13
RDFI Not Qualified to Participate
R32
RDFI Non-Settlement
R14
Representative Payee
Deceased or Unable to
Continue in that Capacity
R33
Return of XCX Entry
R15
Beneficiary or Account
Holder Deceased
R34
Limited Participation DFI
R16
Account Frozen
R35
Return of Improper Debit
Entry
R17
File Record Edit Criteria
R36
Return of Improper Credit
Entry
R18
Improper Effective Entry
Date
R51
Item is Ineligible, Notice
Not Provided, Signature
Not Genuine, or Item
Altered
R19
Amount Field Error
R52
Stop Payment on Item
R20
Non-Transaction Account
*An initially cleared item can be returned as “Unauthorized”, “Authorized”, or “Authorization
Revoked” for up to 60 days following the date of Presentment. See Un-Authorized (R07) and
Authorization Revoked (R10) on page B-5 for more information.
Dishonors & Dishonored Returns
Dishonors are used when either the Originating Depository Financial
Institution (ODFI) or the Receiving Depository Financial Institution
(RDFI) receives an ACH transaction or ACH returned item record and
finds that the data contained in the ACH transaction record is in error
(either in content or format), and is therefore being “Dishonored” and
sent back. Dishonors are the responsibility of the ODFI and RDFI, and
such issues are handled without any involvement by the merchant.
A-2
01/05/04
D i s h o n o r i n g r e tu r n e n t r i e s
Since these dishonors apply to bank errors only, the merchant will never
be adversely affected. Dishonors may result in a check being paid to the
merchant even when it has been returned for insufficient funds, if the
returning bank (RDFI) has made critical errors in sending back the ACH
returned items record. In such cases, the RDFI takes the loss on the item
in question.
Dishonoring return entries
These are the return codes used by ODFI to dishonor return entries:
Code
Description
R61
Misrouted Return
R62
Incorrect Trace Number
R63
Incorrect Dollar Amount
R64
Incorrect Individual Identification
R65
Incorrect Transaction Code
R66
Incorrect Company Identification
R67
Duplicate Return
R68
Untimely Return
R69
Multiple Errors
R70
Permissible Return Entry Not Accepted
Contesting dishonored return entries
These are the return codes used by RDFI to contest dishonored return
entries:
Code
Description
R71
Misrouted Dishonored Return
R72
Untimely Dishonored Return
R73
Timely Original Return
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Code
R74
Description
Corrected Return
ACH transaction problem codes
These are reasons that an item cannot be processed
Code
Description
S1
Invalid Route
S2
No Amount
S3
Date in the Future
S4
Invalid Date
S5
Invalid Account
S6
No Fee
S7
Wrong Number of Fields
S8
Invalid Sequence Number
S9
Unknown Merchant
S10
Duplicate
S11
No Amount or Fee
S12
Invalid Amount
Province/state codes
Province
A-4
Code
Alberta
AB
British Columbia
BC
Manitoba
MB
01/05/04
P r o v i n c e / s t a t e c o de s
Province
Code
New Brunswick
NB
Newfoundland
NF
Nova Scotia
NS
Northwest Territories
NT
Nunavut
NU
Ontario
ON
Prince Edward Island
PE
Quebec
QC
Saskatchewan
SK
Yukon
YT
State
Code
Alabama
AL
Alaska
AK
Arizona
AZ
Arkansas
AR
California
CA
Colorado
CO
Connecticut
CT
Delaware
DE
District of Columbia
DC
Florida
FL
Georgia
GA
Hawaii
HI
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State
A-6
Code
Idaho
ID
Illinois
IL
Indiana
IN
Iowa
IA
Kansas
KS
Kentucky
KY
Louisiana
LA
Maine
ME
Maryland
MD
Massachusetts
MA
Michigan
MI
Minnesota
MN
Mississippi
MS
Missouri
MO
Montana
MT
Nebraska
NE
Nevada
NV
New Hampshire
NH
New Jersey
NJ
New Mexico
NM
New York
NY
North Carolina
NC
North Dakota
ND
Ohio
OH
01/05/04
P r o v i n c e / s t a t e c o de s
State
Code
Oklahoma
OK
Oregon
OR
Pennsylvania
PA
Rhode Island
RI
South Carolina
SC
South Dakota
SD
Tennessee
TN
Texas
TX
Utah
UT
Vermont
VT
Virginia
VA
Washington
WA
West Virginia
WV
Wisconsin
WI
Wyoming
WY
Canada
CN
International
IT
Puerto Rico
PR
U.S. Virgin Islands
VI
Northern Mariana Is.
MP
Guam
GU
American Samoa
AS
Palau
PW
Armed Forces Americas
AA
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State
A-8
Code
Armed Forces Europe
AE
Armed Forces Pacific
AP
United States Federal
US
APPENDIX B
Returned Items
This appendix provides two tables that will assist you in determining
when you are paid and when you are charged back for returned items.
Settlement Activities by Presentment & Return
Number
This section tells how the ACH system will generate settlement activities
(net deposits) such as merchant deposits and returned item chargebacks. These payments and chargebacks are performed based on the
number of the presentment and return. For example, a 1st Return is
floated (not charged back) if re-presentable, while a 2nd Return is
charged back even if the item is re-presentable. Use this guide in combination with the System actions by return code on page B-2 to determine
settlement activities and the disposition of returned items.
Status
Description
1st Presentment
Merchant is paid
1st Presentment
Returned
• If re-presentable, return is floated by the system and merchant is not charged back; item is re-presented.
• If “Sent To Research”, item may be re-presentable and the
return will be floated by the system during the research
period. During research period, the item will not be
charged back. Depending upon the outcome of the
research, item may then be re-presented, or disposed and
charged back to the merchant.
• If disposed, item is charged back to the merchant’s
account. (See System actions by return code on page B-2 to
see if an item is re-presentable or not.)
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Status
Description
2nd Presentment
Merchant has already been paid on the 1st Presentment. The
1st Presentment Returned has been floated by the system,
not charged back, so that the merchant still has the first payment on these items.
2nd Presentment
Returned
Merchant will be charged back regardless of the reason for
the return
3rd Presentment
Payment to the merchant will not be made until 5 business
days with no return have passed since the 3rd Presentment.
3rd Presentment
Returned
• If payment has not yet been made to the merchant, no payment will be made.
• If payment has already been made to the merchant, item
will be charged back to the merchant’s account.
System actions by return code
This section describes how the system will handle each returned item,
based on the return code. It tells which returns are charged back and
which are re-presentable, and covers three primary categories of
returns:
•
Re-presentable items
•
Sent to Research items
•
Disposed items
Re-presentable items
These are returns for insufficient funds (R01) and uncollected funds
(R09) that can be re-presented a second or third time with no changes to
the original item needed.
Status
1st Presentment Returned
B-2
Description
Item will not be charged back.
01/05/04
S e n t To R e s e a r c h i t e m s
Status
2nd Presentment Returned
Description
Item is charged back.
• Transactions less than $50 are automatically represented on the 1st or 16th.
• Transactions greater than $50 are sent for manual
funds verification
In the second case, the collection department manually calls bank to verify funds.
• If funds available, will resubmit through ACH system.
• If funds unavailable, will try to hit customer’s
account on 1st or 16th.
3rd Presentment Returned,
and merchant has been
repaid
•
Item is charged back.
NOTE: 3rd Presentments are initially paid after five
business days have passed since the 3rd Presentment.
The Next Status will be 2nd Presentment or 3rd Presentment
Sent To Research items
These are returned items that did not go through on their last presentment due to a routing or data problem. Research attempts to correct the
problems in preparation for re-presentment.
Code
Description
R03
No Account/Unable to Locate Account
R04
Invalid Account Number
R12
Branch Sold to Another DFI
R13
RDFI Not Qualified to Participate
R20
Non-Transaction Account
R29
Corporate Customer Advises Not Authorized
R30
RDFI Not Participant in Check Truncation Program
R32
RDFI Non-Settlement-Not Collection
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Code
Description
R34
Limited Participation DFI (may be converted to a
paper draft, or disposed
R35
Return of Improper Debit Entry
R36
Return of Improper Credit Entry
•
Items that were 1st Presentment Returned will not be charged back.
•
Items that were 2nd Presentment Returned will be charged back.
•
If research is able to correct the problem, the item will be re-presented with the same status it had on its last Presentment.
•
If research is unable to correct the problem, the item will be disposed
and the next status will be Cannot Process Further. (See Disposed
items on page B-4.)
Disposed items
Returns that are sent to disposal are removed from the ACH system and
“sent back” to the merchant or to collections. Disposed items are always
charged back to the merchant’s bank account. No further ACH processing can be done on these items.
Code
B-4
Description
R02
Account Closed
R06
Returned per ODFI’s Request
R07
Authorization Revoked by Customer
R08
Payment Stopped or Stop Payment on Item
R10
Customer Advises Not Authorized
R14
Representative Payee Deceased or Unable to Continue in That Capacity
R15
Beneficiary or Account Holder Deceased
R16
Account Frozen
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C h a r g e b ac k s , A u t h o r i z a ti o n P r o b l e m s , L e g a l R e m e d i e s
Code
Description
R23
Credit Entry Refused by Receiver
R31
Permissible Return Entry
R33
Return of XCK Entry
R51
Item Is Ineligible, Notice Not Provided, Signature Not
Genuine, or Item Altered
R52
Stop Payment on Item
•
Item will be charged back to the merchant’s bank account.
•
The Next Status will be Cannot Process Further.
Chargebacks, Authorization Problems, Legal
Remedies
Un-Authorized (R07) and Authorization Revoked (R10)
An initially cleared item can be returned as “Unauthorized” or “Authorization Revoked” for up to 60 days following the date of presentment.
When this occurs, the item cannot be resubmitted, and payment will not
be fulfilled. There is no recourse available to you via the ACH banking
system. The only recourse available is for you to pursue the matter
directly with your customer either through written requests for payment of merchandise delivered or through a legal action to collect any
outstanding balance. See NACHA Rules on page B-6 for more information.
Chargebacks/returns due to not being authorized
In the world of checks, there are no “chargebacks” as such, but only
“returns”. We would consider a return to be similar to a Visa/MasterCard
“chargeback” if the return is due to a check being flagged as “Not
Authorized”, or “Authorization Revoked” by the RDFI. This means that
the bank account holder has notified their bank that this item was either
not authorized, or that the authorization has been revoked. In these
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cases, the check is returned (charged back) to your account. The value of
the check, less the discount fee, is taken from you (face amount debited,
discount fee credited).
The term “chargeback” is used in the program to indicate any case
where a returned check/ACH item is debited from the merchant’s bank
account due to a failure to clear. These chargebacks may be due to insufficient funds or any other return code.
Returned Item Recourse available to the Merchant
In the cases of Authorization Revoked and Not Authorized, there is no
recourse available to you via the ACH banking system. The only
recourse available is for you to pursue the matter directly with your customer either through written requests for payment of merchandise
delivered or through a legal action to collect any outstanding balance.
NACHA Rules
This section contains excerpts from the ACH rules as stated in the 2001
National Automated Clearing House Association (NACHA) Operating
Guidelines (NACHA 2001 Operating Guidelines Section III, Chapter III,
B. Returns, Dishonored Returns, Contested Dishonored Returns. P-OG
63-64).
Returns for Revocation of Authorization (R07)
“In a debit application, entries may be returned by the RDFI for R07
(Authorization Revoked by Customer) if the receiver signed an executed
affidavit in which the Receiver declares and swears under oath that the
authorization for the debit entry has been revoked directly with the
originator under the terms and conditions set forth in the authorization
agreement. The Originator may request that its Originating Depository
Financial Institution (“ODFI”) obtain a copy of the affidavit from the
RDFI when appropriate. The ODFI’s written request must be received
by the RDFI within one year of the date on which the adjustment entry
was initiated by the RDFI. The RDFI must comply with the ODFI’s
request for a copy of the affidavit within sixty days of receiving the
ODFI’s written request. Originators may not reinitiate entries returned
for authorization revoked and should be prepared to contact the
receiver regarding those entries.”
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N A C H A Ru l e s
Returns for Unauthorized Consumer Debits (R10):
“Originators can expect the return of entries which were not properly
authorized. An unauthorized debit entry is an entry in which:
•
The written authorization requirements had not been followed
•
A transaction was initiated in an amount greater than that authorized by the receiver; or
•
A transaction was initiated for settlement earlier than authorized by
the receiver.
For the interim rule concerning PPD Debit entries Constituting Notice
of Presentment and for the short-term rule governing PPD Accounts
Receivable Truncated Check Debit Entries, Originators may also expect
the return of entries (using Return Reason Code (R10) that were originated improperly. An improper debit entry is an entry for which:
•
The item to which the PPD debit entry relates is ineligible to be initiated as either a PPD debit entry constituting notice of presentment
or as a PPD Accounts Receivable Truncated Check Debit Entry;
•
The required notice stating the terms of the re-presented check
entry policy or the truncated check entry policy or the entry policy
(for the short-term rule on PPD Accounts Receivable Truncated
Check Debit Entry;
•
All signatures on the item to which the re-presented check entry or
the PPD Accounts Receivable Truncated Check Debit Entry relates
are not authentic or authorized, or the item has been altered; or
•
In the case of PPD Accounts Receivable Truncated Check Debit
Entries, the Receiver had provided notice to the Originator not to
truncate the item to which the entry relates in accordance with the
requirements of the NACHA Operating Rules.
Effective September 15, 2000, with the implementation of the new RCK
Standard Entry Class Code, Return Reason Code R51 (Item is Ineligible,
Notice Not Provided, Signature Not Genuine, or Item Altered) Must be
used for the return of improper re-presented check entries in place of
Return Reason Code R10. Return Reason Code R10 will continue to be
used for the return of improper entries relating to the short-term rule for
PPD Accounts Receivable Truncated Check Debit Entries.
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Originators receiving returns for R10 (Customer Advises Not Authorized/Item Is Ineligible, Notice Not Provided, Signatures Not Genuine, or
Item Altered) should be aware that the RDFI is warranting that it has an
affidavit in place which has been executed by the consumer declaring
and swearing under oath that the debit entry which was returned was
not authorized by the consumer. The procedures for obtaining a copy of
the affidavit are the same as previously discussed in the Returns for Revocation of Authorization section. Originators may not reinitiate entries
returned for Customer Advises Not Authorized/Item Is Ineligible, Notice
Not Provided, Signatures Not Genuine, or Item Altered and should be
prepared to contact the Receiver regarding those entries (NACHA 2001
Operating Guidelines Section III, Chapter III, B. Returns, Dishonored
Returns, Contested Dishonored Returns. P-OG 63-64).
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