Check Adjustments Frequently Asked Questions
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Check Adjustments FAQs
1. What information is required on an adjustment request?
The information required on an adjustment request will vary depending on the investigation type (ITYP). The Check Adjustments Quick Reference Guide (QRG) is available to assist you in determining the required fields based on the ITYP for which you are submitting the request. The QRG also provides a description and guidance on the proper usage of each ITYP, the reporting time frame to receive provisional entry (if applicable), the Federal Reserve’s response based on the reporting time frame in which the request is received, as well as information on what supporting documentation (if applicable) is required.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including the required fields (information needed on the adjustment request) and supporting documentation requirements.
2. Why are adjustment requests resolved with entry only to have the entry later reversed?
In most instances, provisional entries are automatically generated based on case submission requirements and the reporting time frame of the investigation type (ITYP) for which the request is being submitted. If it is later determined that a request did not meet those requirements, the entry is reversed and the requestor is advised, where applicable, to resubmit the request as new business.
For example, required documentation associated with requests submitted via the FedLine® Solution must be provided at the same time an adjustment message is submitted. For requests submitted using the text (TXT) file format, required documentation must be archived to the case or received by the Federal Reserve Bank of Atlanta (if original documentation is required) within five (5) business days of the Federal Reserve receiving the electronic adjustment request. If the documentation is not received within this time frame, the provisional entry will be reversed.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
3. What can we do about our live item documentation not reaching the Federal Reserve Bank of Atlanta within five (5) business days of sending the request? We are a FedLine Solution customer.
As a FedLine Solution customer, your live item documentation must be received within five (5) business days of the receipt of the request. Free Item(s) submitted as Information Request (INFO) and the Photo in Lieu (PIL) investigation types require the live item. Please send your documentation on the day you initiated your request to ensure it is received timely.
An alternative (preferred) method of handling PILs is through check processing channels instead of through Check Adjustments channels. PILs should be sent to the Federal Reserve Bank of Atlanta, in the applicable cash letter (Forward or Return). All PILs must be sorter ready for processing.
4. How can we determine if our documentation was received by the Federal Reserve? We are a FedLine Solution customer.
As a FedLine Solution customer, you can verify if documentation has been associated with your electronic adjustment request by viewing the corresponding Check Adjustments (CA) message from the Outbox. If the message has a status of Sent, a paperclip icon will appear in the Attachment column when the documentation has been associated with the message. To view the documentation, you must first select and view the corresponding CA message. Then, select the download arrow in the Download column.
5. How can I determine the status of my adjustment request(s)? We are a FedLine Solution customer.
As a FedLine Solution customer, with access to the Check Adjustments application, a Daily Status Report is located under the Reports tab. The report is generated at the end of each processing day and provides information on the status of adjustment requests submitted to the Federal Reserve that are pending, awaiting supporting documentation (attachments), or for which provisional entry or the requested information has not been provided. Refer to Check Adjustments Services for detailed information on the report.
6. How should I respond to a CA1000 (Case Open) message from the Federal Reserve? We are a FedLine Solution customer.
As a FedLine Solution customer, you should respond to the Federal Reserve’s CA1000 message with a CA5000 (Case Resolution) message. Your response should be entered in the comment field of the CA5000 message. You should avoid responding to a CA1000 message using a CA1000 message as this will create (open) a new case with the Federal Reserve.
7. How should we handle an item that has been duplicated or is a Paid Item (PAID) but one of the items also has an Encoding Error (ENC)?
If you have a paid item and an encoding error occurred on one of the presentment/return items but has not been corrected, submit a PAID request for the amount of the incorrectly encoded item. The incorrectly encoded item should be the item reported PAID in the Item ID section of the case for the amount debited. For example, assume one of the presentment/return items was charged to you incorrectly as $1,359.60 and should have been $2,359.60. However, at some point you were also charged for the correct amount of the item, $2,359.60. Submit a PAID request for $1,359.60.
If you have a paid item and an encoding error occurred on one of the presentment/return items, however, an ENC adjustment has already been submitted, the PAID request should be submitted for the correct amount of the item. Additionally, the ENC adjustment should be referenced in the comment field of the case. For example, assume one of the presentment/return items was charged to you incorrectly as $627.50 and should have been $1,627.50. An ENC adjustment was submitted and an entry was made to you for $1,000.00. However, at some point you were also charged for the correct amount of the item, $1,627.50. Submit a PAID request for $1,627.50.
8. What are the differences between the Non-Cash Item (NCH) and the Not Our Item (NOI) investigation types (ITYPs)?
The differences between the NCH and the NOI ITYPs are the usage and method in which the error can be reported. The NCH ITYP is used to request entry for a non-valid (zero-value) item or an item that was included in the cash/return letter total (received from a Federal Reserve Bank) that does not meet legal equivalence requirements for Electronic Check Processing. A control document, magnetic ink character recognition (MICR) mismatched item or a non-conforming item are examples of items that may be reported as NCHs. The NCH ITYP should not be used to report fraudulent or forged items as these situations are not handled through the Check Adjustments channels.
The NOI ITYP is used when an item was charged in a cash/return letter and the item does not bear your institution’s routing number in the MICR line (Forward Collection) or endorsement area (Return Process) of the physical item or in the associated endorsement records for items received electronically. If the item bears your institution’s routing number, it is deemed to be your item. Forward NOIs do not commonly occur in X9.100-187 (X9.37) image cash letters.
The preferred method for submitting NOIs is through Check Adjustment channels. Submissions through paper processing channels (NOI Cash/Return Letter) will continue to be accepted. Requests submitted via FedLine Solution and via a paper adjustment request form must be for an amount of $0.01 or greater and only require a legible copy of the front and back of the item. Only one (1) item is permitted per adjustment request.
Refer to the Non-Cash Item (NCH) vs. Not Our Item (NOI) Job Aid (PDF) for a visual referenc guide choosing the corret ITYP.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
9. What should I do if my financial institution creates and deposits duplicate substitute checks or duplicate images with the Federal Reserve?
If you deposit duplicate substitute checks or duplicate images with the Federal Reserve, you can contact the Support Center. We will open a service request and document the incident. As the duplicate item(s) have been reported by the paying institution(s), we will debit your account. An adjustment request should not be submitted requesting a debit entry using the Paid Item (PAID) investigation type.
10. What are the differences between the Duplicate Entry (DUP) and the Paid Item (PAID) investigation types (ITYPs)?
The differences between the DUP and the PAID ITYPs are the usage and reporting time frames. The DUP ITYP is used when requesting reversal or investigation of an accounting entry that appears to have been previously made. For example, if you receive an entry (CA5100 (case resolution with entry) or CA1100 (case open with entry) message) for the same Encoding Error (ENC) more than once, this would be considered a duplicate entry. If the DUP request is received within twenty (20) business days of the most recent entry date and other requirements are met, a provisional entry is made the same day the request is received.
The PAID ITYP is used when requesting credit for an item that is being refused either because it is the original (or the legal equivalent, i.e. a substitute check or image received in an X9.100-187 (X9.37) cash/return letter) or a photocopy, and the other item is already paid. If the PAID request is received within six (6) calendar months of the cash/return letter date of the item being reported as paid and other requirements are met, a provisional entry is made the same day the request is received.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
11. What are my options if my financial institution receives a duplicate substitute check(s) or duplicate image(s) from the Federal Reserve?
If you receive a duplicate substitute check(s) or duplicate image(s) from the Federal Reserve, you may submit an adjustment request for credit, using the Paid item (PAID) investigation type (ITYP), for any dollar amount $0.01 or more. If the request is received within six (6) calendar months of the cash/return letter date of the item being reported as paid and other requirements are met, a provisional entry is made the same day the request is received. If multiple items (6 or more) are PAID in the same bundle of work, you may submit them as one adjustment request. Alternatively, you may submit an adjustment request using the Warranty/Indemnity Claim (WIC) or Electronically Created Items (ECIs) if the associated requirements are met. However, same day provisional entries are not provided on WIC requests.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
Check Adjustments Quality Fees FAQ
1. Why did the Federal Reserve Banks decide to charge a quality fee to process certain check adjustments?
Quality fees are designed to encourage greater efficiency through proper case submission and improved deposit practices.
2. If I am charged a quality fee, will I be notified?
If a quality fee is charged to the Depositor, due to an incorrectly encoded item or duplicate check(s) in their deposit to the Federal Reserve Banks, which resulted in an Encoding Error (ENC) or Paid Item (PAID) adjustment reported by the Receiving Bank, the adjustment message should be considered the notification; no other notification of the quality fee charge will be provided. Please refer to the Service Fees on FRBServices.org for specific information on the fees.
If a quality fee is charged to the Sender of the case, due to incorrect information in their adjustment request, which resulted in the prevention of automatic resolution of the request causing the Federal Reserve to manually process and resolve the case, the Sender will receive a CA5000 (case resolution) message with an investigation type of Information Request (INFO) advising of the quality fee charge related to their Sender’s Reference (SREF) number.
3. If I am charged with multiple PAID items within the same adjustment case, will I be charged a quality fee for each individual paid item within the PAID case?
No, for PAID cases involving multiple paid items within a single PAID case (grouped PAID), only one quality fee will be charged.
4. Will I be charged a quality fee for items in my deposit processed prior to January 2, 2019 that resulted in an ENC or PAID reported by the Receiving Bank?
No, the quality fee will only be applied to ENC or PAID adjustment requests resulting from incorrect deposits with a processing date on or after of January 2, 2019 and an adjustment resolution date on or after January 14, 2019. For example, the fee does not apply if an ENC is submitted with a processing date of January 4, 2019 and is resolved on January 9, 2019.
5. Will I be charged a quality fee for all investigation types I submit with incorrect information with a processing date prior to January 14, 2019?
No, the quality fee will only be applied to ENC, Disposition (DISP), Listed Not Enclosed (LNE), Non-Cash Item (NCH), PAID or Source of Receipt (SOR) adjustment requests with a processing date on or after of January 2, 2019 and an adjustment resolution date on or after January 14, 2019. For example, the fee does apply if a PAID is submitted with a processing date of January 12, 2019 and is resolved on January 16, 2019.
6. Will I be charged a quality fee for an adjustment request I submitted with incorrect information, however, the request was returned to me unprocessed?
No, a quality fee will not be applied to an adjustment request received with incorrect information that was returned to the Sender unprocessed.
Check Processing FAQ
1. What should I do if I didn’t receive my paper cash/return letter from the Federal Reserve Bank?
If you did not receive your paper cash/return letter from the Federal Reserve and you discover the error the same day the cash/return letter was processed, you should call the Support Center. If you discover the error after the original processing date; submit an adjustment request using the Missing Cash Letter (MCL) investigation type (ITYP) and request for credit entry type (ETYP).
2. What should I do if I didn’t receive my image cash/return letter from the Federal Reserve Bank?
If you did not receive your image cash/return letter from the Federal Reserve, you should call the Support Center as soon as you discover the error.
3. Where can I find the cash/return letter forms used to deposit my paper cash/return letter and how do I fill them out?
Cash/Return letter forms are located on our website. When completing the form you should refer to the instructions and examples (where applicable) and be sure to include the Depositor’s routing number, name and address, cash/return letter and bundle total amount, item count and date on the form. All paper cash letters should be sent to the Federal Reserve Bank of Atlanta; refer to the cash letter form for address information.
If you need additional assistance, contact the Support Center.
4. I received an entry on my statement from a cash/return letter that I deposited two weeks ago. Why wasn’t the entry made on the same day the cash/return letter was deposited?
An adjustment related to a cash/return letter may occur on the date the cash/return letter was processed or on a later date when the Federal Reserve is made aware of the error. An entry on your statement that contains the description “C/L Correction” generally indicates that the error was discovered during the initial processing of the cash/return letter. An entry on your statement with the description “Cash Letter Adjust” or “Late Return Claim” generally indicates that the error was discovered and / or reported after the initial processing of the related cash/return letter. All other Check-related debits and credits on your statement are for cash/return letters.
As a reminder, your statement also consists of credits and debits from other Federal Reserve departments, such as: Cash, Fedwire®, and ACH. It is important to read your statement carefully and take notice of the descriptions for all entries.
Not Our Items (NOIs) FAQ
1. How should I handle an item that has been charged to me and it is not my item?
When you have been charged with an item that does not bear your institution’s routing number in the MICR line (Forward Collection) or endorsement area (Return Process) of the physical item or in the associated endorsement records for items received electronically, you can report a Not Our Item (NOI) using the Check Adjustments channels. Requests submitted via FedLine Solution and via a paper adjustment request form must be for an amount of $0.01 or greater and only require a legible copy of the front and back of the item. Only one (1) item is permitted per adjustment request.
2. What is the reporting time frame for a Not Our Item (NOI)?
A NOI adjustment request must be submitted within twenty (20) business days of the cash/return letter or entry date (CLED) in order to receive provisional entry.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
3. What information/documentation is needed to submit a Not Our Item (NOI)?
Not Our Item (NOI) errors are reported using the Check Adjustments channels. Only one (1) item is permitted per adjustment request. Complete source of receipt from a Federal Reserve Bank must be provided.
Requests submitted via FedLine Solution and via a paper adjustment request form must be for an amount of $0.01 or greater and only require a legible copy of the front and back of the item.
Refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
4. We were charged with a return item requesting source information (there is a sticker on the back of the item from FRB Atlanta). However, when we provide the source information, the item is sent back to us in another return letter (looping). What should we do?
When you have been charged, by the Federal Reserve Bank with an item in a return letter, requesting source information (a sticker is on the back of the item from the Federal Reserve Bank), you have the following options:
- Qualify the item to the bank of first deposit (BOFD) and deposit the item in a qualified return letter;
- Deposit the item in an unqualified (raw) return letter with the source information completed on the sticker
- Submit an adjustment request, using the NOI investigation type, with the source information completed on the sticker and in the case IID fields.
5. Can I use the Not Our Item (NOI) (return letter or adjustments channels) to handle an item that has been returned and charged to me as the bank of first deposit (BOFD) but should have been returned to a centralized returns provider? I am the BOFD.
When an item has been returned/charged to you as the BOFD, instead of a centralized returns provider, and you are the BOFD, you cannot handle it as a NOI through the adjustments channels. You must handle the item as you would any other item that was returned to you as the BOFD. You also have the option of qualifying the item to the centralized returns provider and depositing the item in a qualified return letter.
6. Can I use the Not Our Item (NOI) cash/return letter or adjustments channels to report an item that has our routing number on the magnetic ink character recognition (MICR) line (or in the file) but the image is not an item drawn on our institution?
You should not use the adjustments channels to report this type of error as a NOI. This is considered a MICR mismatch and the error should be reported through adjustments channels using the Non-Cash Item (NCH) ITYP. The NOI ITYP should only be used when an item was charged to you in a cash/return letter and the item does not bear your institution’s routing number in the MICR line (Forward Collection) or endorsement area (Return Process) of the physical item or in the associated endorsement records for items received electronically type 32 (Electronic Return) (you do not have a banking relationship with the payee). If the item bears your institution’s routing number in the MICR line or MICR record of the file, it is deemed to be your item.
NOIs do not commonly occur in Forward X9.37 image cash letters. You may have received a “mis-matched” item – the routing number on the MICR line (or MICR record of the file) does not match the routing number on the imaged item. Mis-matched items can be reported using the NCH ITYP. Refer to the NCH vs NOI tip sheet (PDF) for additional information on these investigation types.
Also, refer to the Check Adjustments Quick Reference Guide for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements.
7. Why am I being charged for a Return Not Our Item (NOI) via an accounting entry – CA1100 (Case Open with Entry) message?
To expedite the handling of return items reported as NOIs, and to ensure that the institution that deposited the return item is aware of the routing issue, an electronically deposited return item reported as a NOI will be charged back to the depositor of the item as a NOI adjustment, and a debit accounting entry will be functioned.
Refer to the Check Adjustments Quick Reference Guide (QRG) for information on all ITYPs, including reporting time frames, required fields (information needed on the adjustment request) and supporting documentation requirements. Also, refer to the General Notes section of the QRG for more information on the Federal Reserve’s resolution of NOIs.
8. What should I do when I have been charged for a Not Our Item via an adjustment entry?
As a depositor who has been charged via an adjustment entry for a NOI, you will be required to research the item to determine the correct Bank of First Deposit (BOFD) or collecting bank if the BOFD is not identified and, if warranted, reprocess the corrected item.
Refer to the General Notes section of the Check Adjustments Quick Reference Guide for more information.
9. What should I do if I believe I’ve been charged for a NOI in error?
If you believe you have received a NOI debit entry in error, you can submit an Entry in Error (ERR) adjustment requesting a reversal. The ERR request must include the most recent Forward source of receipt (your inclearings), proving the item was returned to the correct BOFD.