As a reminder, a March 31, 2020, change to the Nacha ACH Rules repurposed the Return Reason Code R11 to be used when a receiving customer claims that there was an error with an otherwise authorized payment. That change now provides distinction from the Return Reason Code R10 that had been used as a catchall for various types of underlying unauthorized return reasons. The use of R11 enabled a return that conveys an error rather than a condition of no authorization.
Effective April 1, 2021, R11 returns will be assessed the existing Unauthorized Entry Fee as defined on the FedACH® Services 2021 Fee Schedule.
The Unauthorized Entry Fee is based on the count of the number of return commercial entries, including both value and non-value, that have the following return reason codes: R05, R07, R10, R11, R29 and R51. As such:
- Operators will bill the ODFI on a monthly basis, on its regular monthly billing statement, for the total number of items times the per transaction rate
- Operators will credit the RDFI on a monthly basis, on its regular monthly billing statement, for the total number of items times the per transaction rate
Your institution’s monthly billing statement may include up to two additional lines when applicable and, in each case, the fee charged or received will be the number of transactions times the appropriate per transaction rate:
- Unauthorized Entry Fee Charged
- Unauthorized Entry Fee Received