NAFCU supports NACHA return code clarifications
Sept. 20, 2013 – NAFCU Regulatory Affairs Counsel Angela Meyster wrote NACHA – The Electronic Payments Association in support of a NACHA operating rules amendment to clarify distinctions between the Return Reason Codes R03 and R04.
NAFCU agrees “that the clarifications would facilitate better understanding of when to use which code and reduce inefficiency and confusion on both ends,” Meyster wrote.
Meyster also asked NACHA to reconsider the time frame assigned to Return Reason Code R03 administrative returns so credit unions will have more time to return entries which have a name mismatch.
The R03 code refers to “no account/unable to locate account” errors.
“A repurposed R03 should not be subject to the same time frame as an administrative return because (a) there is no requirement to match name and account number; and (b) a Receiving Depository Financial Institution will not always be made aware of it within a two-day time frame,” Meyster wrote.
Meyster asked that credit unions be given a longer time frame in which to respond to the error so they do not have to use a different return code after two days have gone by.