Banner Bank ACH Originator Guide

Returned Transactions ACH entries can be returned to an Originator for several valid reasons, including non-sufficient funds, invalid account number, unauthorized, and other reasons. Most returns are received within two (2) Banking Days of the entry’s original Settlement Date and will create an adjustment entry toyour designated business account with Banner Bank. Upon receipt of a returned ACH entry, Banner Bank will notify you promptly via ACH Reporting in Business Online Banking. Some ACH return reasons allow for extended deadlines. Consumers can dispute and return entries for a revoked authorization or as unauthorized for up to sixty (60) calendar days from the original statement date of the entry. If the RDFI receives a dispute claiming a debit was unauthorized, it must obtain a signed form called a Written Statement of Unauthorized Debit (WSUD) from the Receiver. You may request a copy of the form related to any such returns you receive by contacting Banner’s Treasury Management Supprt team. Each ACH return will contain a return code that describes the reason for the return. The most common Return Reason Codes are listed below. For a list of additional codes, reference Exhibit E of this document or for a list of all possible Return Reason Codes, refer to Appendix Four of the Rules.

Code

Description

R01 R02 R03 R04 R06 R07 R08 R09 R10

Insufficient Funds Account Closed

No Account / Unable to Locate Account

Invalid Account Number Returned Per ODFI Request

Authorization Revoked by Customer

Payment Stopped Uncollected Funds

Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver’s Account Customer Advises Entry Not in Accordance with the Terms of the Authorization

R11

R29

Corporate Customer Advises Not Authorized

20