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Check Adjustments Frequently Asked Questions (FAQs)

Federal Reserve Financial Services is committed to providing you the answers and information you need. Answers to many of our customers most frequently asked questions can be found using the links below.

If your question is not answered by the information provided on the site, My FedDirectorySM provides a comprehensive list of service and support contacts who can assist you.

Check Adjustments FAQs

Check Processing FAQs

Not Our Items (NOIs) FAQs

Check Adjustments FAQs

Q: What information is required on an adjustment request?

A: The information required on an adjustment request will vary depending on the investigation type (ITYP). The online 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 online 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 the request is received, as well as information on what supporting documentation (if applicable) is required.

Refer to the online Check Adjustments Quick Reference Guide for information on all ITYPs, including the required fields (information needed on the adjustment request) and supporting documentation requirements.

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Q: How can I determine which Federal Reserve Bank I should submit my adjustment request to?

A: The Receiver (RCVR) of your adjustment request depends on whether or not you are initiating a request or responding to a request from the Federal Reserve. If you are initiating the request, the RCVR should be the Federal Reserve that processed the cash/return letter (your cash/return letter to the Federal Reserve or the Federal Reserve's cash/return letter to you) which contained the item associated with your request. When responding to a request from a Federal Reserve, the RCVR of the response should be the Federal Reserve that sent the request to you or passed an entry to you.

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Q: Why are adjustment requests resolved with entry only to have the entry later reversed?

A: 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 Sender is advised to resubmit the request as new business.

For example, required documentation associated with requests submitted via the FedLine Web access solution must be faxed to the Documents to Follow (DTF) Archive or received by the Federal Reserve Bank of Cleveland (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 online 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.

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Q: What can we do about our live item documentation not reaching the Federal Reserve Bank of Cleveland within five (5) business days of sending the request? We are a FedLine Web access solution customer.

A: As a FedLine Web access solution customer, your documentation must be received and associated to your request within five (5) business days of sending the request. Free Item (FREE), Not Our Item (NOI) and Photo in Lieu (PIL) investigation types require the original item. Please send your documentation on the day you initiated your request to ensure it is received timely.

An alternative method of handling NOIs and PILs is through check processing channels instead of through Check Adjustments channels. NOIs can be deposited, with no item amount or count limitations, with the Federal Reserve Bank of Cleveland, using a NOI cash letter (Forward or Return Collection). PILs can be deposited with the Federal Reserve office you regularly deposit with, in a non-imageable cash letter (Forward or Return Collection).

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Q: How can we determine if our documentation was received by the Federal Reserve? We are a FedLine Web access solution customer.

A: As a FedLine Web access 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 feature under the Sent section. A “Y” will appear in the DTF (Documents to Follow) column when the documentation has been associated with the message. To view the documentation, you must first select and view the corresponding CA message. Refer to the DTF Archive Reference Guide for detailed information on archiving supporting documentation.

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Q: How can I determine the status of my adjustment request(s)? We are a FedLine Web access solution customer.

A: As a FedLine Web access solution customer, with access to the Check Adjustments application, a daily status report is available as a menu option under the Import/Export feature. The report is generated at the end of each processing day and provides up-to-date information on the status of adjustment requests submitted to the Federal Reserve that are pending, awaiting supporting documentation, referred to as Documents to Follow (DTFs) or for which provisional entry or the requested information has not been provided. Refer to Check Adjustment Services for detailed information on the daily status report.

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Q: How should I respond to a CA1000 (Case Open Without Entry) message from the Federal Reserve requesting permission to adjust my account? We are a FedLine Web access solution customer.

A: As a FedLine Web access solution customer, you should respond to the Federal Reserve's CA1000 message with a CA5000 (Case Resolution Without Entry) 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.

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Q: How should we handle an item that has been duplicated or is a photocopy and original paid (PAID) but one of the items also has an encoding error (ENC)?

A: If you have a PAID item and the encoding error occurred on the first presentment/return item, submit an ENC adjustment request for the first presentment item, in the amount representing the difference between what the item was listed as (was charged) and what it should be. For the second presentment/return item, submit a separate request for a PAID, in the amount of the second presentment/return item. For example, assume the first presentment/return item was listed incorrectly as $1,359.60 and should have been $2,359.60, and that you were charged for the item a second time as $2,359.60. Submit an ENC for $1,000.00 for the first presentment item and a separate PAID request for $2,359.60 for the second presentment item.

If you have a PAID item and the ENC occurred on the second presentment/return item, submit a PAID request for the amount of the second item. For example, assume the first presentment/return item was encoded correctly as $625.77, and the second presentment/return item was listed incorrectly as $1,625.77 and should have been $625.77. Submit a PAID request for $1,625.77.

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Q: What are the differences between the Non-Cash Item (NCH) and the Not Our Item (NOI) investigation types (ITYPs)?

A: 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 Check 21. 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) or your routing number was incorrectly identified, by the returning bank, as the bank of first deposit (BOFD) in record type 32 (Electronic Return) (you do not have a banking relationship with the payee). If the item bears your institution's routing number, it is deemed to be your item. Forward NOIs do not commonly occur in X9.37 image cash letters.

You can report a NOI using the NOI cash/return letter deposit (preferred method of handling NOIs) or using Check Adjustments channels. If you use the adjustments channels, the item must be for an amount of $25.01 or more. However, there is no fee for an NOI deposit and there is no item count or dollar amount limit (i.e. you may deposit one item for an amount of $15.00 or two items for an amount totaling $17.50).

A NCH error can only be reported through Check Adjustments channels and the item must be for an amount of $25.01 or more.

Refer to the online 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.

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Q: What are the differences between the Duplicate Entry (DUP) and the Photocopy and Original Paid (PAID) investigation types (ITYPs)?

A: 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 entry 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 X9.37 cash/return letter) or a photocopy, and the other item is already paid. If the PAID request is received within three (3) calendar months of the most recent cash/return letter entry date and other requirements are met, a provisional entry is made the same day the request is received.

Refer to the online 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.

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Q: What should I do if my financial institution receives a duplicate substitute check(s) or duplicate image(s) from the Federal Reserve?

A: If you receive a duplicate substitute check(s) or duplicate image(s) from the Federal Reserve Bank, you may submit an adjustment request for credit, using the Photocopy & Original Paid (PAID) investigation type (ITYP), for any dollar amount $0.01 or more. If the request is received within three (3) calendar months of the most recent cash/return letter entry date and other requirements are met, a provisional entry is made the same day the request is received.

If multiple items (2 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) associated with Check 21 items or an Expedited Recredit Claim (EXRC) ITYP, if the associated requirements are met. However, provisional entries are not provided on WIC and EXRC requests and the dollar amount must be $25.01 or more.

Refer to the online 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.

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Q: What should I do if my financial institution creates and deposits duplicate substitute checks or duplicate images with the Federal Reserve?

A: If you deposit duplicate substitute checks or duplicate images with the Federal Reserve consisting of 50 or more items, and you are a subscriber of the Duplicate Check Notification System, you can provide notification of the duplicate items using the notification system. As a subscriber, you can also receive notification of duplicate items that impact your institution. If you are not a subscriber of the notification system, you can contact our Check Customer Support Center (877-372-2457). We will open a service request and share the information provided with other Federal Reserve Banks. 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 Photocopy & Original Paid (PAID) investigation type.

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Check Processing FAQs

Q: What should I do if I didn't receive my paper cash/return letter from the Federal Reserve Bank?

A: 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 our Check Customer Support Center (877-372-2457). 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 information entry type (ETYP).

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Q: What should I do if I didn't receive my image cash/return letter from the Federal Reserve Bank?

A: If you did not receive your image cash/return letter from the Federal Reserve, you should call our Check Customer Support Center (877-372-2457) as soon as you discover the error.

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Q: Where can I find the cash/return letter forms used to deposit my paper cash/return letter and how do I fill them out?

A: Cash/return letter forms are located on our website.  When completing the form you should 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 Cleveland.  Please visit “My FedDirectory®” for address information.

To use My FedDirectory, enter your institution's routing number and click "GO".  A customized list of Federal Reserve Financial Services support contacts, including your Account Executive’s name and phone number, is displayed. If you need additional assistance, contact our Check Customer Support Center at 877-372-2457.

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Q: 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? 

A: 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, Fed Wire, and ACH.  It is important to read your statement carefully and take notice of the descriptions for all entries.

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Not Our Items (NOIs) FAQs

Q: How should I handle an item that has been charged to me and it is not my item?

A: When you have been charged with an item that does not bear your institution’s routing number in the MICR (Forward Collection) or endorsement area (Return Process) or your routing number was incorrectly identified by the returning bank as the bank of first deposit (BOFD) in record type 32 (Electronic Return) (you do not have a banking relationship with the payee), you can report a NOI using a NOI cash/return letter  (preferred method of handling NOIs) or through Check Adjustments channels. There is no fee for a NOI cash/return letter deposit and there is no item count or dollar amount limit (i.e. you may deposit one item for amount of $15.00 or two items totaling $17.50). NOI adjustment requests, however, must be for individual items in amounts of $25.01 or more.

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Q: What is the reporting time frame for a Not Our Item (NOI)?

A: Not Our Item cash/return letters must be deposited with the Federal Reserve Bank of Cleveland within twenty (20) business days of the date the item was charged to you.  A NOI adjustment request must be submitted within 20 business days of the cash/return letter or entry date (CLED).

Refer to the online 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.

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Q: What information/documentation is needed to submit a Not Our Item (NOI)?

A: When depositing a NOI cash/return letter with the Federal Reserve Bank of Cleveland or submitting a NOI adjustment request, you must provide source information and the live item you were charged with.  For example, the original item, substitute check or Photo in Lieu (PIL) must be provided.  As a reminder, the live item must be ready for automated processing.

Refer to the online 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.

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Q: We were charged with a return item requesting source information (there is a sticker on the back of the item from FRB Cleveland). However, when we provide the source information, the item is sent back to us in another return letter (looping).  What should we do?

A: 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 FRB Cleveland), 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;
  • Deposit the item in a Not Our Item Return letter with the source information completed on the sticker; or
  • Submit an adjustment request, using the NOI investigation type, with the source information completed on the sticker and on the adjustment request. 

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Q: 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.

A: When an item as been returned/charged to you as the BOFD, instead of to a centralized returns provider, and you are the BOFD, you cannot handle it as a NOI.  You must handle the item as you would any other item that was returned to you as the BOFD.  However, if you deposit the item in a NOI Return Letter, the Federal Reserve will classify the item as an unqualified (raw) item.  We will qualify it to the centralized returns provider and charge you with applicable raw item fees.

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Q: 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 MICR line (or in the file) but the image is not an item drawn on our institution?

A: You should not use the NOI cash/return letter or 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) investigation type (ITYP).  The NOI cash/return letter or ITYP should only be 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) or your routing number was incorrectly identified by the returning bank as the bank of first deposit (BOFD) in record type 32 (Electronic Return) (you do not have a banking relationship with the payee). If the item bears your institution's routing number, it is deemed to be your item.

NOIs do not commonly occur in Forward X9.37 image cash letters.  More often than not, it is a “mis-matched” item - the routing number on the MICR line (or in 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 online 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.

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