Return Paper Check Clearing Services

The Federal Reserve Banks’ Return Check Clearing Service provides financial institutions with a paper return item deposit option to return unpaid checks to the bank of first deposit (BOFD) or to a correspondent bank or processor designated by the BOFD. The Federal Reserve Banks can help you expedite your check returns by handling your return items, regardless of who processed the items during forward collection.

Qualified Return Item Deposit

Allows you to submit a cash letter containing dishonored check items that can be processed on high-speed equipment thus decreasing your return item costs by qualifying return items. There are two deposit options available – Qualified Return Deposit with carrier documents and Qualified Return Deposit without carrier documents.

Unqualified Return Item Deposit

Allows you to submit a cash letter containing dishonored check items that have not been prepared for automated processing. This is a useful service if your institution does not have encoding equipment, your return items have attachments or the BOFD cannot be identified.

Large Dollar Return item Notification (LDRIN)

For all returned checks for $2,500 or more, current law requires you to notify the bank of first deposit by 4 p.m. local time on the second banking day after the check is presented. To help your institution meet this requirement, the Federal Reserve offers this service.

For more information about this service, visit the Return Check Clearing setup page or contact your account executive

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