Effective April 1, 2020, a modification to the Automated Clearing House (ACH) Rules (Off-site) repurposes the Return Reason Code R11 to be used when a receiving customer claims that there was an error with an otherwise authorized payment. This change provides distinction from the Return Reason Code R10 that has been used as a catchall for various types of underlying unauthorized return reasons. The use of R11 will enable a return that conveys an error rather than a condition of no authorization.
While the change is now in effect, the Nacha Unauthorized Entry Fee will not be assessed for returns bearing the Return Reason Code R11 until April 1, 2021.
If you have any questions, please contact your account executive or FedACH® and Check Services Customer Support. For additional information, please visit the Differentiating Unauthorized Return Reasons (Off-site) page on Nacha’s website.