Returns, Notifications of Change, and Exception Handling
Returns versus NOCs
A return sends the money back; a Notification of Change moves no money and only forwards corrected information. Confusing the two is the most common error in this domain.
Return timing
The RDFI must transmit most returns by midnight of the second banking day after settlement. Unauthorized consumer debits (R05, R07, R10, R11, R29) may be returned up to 60 calendar days from settlement. A return must carry the original trace number and be for the full amount.
Code families
- R01 insufficient funds; R09 uncollected funds (money exists but isn't available); R02 account closed; R03/R04 account not found or invalid number; R08 stop payment; R10 customer advises unauthorized; R11 check truncation return; R29 corporate customer advises not authorized.
- R61–R69 are dishonored returns (misrouted, duplicate, untimely, field error), sent within two banking days of the return.
- R71–R77 are contested dishonored returns.
NOCs
Correction codes C01–C14 (account number, routing number, transaction code, individual name or ID, addenda format). The Originator must make the change and use the corrected data within six banking days of receiving the NOC, or before the next entry if later. An ODFI that cannot comply sends a Refused NOC.
Traps
Re-originating a returned entry without fixing the cause; using R01 when the balance is sufficient but funds are uncollected; assuming an NOC obligates the Originator to re-send the original transaction.
Rule of thumb: two banking days to return, 60 calendar days for consumer unauthorized debits, six banking days to honor a NOC.