Q.) Our account holder wrote a check that was converted to an ARC debit but on the same day the ACH transaction posted, the check was also presented. This happened 4-5 weeks ago and our account holder just now brought it to our attention. The check is too old to return. Now what should we do?
Because the return deadline has passed for the check, you can return the ACH transaction using return code R37 (Source document presented for payment) Under these circumstances, ARC, BOC and POP entries can be returned up to 60 days from settlement. A Written Statement (WSUD) is also required. (Nacha Operating Rules, Article Three, Section 3.13)
The information contained herein has been prepared for general informational purposes only and is not offered as and does not constitute legal advice. You should consult with your legal counsel regarding the legal, regulatory and payments industry rule requirements that apply to specific transaction scenarios.