By: ABC Financial Merchant Services
Effective October 3rd, NACHA has implemented a rule requiring an ODFI (Originating Depository Financial Institutions) to pay the RDFI (Receiving Depository Financial Institutions) a fee for all ACH debits returned with an unauthorized reason code. ABC will be assessing a $7.50 pass-through fee per unauthorized ACH returned to the club. This will show up as a deduction on the daily and monthly billing statement under the code URF (Unauthorized ACH Return Fee).
The intent of the rule is to help ensure that customer approval is obtained for each transaction and unauthorized returns are reduced. The reason codes the unauthorized ACH return fee applies to are:
R05 (Unauthorized Return)
R07 (Authorization Revoked)
R10 (Customer Advises Unauthorized)
R29 (Corporate Customer Advises Unauthorized)
Any club collecting ACH payment information for a member’s billing needs to be aware that this fee could have a financial impact to their bottom line.