Reinitiating Returned ACH Debit Items

The National Automated Clearing House Association (NACHA) rules allow a returned entry to be reinitiated by the originator or Originating Depository Financial Institution (ODFI) under limited circumstances:
  • Items returned as R01-Insufficient Funds and R09-Uncollected Funds may be reinitiated up to two times in an attempt to collect funds
  • An ACH debit was returned for the reason of stop payment (return code R08), and reinitiation has been authorized by the Receiver
  • An ACH entry was returned for another reason, and the Originator, or ODFI, has corrected or remedied the reason for the return
The reinitiated entry must meet the following criteria:
  • Entry must be reinitiated within 180 days of the original effective date
  • Entry may be reinitiated two times for a total of three entries
  • Entry must contain identical information in the following files: Company Name, Company ID and Amount
  • The Company Entry Description must read “RETRY PMT”. Important Note - For system created users, please see instructions in the ACH User Guide. For users that create and upload their own NACHA ready file(s), please work with your ACH software provider.
You may collect fees for an entry that was returned for insufficient or uncollected funds, provided that all the following criteria are met:
  • A Return Fee Entry may be initiated only to the extent permitted by applicable law, and only for an Entry that was returned for reasons of insufficient or uncollected funds (as denoted by the return codes R01 and R09);
  • The Originator must provide specific prior notice regarding the Return Fee Entry;
  • A Return Fee Entry must be specifically labeled “RETURN FEE” in the Company Entry Description field. Important Note - For system created users, please see instructions in the ACH User Guide. For users that create and upload their own NACHA ready file(s), please work with your ACH software provider;
  • Only one Return Fee may be assessed with respect to any returned Entry