Request for Information – Return Efficiencies - Dishonored and Contested/Corrected Dishonored Return Timeframes
Nacha is seeking industry information on the following:
- Current timeframes for dishonored returns.
- Communications between ODFIs and Originators/Third-Party Senders related to the dishonoring of returns.
- Current timeframes for contesting or correcting dishonored returns.
- Benefits of any updates to these time frames.
Responses to the Request for Information are due by June 26, 2026.
Please review the survey questions prior to beginning your response so that you can gather information and comments from all impacted areas of your organization before responding to the questions. You can download the Word version of the materials on the left side of the page; you can download the presentation as a PDF here; and you can respond online: ACH Participant survey, End User survey. Please note that you will be prompted to answer questions related to both the Returns Efficiencies RFC and RFI in one survey.
Details
The Nacha Operating Rules (Rules) provide the ability for an RDFI to return a forward entry for certain reasons, such as the inability to post or upon an account-holder’s request (see Appendix Four of the Rules for complete list).
Occasionally, there may be a need for an ODFI to “dishonor” or send a return back to an RDFI for reasons such as untimeliness, misrouting, or data errors (see codes R61-R70 in Appendix Four of the Rules).
Following such an action, the RDFI then has the option to “correct” certain errors and send the corrected return back to the ODFI, or to “contest” the dishonor, effectively stating that there was no error in the initial return (see codes R71-R77 in Appendix Four of the Rules).
Under the current Nacha Operating Rules, the following time frames apply:
- Dishonored Return - ODFI must Transmit a dishonored Return Entry to its ACH Operator within five Banking Days after the Settlement Date of the Return Entry.
- Contested or Corrected Dishonored Return - RDFI must Transmit a contested/corrected dishonored Return Entry to the ACH Operator within two Banking Days after the Settlement Date of the dishonored Return Entry.
Specifically, Nacha is seeking the industry’s input on whether either or both these return time frames could be shortened to improve the efficiency of the ACH return process.
