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ACH RETURN TRANSACTIONSBusiness Digital BankingACH RETURN TRANSACTIONSACH return transactions are entries that the RDFI executes when, for a variety of reasons, it is unable to post atransaction. The use of consumer (PPD) or corporate (CCD) entry codes determines the applicable ACH return rules.- Corporate returns (CCD) must be processed by the Receiving Bank within 24 hours of settlement. The company isliable for unauthorized returns that exceed those 24 hours, and any disputes may have to be settled outside of thebanking network. FirstBank recommends that you view your account activity daily.- Unauthorized consumer (PPD) entries may be returned within sixty (60) days of the settlement date. If a dispute isfiled against the Receiving Bank claiming a debit was unauthorized, the Receiving Bank must obtain a signedWritten Statement of Unauthorized Debit from the account holder. You may obtain a copy of that statement byrequesting a copy through FirstBank.A customer may reinitiate a debit entry up to two times if the customer receives a return entry of “NSF or UncollectedFunds.” This gives the Originator a total of three attempts at debiting an account.It is a violation of NACHA Rules to reinitiate the debit entry if a return is received for any other reason.FirstBank will report the customer of any returns through the Business Digital Banking Platform system through theDownload Reports or ACH Reporting modules.RETURN RATE THRESHOLDSAll Originators must maintain their return volumes under the established return rate threshold. In an effort to reduce the occurrenceof ACH returned entries, ongoing monitoring of the return rates can ensure customer compliance with the ACH Rules. This includes:1. Consistently updating the policies and procedures to monitor overall Unauthorized Debit Returns to ensure they do notexceed the established limits2. Ensuring procedures for collecting authorizations with accurate information3. Analyzing returns data to gain a better understanding of how to ensure good transactions and fewer returns.ACH Return Threshold: Unauthorized: Refers to all transactions returned because the receiving customer denies authorizing said transactions. Administrative: Refers to transactions returned because an account is closed, incorrect, or cannot be located. Overall: Refers to all returns, including NSF.Member FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.1

ACH RETURN TRANSACTIONSBusiness Digital BankingACH RETURN CODE PER THRESHOLDRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADMINISTRATIVE RETURNSADMINISTRATIVE DEBIT RETURN RATE: 3%R02Account ClosedAccount is ClosedR03No Account/Unable to LocateAccountCannot be used forARC/BOC/POPif no name in EntryR04Invalid Account NumberStructureAccount structureis not validUnauthorized ReturnsUNAUTHORIZED DEBIT RETURN RATE: 0.5%R05Unauthorized Debit to aCustomer Account using aCorporate SEC codeUnauthorized debit to consumeracct. using CCD or CTX,Written Statement UnauthorizedDebit (WSUD) requiredR07Authorization Revokedby CustomerNot to be used forARC, BOC, POP or RCK Entries(WSUD)R10Consumer AdvisesNot Authorized, or part of anIncomplete Transaction.Corporate for ARC, POP, BOC, IAT,PPDWritten StatementUnauthorized DebitrequiredR29Corporate Customer AdvisesNot Authorized (CCD, CTX)Specific payment not authorizedby Receiver (Company)R51RCK Ineligible orAmount InaccurateWritten StatementUnauthorized Debit requiredMember FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.2

ACH RETURN TRANSACTIONSBusiness Digital BankingRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADDITIONAL RETURNSOVERALL DEBIT RETURN RATE: 15%R01Insufficient FundsInsufficient funds in the accountto pay on debit entryR06Returned per ODFI'srequestODFI requested return,RDFI indemnifiedR08Payment StoppedCan be used for one or moredebits from OriginatorR09Uncollected FundsInsufficient ledger balanceto pay on debit entryR11Check Truncation Entry ReturnUsed if there is no other reason(presentment entries)R12Account sold to another DFIRDFI no longer holds the accountR14Rep. Payee DeceasedRepresentative payee diedor unable to accept entryR15Beneficiary DeceasedBeneficiary of payment diedR16Account Frozen / Entry Returnedper OFAC InstructionAccess to the account is restricteddue to action taken by the RDFIor legal action(debits and credits)R17File Record Edit CriteriaOne or more fields cannotbe processed by RDFIR20Non-Transaction AccountEntry destined fornon-transaction account(Reg. D)Member FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.3

ACH RETURN TRANSACTIONSBusiness Digital BankingRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADDITIONAL RETURNSOVERALL DEBIT RETURN RATE: 15%R01Insufficient FundsInsufficient funds in the accountto pay on debit entryR06Returned per ODFI'srequestODFI requested return,RDFI indemnifiedR08Payment StoppedCan be used for one or moredebits from OriginatorR09Uncollected FundsInsufficient ledger balanceto pay on debit entryR11Check Truncation Entry ReturnUsed if there is no other reason(presentment entries)R12Account sold to another DFIRDFI no longer holds the accountR14Rep. Payee DeceasedRepresentative payee diedor unable to accept entryR15Beneficiary DeceasedBeneficiary of payment diedR16Account Frozen / Entry Returnedper OFAC InstructionAccess to the account is restricteddue to action taken by the RDFIor legal action(debits and credits)R17File Record Edit CriteriaOne or more fields cannotbe processed by RDFIR20Non-Transaction AccountEntry destined fornon-transaction account(Reg. D)Member FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.4

ACH RETURN TRANSACTIONSBusiness Digital BankingRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADDITIONAL RETURNSOVERALL DEBIT RETURN RATE: 15%R21Invalid Company IdentificationGenerally used for CIE entriesR22Invalid Individual ID NumberNormally used for CIE,MTE EntriesR23Credit Entry Refused by ReceiverConditions exist that the receiverwill not accept paymentand informs RDFIR24Duplicate EntryAppears that this is a duplicateentry, proceed with careR31Permissible Return Entry(CCD, CTX)ODFI agrees to accept the returnR33Return of XCK EntryRDFI determines to return XCK(destroyed check entry)R37Source Document Presented forPayment ARC, POP, BOCWritten StatementUnauthorized Debit requiredR39Improper Source DocumentSource doc. for ARC, POP, BOCimproper or dup. chargeR50State Law Affecting RCKAcceptanceState law has not adopted Revised UCC Article 4R52Stop Payment on Item - RCKStop payment re-presented check(original item)R53Item and RCK Both PresentedWritten StatementUnauthorized Debit requiredMember FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.5

ACH RETURN TRANSACTIONSBusiness Digital BankingRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADDITIONAL RETURNSOVERALL DEBIT RETURN RATE: 15%R61Misrouted Return(not for use with IAT)The financial institutionpreparing the return has placedthe incorrect receivingrouting numberR62Return of Erroneous or ReversingDebit (3-20-15)Reversal process results inunintended credit to receiverR67Duplicate Return(not for use with IAT)The ODFI has received more thanone return for the same entryR68Untimely Return(not for use with IAT)The return entry has not been sentwithin the timeframe establishedby these RulesR69Field Error(s) Reason for error willbe found in the Addenda RecordIncorrect account number orincorrect field(s) as indicated bythe following code(s):#-01, Return contains incorrectDFI account#-02, Return contains incorrectoriginal entry trace#-03, Return contains incorrectdollar amount#-04, Contains incorrectindividual ID/Identification#-05, Return contains incorrecttransaction code#-06, Return contains incorrectCompany ID#-07, Return contains invalideffective entry dateR70Permissible Return EntryNot Accepted (not IAT)This code may be used onlyto dishonor a return containing anR31 or R06 return reason codeR71Misrouted Dishonored Return(not for use with IAT)The incorrect routing number hasbeen placed in the ReceivingDFI FieldMember FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.6

ACH RETURN TRANSACTIONSBusiness Digital BankingRETURN REASON CODESReturn CodesReturn Codes DescriptionAdditional InformationADDITIONAL RETURNSOVERALL DEBIT RETURN RATE: 15%R72Untimely Dishonored Return(not for use with IAT)The dishonored return entryhas not been sent within thedesignated timeframeR73Timely Original Return(not for use with IAT)The RDFI is certifying thatthe original return entry was sentwithin the timeframe designatedin the RulesR74Corrected Return(not for use with IAT)The RDFI is correcting a previousreturn entry that was dishonoredbecause it contained errorsR75Original Return Not a Duplicate(not for use with IAT)The RDFI contests that the returnwas not duplicateR76No Errors Found(not for use with IAT)The RDFI does not find any errorsR77Non-Acceptance of R62(Effective 3-20-15)RDFI has already resolved oris unable to recover fundsR80IAT Coding ErrorEntry being returneddue to one or more ofthe following conditions:-Invalid DFI/Bank BranchCountry Code-Invalid DFI/BankID Number Qualifier-Invalid ForeignExchange Indicator-Invalid ISO OriginatorCurrency Code-Invalid ISO DestinationCountry Code-Invalid ISO DestinationCountry Code or-Invalid TransactionType CodeMember FDIC. Services available only for FirstBank commercial customers. Business Digital Banking services are subject to additional changes and contractedservices. Certain terms and conditions may apply. Customers must have FirstBank accounts and be registered in the Smart Cash Management service.7