Tool #1875 Work ACH Exceptions, then Return will populate the return reason code field with a default value upon initializing a return.

Each ACH transaction has a ‘distribution code’ to specify which type of transaction it was. See link below.

This distribution code is used, in part, to determine the return reason code.
If there are digits in the ACH distribution code:
  • The return reason code will always be R + (distribution code).
  • For example, if the distribution code is 08, the default return reason code will be ‘R08’.
If the distribution code does not contain digits, the following steps are used to determine the default return reason code:
  1. If the distribution code is ‘GS’ (stop pay for general ledger ACH), the reason code will always be ‘R08’.
  2. Otherwise, if the distribution code is ‘SW’ or ‘LD’, AND the account associated with the ACH transaction is enrolled in Biz Watch for ACH, the reason code will be the configured ACH return code from Tool #1022 Biz Watch Enrollments for ACH.
  3. Otherwise, if the ACH transaction is a deposit (trans code 22 or 32) and the account is frozen from deposits, OR the ACH transaction is a withdrawal (trans code 27 or 37) and the account is frozen from withdrawals, the reason code will be ‘R16’.
  4. Otherwise, if none of the above apply but an active membership is found:
    • If the trans code is 27 or 37, the reason code will be ‘R01’.
    • Otherwise, if the ACH transaction meets the criteria for a Stop Payment. (There is a record for the associated account in the SDSTOP / Stop Payment file and the amount surpasses the threshold), the reason code will be ‘R08’.
    • Otherwise, the reason code will be ‘R‘, leaving the digits blank for the user to fill in.
  5. Otherwise, if the member record associated with this ACH transaction exists, but the membership is closed, the reason code will be ‘R02’.
  6. Otherwise, if there is no membership record but the account is found in ACHIST (closed account history), the reason code will be ‘R02’.
  7. If the account is not found in ACHIST, the reason code will be ‘R03’.