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The NACHA rule change clarifies the check conversion process for business checks. It also adds a new Return Reason Code (R39) so you can easily return Ineligible Items that are converted to ARC and POP.
See the detailed list of checks that cannot be converted under ARC and POP.
To Post or Not to Post?
Checks that can be converted under ARC and POP include:
- Checks that are 6 inches in length.
- Checks longer than 6 inches WITHOUT the Auxiliary On-Us field.
- Checks in the amount of $25,000 or less.
If the consumer or business has contacted the Originator to opt out of check conversion, the check CANNOT be converted.
View frequently asked questions about identifying business checks ineligible for conversion »
A New Return Reason Code: R39
- ACH software will be modified to accommodate a new Return Reason Code (R39).
- R39 indicates Improper Source Document, and can be used if the originator converts an ineligible item.
- RDFIs will have 2 banking days from the settlement date to return the item.
RDFI Responsibilities
- Return Ineligible Source Documents as one of the following: R39, R20, R10.
- Must post ARC and POP transactions on business account periodic statements.
- Educate and inform business customers about new check conversion rules.
Gain access to the full RDFI training presentation »
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