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Automated Clearing House (ACH) Frequently Asked Questions

ACH Fed Settlement FAQs

  • Yes, as long as the entry is received by the Fed by the same day cut-off times. Same Day ACH items can be included in the 12:00 p.m., 4:00 p.m. and 5:30 p.m. ET receipt files with settlements occurring at 1:00 p.m., 5:00 p.m. and 6:00 p.m. ET.

  • Yes, typically you will receive settlement files for each receipt delivery timeframe.

ACH Receipt & Returns FAQs

  • It is at the discretion of the credit union as to how often they wish to create returns. MY CU Services processes and releases outgoing files multiple times throughout the day. It is important to keep in mind the settlement date of the item to be returned and the return timeframe.

ACH Originations FAQs

  • Yes, MY CU Services transmits ACH files throughout the day according to the Federal Reserve’s processing schedule:

    • First window: Submission deadline is at 10:30 a.m. ET, with settlement occurring by 1:00 p.m. ET.
    • Second window: Submission deadline is at 2:45 p.m. ET, with settlement occurring by 5:00 p.m. ET.
    • Third window: Submission deadline is at 4:45 p.m. ET, with settlement occurring by 6:00 p.m. ET.

  • Same Day ACH origination transactions are created by entering the current business day as the settlement/effective entry date.

Nacha Rules FAQs

  • Return codes R10 and R11 will both be used for consumer receivers or consumer Standard Entry Class (SEC) codes to non-consumer accounts. The Receiving Depository Financial Institution (RDFI) will still be required to obtain a written statement of unauthorized debit for both return reason codes, and returns using either code must be completed within 60 calendar days.

  • The R10 return reason code is to be used for the return of truly unauthorized payments where the originator is not known to the receiver or the transaction was not authorized by the receiver to debit the receiver's account. R10 – Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver’s Account

    The R11 return reason code communicates to the originator that an error occurred with an authorized payment, as opposed to the customer claiming there was no authorization. R11 – Customer Advises Entry Not in Accordance with the Terms of the Authorization

  • Yes. The Originating Depository Financial Institution (ODFI) pays a $4.50 unauthorized entry fee to the Receiving Depository Financial Institution (RDFI). This fee is collected by the Federal Reserve.

  • A debit entry cannot be posted to the receiver’s account prior to the settlement date.

  • An RDFI must make the amount of each credit entry received from its ACH Operator available to the receiver for withdrawal no later than the Settlement Date of Entry.

    • Funds from same-day credits received in the first Same Day ACH processing window will be available for withdrawal by 1:30 p.m. RDFI local time.
    • Funds from same-day credits received in the second Same Day ACH processing window will be available to the receiver for withdrawal by 5:00 p.m. RDFI local time.
    • Funds from the same-day credits received in the third Same Day ACH processing window must be available to the receiver for withdrawal by the end of the institution’s processing day.

    For more information, please refer to the Nacha Rules Book, Availability of Credit Entries to Receivers and Faster Funds Availability.

  • An addenda record is an optional field of an ACH entry that would include payment-related information, additional to the Nacha required information. This only applies to certain SEC codes and all returns. The addenda on returns is the Return Reason Code.

  • The Standard Entry Class Code (SEC) designates how the transaction was authorized. Refer to the Nacha Rules Book for a full listing of SEC codes.

  • The SEC code is used to determine the appropriate return reason code for an ACH transaction and the return timeframe. To see a complete list of all Nacha return codes and rules, visit the Nacha website.

Same Day ACH FAQs

  • A Same Day ACH entry is an entry that is given the current business day as the effective entry date or settlement date. Virtually all types of ACH payments, including both credits and debits, are eligible for same-day processing. Only international ACH transactions (IATs) and high-value transactions above $1,000,000 are not eligible.

  • All RDFIs are required to receive Same Day ACH payments, thereby giving ODFIs and originators the certainty of being able to send Same Day ACH payments to accounts at all RDFIs.

  • RDFIs are not required to process returns on the same day as a Same Day entry.

  • It is at the discretion of the credit union as to how often they wish to create returns. MY CU Services processes and releases outgoing files multiple times throughout the day. It is important to keep in mind the settlement date of the item to be returned and the return timeframe.

  • Yes, the RDFI will keep the fee even if the Same Day ACH item is returned.

  • Same Day credits received in the 10:30 a.m. ET window must be available to the member no later than 1:30 p.m. RDFI local time. Same Day credits received in the 2:45 p.m. ET window must be made available no later than 5:00 p.m. RDFI local time and items in the 4:45 p.m. ET window must be made available by RDFI’s end of processing day.

  • Please refer to the Federal Reserve’s standard holiday schedule. The Federal Reserve Bank will process as normal on non-Federal holidays. The credit union will need to review its policy for posting items outside the mandatory Nacha Rules.

  • The effective entry date is the date that an originator intends for the entry to settle. The settlement date is the date assigned to the entry by the ACH Operator, determined by when the entries are received by the ACH Operator.

  • No. Real Time Payments will be sent through a different network.

  • The $1,000,000 value limit applies to a single item. No single item over $1,000,000 will be eligible for same-day settlement. Additionally, a $2,500 value limit will be imposed on items with an SEC Code of RCK (Re-Presented Check Entries) or XCK (Destroyed Check Entries).

  • All items in the batch will be processed, and the item(s) over the limit will be assigned the next business day's settlement date, whereas the remaining items will receive same day settlement.

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