Can cashier’s checks be converted to ACH entries?

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Question:

We paid an ARC ACH entry that was created from our cashier’s check. We then discovered that the original cashier’s check had already been paid. Can we return the ARC entry?

Answer:

You can return the ARC entry using an R37 return code (Source document presented for payment). If the original check has not yet been paid, you could return the ARC entry using an R11 return (Ineligible source document). In either case, you have the 60-calendar-day plus one banking day extended return period to work with.

Learn more about John Burnett’s Unauthorized ACH Item claims webinar.