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Amount of Tries When Returned for NSF (MLP)

Answered by: 
John Burnett

Question: 
How many tries does an ACH have upon being returned for NSF for a monthly loan payment? Is there a law or regulation that states an ACH cannot be sent out more then 2 times in a one month period in MN?
Answer: 

Except for Re-presented Check Entries (RCKs), any ACH debit entry that has been returned for insufficient funds can be reinitiated within 180 days after the Settlement Date for the original Entry. However, an Originator or ODFI must not reinitiate an Entry that has been returned for insufficient or uncollected funds more than two times following the return of the original Entry.

In plain English, you get three shots at it, counting the original entry.

Reference: NACHA Rules, subsection 2.12.4 - Reinitiation of Returned Entries.

First published on 01/14/2018

Filed under: 
Compliance
Filed under compliance as: 
ACH
Return Items/Checks

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