Overview

This chapter outlines the procedure for incoming and outgoing ACH requests for return and requests for proofs of authorization (POA).

Outgoing Process

The scenario below is when a customer wishes to place an ACH Request for Return or an ACH Proof of Authorization (POA) from another financial institution (FI).

ACH Requests for Return (usually originated credits) are performed manually from Evolve to the receiving depository financial institution (RDFI) via fax or email with the required information to the RDFI and tracked internally by Evolve for billing purposes (fees vary per customer and fee schedule).

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Important Note: There is no obligation or requirement for the RDFI to respond, or to return any funds.

Should the RDFI choose to respond or gain permission from their end user, they will typically return full funds via an ACH transaction (with the appropriate Return Reason Code – usually R06). For partially available funds returns, the RDFI may choose to send a check to Evolve.

POAs (usually received debits) are performed similarly. The required data is the same, however, there is an obligation of the RDFI to respond to the POA request within ten *banking days*** of receipt of the request. The response must comply with Nacha rules/requirements and is largely dependent upon the SEC code and time frame of the originated transaction. See Nacha Rules for Record Retention and Proofs of Authorization for more information.

A “banking day” is Monday-Friday. Federal holidays are not considered a “banking day”.

ACH Request for Return or POA Flow - Outgoing

ACH Request for Return or POA Template

To initiate a request for return (via Letter of Indemnity (LOI) or Hold Harmless (HH)) or POA, email the required information below to Evolve at [email protected]. Please limit one request per email for simplified tracking.

Required Information (Outgoing):

• Indicate Outgoing ACH Request for Return or Outgoing ACH Proof of Authorization Request
• Reason for the Request:
• Sender Name:
• Receiver Name:
• Receiver Account:
• Receiver Routing ABA # (9 digits):
• Amount: $
• Effective Date:
• Settlement Date:
• Full Trace number (15-digit FED trace – not the platform’s trace):
  • This is called “Trace” in the file. It is defined as, “Production trace number for each entry that was sent to the Federal Reserve. Nacha formatted Trace numbers are 15 digits including leading zeros. This field drops the leading zeros from the trace number.”
• Outgoing File Name

Incoming Process

The scenario below is when another FI places an ACH Request for Return or an ACH POA from an Evolve customer.

ACH Requests for Return (usually received credits) are performed manually from the ODFI to Evolve (the RDFI) via fax or email with the required information sent to Evolve for tracking and billing purposes (fees vary per customer and fee schedule).

Faxes are to be sent to Evolve at 901.328.5640 or via email to [email protected].

Evolve requests that our customer’s respond in a timely manner (fewer than 10 days).

If the funds are available with customer, then either the customer or Evolve will originate the return of full funds via an ACH transaction (with the appropriate Return Reason Code – usually R06).

If the customer uses Evolve’s ‘Return Generator’, Evolve will gain permission to return the funds to the ODFI. For partially available funds returns, the Evolve customer may choose to send a check to the ODFI as requested, or Evolve may issue a check from the Evolve customer’s account and send to the ODFI.

POAs (usually originated debits) are performed similarly. The required data is the same, however, there is a Nacha obligation for Evolve and the Customer to respond to the Proof of Authorization request within ten _banking days _of receipt of the request. The response must comply with Nacha rules for the requirements and is largely dependent upon the SEC code and time frame of the Originated transaction. See the Nacha Rules for Record Retention and Proofs of Authorization for more information.

A “banking day” is Monday-Friday. Federal holidays are not considered a “banking day”.

ACH Request for Return or POA Flow - Incoming

ACH Request for Return or POA Template

The ODFI will initiate a request for return or POA by sending the below information to Evolve via fax at 901.328.5640 or via email to [email protected].

Required Information (Outgoing):

• Indicate Outgoing ACH Request for Return or Outgoing ACH Proof of Authorization Request
• Reason for the Request:
• Sender Name:
• Receiver Name:
• Receiver Account:
• Receiver Routing ABA # (9 digits):
• Amount: $
• Effective Date:
• Settlement Date:
• Full Trace number (15-digit FED trace – not the platform’s trace):
  • This is called “Trace” in the file. It is defined as, “Production trace number for each entry that was sent to the Federal Reserve. Nacha formatted Trace numbers are 15 digits including leading zeros. This field drops the leading zeros from the trace number.”
• Outgoing File Name

Expected Response to Incoming ACH Requests for Return

Evolve will contact the Customer upon receipt of a Request for Return (in the form of a Letter of Indemnity (LOI) or Hold Harmless (HH) Agreement, signed and on the ODFI’s letterhead). The Evolve customer should verify if funds are available to return and originate the return as indicated in the request, usually with the R06 Return Reason Code.

If the Evolve customer is unable to produce the return (oftentimes when they are using Evolve’s Return Generator), they should give permission to Evolve to key the return on their behalf by responding to Evolve’s request (usually in a Zen Desk ticket or to [email protected], referencing the pertinent transaction information).

Expected Response to Incoming ACH Proof of Authorization Requests:

The documentation requested and required by the ODFI of an originated debit for ACH Proofs of Authorization requests by the RDFI is dependent upon the SEC code, etc. of the Originated transaction. Below is the description from the Nacha Guidelines (OG Section VI, Chapter 56) of POA fulfillments:

Common Nacha References for POAs