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#203450 - 06/23/04 05:18 PM ARC transactions for businesses
Chiquita Banana Offline
Diamond Poster
Chiquita Banana
Joined: Jun 2002
Posts: 1,044
The banana bin
I have a business customer who placed a stop payment on a series of checks that had been stolen. (This was after we advised to close the account and they refused).

One of the checks was converted to an ARC transaction.
1)I didn't think business checks could be converted because of Reg E
and
2)How should I return the ACH? I could do an R38-Stop Payment on Source Document or R29-Corporate Customer Advises Not Authorized.

Any suggestions?
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My opinions are definately my own. I could be wrong. But I don't think so.

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Operations Compliance
#203451 - 06/23/04 05:42 PM Re: ARC transactions for businesses
AnnL Offline
Gold Star
AnnL
Joined: Jan 2003
Posts: 334
Western PA
Checks must be drawn on consumer accounts (per NACHA rules) to be converted to an ARC. You could Return the entry R10 due to an improper source document or R38 Stop Pyment on source document. Either would be correct but I would lean towards Stop Payment
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#203452 - 06/24/04 07:21 PM Re: ARC transactions for businesses
RandomName Offline
Diamond Poster
Joined: May 2003
Posts: 1,373
Austin, TX
I like the R38 approach better here, because the Receiver is not obligated to cough up the dreaded WSUPP, as would be the case with the R10.

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