Answer:
For items processed through the Federal Reserve System, there is an FRB rule limiting presentations to two. If checks are cleared outside of the Fed's system, there may be other rules.
However, if the item is to be re-presented via the ACH, NACHA's limits are as follows:
- If the check has been presented and returned one time, it may be converted and submitted twice as an RCK.
- If the item has been presented physically as a check twice, it may be converted and submitted only once as an RCK.
- If the item has been presented physically as a check more than twice, it may not be submitted as an RCK.
The NACHA rule is found at subsection 2.8.2 of the 2006 NACHA ACH Rules.
First published on BankersOnline.com 4/03/06