EFT Return Process

Created on: 
Apr 04 2018

What are Electronic Funds Transfer (EFT) returns?

EFT returns are failed pre-note or live dollar transactions.

How am I notified of a failed Electronic Fund Transfer (EFT) pre-note or live dollar transaction?

Users receive one of the following alerts if there's a failed EFT pre-note or live dollar transaction:

Alert 052 - EFT PRENOTE TRANS FAILED-CLOSED ACCOUNT

Alert 053 - EFT TRANS FAILED-CLOSED ACCT-ALT PYMT ISSUED

Alert 058 - EFT PYMT RETURNED AT STATE'S REQUEST

Alert 075 - EFT/RES1 BANK ACCOUNT MISMATCH -COMPARE EFTR

Alert 076 - HOH/AREP NAME MISMATCH - COMPARE EFTR

Alert 284 - OVERPAYMENT CREATED BY BATCH

EXAMPLE:  If an EFT pre-note is returned by the financial institution, Alert 052 - EFT PRENOTE TRANS FAILED-CLOSED ACCOUNT is created.  This alert is informational and no specific action is required.
EXAMPLE:  If a live dollar transaction is refused by a financial institution, Alert 053- EFT TRANS FAILED-CLOSED ACCT-ALT PYMT ISSUED is created.  Users may need to review the case to see if the issuance should be replaced.

For more information, see EBT Manual - Chapter 10.16 - ACES EFT Alerts.

Who is responsible for replacing benefits?

The user is responsible for initiating a replacement request when needed.  For more information on replacing benefits, see EAZ Manual - WAC 388-412-0040 - Can I get my benefits replaced?

 What are the Electronic Funds Transfer (EFT) return reason code groups?

EFT return codes fall into three general groupings:

Group 1 - System Generates Replacement for Returned EFT Pre-notes or Live Dollar Transactions:

  • The user of record receives an alert with a description of the return reason code.
  • Letter 039-01 (Reject Pre-Note /Direct Deposit) is sent to the head-of-household (HOH) or the Authorized Representative (AREP) as appropriate for the assistance unit (AU).
  • The original issuance is cancelled and benefit history updated to reflect the cancellation.
    • Division of Child Support (DCS) is notified of the cancellation for Temporary Assistance for needy Families (TANF) AUs.
    • Office of Financial Recovery (OFR) is notified of the cancellation if the issuance contained a recoupment.
  • The issuance method reverts to the AU's previous issuance method (Electronic Benefit Transfer (EBT) or Warrant (WAR).

Group 1 EFT Return Reason codes:

R02 - Account Closed

R03 - No Account/Unable to locate account

R04 - Invalid Account Number

R05 - Refused by Bank-Alt Pymt Issued

R07 - Authorization Revoked by user

R12 - Brand Sold to another institution

R16 - Account Frozen

R20 - Non-transaction Account

R23 - Credit Refused by Receiver

Group 2 - User Action Required for Returned EFT Pre-note or Live Dollar Transaction:

  • The user of record receives an alert.  The user needs to investigate the situation and determine if a replacement is appropriate and then initiate the request.  In some situations, it may be necessary to delete an Authorized Representative (AREP) or change the AREP type in order to change the issuance method.
  • No letter is generated
  • The original issuance is cancelled and benefit history is updated to reflect the cancellation.
    • Division of Child Support (DCS) is notified of the cancellation for Temporary Assistance for needy Families (TANF) Assistance Units (AUs).
    • Office of Financial Recovery (OFR) is notified of the cancellation if the issuance contained a recoupment.
  • The issuance method reverts to the AUs previous issuance method (Electronic Benefit Transfer (EBT) or Warrant (WAR).

Group 2 EFT Return Reason Codes:

R14 - Rep Payee deceased or not able to act as payee

R15 - Account Holder deceased

Group 3 - Miscellaneous Exception Conditions for Returned Electronic (EFT) Pre-note and Live Dollar Transactions:

  • The user of record receives an alert.  The user needs to review the case to determine if further action is needed.
  • No letter is sent to the client.  If appropriate, users would manually crate a letter.
  • The original issuance is cancelled and benefit history is updated to reflect the cancellation.
    • Division of Child Support (DCS) is notified of the cancellation for Temporary Assistance for Needy Families (TANF) Assistance Units (AUs).
    • Office of Financial Recover (OFR) is notified of the cancellation if the issuance contained a recoupment.

Group 3 EFT Return Reason Codes:

R01 - Insufficient funds

R06 - Returned at request of State

R17 - Record didn't pass system edits

R24 - Duplicate Entry

 

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.