ACH Credit Returns, ACH Debit Returns, and Notifications of Change

Audience: Accounting Managers and Payment Authorizers

Summary: Learn what happens when an ACH transaction is returned or a bank sends a Notification of Change (NOC), how MineralTree communicates these issues, and what you may need to do next.

Overview

Most ACH payments process without an issue. However, an ACH transaction may be returned, or a receiving bank may send corrected banking information through a Notification of Change (NOC).

An ACH credit return means an ACH payment sent to a vendor was returned by the receiving bank. This can happen because of a closed account, incorrect account or routing information, a frozen account, or another issue reported by the bank.

An ACH debit return occurs when a bank returns an ACH debit transaction. Debit returns may occur for reasons such as insufficient funds, a closed account, a stop payment, or an authorization issue.

A Notification of Change (NOC) is different from a return. The payment processes successfully, but the receiving bank provides corrected banking information that should be reviewed before another payment is sent to the vendor.

MineralTree uses the return or NOC code received from the ACH network to explain the issue and provide next steps. The action required may vary depending on the code received.

Important: ACH debit returns are communicated directly through MineralTree Payment Support.

What happens when an ACH credit is returned?

When MineralTree receives an applicable ACH credit return:

1. The payment is identified as a credit return. Payment Details displays a substatus indicating that the payment credit was returned and an email notification was sent.
2. MineralTree sends a notification email. An automated email is sent to the designated Payment Exception Outreach contact when applicable.
3. The email explains the issue and next steps. The email includes information about the payment, the reason it was returned, and instructions for what to do next.
4. The notification is recorded in the History Log. The History Log shows that the notification was sent and the email address or addresses that received it.

Important: ACH credit returns are not automatically retried. Follow the instructions in the notification before reissuing the payment.

What happens to the returned funds?

The returned funds are sent back to the account that originally funded the payment.

An ACH credit return can occur after the original payment has already posted to your ERP or accounting system as paid. Because of this, MineralTree identifies the transaction as a credit return instead of changing the original payment to a standard failed status.

Depending on the return instructions, you may need to void the payment before reissuing it.

Where can I see that an ACH credit was returned?

Open the affected payment and review Payment Details.

For an ACH credit return, the payment displays the following substatus:

Payment credit was returned and email notification sent.

You can also review the History Log. For an automated credit return notification, the History Log shows the email address or addresses where the notification was sent.

What should I do after an ACH credit is returned?

Start with the credit return notification email. The action required depends on the return reason reported by the receiving bank.

For most credit returns that require customer action:

1. Review the return reason and instructions in the notification email.
2. Confirm the vendor's correct banking information directly with the vendor.
3. Update the vendor's banking information in MineralTree if a correction is needed.
4. Void the returned payment as instructed.
5. Reissue the payment after the issue has been resolved.

Tip: Confirm banking information directly with your vendor before changing the vendor record. Use a trusted contact method to verify the requested change.

ACH Return Reasons

ACH return reasons explain why an ACH transaction was returned. The return reason can help you understand what happened and what may need to be corrected before another transaction is attempted.

The reason for an ACH return depends on the transaction and the information reported by the bank. Review the notification or instructions from MineralTree to determine what action, if any, is required.

What if I did not receive the credit return email?

Open the affected payment and review the History Log. For an automated credit return notification, the log shows the email address or addresses where MineralTree sent the notification.

If you do not see the email:

• Check your spam or junk email folder.
• Review the email address shown in the History Log.
• If the address is incorrect or outdated, contact MineralTree Customer Support to update the Payment Exception Outreach contact.

Some ACH credit returns may not generate an automated email notification. If you have questions about a returned payment or the action you need to take, contact MineralTree Customer Support.

What is a Notification of Change?

A Notification of Change (NOC) means the receiving bank has provided corrected information related to the vendor's bank account.

An NOC does not mean the payment was returned. The payment processes successfully, but the vendor's banking information may need to be updated before another payment is sent.

When customer action is required, MineralTree sends an email identifying the information that should be reviewed or updated. 

Common Notifications of Change

Not every NOC generates an email notification. When customer action is required, MineralTree will provide information about what should be reviewed or updated.

ACH Returns and Notifications of Change Compared

Need help?

If you have questions about an ACH return, Notification of Change, or the action listed in your notification, contact MineralTree Customer Support:

• Phone: 855-672-9669
• Email: mtsupport@mineraltree.com