Return Code (R10) - Account holder advises that transaction is not authorized.

What it means

The person who owns the bank account (i.e. the resident) has told their bank that this EFT was unauthorized. The bank has a legally binding form on file stating this fact. This return code is similar to (R08) Account holder has stopped payment on this single transaction, but it has more legal weight because a Written Statement Under Penalty of Perjury has been signed.

How to fix it

For tenant payments, Association owner payments, and rental application fees

Contact the resident or applicant to find out why they stopped the payment and how they'd like to proceed.

Once a transaction has been returned with this code, the same bank account cannot be used in a future transaction. Doing so could result in a fine. To avoid this, you should be careful to use a different bank account and delete any recurring payments.

For rental owner and vendor payments

You told your bank that the EFT was unauthorized. This return code will usually result in your merchant account being placed on funding hold by ACH Direct until the issue is resolved.

Formal Definition

R10 Customer Advises Not Authorized, Notice Not Provided, Improper Source

For entries to Consumer Accounts that are not ARC entries, POP entries, or RCK entries, the RDFI has been notified by its customer, the Receiver, that the Originator of a given transaction has not been authorized to debit his account. The Receiver may request immediate credit from the RDFI for an unauthorized debit. The request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the Receiver information pertaining to that debit entry. The Receiver must also provide the RDFI with an Written Statement Under Penalty of Perjury, pursuant to subsection 8.6.5 (Receiver’s Written Statement Under Penalty of Perjury), that the debit entry was not authorized by the Receiver. For purposes of this code and related Operating Rules provisions, a debit entry was not authorized by the Receiver if (1) the authorization requirements of Article Two, subsection 2.1.2 (Receiver Authorization and Agreement) have not been met; (2) the debit entry was initiated in an amount greater than that authorized by the Receiver; or (3) the debit entry was initiated for settlement earlier than authorized by the Receiver. An unauthorized debit entry does not include a debit entry initiated with fraudulent intent by the Receiver or any person acting in concert with the Receiver. The RDFI must return the rescinded transaction to its ACH Operator by its deposit deadline for the adjustment entry to be made available to the ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the original entry. This code and related Operating Rule provisions apply to Consumer entries only.

OR

For ARC Entries, the RDFI has been notified by its customer, the Receiver, that (1) the required notice was not provided by the originator in accordance with Article Three, subsection 3.7.1 (Notice obligation), (2) the source document used for the debit entry is improper pursuant to subsection 3.7.2 (source documents), or (3) the amount of the ARC entry was not accurately obtained from the source document. The Receiver may request immediate credit from the RDFI for an ARC entry for the reasons described above. The request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the Receiver information relating to that debit entry. The Receiver must also provide the RDFI with a Written Statement Under Penalty of Perjury, pursuant to subsection 8.6.5.1 (Receiver’s Written Statement Under Penalty of Perjury for ARC Entries), that (1) the required notice was not provided, (2) the source document used for the debit entry is improper, or (3) the amount of the ARC entry was not accurately obtained from the source document. An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the ARC entry.

OR

For POP entries, the RDFI has been notified by its customer, the Receiver, that (1) the Originator of a given transaction has not been authorized to debit his account, or (2) the source document for the debit entry is improper pursuant to subsection 3.8.1 (source documents). The Receiver may request immediate credit from the RDFI for a POP entry for the reasons described above. The request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the Receiver information relating to that debit entry. The Receiver must also provide the RDFI with a Written Statement Under Penalty of Perjury, pursuant to subsection 8.6.5.2 (Receiver's Written Statement Under Penalty of Perjury for POP Entries), that (1) the entry was not authorized, or (2) the source document for the entry is improper. An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator's.

 

Article #: 112259

 

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