NACHA Unauthorized Returns Report

If you are using Direct Debit as a payment method, the National Automated Clearing House Association (NACHA) rules require that you monitor unauthorized Direct Debit returns to ensure that the unauthorized returns rate does not exceed 0.5 percent. The return rate is calculated by dividing the number of debit entries returned as unauthorized (return reasons R05, R07, R10, and R29) by the total number of debit entries originated for the preceding 60 days.

If you exceed the unauthorized returns rate threshold of 0.5%, you are required to supply, upon request, documentation in defense of unauthorized Direct Debit returns and reduce unauthorized returns within 60 days after receipt of the written request for information. Additionally, you must maintain a rate below 0.5% for an additional 180 days.

The NACHA Unauthorized Returns Report provides the necessary information to assist you in monitoring unauthorized Direct Debit returns. Transaction-level data is available for the previous 24 months only.

To access the NACHA Unauthorized Returns report:

From the iQ Bar, click the Chargebacks icon and choose Direct Debit - NACHA Unauthorized Returns from the list of available reports, or from the Chargebacks Navigation bar. The NACHA Unauthorized Returns Report appears.
Specify the desired Date Range. The start date is automatically populated with a date 60 days prior to the current date.
Select a Reporting Group and click View to refresh the page.

See Notes on Reporting Group Limits for information on the report groups shown in the Reporting Group drop-down selector.

The table below describes the fields in the NACHA Unauthorized Returns report.

NACHA Unauthorized Returns Report

NACHA Unauthorized Returns Field Descriptions
Field/Column	Description
NACHA Unauthorized Returns Rate	The unauthorized Direct Debit returns rate percentage. The returns rate is calculated by dividing the number of debit entries returned as unauthorized (return reasons R05, R07, R10, and R29) by the total number of debit entries for the preceding 60 days. Per NACHA rules, this percentage cannot exceed 0.5%.
Unauthorized Returns as % of Sales	The percentage of unauthorized Direct Debit returns in the preceding 60 days (or in the time span specified), as a part of total sales.
Total Unauthorized Returns Count	The total number of unauthorized returns in the preceding 60 days (or in the time span specified).
Total Unauthorized Returns Amount	The total dollar amount of unauthorized Direct Debit returns in the preceding 60 days (or in the time span specified).
Total Sales Transactions Count	The total number of Direct Debit sales transactions in the preceding 60 days (or in the time span specified).
Total Sales Transactions Amount	The total dollar amount of Direct Debit sales transactions in the preceding 60 days (or in the time span specified).