Assumptions
These are the assumptions for the ACH Dishonored Return entry example.
Note: The ACH Dishonored Return entry example relates to specific applications that are outlined
in the documentation provided here, and are not intended to depict situations that are always
appropriate.
AM Club collects some of its monthly dues through ACH debit. On June 25, AM Club prepares an ACH file on its PC software package and delivers it to XYZ Trust over a modem. The file contains one collection for July dues. The entry total is $600.00. AM Club's ID number is its tax ID, which is: 249999991
AM Club's customer information is listed below:
| NAME | Connor, Beth |
| MEMBERSHIP # | 5130 |
| DUES | $600.00 |
| FI | WXY Bank |
| RTN | 34513093 |
| ACT. # | 31872-76 54 8 (checking) |
- XYZ Trust's ID, Routing and ABA Number, is 27111111. Its ACH Operator, LOL services' Routing Number is 27322225.
- WXY Bank received the following PPD entry from XYZ Trust. WXY Bank determined that Beth Connor’s account has insufficient funds to cover the membership dues and sent back an ACH return entry on June 27.
- Due to a hardware problem, the ACH Operator was only able to deliver the ACH return to XYZ Trust on June 29 instead of the required June 28 date. At this point AM Club declared bankruptcy. The loss was, therefore, suffered by XYZ Trust. XYZ Trust then responds to the ACH return entry received with a Dishonored Return entry.