Assumptions
In the ACH Contested Dishonored Return Entry example, WXY Bank received the following PPD entries from XYZ Trust, which has started to originate ACH payments from customer AM Club.
Note: The ACH Contested Dishonored Return entry example relates to specific applications that are
outlined in the documentation provided here, and is not intended to depict situations that are
always appropriate.
Application 1
AM Club collects some of its monthly dues through use of ACH debit. On June 25, AM Club prepares an ACH file on its PC software package and delivers it to XYZ Trust by using a modem. The file contains one collection for July dues. The entries total $600.00. AM Club's ID number is its tax ID - 249999991.
| 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.
- WXY Bank received the following PPD entry from XYZ Trust. WXY Bank determined that Beth Connor 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. XYZ Trust suffered the loss and responded to the ACH return entry received with a Dishonored Return entry.
- WXY Bank received the Dishonored Return entry and disputes the fact that the return was untimely, since it transmitted the return on June 27. Because of hardware problems at the Receiving ACH Operator, the return was not settled until June 29.
- The ACH Contested Dishonored Return file will be delivered to WXY Bank's ACH Operator - TTY Services which has a Routing Number of 34223222.