EFT Rails

EFT returns in Canada

A bank that will not honour an EFT must send it back by the next business day, with a code that says why. A customer can dispute a pre-authorized debit for up to 90 days.

Updated November 3, 2026

What EFT Rails does

On EFT Rails you can see where an electronic funds transfer (EFT) payment stands and why it came back. A payment the bank rejected shows as failed, so it did not happen. A payment whose sending failed with no answer from the bank shows as unknown, so it may already be on its way and you must not send it again.

A payment that comes back shows as returned.

A payment carries your own reference, such as an invoice or loan number, back unchanged, and a bank reference to quote when you ask about it. Developers will find the details in the API reference.

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EFT returns in brief

Rejected before it moves

A rejected file fails the file checks. A rejected item fails the receiving bank's transaction edit inside an accepted file. Correct the problem and send a rejected item again as a new payment.

Returned after it settles

A returned item passed the edit but could not be posted, was dishonoured or was refused at the customer's branch. It comes back with a Return Reason Code no later than the business day after the bank's decision-maker receives it.

One more try for NSF

A debit returned for insufficient funds (NSF) or funds not cleared can be presented again once, within 30 calendar days, for the same amount. A second dishonour ends that option.

The later windows

A customer can refuse a credit for up to 90 calendar days. A personal debit reimbursement claim has the same 90-calendar-day window, while a business debit claim has 10 Business Days.

Four things that come back

Four outcomes account for a refused file, a failed payment, a reversal and an amount that differs from your records: a rejected file, a rejected item, a returned item and an error correction. Identify which one you have before creating another payment or changing your books.

What came back What it is How fast it arrives What to do
Rejected file The receiving bank refuses the whole file because it is unreadable, lacks an opening or closing control record, is out of balance, contains an invalid data element or mixes record types incorrectly. The bank can stop at the first reason it finds.1 Notice gives the File Creation Number, creation date and reason. It arrives no later than 1 hour after the deadline for a file in the 09:30 or 16:30 exchange, and before the next morning's 09:30 deadline for a file in the 21:00 exchange.2 Nothing in the file settles. Correct the file, account for its File Creation Number and send it again in a later exchange.3
Rejected item One item fails the receiving bank's transaction edit. It comes back with transaction type 900 and names the incorrect data element. Fifty or more rejected items in one file require immediate notice to the sending bank.4 It arrives in a file no later than the business day after the original file was edited.4 Correct the problem and submit a new payment. A rejected item has no other route back into processing.5
Returned item The item passed the edit but could not be posted, was dishonoured or was refused by the payor or payee at their branch. It carries a Return Reason Code. A returned item cannot itself be returned. The banks handle a dispute over one outside the return process.6 The usual deadline is the business day after the item reaches the first part of the bank able to decide. Later customer-initiated windows apply to some credits and debits.7 Read the code, match the return to its payment and follow the action for that reason.
Error correction The originator reverses its own item for a duplicate payment, wrong amount, wrong account number, cancelled pre-authorized debit agreement or debit that did not follow its agreement. It cannot protect a bank from an insolvent originator, and returned items are ineligible.8 Send it as soon as possible and no later than 3 business days after the settlement date.9 Use it only for one of the permitted originator errors and retain the connection to the original payment.

Rejected items inside an accepted file still settle in both directions: the money goes and comes back.10 The reject or return guide explains how to distinguish the two outcomes.

The guides

How long the other side has

A bank returning an item it will not honour must send it back no later than the business day after the item reaches the first part of the bank able to make or act on that decision.11

Two customer-initiated returns have later windows. A payee can refuse a credit up to and including 90 calendar days after it was processed to their account. A refusal after that point is addressed outside the clearing. A debit returned on the payor's reimbursement claim follows the pre-authorized debit (PAD) windows.12

A payor can claim reimbursement when a PAD did not follow the agreement, came after the agreement was revoked, or lacked a required confirmation, pre-notification or notice. The window runs up to and including 90 calendar days after a Personal PAD was debited, and 10 business days after a Business PAD.13 See the PAD dispute windows guide and the pre-authorized debits overview.

A customer can refuse an error correction within 90 calendar days of its posting date. The refused correction returns with code 915 or 922.14

Return reason codes

A Return Reason Code is a three-digit code in the 900 series. Codes 900 to 914 cover items dishonoured by the bank, 915 to 921 cover customer-initiated debit returns, 922 covers a customer-initiated credit return, and 990 is the default. Code 900 is reserved for edit rejects.15

Code Meaning What to do
901 NSF, for a debit.16 Check the 30-calendar-day window before presenting the same amount again.
902 Account not found.16 Confirm the account details and obtain corrected payment instructions.
903 Payment stopped or recalled.16 Resolve the stop or recall with the customer before taking new instructions.
905 Account closed.16 Obtain instructions for another account.
908 Funds not cleared, for a debit.16 Check the 30-calendar-day window before presenting the same amount again.
912 Invalid or incorrect account number.16 Confirm and correct the account number before creating a new payment.
915 No agreement existed.16 Review the agreement and the customer's claim before taking new instructions.

The return codes guide gives the full reference.

Presenting a debit again

Only a debit returned for non-sufficient funds (NSF), code 901, or funds not cleared, code 908, can be presented again. Present it once, within 30 calendar days of the return, for the same amount with nothing added. A second dishonour ends the right to present it again.17

A rejected item can only be sent again as a new payment.5 Any other return needs new instructions from the customer. The NSF returns guide sets out the operating steps.

Reconciling with your bank

Banks settle on the business day after the Due Date, or after the exchange for an item delivered late.10 A return or a reimbursement claim can still arrive after that date, so a payment that has settled can still come back.

Ask your bank or payment provider to trace a payment that cannot be found, and the sending bank makes the trace request. The receiving bank answers within 2 business days for a payment settled in the last 30 calendar days and within 5 business days for an older one. It need not answer a request made more than 12 months after settlement or one for an amount under $20.18 The reconciliation guide gives the matching procedure.

Reconciling on EFT Rails

On EFT Rails, a payment carries your own reference, such as an invoice or loan number, back to you unchanged, and a bank reference to quote when you ask anyone about it. Your system can ask for just the payments that changed since its last check. A payment that comes back shows as returned. You can match the return to the invoice or loan it belongs to.

Sources (18)
  1. Standard 005, Section D, paragraph 4 ↩
  2. Rule F1, Part II, "AFT Initial File Edit and Rejected Files" ↩
  3. Rule F1, Part V, "Settlement"; Rule F1, Part II, "AFT Initial File Edit and Rejected Files"; Standard 005, Section D, paragraph 4 ↩
  4. Rule F1, Part II, "Transaction Edit, Account Validation and Rejected Transactions" ↩
  5. Rule F1, Part II, "Resubmission of Rejected Transactions" ↩
  6. Rule F1, Definitions, "Returned Transaction"; Rule F1, Part III, "Unposted/Dishonoured Transactions/Transactions Refused by Payor/Payee" ↩
  7. Rule F1, Part III, "Time Limitation for Return"; Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
  8. Rule F1, Part III, "Error Correction Transactions" ↩
  9. Rule F1, Part III, "Time Frames for Error Correction" ↩
  10. Rule F1, Part V, "Settlement" ↩
  11. Rule F1, Part III, "Time Limitation for Return" ↩
  12. Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
  13. Rule H1, section 24 ↩
  14. Rule F1, Part III, "Time Limit for Error Correction Refusal" ↩
  15. Standard 007, sections 5 and 6 ↩
  16. Standard 007, Appendix I, "List of Return Reason Codes" ↩
  17. Rule F1, Part III, "Re-presentment and Rejected Returned Transactions" ↩
  18. Rule F1, Part IV, "Trace Requests, Tracing Limits and Tracing Procedures" ↩

Questions

What is the difference between a rejected and a returned EFT?

A rejected item fails the receiving bank's transaction edit and returns by the Business Day after the original file was edited.1 A returned item passed that edit but could not be posted, was dishonoured or was refused at the customer's branch, and carries a Return Reason Code.2

How long does a bank have to return an EFT?

The usual deadline is the business day after the item reaches the first part of the bank able to decide to dishonour or refuse it.3 A payee can refuse a credit for up to 90 calendar days, while a debit returned on a payor's reimbursement claim follows the PAD window.4

Can a returned payment be sent again?

A debit returned for NSF or funds not cleared can be presented again once, within 30 calendar days, for the same amount with nothing added. A second dishonour ends that option.5 A rejected item can only be submitted as a new payment.6

What is an error correction?

It is the originator's reversal of its own item for a duplicate payment, wrong amount, wrong account number, cancelled PAD agreement or PAD that did not follow its agreement. Send it as soon as possible and no later than 3 business days after settlement; it cannot protect a bank from an insolvent originator.7 The customer can refuse it within 90 calendar days of posting, producing a return with code 915 or 922.8

Why did a payment come back after it settled?

Banks settle on the business day after the Due Date, or after the exchange for a late item, and a return can arrive afterwards.9 An item that passed the edit can still be unpostable, dishonoured or refused at the customer's branch.2 Settled is not final for an EFT.

How long can a customer dispute a pre-authorized debit?

A reimbursement claim can cover a PAD that did not follow the agreement, came after revocation or lacked a required confirmation, pre-notification or notice. The window is up to and including 90 calendar days after a Personal PAD was debited, and 10 Business Days after a Business PAD.10

Sources (10)
  1. Rule F1, Part II, "Transaction Edit, Account Validation and Rejected Transactions" ↩
  2. Rule F1, Definitions, "Returned Transaction"; Rule F1, Part III, "Unposted/Dishonoured Transactions/Transactions Refused by Payor/Payee" ↩
  3. Rule F1, Part III, "Time Limitation for Return" ↩
  4. Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
  5. Rule F1, Part III, "Re-presentment and Rejected Returned Transactions" ↩
  6. Rule F1, Part II, "Resubmission of Rejected Transactions" ↩
  7. Rule F1, Part III, "Error Correction Transactions"; Rule F1, Part III, "Time Frames for Error Correction" ↩
  8. Rule F1, Part III, "Time Limit for Error Correction Refusal" ↩
  9. Rule F1, Part V, "Settlement" ↩
  10. Rule H1, section 24 ↩

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