EFT return codes in Canada

What EFT Rails does

A returned electronic funds transfer (EFT) payment shows as returned in the API and in the dashboard. Your system can request only the payments that changed since its last check, which is how a return reaches it. Each payment carries your own reference unchanged and a bank reference you can quote, as described in the API reference.

What a return code is

A return reason code is a three-digit code assigned by Payments Canada and defined in Standard 007, and the customer's bank uses it to identify the reason for returning the payment.¹

A payment that the customer's bank cannot post or dishonours, or that the customer refuses, comes back with the code for that reason.² The reason can concern the account, the availability of money, the customer's authority for the debit or the customer's refusal of a credit.

The codes form four groups. Codes 900 to 914 identify payments the bank dishonoured. Codes 915 to 921 identify returns the customer started, and this group applies to debits only. Code 922 identifies a credit the customer returned, while 990 is the default code.³

Each code also has a suggested three-letter short form for bank reports, such as NSF for 901. A bank can expand that short form into a longer description.⁴

The codes

The table gives the meaning of each code, who raised the return and whether the payment can be presented again.⁵

Code 906 was retired on October 11, 2007. It cannot be reused for any reason other than an account transfer.⁴

Code 900 is reserved for an edit reject.⁶ The distinction between an edit reject and a return determines where the payment stopped and what correction is needed.

How long a bank has

A bank has a fixed deadline to send back a payment it cannot complete. The return must be made no later than the business day after the payment reaches the first part of the bank that can decide to dishonour or refuse it.⁷

Customer-initiated returns follow different clocks. A payee can refuse a credit up to and including 90 calendar days after it was posted to their account. A refusal after that point must be settled outside the clearing.⁸

For a debit, the customer can claim reimbursement up to and including 90 calendar days after a personal debit and 10 business days after a business debit. The customer has 90 calendar days where no agreement existed.⁹ The PAD dispute windows explain these deadlines for pre-authorized debit (PAD) collections.

Presenting a debit again

Only two return reasons permit another presentation: 901 for non-sufficient funds and 908 for funds not cleared. The debit can be presented again once, within 30 calendar days of the return, and a PAD must be for the same amount. A second dishonour ends the ability to present it again.¹⁰

EFT Rails sends a debit again only when you create it again. The steps and collection considerations are covered in handling NSF returns and PAD NSF fees.

A return with any other code requires a different response. For an account problem, obtain the correct details from the customer. For an agreement or notice problem, check the collection authority before creating another debit.

Corrections the customer refuses

A customer can refuse a correction after it has been posted. The refusal must occur within 90 calendar days of the posting date. A corrected debit comes back with code 915, and a corrected credit comes back with code 922.¹¹

Reading a code

A code from 900 to 914 points to the account or the money. Get the correct details from the customer when the code concerns account information, or wait for funds when the code permits another presentation.

A code from 915 to 921 points to the agreement or a notice. Check the PAD agreement, its terms and the required notice before collecting again. Code 922 concerns a credit the customer returned.

Codes are written as bare digits, such as 901. A letter in front of the digits comes from the bank's own report. Match the returned payment to your own reference, keep the bank reference to quote and see EFT reconciliation.